australia's identified mineral resources 2005 - Geoscience Australia

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AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2005 Gold has a range of uses but the two principal applications are as an investment instrument and in the manufacture of jewellery. Secondary uses, in terms of the amount of gold consumed, are in electronic and dental applications. Resources Australia’s gold resources occur and are mined in all States and the Northern Territory. At the end of 2004, total Australian gold resources were 997 t higher than at the end of 2003. After allowing for the replacement of those resources lost to production (259 t), newly delineated resources added to the national inventory totalled 1 256 t (40 Mozs) in 2004. Inventories grew in Queensland, Victoria, New South Wales and South Australia. Australia’s EDR rose by 207 t (6.7 Mozs) in 2004 to 5 589 t and accounted for 82% of total demonstrated resources, a small increase on the share in 2004. In 2004, EDR increased in New South Wales, Tasmania, South Australia and the Northern Territory. Western Australia continued to dominate EDR with 58% of the national total, which was a slightly reduced share. In 2004 its EDR fell by 44 t to 3 243 t. South Australia had the second largest EDR. In the Northern Territory, EDR rose by 33 t to 213 t. Subeconomic demonstrated resources fell by 334 t in 2004. All the reduction occurred in the paramarginal category, which fell by 335 t to 1 102 t. Western Australian paramarginal resources rose by 344 t to 772 t, which was 70% of total paramarginal resources. Increases also occurred in all other jurisdictions except the Northern Territory where paramarginal resources halved. The major reduction in paramarginal resources is attributed to a number of factors but particularly the reclassification of resources following the high gold prices. Submarginal demonstrated resources remained unchanged at 107 t, over half of which is in Western Australia. Inferred resources rose by 1 125 t due principally to the release of new data for inferred resources at the Olympic Dam (SA) and Bendigo (Vic) deposits. These, together with increases in all other areas except Tasmania and the Northern Territory caused the major growth. Western Australia continued to dominate inferred resources accounting for about 43% of total inferred resources. The ratio of demonstrated to inferred resources fell sharply from 2.4:1 in 2003 to 1.7:1 in 2004. This is a substantial improvement on the position in 2003 and indicates the availability of inferred resources, which may be upgraded by future exploration to the potentially mineable categories, has improved. However, much of the growth in inferred resource came from one deposit, which suggests that there is still a significant need to increase the level of inferred resources through discoveries. 32 Accessible EDR EDR for gold are essentially unencumbered (less than 1% is in any form of restricted area). At Australia’s 2004 rate of production, EDR is sufficient for an average 22 years production. If, however, resources only classified as reserves under the JORC Code are considered, they will support only 12 years at the 2004 production rate. This is similar to the 2003 reserve:production ratio. It should be remembered that these are average figures and that there are some operations that may continue after the 22 or 12 year periods and there are others that will close before the end of those periods. These figures continue to highlight the need for ongoing successful exploration in both the short and medium terms. JORC Reserves EDR is the sum of the JORC Code reserves categories plus those resources from the measured and indicated resource categories assessed by Geoscience Australia as likely to be economic. In 2004 just under 60% of EDR fell into the JORC reserves category compared to 64% in 2003. Exploration Gold dominated exploration spending (50.5%) and, at $397.1 million, was at its highest level since 1998–99. Although in constant 2003–04 dollars, gold remained the dominant commodity sort, the level of spending grew only slightly and was less than in 2000–01 and less than half both the 1996–97 level and the 1987–88 peak.
AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2005 While gold remained the predominant target in calendar year 2004, its share of total spending fell to 45%. Gold exploration spending was $414 million in the year, an increase of $40.3 million. Although Western Australia dominated exploration by attracting $283.7 million, its share of total gold exploration fell to 68.5%. All other regions had gold exploration during the year and encouraging results were reported from them. Selected highlights, which are indicative of the year’s activity, are reported at the end of this section. Data published by the Canadian company Metals Economics Group (MEG) on company exploration budgets for non-ferrous minerals indicates that intended spending on gold exploration in Australia for the year was US$323.9 million (A$438 million using the exchange rate used by MEG). This budget was about 5% higher than actual spending reported by ABS. The MEG data show that 35.2% of gold exploration budgets were expected to be directed at minesite exploration, while 33.5% was directed to grassroots exploration. The remaining 31.3% was for late stage exploration. These shares are indicative of the trend to brownfields exploration that Australia has been experiencing in the major commodities. New gold mineralisation was found across the continent and at depth below known deposits. A variety of styles of mineralisation also continued to be found. The Archaean greenstones of Western Australia’s Yilgarn Craton remain a very favourable target, but the reported results that follow suggest that substantial opportunities exist in other provinces. NEW SOUTH WALES ■ Alkane Exploration Ltd reported further encouraging drilling from its Tomingley project, which hosts the Wyoming gold deposits. Among new targets identified was the McLeans prospect, which has mineralisation in two zones over 1 km strike length and intersections of 4 m @ 3.68 g/t Au, 2 m @ 4.24 g/t Au and 33 m @ 0.54 g/t Au. It also identified Tomingley Two with intersections including 3 m @ 4.93 g/t Au, 24 m @ 1.29 g/t Au and 102 m @ 0.66 g/t Au. ■ ■ At Dargues Reef south southwest of Braidwood, Hibernia Gold Ltd reported strong drillintersections including 24 m @ 7.9 g/t Au which included 3 m @ 25.9 g/t Au and 2 m @ 18.0 g/t Au, and, in a new lode, 9 m @ 8.0 g/t Au including 3 m @ 14.6 g/t Au. Malachite Resources NL reported that exploration at the Tooloom project in northern New South Wales resulted in an intersection of 150 m of mineralised breccia at the Phoenix prospect. The company notes that the breccia appears to be a pipe-like body with surface dimensions of 300 m by 70 m and a depth extent of over 450 m. The average grade for the 150 m intersection was 0.14 g/t Au with individual 1 m sections up to 1.4 g/t Au. NORTHERN TERRITORY ■ Giants Reef Mining Limited reported resources at its Malbec West deposit located 900 m west of its Chariot Mine west of Tennant Creek. Total resources of 17 103 ozs are made up of measured resources of 23 100 t @ 17.1 g/t Au, indicated resources of 11 900 t @ 7.9 g/t Au and inferred resources of 11 300 t @ 3.8 g/t Au. QUEENSLAND ■ Strategic Minerals Corporation NL undertook a drilling program at its Woolgar project, 100 km north of Richmond, to investigate previously untested epithermal veins. Results included 7 m @ 5.69 g/t Au, 6 m @ 3.96 g/t Au and 2 m @ 12.03 g/t Au at Shanghai, 5 m @ 4.40 g/t Au at Hillview, 2 m @ 4.57 g/t Au and 1 m @ 6.80 g/t Au at Grand Central and 2 m @ 44.5 g/t Au and 2 m @ 46.5 g/t Au at Explorer South. 33 ■ At Manumbar near Kilkivan, D’Aguilar Gold Ltd reported encouraging results from drilling to test an epithermal system beneath old open pits. Assaying of old core not previously analysed returned 1.3 m @ 14.5 g/t Au and 1.2 m @ 6.61 g/t Au from 104 m and 84.4 m respectively. New drilling returned 6.0 m @ 7.65 g/t Au from 94 m and 0.6 m @ 3.23 g/t Au from 135.2 m.
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