Exploration and Discovery Challenges for Copper in SA
Steve Hill and Richard Hillis SA Copper Summit Adelaide Convention Centre Wednesday 6 May 2015
Key Take-Homes from CRU Copper Conference, Santiago, April 2015 • oversupply in near-medium term (until ~2016-2017), undersupply in longer-term:
how bearish in near-medium and how bullish in longer-term varies with analysts • uncommitted projects needed by end of decade to meet supply shortfall • only ~top quartile of new brown- and greenfield projects hit $US 6,000/tonne • grades and impurities are a growing concern • declining productivity is a global challenge, driven in Chile by declining grades increased workforce/tonne
• offset in Chile by increase in processing capacity
To Grow Copper Production, SA Must Provide Best Return on $ Via • technological innovation including exploration addressing grades • other aspects of multifactor productivity (e.g. labour, capital, power & water)
Productivity Challenge
Source: EY ‘Productivity in Mining’, 2014
Productivity Challenge
Source: Topp et al., 2008
The Exploration and Discovery Challenges for Copper in South Australia Steve Hill
Director, Geological Survey of South Australia
South Australia Copper Summit, June 2015
EXPLORATION AND DISCOVERY The strength of the mining industry is sustained through new discoveries. If you don’t have discoveries then you don’t have mines.
Geoffrey Blainey AC August 2013
Emerging efficiencies in drilling, real-time analysis and targeting / mapping mineral systems provide the opportunity for South Australia to lead the world in uncovering high grade discoveries
Moon Plain, Stuart Shelf, SA (Photo S.Hill)
The DISCOVERY challenge… The covered minerals search space across 80% of South Australia!
Government / Private Drivers of Discovery (“The Magna Carter”)
Land Access
Human & Intellectual Capital Education and training R&D – new exploration and processing technologies
Precompetitive Geoscientific Data and Information
Capture and Delivery Value-add Research Underexplored / Covered Regions Targeted Programs
Discovery
Quality of Exploration
Quantity of Exploration
Geos
cienc
e Aus
tralia
; CSI
RO, U
of A
; SAC
OME;
GSS
A
Availability of Finance
GREENFIELDS
Adapted from Derek Carter
Collaboration is key! • PACE • Industry collaboration • Best researchers and associated geoscience and technology
(e.g. Universities, CSIRO, DET CRC, Service Providers) • National partnerships (e.g. Australia Minerals, Geoscience Australia,
NSWGS, NT) • International partnerships (e.g. Sernageomin (Chile), Saskatchewan GS,
China GS, China National Nuclear Corporation)
New Copper Discoveries in South Australia 1. TARGET: Cu Mineral Systems
– IOCG(±U) – Magmatic Cu-Ni-PGE – Volcanic / Porphyry / VMS – Epithermal – Stratabound, SedEx, Sediment hosted (stratiform)…
2. SEARCH SPACE: Scale Reduction – Mineral Province / Regional – Regional to Camp – Camp to Deposit
Themes during scale reduction exploration
From UNCOVER Roadmap
REGIONAL: New Copper (Cu-Ni-PGE) Province in Western Gawler Craton / ‘Coompana’ (TMI backdrop)
‘Coompana’ Fowler Domain
Gawler Ranges
Deep crustal seismic line
(GA, AusScope GSWA, GSSA)
SA’s largest airborne magnetics /
radiometrics survey • 249,000 km survey data • Tender awarded to GPX
Surveys
Regional Magnetotellurics 50 km AusLAMP grid
Regional Plant Biogeochemistry Colin Dunn & Helen Waldron
Towards Regional drilling! • <6 basement penetrating holes
in western half of State! • Recent regional drilling under
Eucla Basin in WA reached basement within 400m
Camp to Deposit: Towards New Deposits in SA
• Mapping & understanding alteration, differentiating mineralisation styles, vectors in Olympic Domain
• Through • Spectral scanning (inc 20 km
HyLogger beneath OD!) • Multi-element geochemistry • Petrophysics • Geophysical data
reinterpretation
WUDINNA KIMBA WHYALLA
PORT AUGUSTA Paris Menninnie
Dam
Iron Duke
Uno
PORT LINCOLN
Minotaur Exploration
Kingston Resources
REGIONAL TO CAMP -Uno Province / Southern GRV margins
1590 Ma Gawler Range Volcanics cover
Regional Mineral System Drilling From $2 M PACE Frontiers fund into > $7 M program!
Geological Mapping and
Geochronology AusLAMP
Magnetotellurics grid (~50 km)
Regional Metallogenic
Studies
Regional Geochemistry and Mineralogy (esp.
open file drill samples)
A 1590 Ma crustal section for South Australia?
Coiled Tubing Drill Rig
Autonomous Sonde
Lab-at-RigTM
New Eastern Gawler Craton Solid Geology
• 6144 drillholes (2558 of them targeting IOCGs) From: Tom Wise, GSSA 2015 SAREIC Presentation
Increased Efficiency towards High Grade Discoveries…
Efficiency and Value Proposition To drill 130,000m on 10km x 10km grid through cover for basement and/or unconformity sample at $50/m: $6.5M (excluding where basement > 1km depth)
Disclaimer The information contained in this presentation has been compiled by the Department of State Development and originates from a variety of sources. Although all reasonable care has been taken in the preparation and compilation of the information, it has been provided in good faith for general information only and does not purport to be professional advice. No warranty, express or implied, is given as to the completeness, correctness, accuracy, reliability or currency of the materials. The Department of State Development and the Crown in the right of the State of South Australia does not accept responsibility for and will not be held liable to any recipient of the information for any loss or damage however caused (including negligence) which may be directly or indirectly suffered as a consequence of use of these materials. The Department of State Development reserves the right to update, amend or supplement the information from time to time at its discretion.
www.statedevelopment.sa.gov.au