MINING WELCOME 欢迎采矿 - The ASIA Miner

January/February 2012 | Volume 9 | Issue 1 | Industry Technical Information | 矿 业 技 术 信 息
MINING WELCOME
Focus on Papua New Guinea • Chinese Investment Abroad • Education in Mining
欢 迎 采 矿
聚 焦 巴 布 亚 新 几 内 亚 • 中 国 海 外 投 资 • 矿 业 教 育

FEATURES
Chinese Investment Abroad Chinese companies are increasingly investing in overseas projects in order
to secure the resources needed to sustain the country’s growth. This special feature looks at a number of
resource projects that are benefiting from this investment. ....................................................................53
Education in Mining Education in the mining sector has been under-estimated, under-valued and underfunded
for too long but it is one of the keys to the industry’s future success .........................................62
LEADING DEVELOPMENTS
Asian Intelligence The supply of power, increased paved road capacity and sourcing more reliable water
have been named by the Government of Mongolia as the most pressing issues to be solved in ongoing development
of the South Gobi region....................................................................................................... 4
Exploration Results of reconnaissance work by Kentor Gold over the Bashkol exploration licence area in
the Kyrgyz Republic have exceeded expectations ................................................................................72
AROUND THE REGION
PNG Goldminex has started a drilling program at its Liamu porphyry project .........................................14
PNG Gold Anomaly has received a maiden resource estimate for its Nevera prospect...........................22
Australia First ore has been processed at Hillgrove Resources’ Kanmantoo Copper Project. ...............23
Mongolia Erdene Resource Development is drilling at the Altan Nar gold project ..................................31
China Production at Eldorado Gold’s Eastern Dragon project has been delayed.......................................36
Indonesia Full production has started at Archipelago Resources’ Toka Tindung gold mine ...................40
Thailand Coal importer and distributor Energy Earth acquires Indonesian coal mine.............................43
Philippines Mining Group is acquiring 80% of the Comval project from Cadan Resources ...................44
Central Asia Chaarat Gold Holdings is on track to begin production at the Tulkubash deposit ............46
India Astra Minerals has secured an iron ore trading licence for areas in Orissa state ...........................48
Malaysia Mission NewEnergy will build a waste material processing in East Malaysia .............................50
Vietnam Chinese steel mills are showing strong interest in New Zealand’s iron sands .................................64
Indonesia Olympus Pacific’s Phuoc Son mill is operating at its current daily design capacity.......................51
Woodlark Island residents welcome mining to the
island as Kula Gold moves through the pre-development
stages of a new gold mine primarily
based on historic workings. The company is
working closely with locals in its mining and environmental
studies. Mining has been carried out
on the island on a number of occasions since gold
was first discovered in 1895 but Kula Gold is well
advanced along the path to introduce modern
mining methods to this island … to the benefit
of all residents. Photo courtesy Kula Gold.
DEPARTMENTS
Advertisers’ Index ........................................71
Calendar of Events ....................................52
From the Editor ............................................2
Product News ............................................68
Subscription Form ......................................71
Supplier News ............................................64
Nautilus increases resources ................................8 Oyu Tolgoi 70% complete ....................................30 Funds boost for Rocklea ......................................54
January/February 2012 | ASIA Miner | 1

From The Editor
Precious metals the only store of wealth
SOCIETY needs to realize that the world’s financial problems cannot be
solved by governments printing more paper money and creating more
debt, as has been the case since the link between gold and money was
removed 40 years ago. Gold is the purest form of currency, followed by increasingly
attractive silver, and the gold standard must to be reintroduced.
This was a common theme at the inaugural Gold Symposium in Sydney
during November and remains in the spotlight with the world’s debt crisis
showing no sign of easing as we move into another year. Respected Sydney
gold chartist Alf Field told Symposium delegates that it is more than 40
By John Miller /Editor
years since President Nixon removed the last link between currencies and
gold which launched the era of floating ‘I owe you nothing’ currencies. Money is what any government
deems it to be, generally something it can create in unlimited quantities. This system, along
with the fractional reserve banking system has brought an era of ever increasing debt and credit.
“After August 1971 the US Dollar became the world’s de facto reserve currency, which endowed
the US with the advantage of being able to run current account deficits, buying goods
and services from the rest of the world and paying for them with newly created US Dollars. Nations
in surplus have built up large holdings of US Dollars that they are getting very nervous
about while there is wide recognition that the reserve status of the US Dollar cannot continue.
“The distortions that have grown since 1971 have reached proportions that demand change.
The problem is that the current generation does not understand that the root cause of the global
financial crisis is unsound money, which can be created at will by governments, combined with
a banking system that has enabled the creation of an unsuitable level of debt.”
Alf Field said, “The slate needs to be wiped clean and a new sound monetary system introduced.
This will require elimination of all debt, deficits, unfunded social entitlements, the US Dollar
as reserve currency, and the big one, the $600 trillion of derivatives. To eliminate these
problems by default and deflation will cause a banking collapse and untold economic pain.
“While politicians continue to have the ability to create new money at will, they will do so in
order to prevent a meltdown on their watch. The new international monetary system is likely to
involve precious metals. It will have to be money that people trust and that governments cannot
create at will. It is likely that gold will again be the unit of measurement or standard of value
against which the performance of other assets will be judged.
Sprott Asset Management chairman and CEO Eric Sprott told delegates that global financial
markets face meltdown from debt with banks levered at 20:1 and European banks at 30:1.
“With governments buying out troubled banks, the risk is being transferred to the public sector
which is likely to solve it by printing more money and creating more debt.
“Gold production has remained flat for 10 years while demand is increasing rapidly, particularly
in China and other Asian nations. Silver supply is also not keeping up with strong demand
for its use as a precious metal as well as demand for industrial uses.
“There is no doubting gold’s strength as a store of value and it has plenty of upside. Silver is
under-rated and possibly has more potential for increased returns, despite its volatility. The supply
ratio of silver to gold is 16:1 but the price ratio is 50:1. If the price ratio was to change to 16:1,
silver prices would be about $100 an ounce.
“Most gold produced throughout history is still around because it has always been a store of
wealth while silver’s strong industrial use and lesser value means most of the silver produced is
not around anymore. This means strong ongoing demand for silver and supply that cannot keep
pace, therefore just like gold, prices must increase.
“Despite the positive outlook for gold as an increasingly valuable store of wealth and the potential
for under-valued gold stocks, gold still only represents 1.5% of all assets.” Eric Sprott
says the market has determined that gold is the ultimate currency and will continue to rise in
value against paper currency while it looks increasingly likely that silver will march towards the
16:1 price ratio, and possibly up to 10:1.
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2 | ASIA Miner | January/February 2012

Asian Intelligence
Australia can reclaim technology mantle
AUSTRALIA’S resources sector has taken its
eye off the ball in developing world-leading
mining, energy and exploration technology,
according to one of the sector’s most prominent
female identities, and it is due mainly to
the speed and intensity in which the industry
has grown over the past five years.
However, an opportunity exists over the next
30 years for the sector to reclaim that mantle
and ‘do things better than anywhere else in the
world’. The comments were made by respected
industry stalwart Dr Erica Smyth in delivering the
37th annual Essington Lewis Memorial Lecture,
one of the most prestigious lectures on the
South Australian resources industry calendar.
“There is an opportunity for us to do our
business better than anywhere else in the
world, and in doing so, create a long-lasting
legacy of a skills and knowledge node for the
resources sector,” she said. “We need to harness
the research, new business investment,
technology innovation, local training and skills
development that are now going on in a piecemeal
way. This approach will need to be
via government, universities and resource industry
collaborations and partnerships.
“The industry has grown at such a rapid rate
over the past 5 years no-one has actually had
the time to sit down and look at the things we
have done well, and the things we haven’t
done so well. As we venture into this next period
of growth, we need to be very careful that
we leverage off the things we already do well
and to make time to address our weaknesses.
“Now, although we are not well known for
our inventions, we are seen as innovators in
applying that technology. Yes we have to import
the electronics associated with the completion
of production wells on the sea floor so
that production could be safely controlled,
but the way we apply that technology is first
class. The oil and gas industry is indeed an
international one where specialty components
come in from all over the world – and
then local Australian innovators make them
work in our conditions. But we seem to have
taken our eye off the ball as we rush to meet
the needs of the rest of the world. I am particularly
concerned that we do not seem to
have a vision other than to ‘dig it up and ship
it out’. We seem to have left the grassroots,
expensive and often unsuccessful, research
to others and rely on our ability to innovate in
its application.”
Power, water and roads vital for South Gobi
THE supply of power, increased paved road
capacity and sourcing more reliable water
have been named by the Government of Mongolia
as the most pressing issues to be solved
in ongoing development of the South Gobi region.
A cabinet meeting issued a resolution regarding
these issues as well as planning for
settlements and border crossings.
Within the framework of this resolution,
which primarily concerns development of the
Oyu Tolgoi (OT) and Tavan Tolgoi (TT) mines,
the following measures are to be taken:
• Supply power consumption for current
and future productive development
• Increase capacity of paved road by making
it a four-lane road
• Increase water source required for development
of mining and infrastructure
• Approval of master plans for soums/villages;
of border crossing points Gashuun
Sukhait/Gantsimadao and Shivee Khuren/Ceke;
and soum centres Khanbogd
(OT), Tsogttsetsii (TT) and Gurvantes/Nariin
Sukhait.
With power the Erdenes TT (ETT) company
has been assigned to undertake a feasibility
Mongolian Mining Corporation’s recently completed paved road to the Gashuun Sukhait border crossing is an example
of the infrastructure needed in the South Gobi region.
study for a power plant to be constructed
based on TT and with a build-operate-transfer
(BOT) condition to the state. The OT company
has been assigned responsibility to
build a power plant to supply production’s
consumption with a condition not to impact
the budget cost, a BOT condition to the state
and a condition for the plant to use TT coal.
With roads the capacity of the 245km paved
road from TT to the Gashuun Sukhait border
crossing is to be increased. ETT has been assigned
responsibility to increase the width from
two lanes to four, to secure funding source for
the new lanes on a BOT basis and have other
investors participate in the construction. The
government also wants roads from South Gobi
to the Khangi Mandal and Zamyn Uud border
crossings to be researched.
The government says significant water resources
are required for the development of
mining and infrastructure. The sector’s minister,
related agencies and provincial governors
have been assigned the task to make
detailed hydrogeological exploration at areas
with underground accumulation at TT and in
the Sainshand vicinity.
They are also to start a study for the possibility
of making flow adjustments to the Orkhon
and Selenge rivers, and establishing a
reservoir with a view to start construction in
2013. ETT is also to use water from the underground
deposit at Balgas Ulaan lake.
4 | ASIA Miner | January/February 2012

Asian Intelligence
Exploration budgets surge to all-time high
THE top challenge during 2011 among senior
mining executives is optimizing production effectiveness,
pushing the previous year’s primary
concern – ensuring workplace safety –
into second position, according to the Mincom
Mining Executive Insights: 2011 survey.
The study surveyed high-level executives at
256 mining companies in North America,
Latin America and the Asia Pacific region to
investigate their most pressing concerns, and
where they see opportunities for growth.
When asked to rank their top challenges by
level of urgency, respondents replied: Optimizing/maximizing
production effectiveness
(73%); ensuring workforce safety (53%); recruiting
and retaining a skilled workforce
(47%); managing capital projects (33%); ensuring
different departments work together
(33%); and ensuring equipment operates reliably
and predictably (32%).
Mincom’s executive vice president and
chief strategy officer Jennifer Tejada says,
“Overall, the attitude of the respondents is
positive, with 69% expressing optimism
about their general business outlook.
Not surprisingly, given the growing global
demand for mining products and high commodity
prices, maximizing production is by far
the number-one priority for global mining executives.
We see this trend among many of
Mincom’s mining customers as they work to
achieve productivity improvements, reduce
the impact of production bottlenecks, and
improve integration of processes across the
THE estimated total 2011 budget for nonferrous
metals exploration surged to an all-time
record of $18.2 billion, according to Metals
Economics Group’s (MEG) 22nd edition of
Corporate Exploration Strategies (CES). Despite
increased volatility recently, metals prices,
the primary driver of exploration
spending, remained relatively strong in 2011,
giving confidence to the industry and, as a result,
exploration budgets increased by $6.1
billion, up 50% from 2010. Nonferrous exploration
refers to expenditures related to precious
and base metals, diamonds, uranium
and some industrial minerals but it specifically
excludes iron ore, aluminium, coal, and oil
and gas. Including estimates for the budgets
MEG could not obtain, the 2011 worldwide
exploration budget totals $18.2 billion.
The CES study states that most countries
experienced increased exploration investment
in 2011, and explorers demonstrated a
higher tolerance for risk despite additional
concerns and uncertainty about security, policy,
and tenure in many countries. Of the 120
countries for which MEG documented exploration
spending by the industry, those commonly
perceived to be high risk accounted for
23% of the 2011 aggregate exploration total,
up from less than 16% in 2010. The study
says that the potential reward often increases
the industry’s appetite for risk during periods
of increased exploration spending, but exploration
in high-risk countries, particularly earlystage
work, is usually the first to be cut when
risk levels or uncertainty increases.
It says the proportion of overall exploration
spending dedicated to early-stage and generative
work has been fairly stable over the past
three years, however, at just a third of overall
allocations it is historically low. The decline in
grassroots’ share of spending over the past
decade correlates with the upward trend in
late-stage and mine site budgets, as companies
spent more on late-stage projects to move
them towards production or to make them attractive
for acquisition, and on mine site work
as a less expensive and less risky means of replacing
and adding reserves. However, the
number of large-scale assets advancing to development
has not risen proportionately with
this increased focus on late-stage projects,
contributing to constraints on meaningful production
increases for most metals.
The MEG indexed metals price represents a blend of the relative changes in a basket of metals prices weighted by
the percentage of exploration expenditures dedicated to each metal by the industry as reported in MEG’s CES studies.
Relative prices for 2011 are based on the average through September.
Optimizing production effectiveness is top challenge
mining value chain.”
When asked to rank their top three obstacles
to achieving organic growth, respondents
identified the following: Complying with
government regulations (40%); delays in getting
new mines operational (32%); difficulty in
standardizing business processes (22%); inability
to move quickly enough to exploit commodity
prices (21%); and inability to meet
planned production goals (21%).
“Mining companies face additional regulatory
scrutiny as they look to develop new
sites and increase production at existing
ones, leading respondents to once again
identify regulatory compliance as their primary
obstacle to organic growth,” says Jennifer
Tejada.
January/February 2012 | ASIA Miner | 5

Copper
6 | ASIA Miner | January/February 2012

Papau New Guinea
Nautilus increases seafloor resources
A SUCCESSFUL exploration drilling campaign at Nautilus Minerals’ tenements
in the Bismarck Sea of Papua New Guinea has enabled the company
to increase the resource estimate at its Solwara 1 project, and to
declare a maiden inferred resource at the nearby Solwara 12 deposit. Total
indicated resources have increased by 18% to 1.03 million tonnes and
total inferred resources have risen 36% to 1.8 million tonnes.
At Solwara 1 contained copper in indicated resource has increased 25%
to about 74,000 tonnes and contained copper in inferred resource has
increased 28% to about 125,000 tonnes. Contained gold in indicated resource
has increased 23% to about 166,000 ounces and inferred gold
resource has increased 5% to about 317,000 ounces.
A maiden inferred resource has been declared at Solwara 12, 25km to
the northwest of Solwara 1, of 230,000 tonnes, grading 7.3% copper and
3.6 grams/tonne gold.
The increases in contained metal within the resource are a result of additional
tonnes and importantly, higher grades, due to successful resource
drilling which identified further high grade ore zones. The increase in tonnes
was also partly due to a reduction in the cut-off grade from 4% copper,
used in the prior 2008 resource statement, to a copper equivalent
cut-off grade of 2.6% in the 2011 resource, following refinements in the
project design.
Nautilus Minerals’ president and CEO Steve Rogers says the notable
increase in the resource base demonstrates the success of the exploration
campaign, extending the life of the Solwara 1 Project and delivering an
improved knowledge of the Bismarck Sea geology. “Importantly, the declaration
of a maiden resource at Solwara 12 begins the process of building
a pipeline of projects for Nautilus in the region, and confirms the
prospectivity of the Bismarck Sea, where we have identified another 16
prospects for further evaluation.
“Nautilus will attempt to build on this base in the coming year, through
on-going exploration activities in PNG and elsewhere in the western Pacific.
Nautilus will be undertaking important work including the use of multibeam
sonar and seismic exploration tools in the Bismarck Sea over the
coming months to assist in identifying targets for drilling, scheduled to be
conducted in the second half of next year.”
Nautilus continues to make steady progress in the development of the
pioneering seafloor copper/gold project and remains on track to begin
production in the final quarter of 2013. The company successfully raised
Can$98.1 million in a capital raising with funds to be used for the construction
of a seafloor resource production system, which initially will be
deployed at Solwara 1. As a result of the successful financing, the Board
of Nautilus formally sanctioned the Solwara 1 project.
Drilling of Nautilus Minerals’ seafloor prospects is carried out from exploration ships.
Partners extend Frieda River feasibility study
Drilling on Highlands Pacific’s Star Mountains project near Ok Tedi.
HIGHLANDS Pacific and Xstrata Copper have agreed to extend the
completion of the Frieda River Copper-Gold Project’s feasibility study
by 11 months in order to evaluate new power supply options. Xstrata
Copper was due to deliver the study by January 23 to maintain their
81.82% interest but as a result of potential power options becoming
available late in the study timeframe, both parties have agreed to extend
the delivery date to December 21, 2012.
As part of the extension, Highlands will be carried through from January
23 to lodgement of the special mining lease application with
Highlands’ share of expenditure repaid when the project is in production.
Xstrata will be taken to have earned a 72% interest in the project
on January 23, with the remaining 9.82% contingent on completion
of the feasibility study. At the end of the study and subject to the joint
venture partners agreeing, the project could proceed to the lodgement
of a special mining lease and environmental impact statement.
The Frieda copper-gold project is one of the Asia Pacific’s largest undeveloped
copper/gold resources. It is 175km northwest of the giant
Porgera gold mine and 75km north‐east of the Ok Tedi mine. The
pre‐feasibility study released in November 2010 indicated annual
throughput of 60 million tonnes for the first eight years for 246,000 tonnes
of copper and 379,000 ounces of gold each year. The multi decade
life mine will have an average annual throughput of 50 million tonnes.
Highlands Pacific’s managing director John Gooding says, “There
are some exciting energy projects happening in PNG at present, either
in development or near-development, and Highlands and Xstrata
Copper believe these must be more rigorously considered to optimize
the development of this resource.”
Adjacent to the main Horse-Ivaal-Trukai ore body, which is the focus
of the study, the high-grade copper Nena deposit also provides further
options for the project. At present Nena is outside the JV with
Xstrata Copper, however Xstrata can bring it into the JV by exercising
an option and paying Highlands US$10.8 million by January 23, 2012.
8 | ASIA Miner | January/February 2012

Papau New Guinea
10 | ASIA Miner | January/February 2012

Papau New Guinea
Yandera DFS progressing to plan
Samples from the Yandera project are gathered and sorted.
THE definitive feasibility study (DFS) being prepared
for Marengo Mining’s Yandera Copper-
Molybdenum-Gold Project is progressing
generally to plan and should be completed in
mid-2012. The company says the revised DFS
management structure is working effectively.
A key component of the DFS is the process
plant design work which will be prepared
by Marengo’s strategic partners, China
Nonferrous Metal Industry’s Foreign Engineering
and Construction Co (NFC) and
Arccon, their Australian engineering partner.
This work will be undertaken at one of
NFC’s design institutes in China, which employ
2500 engineers who are focused on
the many offshore engineering and construction
projects being undertaken by NFC
at any one time. Arccon will provide supporting
engineering services to NFC.
NFC has confirmed their commitment to a
fixed-price engineering procurement construction
(EPC) contract and will develop their
proposal in 2012 with support from Arccon.
Under this arrangement, Marengo will appoint
NFC as the principal contractor under
a turnkey, lump sum contract and also enter
into a formal financing agreement under
which NFC will facilitate financing for the Yandera
project, for at least 70% of the project
development costs, through its nominated
Chinese financial institution.
The DFS is also addressing two basic tailings
management options – deep sea tailings
placement (DSTP) and land-based
tailings storage facility (TSF). In these options
the tailings are delivered as fine slurry
to either a deep offshore canyon or an engineered,
purpose-built onshore storage facility.
The mining, crushing and grinding
facilities are the same for both options and
would be located at the mine site. The con-
Mineralized samples from Marengo’s Yandera project.
centrator is the same for both options but
would be in a different location for each.
A preferred DSTP site has been identified
and three possible locations have been identified
for a land-based TSF. Further work is in
progress top select a preferred TSF location.
Newmont meets Morobe JV earn-in requirement
NEWMONT Mining’s wholly-owned subsidiary
NVL PNG has met the phase II earn-in
requirement of US$9 million in the Morobe
Joint Venture with Triple Plate Junction.
Newmont now owns a 70% interest in the
joint venture having invested a total of US$15
million over the last three years, and three
years ahead of expectations.
The joint venture ground borders tenements
held by Newcrest-Harmony which contain the
world-class Wafi-Golpu porphyry discovery,
with a mineral resource of 27 million ounces of
gold and 9 million tonnes copper as at June
2011, and the Hidden Valley producing gold
mine with a resource of 5.8 million ounces of
gold. Over the last three years Newmont has
conducted extensive regional and prospect
level exploration within the joint venture tenements
that cover about 3700sqkm of the Morobe
mineralized district within the highly
ranked Papuan Continental Arc.
The results identified at least four significant
porphyry targets at which Newmont has
planned further exploration during the next six
months. This includes continuing diamond
drilling at the Hides Creek prospect, commencing
drilling at the Gumots prospect, and
more detailed target definition at the Sier
Creek and Skarn Creek prospects. The budget
for this initial six month period is $5 million
with further investment expected.
The very highly rated Gumots prospect is
12km south of the Wafi-Golpu discovery, and
Skarn Creek is 17km south of the Hidden Valley
mine. Triple Plate will be undertaking full
evaluation of the Newmont work completed
to date, including the drilling at the Hides
Creek prospect when the results become
available, and the work program planned for
the next six months.
Under the Joint Venture Agreement, the
company has 60 days from November 3, 2011
in which to elect to either contribute to further
exploration and development by funding its
30% interest in the joint venture or have
Newmont solely fund all expenditure until commencement
of commercial production in the
tenements by transferring to Newmont an additional
5% interest in the joint venture, leaving
Triple Plate with an undilutable 25% interest
through to mine production across the entire
Morobe Joint Venture. If the company elects to
maintain its percentage then it is anticipated
that significant funds will need to be found.
Triple Plate’s director of exploration Bill Howell
says, “We are very impressed with the high
level of effective exploration expenditure and
technical expertise that Newmont has contributed
to this joint venture project. Triple Plate
feels vindicated that the large ground holding
that the company acquired some years ago is
now regarded as part of a highly ranked continental
arc setting with numerous structures
known as cross-arc transfer corridors which
are proving to host world-class copper-gold
ore bodies such as Wafi-Golpu.”
12 | ASIA Miner | January/February 2012

Papau New Guinea
Goldminex begins drilling at Liamu
GOLDMINEX has started a 4000 metre diamond
drilling program at its flagship Liamu
Porphyry Copper-Gold Project to test highly
encouraging surface sampling results. The
drilling will continue into the first quarter of
2012 and is targeting four key prospects of
the 10 identified within Liama to date - Movei,
Nesei, Iyiowai and Unebu.
Liamu is a large porphyry copper-gold system
120km east of Port Moresby in the Owen
Stanley region of PNG. The project is a partially
covered, structurally controlled, intermediate
intrusive complex about 35sqkm in area.
Liamu straddles the Owen Stanley Fault
Zone which is a northwest trending crustalscale
plate suture and is within an area of
complex faulting known as the Awala Flexure
Zone. The exploration licence is one of the
prospects covered by the Goldminex-Vale SA
Farm-in Agreement.
The 4000 metre diamond drilling program
consists of six deep diamond drill holes focused
on geochemical, geological and geophysical
targets in the Movei, Nesei, Iyiowai, and
Unebu prospect areas. The holes will provide
an initial indication of the potential of these
prospects to host economic-grade gold-rich
porphyry style copper mineralization. The
data from these holes will also provide useful
information to vector in on mineralized centres
within this very large project area and will
form the basis of further drilling.
The drill program follows substantial geological
and geochemical exploration activities at
Liamu which has to date outlined a 15sqkm
area shedding anomalous gold and copper in
drainage samples. In addition, extensive ridge
and spur soil sampling revealed about 11sqkm
of the project area exhibiting copper and gold
anomalous geochemistry. Goldminex has to
date identified t10 prospects at Liamu - Nesei,
Movei, Tikay, Dada, Unebu and Berefana within
the 5.5km x 1.5km Berefana Region, and
Imorobi, Biafa, Bubuafu and Iyiowai to the
north and east of the Berefana Region.
Goldminex’s CEO Sandy Moyle says, “We
are excited to enter this phase of drilling which
we hope will add a third dimension to the very
encouraging surface exploration results already
returned from Liamu. Although this drilling will
only test a small portion of the targets, it will enhance
our understanding of this large mineralized
system which has the potential to host a
significant porphyry copper-gold deposit.”
Strong copper values in Waria River samples
SAMPLING carried out by Papuan Precious
Metals (PPM) on the Waria River prospect
has returned up to 10.49% copper. The company
has received geochemical results from
101 rock samples collected from Kode, Nosoboro
and Jasawa Creek during follow-up
prospecting of airborne geophysical anomalies
on the exploration licence.
The best sample was collected from float
and assayed 10.49% copper, 0.33 grams/
tonne gold and 10.0 grams/tonne silver. There
were 20% of samples that contained anomalous
copper values greater than 0.1% copper.
PPM has a farm-in agreement with Petromin
Papuan Precious Metals’ Waria River property is in PNG’s Central New Guinea Range.
(PNG) Holdings whereby PPM can earn a 50%
interest in the Waria River property by spending
Can$1.2 million by July 2012. PPM has advised
Petromin that it has met its expenditure requirements
as of September 28, 2011.
Results from Nosoboro samples include
0.8 grams/tonne gold, 5.36% copper and
6.7 grams/tonne silver; 0.09 grams/tonne
gold, 0.05% copper and 6.4 grams/tonne
silver; 6.21% copper and 23.4 grams/tonne
silver; 0.60 grams/tonne gold, 5.89% copper
and 7.6 grams/tonne silver; and 0.33
grams/tonne gold, 10.49% copper and 10
grams/tonne silver.
Best Kode results are 0.67 grams/tonne
gold, 2.13% copper and 33.9 grams/tonne
silver; 0.13 grams/tonne gold and 0.13%
copper; and 0.3% copper. Best Jasawa
Creek results are 0.46% copper and 3.2
grams/tonne silver; 0.18 grams/tonne gold,
2.11% copper and 5.6 grams/tonne silver;
and 0.33% copper.
To date, copper/gold/silver vein mineralization
has been found as outcrop and float
boulders from a 400sqkm area of Waria and
Eia River catchments centred on Tubi village.
The Waria River project is in the Central New
Guinea Range, one of the world’s premier
porphyry copper belts, and in management’s
opinion presents an outstanding opportunity
to locate gold/copper porphyry-style mineralization
similar to that of the nearby Hidden Valley
mine and the giant Wafi-Golpu deposit.
Located along what was one of the main
overland routes to the early 20th Century gold
rushes at Wau, Edie Creek and Bulolo, the
presence of abundant alluvial gold in many of
the Waria River tributaries has long been
known. However, the area has remained relatively
untouched by modern exploration.
PPM has also recently received the final
report from its commissioned Commonwealth
Scientific and Industrial Research
Organization (CSIRO) study of the Doriri
Creek nickel-palladium-platinum prospect
at its Mt Suckling project.
14 | ASIA Miner | January/February 2012

Papau New Guinea
High-grade gold assays from Imwauna
HIGH-GRADE gold assay results have been
returned from 31 recently completed diamond
drill holes at PNG Gold Corporation’s
Imwauna project on Normanby Island. The
holes tested a 600 metre strike length of the
deposit and a vertical range of 50 metres to
150 metres below surface.
The drilling was designed to provide additional
information in the northern and central
part of the deposit at shallow depths where
there were gaps in the historic drilling and at
depth, between 100 metres and 150 metres
below surface, to verify the continuation of
the mineralized vein system.
The results re-affirm the high grade nature of
the deposit. The mineralized zone graded 3.0
grams/tonne or more in 65% of the holes while
11 holes, or 35%, intersected zones assaying
greater than 10.0 grams/tonne. There is no
strong correlation observed between grade
and thickness, although the thickest zones all
grade between 5 and 15 grams/tonne.
Highlights are: 7.4 metres @ 13.11
grams/tonne gold and 14.42 grams/tonne silver,
including 3.1 metres @ 24.6 grams/tonne
gold and 24.93 grams/tonne silver; 6.3 metres
@ 8.16 grams/tonne gold and 32.93 grams/
tonne silver; 4.3 metres @ 6.67 grams/tonne
gold and 11.11 grams/tonne silver; 5.1 metres
@ 5.38 grams/tonne gold and 9.17 grams/
tonne silver; 1.4 metres @ 15.6 grams/tonne
gold and 10.6 grams/tonne silver; and 1.1 metres
@ 16.66 grams/tonne gold and 23.85
grams/tonne silver, including 0.4 metres @ 42.5
grams/tonne gold and 43 grams/tonne silver.
PNG Gold’s president and CEO Dick Whittington
says, “These results significantly enlarge
our knowledge of the Imwauna vein
system both in terms of grade and geological
interpretation. We continue to be excited
about the property and are looking forward
to the results of our ongoing drilling with great
interest as we look to put out an NI 43-101
resource in the second quarter of 2012.”
Two drills are working on the Imwauna project
and were expected to drill test the promising
Kela’s vein system late in 2011 or early in
2012, while a third rig has been deployed to
the Sehulea property, 10km to the northeast of
Imwauna. A minimum of four holes totalling
1000 metres are planned to evaluate a very
strong, 1.2km-long, chargeability anomaly outlined
by a 3D IP survey completed last August
During the fourth quarter of 2011 PNG Gold
met the exploration expenditure requirements
under its option agreement with New Guinea
Drilling success at Kavursuki zone
Gold and notified that company of its desire
to exercise its option to acquire the remaining
interest it does not already own in the Imwauna
and Sehulea properties. Since then
New Guinea Gold and PNG Gold Corporation
have entered into a letter of intent with
respect to a potential acquisition of the former
by PNG Gold.
Drilling at PNG Gold’s Imwauna project on Normanby Island.
DIAMOND drilling at New Guinea Gold’s Sinivit
project has demonstrated a continuous
zone of more than 200 metres strike length
of potentially economic gold mineralization in
the southern section of Kavursuki vein system.
The company has completed two
more diamond holes in the Kavursuki zone,
which is on strike with the Sinivit Mine and
1.5km to 2km to the north.
Best results from one hole are: 1.8 metres
from 11.9 metres @ 11.35 grams/tonne gold;
4.5 metres from 21.8 metres @ 1.96 grams/
tonne, including 1.2 metres from 22.9 metres
@ 3.51 grams/tonne; and 2.7 metres from
27.3 metres @ 2.16 grams/tonne, including 1.6
metres from 28.4 metres @ 2.93 grams/tonne.
Best results from the other hole are: 1.1
metres from 32.7 metres @ 1.48
grams/tonne; 1.1 metres from 34.8 metres
@ 2.67 grams/tonne; 12.4 metres from 37
metres @ 2.87 grams/tonne, including 1.0
metre from 38 metres @ 12.05
grams/tonne; and 1.0 metre from 50.15
metres @ 4.62 grams/tonne.
Drill core is logged and split, all by saw, on
site with crushed half core being dispatched
to, and assayed by accredited laboratory
ALS-Chemex in Townsville, Australia.
Thirty duplicate samples re-split from remaining
crushed samples from a selection of Kavursuki
diamond drill holes from the last 12
months have been sent for gold assay at ALS
Townsville. In addition, pulps from this duplicate
assaying were sent to Genalysis Townsville
to further check gold assay.
New Guinea Gold is a Toronto Venture Exchange-listed
junior explorer and miner in
Papua New Guinea, with direct and indirect interests
in eight gold and two porphyry coppergold-molybdenum
properties. With 90,000-
plus metres of drilling completed, extensive
gold or copper-gold-molybdenum mineralization
has been discovered at all the properties.
New Guinea Gold and PNG Gold Corporation
have entered into a letter of intent with
respect to a potential acquisition of New Guinea
Gold by PNG Gold. Management believes
the transaction, if consummated, will
provide a platform for growth for shareholders
of each company.
In a joint statement the companies said the
transaction will provide New Guinea Gold
shareholders an immediate premium to New
Guinea Gold’s recent stock price, and afford
a secure and expedient development path for
New Guinea Gold’s production and exploration
licences on New Britain Island in PNG.
PNG Gold’s shareholders will benefit by the
acquisition and recapitalization of the Sinivit
Mine. Recapitalization will enable the mine to
significantly improve operational performance
while PNG Gold’s management also intends to
implement an expanded exploration program.
16 | ASIA Miner | January/February 2012

Company Profile
GOLDEN FUTURE FOR KULA GOLD’S WOODLARK ISLAND
ONGOING drilling has confirmed further high grade gold
mineralization immediately east of the 685,000 ounce
Kulumadau resource at Kula Gold’s Woodlark Island Gold
Project in Papua New Guinea. The company plans to
continue its exploration program to establish a resource
at Kulumadau East, thereby adding to the existing overall
Woodlark Island resource of 1.84 million ounces.
Step-out drilling between the Kulumadau resource
and the new Kulumadau East discovery has confirmed
two new zones of significance. The latest mineralization
is reasonably shallow and may result in all of the Kulumadau
zones being included in a single pit, enhancing
project economics. Significant new assay results
include 9 metres from 134 metres @ 40 grams/tonne
gold, including 1 metre @ 284 grams/tonne; 10 metres
from 85 metres @ 3 grams/tonne; 16 metres from 28
metres @ 2.6 grams/tonne; and 10 metres from 139
metres @ 3 grams/tonne.
Kula Gold’s managing director Lee Spencer says,
“While continuing to add additional resources, the company
is focused on delivering a feasibility study and advancing
the project into the permitting stage in 2012.”
Engineering studies are continuing with the definitive feasibility
study due to be completed at the end of quarter 1.
Woodlark Island is in the Trobriand Island Group in
the Solomon Sea, Milne Bay Province, 550km northeast
of Port Moresby. The island is reasonably large, about
1750sqkm, but remote and relatively isolated.
Kula Gold’s flagship project is Woodlark Island in the Solomon Sea, 550km northeast of Port Moresby.
Drilling at the Busai deposit of Kula Gold’s Woodlark Island project.
However, this was not always the case. In the late 19th
Century alluvial gold was discovered resulting in a gold
rush and declaration of the Murua Goldfield on November
6, 1895. The gold rush included more than 500 miners
and 2000 labourers from Cooktown and the nearby first
proclaimed Louisiade Goldfield Islands of Sudest and Misima.
Unlike most other goldfields of this era in PNG, gold
production was sustained over a number of years by the
accidental discovery of gold-bearing veins and lodes exposed
by sluicing off a young sedimentary sequence
which covers the bulk of the island.
The Kulumadau Gold Mining Company operated continuously
until it shut down in May 1918 with production
of about 75,000 ounces for a recovered grade of 17
grams/tonne gold. The mine operated on seven levels
from two shafts and although still in ore at depth, increasing
costs with the onset of World War I sealed its fate.
Including gold produced from alluvials documented
in Government sources, a total of 231,000 ounces
were produced from Woodlark until 1963. Some
216,000 ounces were produced prior to 1926, which
represents 37% of all gold produced from the colonial
period of Papua up until this period. In addition, the Kulumadau
mine produced on average 16% of gross export
earnings from Papua from 1902 to 1918.
Modern gold exploration was initiated on Woodlark
Island in 1962 with the Bureau of Mineral Resources
undertaking surface geochemistry, limited geophysics
and diamond drilling in 1962 and 1963 at Kulumadau.
Since 1970 Woodlark Island has been subject to 40
years of mostly continuous modern exploration without
sufficient resources being established to warrant investment
in a mining operation until recently. Exploration
in the past has been concentrated around the
old historical mining centres of Kulumadau, Busai and
Boniavat, with the early exploration strategy being
heavily dependent upon surface geochemistry, geophysics
and geological mapping.
The large amount of young sedimentary cover overlying
prospective Miocene volcanic terrain has severely
restricted the use of traditional exploration methods to
the extent that until 1997, global resources at Woodlark
Island were 6.7 million tonnes @ 1.73 grams/tonne
gold for 378,500 ounces estimated at the two historical
centres of Kulumadau and Busai.
Recognizing that the key to exploration success was
low-cost RC drilling on coincident structural dilation
centres and aeromagnetic lows through the overlying
young cover, Woodlark Mining, the 100%-owned subsidiary
of ASX-listed Kula Gold, embarked on an ambitious
drilling program resulting in more than 200,000
metres of RC and 20,000 metres of diamond drilling
over a six year period. Drilling to date has targeted mineralization
at the historical mining centres of Kulumadau,
Busai and Boniavat although new zones have
18 | ASIA Miner | January/February 2012

Company Profile
An aerial view of the exploration camp established by Kula’s subsidiary Woodlark Mining.
been discovered at Munasi and Kulumadau East with
several regional targets remaining untested. Global
JORC resources now stand at 37.3 million tonnes @
1.5 grams/tonne gold containing 1.84 million ounces.
In addition to ongoing exploration, Woodlark Mining also
completed a scoping study in 2009 and pre-feasibility
study (PFS) in May 2010. The latter demonstrated that
there is sufficient ore present at Busai and Kulumadau to
justify a plant annually processing 1.5 million tonnes with
a mine life of about six to seven years producing in the
order of 100,000 ounces each year.
Woodlark Mining is completing a feasibility study on
the project which will provide the development blueprint
and foundation for financing and permitting. Ore processing
is anticipated to commence at the amount suggested
in the PFS with an initial mine life of at least six
years. Provision for ramp-up to 2.65 million tonnes on
the back of conversion of existing inferred resources to
reserves, incorporation of Kulumadau East mineralization
into the resource base and future exploration success
on the eight other epithermal targets on the island
will be included in the feasibility study.
The various components of the feasibility study including
geotechnical studies, hydrological, metallurgical
and process design work (undertaken by GR Engineering)
are all progressing. Metallurgical test work to date
indicates that the processing plant will achieve overall
recoveries of up to 92% utilizing a gravity circuit following
by CIL following a moderate grind.
Concurrently with the feasibility study, the company
has significantly progressed all elements of an Environmental
Impact Study required by the PNG Government
as part of the permitting process.
In addition, the company is continuing to provide regular
project update briefings to the PNG Government, Provincial
Government and Woodlark Islanders to progress the
permitting process which is the main critical path item in
the overall project development schedule.
Kula Gold is confident that the feasibility study will
lead to a resumption of mining operations on Woodlark
Island more than 100 years after the Kulumadau Mine
was first listed on the Sydney Stock Exchange.
The Woodlark Island project includes the historical mining centres of Kulumadau, Busai and Boniavat.
January/February 2012 | ASIA Miner | 19

COMPANY PROFILE
COPPERMOLY FOCUSED ON COPPER IN PAPUA NEW GUINEA
COPPERMOLY is a copper -focused explorer
with two advanced copper-gold-molybdenumzinc
properties on New Britain Island in P apua
New Guinea. Both properties currently have large
exploration and drilling pr ograms under wa y
under the management of the mining major Barrick
Gold, as part of an exploration agreement
signed back in 2009.
Coppermoly Director and Company Secretary
Maurice Gannon said “In 2009 we signed an exploration
agreement with Bar rick Gold, one of the
world’s largest mining companies, whereby they are
spending $20 million on our two New Britain Island
projects, Nakru and Simuku. Barrick has set up a
large exploration base in Kimbe where Coppermoly
also maintains its exploration base.”
Both projects are strategically positioned in the
highly prospective Kulu Awit copper-gold belt.
The company also has a lar ge prospective area
covered by two well advanced exploration licence
applications on New Britain Island.
Within four years since listing on the ASX Cop -
permoly has already delineated a 200 million tonne
inferred resource at 0.47 per cent copper equivalent
at its Simuku Project, with Barrick continuing to
push ahead with extension drilling at 1000m depth
below the inferred resource. “The inferred resource
spans a 1km la teral extent and w e have further
drilling to the south, so there is potential to expand
the inferred resource,” Mr Gannon said.
At the neighbouring Mt Nakru Project, a drillhole
intersection at Nakru-1 – just one of a number
of target areas – has brought the JV partners
an outstanding result of 213.75m grading 0.92
per cent copper and 0.33 grams per tonne gold.
“Nakru-1 is just one of a number of highlight
PO Box 6965, GCMC Bundall, Queensland, 9726 Australia
areas at Mt Nakru but to date, it is the one tha t
has had the most exploration attention. Coppermoly
zeroed in on this ar ea and we conducted a
3D IP geophysical survey and came up with significant
targets, so the first thing Barrick did was
drill straight into the middle of the Nakru1 geophysical
anomaly where that great intersection
was obtained.” Mr Gannon said.
Nakru-1 is currently described as an exploration
target of 50 to 60 million tonnes at 0.7 – 0.9 per
cent copper however the geology indicates this
might only be the beginning. “Of course, any further
exploration is about incr easing grade and
tonnage which is what we are all about, but it’s
looking good already,” Mr Gannon said.
Not only ar e Coppermoly’s tenements w ell
placed in terms of mineral prospectivity but they
also have a direct link to existing local infrastructure;
with road access to both the Kimbe dee p
water port and the nearby Hoskins Airport.
Coppermoly also signed an ag reement with ActivEX
Limited in late October 2011, to far m-in to
the Esk Trough Project in south-east Queensland –
the copper explorer’s first Australian-based venture.
The company intends to push ahead as quickly as
possible with an exploration program including targeted
drilling during the next 12 months.
“The Esk Trough Project has advanced exploration
prospects which can be immediately drill
tested. We believe that there is great potential to
quickly add value with a targeted drilling program
in 2012,” said Peter Swiridiuk, the Managing Director
of Coppermoly.
Coppermoly can elect to sole-fund $3 millionworth
of exploration over three years to earn a 51
per cent interest with a further option to e xtend
its interest to a cumulative 70 per cent, in return
for further $3 million of exploration funding. ActivEX
has an option to cla w-back to 40% b y
matching the $6 million spend.
There are quite a number of prospects within the
project area. The Kakapo prospect is currently the
stand-out. “At the Kakapo prospect an intersection
of 88m g rading 0.47 per cent copper and 0.49
grams per tonne gold was obtained at 38m depth –
which is very encouraging,” said Mr Swiriduik.
“With two advanced projects and a number of
new projects in the pipeline in PNG as well as our
recent farm-in agreement with ActivEX in
Queensland, we are an exploration company with
great prospects in great locations with great partnerships,”
said Mr Gannon.

Papau New Guinea
Maiden gold resource for Nevera prospect
A MAIDEN resource estimate has been completed
in accordance with JORC guidelines
for Gold Anomaly’s Nevera prospect, which
is part of the Crater Mountain Gold Project.
The initial inferred resource comprises 24 million
tonnes @ 1.0 grams/tonne gold for
790,000 contained ounces.
The Crater Mountain project is in the Papua New Guinea
Highlands and is about 50km southwest of Goroka.
The maiden estimate only considers drilling
in about 60% of the Main Zone identified to
date, and does not include the artisanal zone.
Further step out drilling success is likely to increase
the resource significantly. Given that
this zone is still partly open along strike, there
is significant upside to increase the resource
with more drilling in coming months.
The upside potential to upgrade and increase
the resource is also considered substantial
given that drilling to date has been confined to
the Nevera prospect. Gold Anomaly plans to
extend exploration activities to adjacent prospects
Masi Creek and Nimi in 2012, which
have similar surface geology, mineralization and
alteration to that seen at Nevera.
Gold Anomaly’s executive chairman Greg
Starr says, “This maiden resource marks a
major milestone for the company, confirming
the potential for Crater Mountain to ultimately
become PNG’s next major gold discovery.
“This is truly an exceptional result given that
we only launched our maiden drilling program
some 12 months ago. We are excited that
several of our drill holes have encountered
extensive gold mineralization mirroring that of
previous exploration at Nevera, and supporting
exploration director Peter Macnab’s mineralization
model.”
Now that the company has an initial resource
for Nevera, preliminary metallurgical
test work is planned on core from the mixing
zone early in the new year.
Creating access to a section of the Crater Mountain project.
The company has received positive results
from initial petrological studies completed on
a sample of core from its first 1000 metreplus
hole targeting a possible feeder system
at depth at Nevera. The studies indicate that
the intrusive intersected by the hole is a porphyry
and bears all the hallmarks of a typical
porphyry system, some of which are responsible
for some of the largest copper gold deposits
in PNG and the world.
22 | ASIA Miner | January/February 2012

FIRST ore has been processed at Hillgrove
Resources’ flagship Kanmantoo Copper Project
in South Australia, bringing the mine into
production for the first time in 35 years. Construction
was essentially completed in the
first week of November and the company is
now producing its first concentrates.
The first throughput has been from stockpiled,
crushed, low-grade ore to test the plant
and optimize performance. The facility is now
working on 300,000 tonnes of higher grade
ore of between 0.7-0.9% copper. The first
shipment of concentrate is expected to leave
Port Adelaide in early 2012.
The $135-million open-cut project includes
a crushing facility, tailings storage dam and
ball mill. Hillgrove has also manufactured 450
haulage and storage containers for the shipping
of concentrate from Port Adelaide.
Hillgrove’s managing director Drew Simonsen
says, “The achievement of this milestone
changes the company from ‘developer’ to
‘producer’ status. The combination of a producing
mine at Kanmantoo, continuing exploration
successes in the immediate vicinity of the
pit suggesting a Life-of-Mine extension is very
probable, and our portfolio of highly prospective
Indonesian exploration properties sets the
company up for a strong growth trajectory.”
Kanmantoo is about 55km from Adelaide,
in the Adelaide Hills. Its initial annual throughput
will be 2.4 million tonnes, producing
80,000 tonnes of concentrate, 20,000 tonnes
GEOLOGICAL dating of selected samples
from Tasman Resources’ Vulcan iron oxide
copper gold uranium (IOCGU) project has estimated
the average age of mineralization at
1590 million years. This is essentially the
same geological age as other significant
nearby IOCGU deposits, including Olympic
Dam, Prominent Hill and Carapateena.
Tasman’s executive chairman Greg Solomon
says the dating confirms Vulcan is part of a significant
family of ore deposits and with further
investigation could prove to be a major deposit
itself. The dating program is being funded and
technically coordinated by the South Australian
Government through its PACE 2020 initiative,
which is the government’s plan for accelerated
exploration of potential mineral deposits and the
Vulcan in significant family of ore deposits
of copper metal and 10,000 ounces of gold
per year, over a 6 year mine life. Hillgrove will
ramp up production through to June 2012.
Kanmantoo’s general manager Cam Schubert
says the mine is almost at full staff capacity
with 75 employees on site. “These are
certainly exciting times for the Kanmantoo
copper mine. One of the most pleasing aspects
of the project to date has been the opportunity
to grow our workforce as we head
towards sustainable operations.”
Kanmantoo has been intermittently mined
since the 1840s and has recorded production
of 39,000 tonnes of copper metal. Hillgrove
acquired the old copper mine pit in 2004 and
says it remains one of the most under-explored
and prospective metal provinces in
The processing facilities at Hillgrove Resources’ Kanmantoo project in South Australia.
development of mining operations. The $30.9
million, seven-year funding program is under
the direction of the Primary Industries and Resources
Department and includes support for
drilling programs and new geological surveys.
The Vulcan project secured PACE funding
in May 2011 to assist Tasman in understanding
the local geology as well as helping to
guide further drill programs and exploration
for high grade mineralization within the deposit
area. Greg Solomon says the funding
will help place Vulcan and its host rocks in a
regional geological framework.
Initial results at Vulcan confirm measurement
of rhenium and osmium isotopes in molybdenite
which occurs as part of the IOCGU mineralization
in most drill holes to date.
Australia
Australia, showing great potential for coppergold
and silver-lead-zinc mineralization.
Since then the company has worked to
confirm a resource estimate, complete a feasibility
study and rehabilitation plan as well as
the design and construction of the new mine
and nearby roads. The tailings storage facility
has been constructed using best practice environmental
guidelines with a clay liner,
drainage networks and decant pipeline with
a HDPE lining on top.
The mine’s proximity to a capital city has
helped to keep construction on schedule. It
has access to low cost grid power, treated
waste water from the nearby town of Mount
Barker and is 3km from the highway that links
the area with export facilities at Port Adelaide.
Kanmantoo transforms Hillgrove into a producer
Tasman is also about to start drilling at its
highly prospective Lucas Hill IOCGU target in
South Australia, about 150km south of Vulcan.
The basement-sourced gravity anomaly
appears to be larger in area and of comparable
strength to the Carapateena deposit,
which is about 50km northeast.
Greg Solomon says geophysical modeling
indicates that the source of gravity and magnetic
anomalies at Lucas Hill is likely to be a
significant body of quite dense material. “The
body becomes more magnetic at depth.
Drilling will consist of an initial two drill holes
and further drilling will depend upon results.
Aboriginal heritage clearance has been obtained
for these initial drill holes and drilling
will begin in mid-January.”
January/February 2012 | ASIA Miner | 23

Australia
High grade copper results from Sandy Creek
ASSAY results from a reverse circulation drill program
at Breakaway Resources’ Sandy Creek
Copper-Gold Project in northwest Queensland
reveal high grade copper mineralization over
600 metres strike length. Results from 12 of 16
holes confirm the internal continuity of the shearhosted
mineralization and indicate potential for
extensions along strike and down-dip.
Highlights from the drill holes include 1 metre
from 65 metres @ 6.23% copper, 0.52
grams/tonne gold and 23 grams/tonne silver,
and 2 metres from 37 metres @ 2.08% copper,
5.23 grams/tonne gold and 8.3 grams/tonne
silver. The company says these high grade results
were supported by broader intersections
including 45 metres from 36 metres @ 0.66%
copper, 0.14 grams/tonne gold and 2.7
grams/tonne silver.
The project is in the world-class Cloncurry
mineral district within the Eloise exploration
area, and is about 20km west of FMR Investments’
Eloise copper mine and about 100km
south of Xstrata’s Ernest Henry copper mine.
Breakaway Resources’ managing director
David Hutton says the proximity to these projects
is positive for Sandy Creek, with potential
to make use of the existing infrastructure.
“We’re right up hard against existing infrastructure,
so obviously it works in our favour
regarding the potential economics of anything
we might find. Like any mine site, Eloise has
mining and milling infrastructure, it has accommodation,
it has power, and so potentially
we could transport the ore to that mine,
that milling facility.”
David Hutton has not ruled out joining
forces with Breakaway’s second largest investor
FMR Investments to continue exploration
and development of Sandy Creek.
“There are no immediate plans to enter into a
partnership, I think FMR is certainly aware of
what we’re doing, I think we’re very much on
their radar, they’re watching what’s going on
and I think they’re seeking to strengthen that
relationship because it will just give people
options down the track.”
Surface mapping and rock chip sampling
have identified semi-continuous sub-crops of
secondary copper mineralization to the north
of Sandy Creek. The company says surface
mineralization that stretches for more than
125km strike length is yet to be drill tested.
A share placement was recently completed
to raise $1.1 million and increase the company’s
cash reserves to $3.3 million which will
go into exploration at Sandy Creek.
David Hutton says the proceeds will reinforce
Breakaway’s focus on exploration of
Eloise, including follow up reverse circulation
diamond drilling and developing the priority
drill targets for 2012. “Previously we had focused
a little on the exploration perhaps, but
also heavily on a suite of nickel assets in
Western Australia, so we made a strategic
decision in the first half of 2011 to change the
focus of the company.
Osborne production to begin in March
PRODUCTION at Ivanhoe Australia’s Osborne
Copper-Gold Project in the Cloncurry
tenement in northwest Queensland is expected
to begin in March 2012. A preliminary
economic assessment confirms that Ivanhoe
is on track to mark a major milestone in its
evolution from explorer to producer.
Ivanhoe Australia’s Osborne Copper-Gold Project in
northwest Queensland.
“A great deal has been accomplished since
we purchased Osborne from Barrick Australia
one year ago. A principal focus for Ivanhoe
now is to achieve producer status through
the re-launch of Osborne,” says the company’s
managing director Peter Reeve.
Osborne is about 50km from Mount Dore
and includes mining and processing facilities
from a recently operating copper and gold
mine. It is currently under care and maintenance.
During 2011 Ivanhoe implemented a
$30 million capital development program for
the Osborne and Kulthor underground resources.
The measured and indicated mineral
resources total 13.1 million tonnes @ 1.4%
copper and 0.9 grams/tonne gold while inferred
mineral resources total 7.9 million tonnes
@ 1.3% copper and 1.0 grams/tonne gold.
Ivanhoe is targeting a mine life of up to 20
years, with a number of prospects identified as
potential ore sources across the company’s
tenements. Ore supply for the initial four year
mine plan is to be sourced from the Osborne,
Starra 276 and Kulthor underground mines.
The company also plans to start processing
molybdenum/rhenium ore from its Merlin deposit
at the Osborne processing facility.
Ore will be treated at the existing processing
facility with annually capacity of 2 million tonne.
Ivanhoe expects to annually produce 21,000
tonnes of copper and 34,000 ounces of gold.
The company has also started an underground
drilling program in a bid to extend the Osborne
and Kulthor resources. Drill holes will test for
significant extensions of the Osborne Deeps
mineralization immediately north of the planned
mining area and existing decline, where recent
interpretations allow for a steep body of mineralization
to exist and where no previous
drilling has been undertaken.
At Kulthor, the underground drilling program
will define stoping blocks within the known resource.
A surface drilling program to test the
southwest strike and down-plunge extension
of the Kulthor mineralization at depth and outside
the known resource began in late 2011.
Exploration is focused on a number of
highly prospective target areas, with the goal
of extending the mine plan of the Osborne
project beyond the initial four years detailed
in the copper-gold study. The initial target is
to identify additional ore sources around the
existing complex.
The concentrator at the mill of Ivanhoe Australia’s Osborne
project.
24 | ASIA Miner | January/February 2012

SANDFIRE Resources has reached a milestone
in development of the DeGrussa Copper-Gold
Project in Western Australia,
completing the first drawdown of cash from
the $390 million project fund. The company
has drawn $190 million with the majority to
be spent on project development and construction
costs in the first quarter of 2012.
Sandfire’s managing director Karl Simich
says he’s excited by the milestone: “The De-
Grussa site is a hive of activity, with more than
475 people on site and the overall project
now more than 40% complete. The satisfaction
of conditions precedent for the main project
financing facility enables us to repay the
initial mine development facility and ensures
that funding is in place for the balance of the
construction phase.”
Sandfire is undertaking concurrent development
of an open pit and a longer term underground
mine at DeGrussa. The stage 1
open pit is on schedule, with more than 3.5
million bank cubic metres of material mined,
while the Evans Decline has progressed beyond
700 metres from the portal.
Construction of the 1.5 million tonne De-
Grussa Concentrator began towards the end
of the September quarter, marking the beginning
of the most significant construction
phase for the project.
Sandfire remains on target to achieve its
MINOTAUR Exploration has been granted
$62,500 by the South Australian Government
to undertake a three dimensional magnetotelluric
(MT) survey at its Aphrodite iron oxide
and copper-gold (IOCG) target within the
state’s Gawler Craton. The use of 3D MT is
not yet routinely applied to exploring these
types of targets but Minotaur is hopeful the
new geophysical technology will help confirm
positive results.
Aphrodite is about 30km southeast of
Olympic Dam. The region is known for its iron
oxide and copper gold mineralization with
significant prospects nearby at Acropolis,
Wirrda Well and Emmie Bluff. Despite this,
the discovery rate for IOCG deposits is low
because of very thick sedimentary cover.
Minotaur’s last drill hole at the site in 2010
did not resolve the target which was identified
DeGrussa development is well on track
Australia
key project milestones of first direct shipping
ore (DSO) from the open pit in quarter 1 of
2012, first underground ore on the ROM
stockpile in the first half of 2012 and first ore
in the SAG mill in quarter 3 of 2012.
The DeGrussa project is 900km north of
Perth and it is within the Doolgunna tenement
package, which includes six exploration licences
and covers 400sqkm within an
emerging copper-gold mineralized belt. The
project area lies close to a number of existing
and historic gold mines and infrastructure.
In April 2009, Sandfire discovered the highgrade
DeGrussa VMS (volcanogenic massive
sulphide) copper-gold deposit in the northeastern
part of the Doolgunna tenements.
Since then, the company has completed
more than 100,000 metres of diamond
drilling resulting in the discovery and delineation
of the DeGrussa deposit.
The JORC-compliant estimate includes an
indicated and inferred resource of 10.67 million
tonnes @ 5.6% copper, 1.9 grams/
tonne gold and 15 grams/tonne silver containing
600,000 tonnes of copper, 660,000
ounces of gold and 5.1 million ounces of silver.
Preliminary open pit optimizations and
design have resulted in identification of a
component of direct shipping material as
part of the mineral resource.
Development of the stage 1 open pit at Sandfire Resources’ DeGrussa Copper-Gold Project in Western Australia.
Government funds for Aphrodite 3D MT survey
in 2008 after hematite-chalcopyrite and calcite-dolomite-bornite
veins were intersected.
The company says the $167,000 3D MT survey
around previous drill holes will map the
deep bedrock conductance and test how effective
this method is for exploration of concealed
IOCG-style mineralization.
Magnetotelluric surveys use a passive surface
geophysical technique which determines
electrical conductance of the sub-surface to
great depth. An initial MT survey line across
the Aphrodite target has indicated good
bedrock response and resolution.
Minotaur has also announced its maiden
JORC inferred resource at its Muster Dam
magnetite deposit in South Australia. Independent
consultants for the project have estimated
it contains 1.5 billion tonnes at a
Davis Tube Recovery (DTR) rate of 15.2%
magnetite. The joint venture is about 100km
southwest of Broken Hill near the South Australia
and New South Wales border
Minotaur’s exploration director Tony Belperio
says the issue of a JORC resource is a
major milestone for the project. “It confirms
the Muster Dam deposit has the scale and
grade to produce the required throughput of
a high quality magnetite concentrate. In particular,
the extremely low level of deleterious
elements measured in the concentrate suggests
that the product will be attractive to
blast furnace consumers.”
The resource estimate is based on results
3000 DTR analyses from 59 diamond core
and reverse circulation drill holes. Metallurgical
test work on diamond drill samples continues
for a project scoping study, with
completion due in the first quarter of 2012.
January/February 2012 | ASIA Miner | 25

Australia
KBL updates Mineral Hill resource estimate
KBL, formerly Kimberley Metals, has updated
its resource estimate at the Southern Ore
Zone of the Mineral Hill Gold-Copper Project
to a JORC-compliant 5.2 million tonnes containing
222,000 ounces of gold, 61,000
tonnes of copper and 6 million ounces of silver.
This represents a 38% increase in contained
copper, 77% increase in estimated contained
gold and 12% increase in contained silver from
the September 2011 estimate.
KBL’s executive chairman Jim Wall says,
“The Southern Ore Zone resource adds significant
upside to the Mineral Hill mining operations
and importantly supports both an
The refurbished processing facilities at KBL’s Mineral Hill project in New South Wales.
extension to the mine life and the ability to increase
gold production.”
The company was also expected to complete
its fourth shipment of copper concentrate
from Mineral Hill to Chinese company Yunnan
Copper by the end of December. The 1000
tonne shipments are packed in containers at
Dubbo and railed to Port Botany for dispatch.
The Mineral Hill mine is about 65km north of
the town of Condobolin in central western New
South Wales and has annual processing capacity
of 250,000 tonnes. It was mothballed in
2005 by Triako when copper and gold prices
plummeted. Substantial resources were left
undeveloped and the discovery of the nearby
high-grade gold-silver Pearse project has allowed
KBL to step in and cost-effectively refurbish
and upgrade the operation.
Additional production of gold and silver
dore, or unrefined bullion, from Pearse will
raise annual production to 5000 tonnes of
copper, 21,350 ounces of gold and 255,000
ounces of silver from mid-2012.
Commissioning of the processing plant was
completed in the fourth quarter of 2011 and
as the quality of development ore has improved,
so has plant performance. Copper
recoveries are now in the range of 85-90%
and concentrate grades between 22-24%
copper. The plant has also increased its daily
concentrate production to 50 tonnes.
Kimberley has started dewatering the decline
to access the SOZ drive. A new production
bore is being commissioned to increase
pumping rates by 150%, allowing the SOZ
and ESOZ deposits to be reached by late
2012. Mining operations are expected to
commence during early 2013 following rehabilitation
of the access.
Jim Wall says, “Achievement of milestone
shipments of concentrate marks the beginning
of steady-state production, at the
planned rate of 4500–5000 tonnes/annum of
copper concentrate.”
Study boosts estimated value of Hawsons
THE estimated net present value (NPV) of
Carpentaria Exploration’s Hawsons Iron Project
in the far west of New South Wales has
risen to Aus$3.2 billion after a recent mining
option study. Lower projected operating
costs based on modelling of in-pit crushing
and conveying compared to conventional
truck haulage prompted the 14% increase in
NPV from the pre-feasibility study (PFS).
The recent study has put mining cost estimates
at Aus$15.04 per tonne of concentrate,
a reduction of 23% over the PFS,
contributing to a 5% fall in operating costs to
Aus$33.97 per tonne of concentrate.
Carpentaria’s executive chairman Nick
Sheard says the study’s results are very pleasing
and boost the prospects of a new mine
being established at what’s regarded as eastern
Australia's biggest new magnetite discovery.
“This builds on an already robust financial
model and development concept and shows
the benefits of a very large and simple deposit.
In-pit crushing and conveying is an established
mining method and well suited to
the Hawsons deposit, importantly it has not
yet been optimized and further cost reductions
are possible,” he says.
Carpentaria is also working to make cost
savings on processing to maximize the benefits
of the very soft ore and excellent magnetite
liberation. The joint venture with Bonython
Metals Group is 60km southwest of Broken
Hill, near the border of South Australia, and includes
an inferred magnetite resource of 1.4
billion tonnes at a Davis Tube Recovery (DTR)
rate of 15.5% (12% cut off) and an exploration
target of 6-11 billion tonnes at 14-17% DTR.
This includes up to 1.9 billion tonnes of highgrade
magnetite concentrate.
The May 2011 PFS stated that Hawsons
could annually generate 20 million tonnes of
concentrate production after an initial annual
5 million tonne, 3-year start-up period. Carpentaria
says by using conservative engineering
and financial assumptions, the project
could be very profitable during a long mine
life of between 24 and 50 years.
The improvement in the financial modelling
as a result of lower operating costs can
mainly be attributed to the in-pit crushing and
conveying option which drastically reduces
road haulage and energy consumption.
Nick Sheard says, “These ongoing improved
project results show the potential of Hawsons
to become a company-making project for Carpentaria
and an ongoing source of wealth for
shareholders. Carpentaria will continue to work
to reduce costs and strive to produce magnetite
at a comparable cost to West Australian
hematite producers.”
26 | ASIA Miner | January/February 2012

Australia
First Punt Hill hole intersects copper
ASSAY results from the first drill hole at
Monax Mining’s Punt Hill Copper-Gold Project
have confirmed mineralization is shallower
than previously thought. Best results from the
diamond drill hole are 9 metres from 4356
metres @ 0.12% copper.
The Punt Hill iron oxide copper-gold (IOCG)
project is about 130km north of Port Augusta
in South Australia. It’s on the eastern margin of
the Gawler Craton within the Olympic IOCG
province which hosts the Olympic Dam, Prominent
Hill and Carrapateena deposits.
The Punt Hill tenement contains numerous
coincident/semi-coincident gravity and magnetic
anomalies, which appear to be structurally
controlled along a regional north-west
fault. A geochronology study conducted as
part of the South Australian government’s
PACE program confirmed that the alteration
and mineralization at Punt Hill is part of the
same IOCG event on the Gawler Craton that
is responsible for the world-class Olympic
Dam deposit.
The initial hole was completed at 639.5 metres
within Donington Suite granite, with the
zone below the upper hematitic breccia comprised
of a series of sediments with two narrow
zones of intense silica alteration. Assay
results from these zones are expected soon.
Monax managing director Gary Ferris says,
“The 9 metre zone of elevated copper is
within a broader zone of 26.9 metres @ 756
ppm copper and provides encouragement
for further drill testing.” The six hole program
was given approval by the Kokatha
Uwankara claimants in August 2011 along
with a native title mining agreement.
Punt Hill is a joint venture with Chileanbased
copper miner Antofagasta, one of the
world’s top 10 copper producers. It’s Antofagasta’s
first Australian investment and it can
earn a 51% interest by committing US$4 million
over four years. Once Antofagasta has
obtained 51%, Monax has the ability to remain
at 49% by co-funding exploration or development
costs, or can elect to have its
interest diluted.
Antofagasta can earn a further 19% by expending
a further US$5 million in exploration
and development of the project tenements. If
a development decision is made, Antofagasta
will pay Monax a success fee of US$10 million.
It must spend a minimum of US$1.5 million on
the Punt Hill project within the first two years.
Drilling program under way at Lucknow deposit
A DETAILED infill and step out reverse circulation
drill program has commenced at Metallica
Minerals’ Lucknow deposit, which is part
of in its tri-metal Nornico project area in
northern Queensland. Results will allow the
company to announce an upgraded mineral
resource estimate by February 2012.
The 150-hole program is being conducted
across high-grade scandium mineralization at
the southern end of the project, northwest of
the city of Townsville. Drilling is being conducted
on an approximate 40 metre x 40
metre grid pattern to more fully define the highgrade
scandium resource boundaries and expand
the measured and indicated resources
for further detailed mine planning and preliminary
plant feed scheduling studies.
Metallica’s managing director Andrew
Gillies says the drilling campaign is an important
part of the company’s current spread of
feasibility and environmental studies, permit
applications, mineral resource studies and
detailed metallurgical work. He says Lucknow
will be the main long term source of scandium
ore and will be blended with nickel and
cobalt ores from the historical Greenvale mine
site for the project’s proposed High Pressure
Acid Leach (HPAL) processing plant.
“The Lucknow scandium resource stands
at 6.24 million tonnes at an average grade of
169 grams/tonne and at a 70 grams/tonne
cut off grade. Using a higher grade cut-off of
Drilling along 40 metre spaced drill lines at the southern end of Metallica’s Lucknow scandium deposit.
120 grams/tonne, a higher grade scandium
resource of 4.12 million tonnes at 206
grams/tonne is revealed, containing about
1200 tonnes of scandium oxide.”
Metallica is targeting aluminum alloy companies
and solid oxide fuel cell (SOFC) developers
for expressions of interest in offtake
agreements for Nornico’s scandium production.
The current studies are based around a
HPAL process plant with an on-site power
and acid plant, annually treating 750,000
tonnes of combined nickel, cobalt and scandium
ore over a 20-year mine life.
Andrew Gillies says preliminary test work on
the Greenvale and Lucknow ores has indicated
high metal recovery and low to moderate
acid consumption. The initial annual
production target from 2015 at Nornico is
6000 tonnes of nickel and cobalt and 40
tonnes of scandium oxide. Scandium production
could easily be expanded to match
expected growth in scandium oxide demand
once a long-term reliable supply is presented
to aluminium and SOFC end users.
“High grade scandium resources will be selectively
mined for blending with higher grade
nickel and cobalt ores from our Greenvale
mine just 8km by road to the northwest. All
three metals will be recovered from the same
plant and produce nickel metal, cobalt sulphide
and scandium oxide.”
28 | ASIA Miner | January/February 2012

Mongolia
Oyu Tolgoi 70% complete but power is an issue
Construction of a siding at the pebble crusher complex at Ivanhoe Mines’ Oyu Tolgoi project.
IVANHOE Mines expects construction at the
Oyu Tolgoi Copper-Gold Project in southern
Mongolia to be 70% complete by the start of
2012 with commercial production scheduled
for the first half of 2013. The site based construction
workforce is about 14,760 with
about 11,680 working on site each day and
the balance on leave.
About 7820 Mongolians are employed at the
site with an additional 3300 Mongolians participating
in offsite training and educational programs.
These Mongolian employees will form
the bulk of the eventual production workforce.
Oyu Tolgoi is expected to annually produce
an average of 450,000 tonnes of copper and
330,000 ounces of gold over the next 10
years. It is projected to account for one-third
of total Mongolian GDP by 2020.
An obstacle to the timetable of Ivanhoe and
joint developer Rio Tinto remains the provision
of power with the Chinese government
yet to agree to supply power across the border.
Extra diesel generators have been installed
and the companies have launched an
investigation into alternative power sources
should electricity from China not be available
on schedule. Ivanhoe has conceded that production
could be delayed.
In May 2011, the project received final approvals
to construct a 220 kilovolt power
transmission line along a 95km route south
to the Chinese border. Construction of the
transmission towers was completed in October
and the stringing of power cables will
start in spring 2012, if agreement is reached.
As part of the investigation into alternatives,
Ivanhoe may need to bring forward construction
of a coal-fired power plant at the mine. It
said in a statement: “Although a power plant
is expected as part of the Oyu Tolgoi project’s
future development, there is no provision in
the current capital cost estimates for 2011
and 2012 and the financing that would be required
is not contemplated as part of the
company’s current financing plan.”
The plant would increase initial capital expenditure
and delay commercial production.
Ivanhoe has acknowledged that constructing
the plant in Mongolia is the best choice
for the project.
New acquisition for Xanadu-Noble alliance
XANADU Mines is acquiring the Khavtsgait
Coal Project which is within a highly prospective
coal-bearing sedimentary basin in northern
Mongolia. The project covers 2869
hectares in this basin, which is known to host
premium hard coking coal. It is in Khuvsgul
province, about 60km east of the provincial
centre of Murun and 250km west of the established
rail spur at Erdenet.
The acquisition is being undertaken by
Ekhgoviin Chuluu LLC (EC), a vehicle established
by strategic alliance partners Xanadu
and Noble Group to seek out and develop premium
metallurgical coal opportunities. The
highly prospective exploration licence overlies
an early to middle Mesozoic aged coal-bearing
sedimentary basin. Similarly aged basins in
northern Mongolia, such as the Ovoot Coking
Coal Project of Aspire Mining, are known to
host premium hard coking coal deposits.
The opportunity was recognized as part of
a thorough regional reconnaissance exploration
program conducted by EC’s geologists.
Initial exploration, including trenching,
indicates the stratigraphic sequence at
Khavtsgait is consistent with the alliance’s
newly discovered Nuurstei coking coal project,
which is about 60km to the west.
It represents the third major metallurgical
coal acquisition in Mongolia for EC, which
was created in March 2011. Xanadu’s chairman
Brian Thornton says, “The Khavtsgait
acquisition further underpins the core strategy
of EC – to identify and develop significant
metallurgical coal opportunities, close to existing
infrastructure, that will meet anticipated
current and future demands from China and
North Asian markets. With the acquisition of
a second metallurgical coal project in Khuvsgul
by EC, our exploration focus on the newly
emerging metallurgical coal basins of northern
Mongolia is coming to fruition.” EC plans
to begin a comprehensive exploration program
at Khavtsgait immediately.
The acquisition follows EC’s recent
Javkhlant coking coal joint venture where
drilling started recently. The project is in Gobi
Altai province, about 22km from the Burgastai
border crossing into China and only 200km
from the Chinese rail network at Hami. EC can
earn up to 80% of the 1005sqkm exploration
licence by meeting various spending commitments
over two years.
Reconnaissance mapping and exploration
has identified numerous coal and carbonaceous
mudstone sub-crops, containing coal
fragments, which occur over a strike of 40km.
30 | ASIA Miner | January/February 2012

ERDENE Resource Development Corp is undertaking
a 3000 metre drill program at the
Altan Nar (Golden Sun) epithermal gold property
in southwest Mongolia. The program will
test multiple targets over 1km of strike length
extending north and south from the original
discovery which returned significant, near
surface epithermal-style gold, silver and base
metal mineralization.
The program is concentrating on the central
portion of a target area measuring 3km by
2km and containing multiple prospects defined
by geochemistry and geophysics. These
prospects are also associated with a number
of gold-bearing epithermal-style quartz
vein/breccia zones identified on surface and in
the initial four-hole drilling program.
The initial drilling tested a 75 metre wide,
low sulphidation epithermal system over a
strike length of 100 metres with geophysical
anomalies suggesting continuity and local intensification
at depth. The initial hole intersected
mineralization from 20 to 75 metres
averaging 1.02 grams/tonne gold and 12
grams/tonne silver over a 55 metre interval
Drilling follows up Altan Nar gold targets
and included 23 metres averaging 2.07
grams/tonne gold and 23 grams/tonne silver.
Other intersections were 40 metres from
surface @ 0.32 grams/tonne gold and 3
grams/tonne silver, including 4 metres from
15 metres @ 0.96 grams/tonne gold and 12
Initial drilling at Erdene’s Altan Nar epithermal gold property.
grams/tonne silver; 18 metres from 48 metres
@ 0.56 grams/tonne gold and 6
grams/tonne silver, including 2 metres from
62 metres @ 1.24 grams/tonne gold and 17
grams/tonne silver; and 48 metres from 28
metres @ 0.51 grams/tonne gold and 9
grams/tonne silver, including 10.,5 metres
from 36 metres @ 1.20 grams/tonne gold
Mongolia
and 16 grams/tonne silver. There was also
lead and zinc mineralization in all holes.
Following the initial drilling success, the
company completed additional infill soil sampling,
regional and detailed magnetic surveys,
an extension of the existing IP gradient array
and additional dipole-dipole IP lines.
The expanded geophysical program has
clearly defined chargeability and resistivity
anomalies coincident with anomalous gold
and base metal soil anomalies in the central
portion of the target area. These geophysical
anomalies include extensions from the
original discovery as well as parallel zones
to the north and south.
The 3000 metre diamond drill program,
consisting of about 18 holes, is expected to
be completed by early January. Holes will be
drilled to depths of between 100 and 200
metres targeting coincident gold and base
metal geochemical and high chargeability
anomalies hosted within a distinct magnetic
low feature over an area of about 1km by 800
metres. This area contains a number of gold
bearing epithermal quartz veins at surface.
January/February 2012 | ASIA Miner | 31

Mongolia
Haranga increases Selenge interest to 80%
THE acquisition of a further 20% interest in a
joint venture company that holds five exploration
licences comprising the Selenge Iron
Ore Project in northern Mongolia has boosted
Haranga Resources’ ownership to 80%. The
ASX-listed company maintains full operational
and management control of the joint venture.
Selenge covers 600sqkm in the heart of
Mongolia’s premier iron ore development region,
about 200km north of Ulaanbaatar. The
project has access to the Trans-Mongolian
rail line and nearby rail spurs.
Drilling is ongoing with four diamond rigs in
operation. Significant widths of iron mineralization
have been intersected at all three of
the targets drilled thus far and metallurgical
test work has started in initial samples. The
company aims to define an initial JORC-compliant
resource early in 2012.
A total of 36 diamond core holes have been
drilled for a total of 8366 metres. Drilling has
focused on the Bayantsogt prospect where
Haranga Resources’ projects in Mongolia. The company is focusing on the Selenge project in the country’s north.
there are at least five major iron lodes each
averaging about 20 metres and up to 103
metres in apparent width.
Assay results received to date include 28
metres from 3 metres @ 30% iron, 17 metres
from 50 metres @ 28%, 41 metres from 107
metres @ 26 metres including 10 metres from
113 metres @ 42%, 18 metres from 65 metres
@ 31%, 5 metres from 106 metres @
40%, 9 metres from 13 metres @ 39% including
5 metres from 14 metres @ 47% and
38 metres from 68 metres @ 24%.
Mineralization at Bayantsogt is primarily
hosted in Banded Magnetite Skarn and is
similar in nature to the nearby 300 million
tonne Eruu Gol deposit, which has proven
amenable to low-cost mining and beneficiation,
and is currently Mongolia’s largest
iron ore export mine.
Initial drilling at the larger Dund Bulag
prospect has recently discovered significant
widths of iron mineralization of a similar nature
to Bayantsogt while mineralized intersections
from initial drilling at the Huiten Gol
prospect appear to be smaller in width but of
a higher iron grade than Bayantsogt.
All targets are associated with large magnetic
anomalies and lie within a well-defined
structural corridor that contains all of the
known iron ore deposits in Selenge
province, including Eruu Gol, which currently
produces about 2.5 million tonnes of magnetite
concentrate annually.
Initial estimate for South Gobi Coal Project
AN initial JORC resource estimate of 63.1
million tonnes for Guildford Coal’s South Gobi
Coal Project underpins the potential start-up
open cut mining opportunity of 1-2 million
tonnes annually for at least 20 years. The estimate
comprises 38.2 million indicated and
24.9 million inferred tonnes.
The ASX-listed company lodged mining licence
application for two tenements and expected
to have these granted by the end of
2011. It has completed scoping studies for
the start-up operation and mining is targeted
to begin by the end of the second quarter of
2012 in the North Pit.
The company will continue drilling on other
key tenements in the South Gobi Project to define
the JORC resource required to underpin
the conceptual Central, West and East pit mine
strategy for the project. Discussions with potential
offtake partners have also commenced.
Guildford’s interests in Mongolia are held
through its 70%-owned subsidiary Terra Energy.The
South Gobi Coal Project comprises
five exploration licences in South Gobi
province about 1000km southwest of Ulaanbaatar
and only about 60km from the Chinese
border station town of Ceke.
The project is also about 50km east of
Nariin Sukhait which includes SouthGobi Resources’
Ovoot Tolgoi mine and the MAK
mine, which currently produce and export
coking and thermal coal to customers in
China. These mines produce more than 5
million tonnes annually of high volatile bituminous
coals which are marketed as separate
thermal and coking coal products.
This coal is currently sold ROM at the mine
gate to Chinese traders who transport the
coal by truck to a Chinese border coal stockpile
at Ceke where it is then transferred by rail
to Chinese power stations and steel mills.
The company also has the Middle Gobi
Project, which consists of two exploration licences
in Dundgovi province, about 200km
south of Ulaanbaatar and about 200km
west of the Mongolian railway grid with a logistics
route to China via the Erlianhaote
border crossing. Guildford recently announced
a significant upgrade in exploration
targets at its Mongolian projects to a range
of 30 million to 1.38 billion tonnes
32 | ASIA Miner | January/February 2012

Mongolia
Centerra aims to increase Boroo production
CENTERRA Gold is hoping to increase annual gold production
from its Boroo project by more than 300% by 2014 as part of a
plan to boost overall production at all operations to just under 1
million ounces. The Canadian company is also aiming to increase
output at the Kumtor mine in the Kyrgyz Republic.
At Boroo the company is currently producing at an annual rate
of around 50,000 ounces using stockpiled ore, but wants to increase
the mill’s output to between 150,000 and 200,000 ounces
by feeding it with ore from the Gatsuurt deposit 35km away. Permitting
issues have delayed Centerra’s plans but it remains confident
that these will be resolved by the Mongolian Government.
The Boroo Gold Project where Centerra Gold is planning to increase production.
The problems began in 2009 when the government introduced
a new law that blocked any mining development in forested areas
or at headwaters, and Gatsuurt is in this category. The legislation
said that miners that lost previously held licences would be compensated.About
a year ago the government completed a study
of how many permits were affected and what levels of compensation
it would have to pay out. It came up with a figure of more
than $5 billion to compensate the holders of around 1700 licences
that were to be revoked.
Despite the amount of compensation, the government decided
it would implement the law but would do so in stages. The first to
pay would be around 500 alluvial miners, mainly local companies,
however, the compensation still amounted to $500 million, a hefty
price tag for the government, so the companies that had licences
revoked decided to collectively sue it.
As a result, Prime Minister Sukhbaatar Batbold suspended the
enforcement of the law, and the miners dropped their case. He
formed a parliamentary committee that came up with amendments
to the legislation to make it more practical, which would
have allowed Gatsuurt to progress.
Parliament broke off shortly after for the summer recess and before
the amendments had gone to vote. Upon its return, a group
of 20 parliamentarians demanded that the PM renegotiate an investment
agreement with the owners of the giant Oyu Tolgoi copper-gold
mine. They, in turn, refused to budge on the agreement
with the government ultimately backing down.
This distracted the Parliament from amendments to the environmental
legislation and Centerra is uncertain whether the Gatsuurt
issue will be resolved before general elections set for June
this year but is cautiously optimistic that it eventually will be.’
January/February 2012 | ASIA Miner | 33

China
Exploration at Zhongqu and Diebu
Red Mountain Mining’s Zhongqu and Diebu gold projects are in Gansu Province.
RED Mountain Mining has started structural surface and underground
geology studies at the Xinqu mineralized area within the Zhongqu
project to assist interpretation of the gold mineralization. The ASXlisted
company is also commencing exploration work at the Diebu
project with access to exploration adits.
Due to above average rainfall, the stage II underground drilling program
at Zhongqu was delayed until December. This program is designed
to follow-up the exciting Stage I drilling results, including a best
intersection of 31 metres @ 4.61 grams/tonne gold.
Despite the delay, the company expects that it will still have sufficient
time to finish the planned program by the end of February 2012 with
the aim of outlining the size and dimensions of the gold mineralization
encountered in the first stage which intersected the main granodiorite-contact
shear zone as well as previously unrecognized limestone
hosted structures, which included 14.3 metres @ 4.50 grams/tonne.
The stage II program will target both these styles with up to 15
drill holes totalling about 2430 metres. Provision has also been
made to follow-up encouraging drill intercepts during the program
with additional holes. The program aims to establish the down dip
extension of the main granodiorite-contact shear zone and get a
better understanding of the orientation and tonnage potential of the
high-grade limestone structures.
A structural geological mapping program started in November underground
and on surface with studies intended to better understand
the controls on gold mineralization. This is expected to assist in drill
34 | ASIA Miner | January/February 2012

China
targeting and resource definition with potential
open pit mineralization.
The company has also assembled an exploration
team and mobilized it to Diebu to
commence rehabilitation of the existing exploration
adits and mapping of surface and
underground exposures to establish potential
drill targets with drilling expected to
begin in the first half of 2012.
忠 曲 与 迭 部 项 目 实 施 勘 探 作 业
Red Mountain 矿 业 公 司 忠 曲 项 目 内 的 辛 曲
矿 化 区 为 更 好 地 进 行 金 矿 化 的 解 释 工 作 , 已
经 开 始 开 展 地 表 和 地 下 地 质 构 造 研 究 。 这 个
在 澳 大 利 亚 证 券 交 易 所 上 市 的 公 司 同 时 也 在
迭 部 项 目 通 过 平 硐 进 行 勘 探 施 工 。
由 于 降 水 量 高 于 平 均 值 , 忠 曲 第 二 阶 段 地
下 勘 探 计 划 推 迟 至 12 月 。 该 计 划 旨 在 对 第
一 阶 段 得 到 的 激 动 人 心 的 结 果 进 行 跟 进 , 最
佳 的 测 试 结 果 包 括 31 米 岩 芯 金 品 位 为 4.61 克
/ 吨 。
尽 管 有 所 推 迟 , 公 司 仍 然 期 望 能 够 有 足 够
的 时 间 在 2012 年 2 月 底 之 前 完 成 计 划 , 以 期
概 括 出 第 一 阶 段 在 主 要 的 闪 长 岩 剪 切 带 和 先
前 未 确 认 的 石 灰 岩 构 造 见 矿 的 大 小 和 尺 寸 ,
其 中 包 括 14.3 米 岩 芯 品 位 为 4.5 克 / 吨 。
第 二 阶 段 计 划 以 这 两 种 类 别 为 目 标 , 共 计
实 施 15 个 钻 孔 , 约 钻 进 2430 米 。 公 司 也 为
计 划 执 行 期 间 进 一 步 跟 进 积 极 的 见 矿 结 果 而
实 施 另 外 的 钻 孔 做 好 了 准 备 。 此 次 计 划 旨 在
确 立 主 要 的 闪 长 岩 剪 切 带 的 下 倾 延 伸 带 , 并
对 高 品 位 的 石 灰 岩 构 造 潜 在 的 方 位 和 吨 位 数
有 更 好 的 认 识 。
构 造 地 质 测 绘 计 划 已 于 11 月 份 在 地 下 和 地
表 实 施 , 其 中 包 括 为 了 更 好 的 认 识 金 成 矿 带
的 控 矿 作 用 而 进 行 的 研 究 工 作 。 该 计 划 预 期
通 过 潜 在 的 露 天 矿 成 矿 带 推 进 钻 探 定 位 和 资
源 界 定 。
同 时 , 公 司 已 经 组 建 了 一 支 勘 探 队 , 并 已
遣 往 迭 部 开 展 对 现 有 勘 探 平 硐 的 修 复 工 作 和
Both projects are in the south of Gansu
Province. Zhongqu is an operational gold
mine with substantial exploration potential. It
has been operational since 2002 using manual
underground mining methods and covers
7.19sqkm on a granted mining lease. The
project has a modern gold treatment plant
with annual capacity of 400,000 tonnes.
Diebu has an exploration target of between
400,000 and 500,000 tonnes at 3.5-
4.5 grams/tonne gold. Red Mountain obtained
encouraging results from its first
comprehensive examination in 2008. Mineralization
occurs irregularly over 6km but has
not yet been adequately explored and has
not been drilled. Adits have been developed
following the common Chinese approach to
‘explore by mining’.
对 地 表 与 地 下 露 头 的 测 绘 工 作 , 以 确 定 潜 在
的 钻 探 靶 区 , 且 钻 探 作 业 预 计 在 2012 年 上
半 年 开 始 。
这 两 个 项 目 都 位 于 甘 肃 省 南 部 。 忠 曲 是 一
个 运 营 中 的 金 矿 , 具 有 巨 大 的 勘 探 潜 力 。 自
2002 年 开 始 采 用 手 工 地 下 采 矿 方 式 运 营 ,
矿 场 覆 盖 面 积 7.19 平 方 公 里 。 该 项 目 拥 有 一
个 现 代 化 黄 金 加 工 厂 , 年 产 能 达 40 万 吨 。
迭 部 拥 有 一 个 产 能 介 于 40 万 吨 -50 万 吨 的
勘 探 靶 区 , 金 品 位 介 于 3.5-4.5 克 / 吨 之 间 。
在 2008 年 ,Red Mountain 首 次 全 面 的 测 试
获 得 了 鼓 舞 人 心 的 结 果 。 不 规 律 的 成 矿 带 超
过 6 公 里 , 但 尚 未 得 到 充 足 的 勘 探 , 钻 探 工
作 一 直 未 实 施 。 平 硐 的 钻 进 采 用 中 国 通 用 的
‘ 边 采 边 探 ’ 的 方 法 。
January/February 2012 | ASIA Miner | 35

China
Production delayed at Eastern Dragon
Eastern Dragon construction continued during the chilly northeast China winter.
PRODUCTION at Eldorado Gold’s Eastern
Dragon project in Heilongjiang Province is not
expected to begin until the third quarter of
2012 with the company unable to complete
construction owing to it not yet receiving the
Project Permit Approval (PPA) as well as the
early onset of winter. Earthworks programs
are now expected to be carried out during
the Northern Hemisphere spring.
The PPA is the key permit required to allow
earthworks to proceed at the tailings facility,
waste dump and open pit areas. Eldorado
continues to work with the provincial government
on advancing the permit application and
remains confident of a successful outcome.
These works are the last remaining hurdle
before gold production can begin. Remaining
construction activity was all but completed by
the end of 2011 with contractors demobilized.
The company made a concerted effort
to finish all outside work before the winter
season set in. Piping and electrical installations
in the process area have begun and will
be completed during winter.
Construction at Eldorado Gold’s Eastern Dragon project
in Heilongjiang Province.
There are proven and probable reserves of
764,000 ounces @ 7.71 grams/tonne gold and
7 million ounces of silver @ 71 grams/tonne.
Resources comprise 852,000 ounces @ 7.50
grams/tonne gold in the measured and indicated
categories and 8.3 million ounces of silver
@ 73 grams/tonne, and 190,000 inferred
gold ounces @ 2.67 grams/tonne.
Eldorado’s president and chief executive
officer Paul Wright says, “Despite the disappointment
associated with not being able to
complete construction as planned by the
end of 2011, we are extremely pleased with
both the strong performance of our mines
which are all operating in accordance with
plan and the excellent start-up of our Efemcukuru
Mine in Turkey.”
Eastern Dragon will be the company’s
fourth operating mine in China behind Tanjianshan,
Jinfeng and White Mountain. While
production is ongoing, the company is continuing
exploration at and near these projects.
At Tanjianshan, diamond drilling has focused
on the 323 Deposit and Qinlongtan
Deeps target. Assay results at 323 indicate a
good correlation of gold values from section
to section and support existing geological
and resource models. Reverse circulation
drilling has been completed in the ZXS target
area, directed towards identifying possible
geochemically anomalies concealed beneath
Quaternary gravels.
At Jinfeng, five underground drills and two
surface drills have conducted exploration
drilling. Underground targets included the F3
and F7 fault zones, as well as conceptual targets
in the footwall to the deposit. Results
broadly support the revised structural model
for grade distribution within the deposit. The
company has also been active on four exploration
licence areas in the Jinfeng district.
At White Mountain, stepout drilling of the
deep zone at the north end of the deposit
area has been carried out.
忠 曲 与 迭 部 项 目 实 施 勘 探 作 业
Red Mountain 矿 业 公 司 忠 曲 项 目 内 的
辛 曲 矿 化 区 为 更 好 地 进 行 金 矿 化 的 解 释 工
作 , 已 经 开 始 开 展 地 表 和 地 下 地 质 构 造 研
究 。 这 个 在 澳 大 利 亚 证 券 交 易 所 上 市 的 公
司 同 时 也 在 迭 部 项 目 通 过 平 硐 进 行 勘 探 施
工 。
由 于 降 水 量 高 于 平 均 值 , 忠 曲 第 二 阶
段 地 下 勘 探 计 划 推 迟 至 12 月 。 该 计 划 旨 在
对 第 一 阶 段 得 到 的 激 动 人 心 的 结 果 进 行 跟
进 , 最 佳 的 测 试 结 果 包 括 31 米 岩 芯 金 品 位
为 4.61 克 / 吨 。
尽 管 有 所 推 迟 , 公 司 仍 然 期 望 能 够 有 足
够 的 时 间 在 2012 年 2 月 底 之 前 完 成 计 划 ,
以 期 概 括 出 第 一 阶 段 在 主 要 的 闪 长 岩 剪 切
带 和 先 前 未 确 认 的 石 灰 岩 构 造 见 矿 的 大 小
和 尺 寸 , 其 中 包 括 14.3 米 岩 芯 品 位 为 4.5 克
/ 吨 。
第 二 阶 段 计 划 以 这 两 种 类 别 为 目 标 , 共
计 实 施 15 个 钻 孔 , 约 钻 进 2430 米 。 公 司 也
为 计 划 执 行 期 间 进 一 步 跟 进 积 极 的 见 矿 结
果 而 实 施 另 外 的 钻 孔 做 好 了 准 备 。 此 次 计
划 旨 在 确 立 主 要 的 闪 长 岩 剪 切 带 的 下 倾 延
伸 带 , 并 对 高 品 位 的 石 灰 岩 构 造 潜 在 的 方
位 和 吨 位 数 有 更 好 的 认 识 。
构 造 地 质 测 绘 计 划 已 于 11 月 份 在 地 下 和
地 表 实 施 , 其 中 包 括 为 了 更 好 的 认 识 金 成
矿 带 的 控 矿 作 用 而 进 行 的 研 究 工 作 。 该 计
划 预 期 通 过 潜 在 的 露 天 矿 成 矿 带 推 进 钻 探
定 位 和 资 源 界 定 。
同 时 , 公 司 已 经 组 建 了 一 支 勘 探 队 , 并
已 遣 往 迭 部 开 展 对 现 有 勘 探 平 硐 的 修 复 工
作 和 对 地 表 与 地 下 露 头 的 测 绘 工 作 , 以 确
定 潜 在 的 钻 探 靶 区 , 且 钻 探 作 业 预 计 在
2012 年 上 半 年 开 始 。
这 两 个 项 目 都 位 于 甘 肃 省 南 部 。 忠 曲 是
一 个 运 营 中 的 金 矿 , 具 有 巨 大 的 勘 探 潜 力
。 自 2002 年 开 始 采 用 手 工 地 下 采 矿 方 式 运
营 , 矿 场 覆 盖 面 积 7.19 平 方 公 里 。 该 项 目
拥 有 一 个 现 代 化 黄 金 加 工 厂 , 年 产 能 达 40
万 吨 。
迭 部 拥 有 一 个 产 能 介 于 40 万 吨 -50 万 吨 的
勘 探 靶 区 , 金 品 位 介 于 3.5-4.5 克 / 吨 之 间 。
在 2008 年 ,Red Mountain 首 次 全 面 的 测
试 获 得 了 鼓 舞 人 心 的 结 果 。 不 规 律 的 成 矿
带 超 过 6 公 里 , 但 尚 未 得 到 充 足 的 勘 探 , 钻
探 工 作 一 直 未 实 施 。 平 硐 的 钻 进 采 用 中 国
通 用 的 ‘ 边 采 边 探 ’ 的 方 法 。
36 | ASIA Miner | January/February 2012

CHINA Magnesium Corporation has signed
an agreement to acquire a stand-alone, profitable
ferrosilicon producer in Ningxia
Province of northern China. The acquisition
will add an additional market in ferro-alloys
which complements the company’s existing
magnesium and magnesium alloy markets.
China Magnesium has agreed to purchase
100% of the shares of Ningxia Tianjing Tianda
Metallurgical Smelting Co (NTTMS) which operates
the ferrosilicon plant. The vendor is a
subsidiary of a state-owned provincial electricity
company and the plant is near Zhongwei,
about 670km west of the China Magnesium
manganese production operations in Pingyao
County of Shanxi Province.
The ASX-listed company believes the
Aus$6 million acquisition represents excellent
value because it secures supply of the single
largest raw material cost input in the magnesium
manufacturing process and adds an additional
market in ferro-alloys which
complements its existing magnesium and
magnesium alloy markets.
The purchase price is expected to be funded
by a combination of debt and equity with the
company agreeing to place about 4 million
shares to raise about Aus$1.4 million to fund
the equity component. China Magnesium has
already completed technical and legal due diligence
on the vendor and its operations.
The replacement cost of the ferrosilicon
production facility has been estimated at
about Aus$15 million while the new business
is expected to contribute about Aus$1.6 million
and Aus$3.3 million to the company’s net
profit after tax for financial year 2012 and financial
year 2013 respectively.
China Magnesium’s managing director Tom
Blackhurst says, “The proposed acquisition
is another significant milestone in the company’s
business strategy. This very attractive
opportunity was brought to the attention of
China Magnesium’s executive director Xinping
Liang as a result of his long-term relationships
and connections within China.”
Ferrosilicon is used primarily in the steel and
magnesium industries, and represents about
40% of the input cost of magnesium production.
The plant has been operated by NTTMS
for 10 years and has recently been upgraded
to increase annual capacity to about 60,000
China
China Magnesium in ferrosilicon acquisition
tonnes from four electric furnaces.
This is sufficient feedstock for China Magnesium’s
intended phase one and phase
two magnesium production expansions to
about 55,000 tonnes of magnesium alloy
annually. NTTMS will continue to operate in
its current form suppling China Magnesium
and ferrosilicon not required for this purpose
will continue to be sold to other existing
local and export markets. NTTMS employs
about 400 qualified and experienced personnel,
whom China Magnesium intends to
retain going forward.
The ferrosilicon plant is in Ningxia Province, west of China Magnesium’s Shanxi Province manganese operations.
中 国 镁 业 集 团 硅 铁 并 购 协 议
中 国 镁 业 集 团 已 经 与 中 国 北 部 宁 夏 省 的 一 家
独 立 、 盈 利 的 硅 铁 生 产 企 业 签 署 了 一 份 并 购
协 议 。 此 次 并 购 使 公 司 从 现 有 的 镁 与 镁 合 金
市 场 扩 张 至 铁 合 金 市 场 。
中 国 镁 业 同 意 收 购 经 营 硅 铁 厂 的 宁 夏 天 净
天 达 冶 金 冶 炼 公 司 (NTTMS) 所 有 的 股 份 。 卖
方 是 一 家 国 有 省 电 力 公 司 的 子 公 司 , 硅 铁 厂
位 于 中 卫 市 附 近 , 距 离 中 国 镁 业 位 于 山 西 省
平 遥 县 的 镁 生 产 厂 西 部 约 670 公 里 。
在 澳 大 利 亚 证 券 交 易 所 上 市 的 中 国 镁 业 相
信 此 次 价 值 600 万 澳 元 的 收 购 展 现 出 了 极 佳
的 价 值 , 因 为 公 司 在 镁 制 造 过 程 中 获 得 了 单
一 的 、 最 大 化 的 原 材 料 投 入 , 并 从 现 有 的 镁
与 镁 合 金 市 场 扩 张 至 铁 合 金 市 场 。
收 购 价 款 预 期 将 通 过 发 行 债 券 和 股 票 的 方
式 筹 集 , 公 司 同 意 发 行 400 万 股 筹 集 140 万
澳 元 完 成 股 票 权 益 部 分 的 融 资 。 中 国 镁 业 已
经 对 卖 方 及 其 运 营 完 成 了 技 术 和 法 律 方 面 的
尽 职 调 查 。
硅 铁 生 产 设 施 的 重 置 成 本 估 价 约 为 1500 万
澳 元 , 新 业 务 预 期 在 2012 财 政 年 和 2013 财
政 年 分 别 为 公 司 带 来 大 约 160 万 澳 元 和 330
万 澳 元 的 税 后 净 利 润 。
中 国 镁 业 的 董 事 总 经 理 Tom Blackhurst
称 ,“ 此 次 提 议 的 并 购 是 公 司 商 业 战 略 的
另 一 个 重 要 的 里 程 碑 。 这 个 极 具 吸 引 力 的
机 会 引 起 了 中 国 镁 业 的 执 行 董 事 梁 新 平 的
关 注 , 因 为 他 与 中 国 境 内 有 着 长 期 的 合 作
与 联 系 。”
硅 铁 主 要 用 于 钢 和 镁 产 业 , 大 约 占 镁 生 产
投 入 成 本 的 40%。 天 净 天 达 已 经 运 营 该 硅 铁
厂 10 年 了 , 近 期 将 四 个 电 炉 的 年 产 能 大 约
提 高 至 6 万 吨 。
这 为 中 国 镁 业 预 计 将 镁 合 金 年 产 量 提 高 至
约 5.5 万 吨 的 一 期 和 二 期 镁 产 量 扩 张 计 划 提
供 了 充 足 的 原 材 料 。 天 净 天 达 将 继 续 按 照 当
前 的 方 式 运 营 , 为 中 国 镁 业 供 货 , 此 计 划 所
需 之 外 的 硅 铁 将 继 续 出 售 给 其 他 现 有 的 当 地
和 海 外 市 场 。 中 国 镁 业 将 继 续 保 留 此 前 天 净
天 达 雇 佣 的 大 约 400 名 合 格 的 且 经 验 丰 富 的
员 工 。
January/February 2012 | ASIA Miner | 37

China
More balanced approach to resource supplies
CHINA will increase exploration and apply advanced
technology in order to provide a more
balanced mix of domestic resources and
overseas imports to feed its ongoing growth.
As part of this push the government will also
strive to ensure a more environmentally sustainable
approach to mining.
China’s vice-minister of Land and Resources
Wang Min told delegates at the 13th China
Mining Congress and Expo in Tianjin that the
ministry had established 47 blocks for strategic
exploration in various parts of China and
announced its methods for ‘Improving Mining
Rights Management for Coordinated Exploration’.
“We will use domestic and overseas
resources and markets in a more balanced
way to ensure the country’s resource supply
during the 12th Five-Year Plan to 2015.
“The ministry will announce new mining rights
and welcomes the participation of domestic
and foreign mining companies.” He said the
ministry would use new exploration methods
and establish a market-oriented pattern that
placed more importance on technology as well
as inter-departmental coordination. “The government
will increase efforts to create a more
favourable environment for exploration.”
Wang Min said the government also
planned to restructure the mining industry
and implement green mining initiatives.
Measures include stricter mineral resources
planning, integration of mineral resources and
a system of mining rights while newer mines
will be developed in accordance with green
mining standards.
“We’ll do away with badly distributed mining
rights, restructure mines and improve the
scale and intensiveness of mining resources
development. We will expand the scope of
green mining projects to more than 600
demonstration sites within five years.”
The ministry will announce new
mining rights and welcomes the
participation of domestic and
foreign mining companies. He
said the ministry would use new
exploration methods and establish
a market-oriented pattern
that placed more importance on
technology as well as inter-departmental
coordination. The
government will increase efforts
to create a more favourable environment
for exploration
Land and Resources Minister Xu Shaoshi
said the mining industry would follow a green,
low-carbon, sustainable path. “We will improve
industry management and insist on
protective measures during exploration. We
will also try to restore the natural environment
of mines and create better natural surroundings
for local people.”
Reflecting the commitment to more sustainable
mining, Datong Coal Mine Group, a
coal producer in Shanxi Province, intends to
become a leader in energy saving and environmentally
friendly development. Its chairman
Zhang Youxi told the China Daily:
“Developing a recycling economic model is
the optimal way to sustain development at
coal mines around the world and green exploration
is the principle we need.”
He said the Tashan mine was taking the
lead in environmentally friendly development
with its Tashan Circular Economy
Park and its clean coal developments.
“Washed coal is transported by a special
railway, residual coal pieces are used to
produce methane, coal rubble is separated
and used to make bricks, and low-value
coal is used by the power plant to generate
electricity. Excess heat from the power
plant is used to warm residences in the
area, fly ash discharged by the power plant
is used as raw material for a cement plant
and the shale left by the excavation
process is used as raw material for kaolin.”
The group also has forest projects around
its mines while residential areas around old
mines have been replaced with greenery and
forests. It has also started construction on the
Jinhuagong National Mine Park, the first in
China, which will open in 2012. It will educate
people about mining and demonstrate what
can be done in terms of rehabilitation.
中 国 寻 求 更 趋 平 衡 的 资 源 供 应
中 国 将 推 进 矿 产 资 源 勘 探 , 并 且 采 用 先 进 技
术 , 从 而 提 供 更 趋 平 衡 的 国 内 资 源 和 海 外 进
口 资 源 供 应 , 满 足 其 经 济 持 续 增 长 的 需 要 。
作 为 这 一 政 策 的 一 部 分 , 中 国 政 府 将 努 力 推
行 在 环 境 方 面 更 具 可 持 续 性 的 采 矿 方 式 。
在 天 津 举 办 的 第 13 届 中 国 国 际 矿 业 大 会 暨
博 览 会 上 , 中 国 国 土 资 源 部 副 部 长 汪 民 告 诉
与 会 代 表 , 国 土 资 源 部 已 在 国 内 不 同 地 区 设
立 了 47 片 找 矿 突 破 战 略 行 动 整 装 勘 查 区 。
他 还 宣 布 了 “ 改 进 协 作 勘 探 的 矿 业 权 管 理 ” 的
手 段 ,“ 我 们 将 以 更 平 衡 的 方 式 , 利 用 国 内
和 海 外 的 资 源 和 市 场 , 以 保 障 ‘ 十 二 五 ’ 期 间
我 国 的 资 源 供 应 。”
“ 国 土 资 源 部 将 投 放 新 的 矿 业 权 , 并 欢 迎
国 内 外 采 矿 企 业 的 参 与 。” 他 表 示 , 国 土 资
源 部 将 推 动 使 用 新 的 勘 探 方 法 , 并 建 立 以 市
场 为 导 向 的 模 式 , 更 重 视 技 术 以 及 不 同 部 门
间 的 协 作 。 他 说 :“ 政 府 将 努 力 为 资 源 勘 探
创 造 一 个 更 有 利 的 环 境 。”
汪 民 表 示 , 政 府 已 经 计 划 调 整 矿 业 结 构 ,
同 时 推 进 绿 色 矿 山 建 设 。 为 此 将 实 行 更 严 格
的 矿 产 资 源 规 划 , 整 合 矿 产 资 源 , 健 全 矿 业
权 体 系 , 对 于 新 建 矿 山 将 严 格 按 照 绿 色 矿 山
标 准 进 行 开 发 。
“ 我 们 将 取 消 布 局 不 合 理 的 矿 业 权 , 调 整
矿 业 结 构 , 提 升 矿 产 资 源 开 发 的 规 模 化 和 集
约 化 水 平 。 我 们 将 在 五 年 内 将 绿 色 矿 山 项 目
扩 大 到 600 个 以 上 试 点 示 范 矿 山 。”
国 土 资 源 部 部 长 徐 绍 史 表 示 , 采 矿 业 将 走
一 条 绿 色 、 低 碳 、 可 持 续 的 道 路 。“ 我 们 将
提 升 矿 业 管 理 水 平 , 在 勘 探 中 坚 持 采 取 保 护
性 措 施 。 同 时 我 们 还 将 尝 试 恢 复 矿 区 自 然 环
境 , 为 当 地 群 众 创 造 更 好 的 生 活 环 境 。”
作 为 矿 业 可 持 续 发 展 道 路 的 代 表 , 山 西 省
的 煤 炭 生 产 商 大 同 煤 矿 集 团 致 力 于 成 为 节 能
和 环 境 友 好 型 开 发 的 标 兵 。 集 团 董 事 长 张 有
喜 告 诉 中 国 日 报 记 者 :“ 发 展 循 环 经 济 模 式
是 全 世 界 煤 矿 可 持 续 发 展 的 最 优 道 路 , 而 绿
色 勘 探 也 正 是 我 们 必 需 遵 循 的 原 则 。”
他 说 , 塔 山 煤 矿 的 塔 山 循 环 经 济 园 区 以 及
清 洁 煤 炭 开 采 在 环 境 友 好 型 开 发 方 面 处 于 领
先 水 平 。“ 洗 出 的 精 煤 通 过 铁 路 专 用 线 运 输
, 残 余 的 煤 块 用 来 生 产 沼 气 , 分 离 出 来 的 煤
矸 石 用 作 制 砖 , 低 值 煤 被 发 电 厂 用 作 发 电 。
发 电 厂 产 生 的 多 余 的 热 量 用 于 地 区 供 热 , 发
电 厂 排 出 的 粉 煤 灰 成 为 水 泥 厂 的 原 料 。 在 采
掘 过 程 中 剥 离 的 页 岩 被 用 作 生 产 高 岭 土 的 原
料 。”
集 团 在 矿 区 周 围 推 行 造 林 项 目 , 老 矿 区 周
围 的 居 民 区 已 经 被 绿 地 和 树 林 所 取 代 。 集 团
已 动 工 建 设 的 晋 华 宫 国 家 矿 山 公 园 为 国 内 首
创 , 预 定 于 2012 年 开 放 。 它 将 用 于 矿 业 教
育 , 并 展 示 矿 区 复 原 工 作 。
38 | ASIA Miner | January/February 2012

Indonesia
Significant gold results at Tandai
DRILLING at the Lusang North prospect of the Tandai joint venture of
Sumatra Copper & Gold and Newcrest Mining in southwest Sumatra has
resulted in significant gold intersections. The latest results at this discovery
confirm that mineralization is hosted in a series of vein breccias.
The vein breccias, which are similar in appearance to those mined
at the historically productive Tandai Lode, were intersected in the first
hole at Lusang North, about 200 metres north of Tandai Lode. A second
hole was drilled from the same site at a steeper angle and returned
seven separate intersections from 21 to 187 metres.
These are 3 metres from 21 metres @ 2.09 grams/tonne gold and
2.6 grams/tonne silver; 4 metres from 31 metres @ 20 grams/tonne
gold and 19.5 grams/tonne silver including 2.1 metres @ 37
grams/tonne gold and 35.6 grams/tonne silver; 2 metres from 41 metres
@ 3.53 grams/tonne gold and 9.5 grams/ tonne silver; 4.1 metres
from 60 metres @ 8.84 grams/tonne gold and 17.9 grams/tonne silver;
6 metres from 68 metres @ 2.47 grams/tonne gold and 5.7
grams/tonne silver; 1 metre from 82 metres @ 4.43 grams/tonne gold
and 7.2 grams/tonne silver; and 4 metres from 183 metres @ 3.71
grams/tonne gold and 17.2 grams/tonne silver.
Sumatra C&G’s chief executive officer Julian Ford says the company
is highly encouraged that the early drilling has resulted in significant
intersections: “What is encouraging is both the high grade gold intersections
and width of mineralization. It is important that this discovery
is very close to the historic Tandai Lode and yet remained undiscovered
by previous explorers.
“Our current understanding suggests the mineralization is mostly
blind and does not outcrop except in an artisanal working. A significant
CSAMT anomaly occurs 300 metres to the west of the current
drilling and will now be tested by new drill holes.”
The Tandai joint venture is in southwest Sumatra and includes historic workings.
Tandai is an under-explored, high grade gold and silver project. It is
about 100km north of Bengkulu, covers about 1000sqkm and has
reported historic production of 1.4 million ounces of gold and 15 million
ounces of silver.
January/February 2012 | ASIA Miner | 39

Indonesia
Deep drilling success at Wonogiri project
RESULTS from drilling at the Randu Kuning
prospect of Augur Resources’ Wonogiri Gold-
Copper project in Central Java have confirmed
the extension of mineralization at depth and to
the north. Two additional drill rigs are now on
site for further drilling targeting extensions for
potential high grade mineralization.
Drilling at Augur Resources’ Wonogiri project in Central Java.
One hole was drilled to test for mineralization
below a previous hole that returned 199
metres @ 0.46 grams/tonne gold and 0.13%
copper. The new hole was drilled to a depth
of 456 metres and intersected a number of
mineralized zones including 95.5 metres from
41 metres @ 0.74 grams/tonne gold and
0.16% copper which included a high-grade
zone of 5 metres from 82 metres @ 5.08
grams/tonne gold and 0.50% copper.
This zone indicates that high-grade zones
may be viable targets within the Randu Kuning
porphyry system. Other intersections in this
hole include 66 metres from 198.5 metres @
0.47 grams/tonne gold and 0.11% copper, including
3 metres from, 215.5 metres @ 2.62
grams/tonne gold, 0.48% copper and 3.5
grams/tonne silver, and a further 7.0 metres
from 269.5 metres @ 0.32 grams/tonne gold
and 0.16% copper.
Another hole was drilled to test for down
dip extension of mineralization identified in a
previous hole that returned 123.5 metres @
1.42 grams/tonne gold and 0.22% copper
and a further 65 metres @ 1.03 grams/tonne
gold and 0.17% copper. The new hole intersected
near-surface mineralization including
96 metres @ 0.54 grams/tonne gold and
0.13% copper in altered dioritic porphyry before
intersecting a post-mineralized banded
quartz and magnetite intrusion.
Other intersections in this hole include 6.0
metres from 166 metres @ 0.57 grams/tonne
gold, 29 metres from 246 metres @ 0.63
grams/tonne gold and 0.10% copper, and a
further 18 metres from 282 metres @ 0.30
grams/tonne gold.
Interpretation of core has concluded that
Randu Kuning consists of multiple porphyry
intrusives indicating a prolonged intrusive history.
Extensive alteration may be indicating a
deeper mineralizing source which has yet to
be drill tested. A drill rig capable of testing targets
to more than 1000 metres has arrived
on site to test for deeper high grade zones
on the flanks of the porphyry intrusions.
Augur has received preliminary flotation
metallurgical results for three sulphide samples
and two oxide samples. Initial first pass
tests were focused on recovery from the sulphide
portion which is expected to be the
bulk of the deposit. The results indicate very
good recoveries with a recovery range of
78.6% to 88.7% with a mean of 82.7% for
the gold and a recovery range of 92.1% to
96.1% with a mean of 94.1% for the copper.
Results for the oxide component range from
58.1% to 69.6% for gold and 16.2% to 26%
for copper. The lower copper recoveries in
the oxide were expected given the tests were
focused on recovery of copper sulphides.
Further testing will be undertaken with a
focus on determining an appropriate
process for recoveries in the oxide zone and
gravitational testing for further improving the
gold recovery.
Full production achieved at Toka Tindung
FULL production has started at Archipelago
Resources’ 95%-owned Toka Tindung gold
mine in North Sulawesi province. The operation
achieved its targeted production rate in
early November and was expected to produce
at least 60,000 ounces of gold by the
end of 2011. Annual output during 2012 and
for the remaining life of the mine is expected
to be 150,000 ounces.
Archipelago is mining from the Toka Tindung
open pit as well as the satellite deposits of Pajajaran
and Araren, and is continuing its exploration
of the area covered by the mining permit.
The company’s chief executive officer Marcus
Engelbrecht says, “Meeting our production
objective is a significant achievement for
Archipelago and our ability to generate positive
cash flow will provide the platform for
meaningful growth.
“Having successfully established our production
base, the company is committed to
pursuing further drilling programs at Toka Tindung.
This will support organic production
growth at Toka through increased reserves,
additional sources of ore and greater production
optionality.”
The 2011 production fell well short of the initial
forecast of 110,000 ounces due to a number
of complications during the mine’s ramp-up.
While such problems are common during mine
start-ups, the company was encouraged that
its annual throughput rate was achieved during
the final quarter and is confident that the 2012
production guidance will be met.
Archipelago is also on track to report an increase
in its reserves and resources following
an increase in exploration and drilling since
completion of the feasibility stage.
Meanwhile, the company has also announced
that it will not proceed with the Pac-
Lang joint venture in Vietnam. The decision
follows a comprehensive review of the work
conducted there to date. The company says
that the exploration results do not justifying
further expenditure.
40 | ASIA Miner | January/February 2012

Indonesia
Banda Raya samples show significant gold
SIGNIFICANT gold assay results have been returned
from rock channel samples gathered at
Centurion Minerals’ Banda Raya project in
Aceh Province, northern Sumatra. The results
are indicative of potentially large epithermal and/
or shallow intrusion-related gold mineralization.
Highlights from the 105 rock samples taken
from Zulham prospect are: 8 samples @ 6-
14.5 grams/tonne gold, including 4 samples
@ 10-14.5 grams/tonne; 18 samples @ 1-3.9
grams/tonne; and 17 samples @ 0.1-0.9
grams/tonne. The balance all assayed less
than 0.1 grams/tonne.
All assays came from 1 metre sawn rock
channel samples with the exception of four
analyses within the 1-3.9 grams/tonne group
that were rock chip samples. The company is
preparing a first-phase drilling program in the
area to commence as quickly as possible.
Zulham is within the east-west trending
Miwah-Menawan lineament and about 1875
metres above sea level. Thus far mineralization
has been defined over an area of 300 metres in
length and 2-7 metres in width, and remains
open in all directions. The prospect is about 750
metres northeast of the Keladi prospect, from
which past explorer Highlands Pacific reported
9 rock chip samples that returned between 2
and 27 grams/tonne gold over a 500 metre-long
These results validate our geological
teams’ efforts to ‘cover
the last mile’ in challenging terrain
and we are eager to advance
the exploration program
in order to determine the size of
this gold prospect.
vein system. Zulham and Keladi lie within a
1.5km diameter multiple-ring circular structure.
Centurion’s chairman Alfred Lenarciak says,
“These results validate our geological teams’
efforts to ‘cover the last mile’ in challenging
terrain and we are eager to advance the exploration
program in order to determine the
size of this gold prospect.”
The Canadian-headquartered company has
also received results from the first holes of its
ongoing, phase one diamond drill program on
the Nareh prospect within its Badak property,
also in northern Sumatra. Five holes tested the
gold-copper-molybdenum anomalous surface
rock samples along the north-western margin
of the Nareh volcanic-intrusive complex. Results
include 12 metres from 197 metres @
0.11% copper and 13 metres from 198 metres
in the same hole @ 0.03% molybdenum; 17
metres from 173 metres @ 0.07% copper; and
23 metres from 23 metres @ 0.08% copper.
The company has completed two drill holes
on the epithermal gold target in the Nareh volcanic
complex. One hole ended at a depth of
200 metres and intersected narrow mineralized
zones registering 3 metres @ 0.6 grams/tonne
gold and 0.15 % copper from 5 metres, and 1
metre @ 0.96 grams/tonne gold from 158 metres.
Rock channel samples in this area assayed
up to 1 metre @ 11 grams/tonne.
Assays for the second hole are pending.
January/February 2012 | ASIA Miner | 41

Indonesia
New alliance covers manganese tenements
WESTERN Manganese has joined forces with
Borneo Brothers Limited (BBL) to advance a
number of manganese prospects throughout
Indonesia. The companies have established
an investment agreement and also signed an
Option Sale and Purchase Agreement for the
option to buy 51% of the issued shares of PT
Genesis Berkat Utama, a manganese concession
with an IUP production licence in Toli
Toli, Central Sulawesi.
The alliance provides Australian-based Western
Manganese with first right of refusal to Indonesia-based
BBL’s pipeline of manganese
concessions for the next two years. There are
six projects in the pipeline located in Nusa
Tenggara Timor, Central Sulawesi and Halmahera,
with total area of 9233 hectares.
BBL is an investment company that specializes
in resources exploration and the early
stages of mining investments in Indonesia. The
company recently exited its substantial investment
in an Indonesian thermal coal concession
through a sale to a multi-national Asian publicly
traded conglomerate, after doing detailed exploration
work on the concession and having
a JORC reserves estimate of plus-60 million
tons and resources estimate of plus-100 million
tonnes completed.
BBL’s well-established Jakarta-based team
is highly engaged in the Indonesian resource
Artisinal miners at a Western Manganese prospect in West Timor. The company aims to be the first company to delineate
a JORC-compliant resource in West Timor.
and financial communities. It includes managing
director Chris Clower, who has extensive
experience in the Indonesia resources
sector and was formerly head of South East
Asia Corporate Finance at Merrill Lynch Investment
Banking Division. From 2005 to
2009 he raised more than US$2 billion for resource
companies operating in Indonesia.
Western Manganese’s primary focus is to
identify and secure quality manganese projects
throughout Indonesia. It currently holds
the rights to two manganese tenements near
Atambua in West Timor, an area regarded as
an emerging manganese province.
Western Manganese paid Aus$100,000 in
cash upon signing the Heads of Agreement
with 2 million fully paid shares and 5 million
options issued to BBL upon the transfer of
the option to acquire 51% of the issued
shares of Genesis. The Genesis concession
is in Dondo Subdistrict and Bualan Subdistrict,
Kabupaten Toli Toli, Central Sulawesi. A
number of manganese boulders have been
found in the production licence area. Should
the Genesis licence hold economic manganese
mineralization, there are two potential
jetty sites within 25km of the concession.
Five rock chip samples were submitted to Intertek
Laboratory and results range from 41.4%
to 55.3% manganese. Genesis has conducted
a geomagnetic survey over 490 hectares of the
licence area with a number of anomalies identified
which require follow up work.
Horas estimate adds to Martabe resources
RESULTS from 41 diamond drill holes at G-
Resources’ Horas deposit have led to an initial
JORC-compliant resource estimate of
400,000 ounces of gold at an average grade
of 0.8 grams/tonne and 880,000 ounces of silver
at 1.7 grams/tonne. It’s the last of three
2011 resource estimates aimed at defining the
Purnama Timur, Tor Uluala and Horas deposits
at the Martabe project in North Sumatra.
The Martabe licence area covers 1639sqkm
with a resource base to date of 7.86 million
ounces of gold and 73.48 million ounces of silver.
G-Resources acquired the gold and silver
mine in July 2009 as its core starter asset,
around which it hopes to build a globally competitive
Asia-Pacific focused gold company.
A team of 15 geologists and five helicopter
supported diamond drill rigs are engaged in
drilling programs across the projects, with staff
working to generate and test exploration targets
for both epithermal gold/silver and porphyry
copper/gold mineralization.
Gold-silver mineralization at Martabe comprises
a higher grade core with intense silicification
and a lower grade halo with lower
silicification and strong clay alteration. The
Horas deposit outcrops at the surface and dips
to the west with a strike length of about 600
metres and a known depth to 250 metres. The
high grade Horas Barat prospect to the west
may represent a higher grade feeder zone or a
parallel but separate gold-silver system.
Preliminary metallurgical analysis was
conducted by comparing the ratio of
cyanide soluble gold assay to gold by fire
assay. G-Resources says the work indicates
that the deposit is likely to be refractory in
nature because it is largely composed of
primary mineralization style. Initial test work
has indicated that recoveries of about 80%
have been obtained on mineralization from
Purnama deposit.
Construction of the Martabe mine is under
way and G-Resources aims to start production
at its Purnama Timur deposit in early
2012 at an annual rate of 250,000 ounces of
gold and 2-3 million ounces of silver.
The company is hoping to increase production
to more than one million ounces of
gold annually by exploring the licence area
and acquiring other quality gold assets.
42 | ASIA Miner | January/February 2012

Thailand
Coal trader moves into coal mining
THAI coal importer and distributor Energy Earth
Plc has entered the mining industry through its
acquisition of licensed coal miner PT Tri Tunggal
Pitriati (TTP), which is based in the Indonesian
province of South Kalimantan. TTP owns
two mines with combined reserves of 7.4 million
tonnes and has been awarded contracts
to supply 2 million tonnes of coal to Chinese
power producers over the next four years.
TTP’s Sebamban mine, with reserves of 2
million tonnes, produced its first coal in late
November, and expected to ship its first lot
of 60,000 tonnes to China by the end of
2011.
After a bumpy start to its Indonesian coal
foray when it says it was cheated by a local
trader out of the 10 million baht it paid for the
first lot of coal from Indonesia, Energy Earth
is confident it can move forward after taking
on an Indonesian partner and completing the
share-swap deal worth about 1 billion baht.
Energy Earth’s managing director Khajohnpong
Khamdee, whose family founded the
company as Energy Perfect four years ago,
told local media: “To do business in Indonesia,
you must understand the culture and find
the right partner.”
When Energy Perfect took over the listed
firm Advance Paint & Chemical (Thailand) at
the end of 2010 in a back-door listing, it renamed
itself Energy Earth. Compared with
Thai mining heavyweights Banpu and PTT,
both of which own coal assets in Indonesia,
Earth has taken a different approach.
Khajohnpong Khamdee says, “While PTT
and Banpu have lots of money to spend, our
company is more down-to-earth. We try to
get close to the locals.”
The acquisition of TTP makes Earth the
third-largest listed coal miner after Banpu and
Lanna Resources. The three other coal
traders on the Thai stock exchange - Asia
Green Energy, Unique Mining Services and
Thai Capital - do not own any mines, although
Asia Green has been in talks to acquire
Indonesian coal assets.
The share swap gave Energy Earth five new
shareholders including Nugoon Sri-in, whose
group took over TTP late last year. A former
top executive of National Power Supply,
which is part of the Advance Agro Group,
Khajohnpong Khamdee has sourced Indonesian
coal for the power company since 2007.
He says the transformation from a trader
into a miner is a major step ahead for Energy
Earth to hedge against coal price risks. “This
move is not a risk. In fact, it is an opportunity
to grow our business, as Indonesia has much
more coal than Thailand. Supply is critical in
this business. Having our own mine helps to
secure supply and minimize effects when the
coal price soars.”
Through TTP, Energy Earth is continuing its
search for more coal assets to secure additional
supply including a potential site in Central
Kalimantan province. In October the
company signed a memorandum of understanding
to supply 8.5 million tonnes of coal
to India’s Chettinad Group to fuel its power
plants starting in July 2013.
Khajohnpong Khamdee said that after selling
1.4 million tonnes in the first nine months
of 2011, Energy Earth revised up its annual
sales target from 1.2 million tonnes to 1.6 million,
excluding the first shipment to China.
January/February 2012 | ASIA Miner | 43

Philippines
Mining Group to acquire 80% Comval stake
AUSTRALIAN exploration company Mining
Group Limited is acquiring an 80% interest in
the Comval Copper-Gold project from Canadian-based
Cadan Resources. Comval is in
the established copper and gold producing
region of the Compostela Valley on Mindanao
with potential for large-scale copper gold
porphyry mineralization.
Proven copper/gold mineralization has
been identified from historical mining, extensive
and exploration adits, trenches and surface
sampling. On completion of the
acquisition, Mining Group intends to undertake
a comprehensive reinterpretation and review
of all available data with a view to
designing an infill drilling program.
Cadan will retain a 20% interest which is
free and carried until Mining Group has incurred
a minimum of Aus$48 million of expenditures
on the project. Mining Group will
also be granted an option to acquire an 80%
interest in the Batoto Gold/Silver Project, with
a nine month exercise period from settlement
of the Comval acquisition.
Mining Group’s managing director Andrew
Maurice says that the proposed Comval acquisition
is consistent with the company’s
objective of acquiring commercially significant
mineral properties that can readily be
brought into production. “Having evaluated
a number of opportunities in Australia and
offshore, this represents Mining Group’s first
offshore project and builds on the company’s
existing gold and base metal tenements
in Western Australia.
“Comval’s tenement area covers 4310
hectares, and has had more than 24,000 metres
of drilling completed which we intend to
review with the aim of defining a JORC resource.
The Philippines provides a stable investment
environment, and given its scale
and location, with a number of major copper
and gold deposits in the same geological
belt, the Comval Project has the potential to
transform Mining Group.”
Comval consists of two exploration permits
which are prospective for copper and gold. It
is about 90 km north of the Mindanao capital,
Davao and is within the East Mindanao
Ridge, a world-class copper/gold province
which hosts major deposits such as Kingking,
Dilwalwal and CoO.
The project has three main targets - Tagpura,
Maangob and Kalamatan - with numerous
other early stage targets having been
previously identified as prospective for both
copper and gold. Work completed previously
includes surface mapping and sampling,
trenching, diamond and RC drilling, geophysical
surveys (IP and magnetic) and preliminary
metallurgical studies. The majority of data exists
over the Tagpura target, with about
20,000 metres of the drilling having been
completed there.
Cadan’s president and CEO Robert
Butchart says the sale will enable Cadan to
focus its resources and efforts to the advancement
of its core asset - the T’Boli goldsilver
project and mine.
Agata studies yield positive results
KEY development studies on Mindoro Resources’
Agata Nickel-Cobalt Project have
yielded positive results, underpinning the company’s
strategy for a two-stage development
and enhancing the prospects for near-term
cash flow. The studies confirm that Agata is a
robust, 20-year project with key strategic advantages
that allow Mindoro to pursue a lower
risk path to fast-track production, as well as
demonstrating the value of the low-operating
cost downstream processing developments.
The stage 1 scoping study indicates improved
economics for direct shipping ore
(DSO) production and the potential to produce
a high-value, upgraded, nickel-iron concentrate.
The stage 2 hydrometallurgical project
pre-feasibility study (PFS) confirms a low operating
cost (US$2.60/lb nickel), 20-year project
with a post-tax NPV of US$380 million and IRR
of 14% assuming US$10/lb nickel, 8% discount
rate, including estimate contingency of
14% but excluding project contingency.
On the basis of these positive results Mindoro
plans to pursue feasibility and permitting
of DSO and pilot scale thermal-upgrading prior
to advancing hydrometallurgical processing
options to pilot-scale testing and feasibility
study. In order to progress these options the
company is seeking a strategic partner.
It has developed a series of priorities:
• The near-term cash flow from the proposed
low capital cost (US$8 million) DSO operation
will help fund further studies and pilot
scale testing of downstream processing options
as well as assist future permitting
needs under the staged development plan.
• Initial infrastructure established for stage
1, including roads, stockpile areas, wharf,
camps, etc, will contribute towards capital
requirements for the proposed stage 2 hydrometallurgical
processing project.
Mindoro has engaged Deloitte Corporate
Finance as its financial advisor to assist the
company to secure a strategic partner to advance
and finance these objectives.
Meanwhile, the company has received final
results from infill and extension drilling of the
Southwest Breccia (SWB) epithermal gold
shoot at Lobo deposit of the Batangas project.
Two near-surface holes intersected highgrade
gold with best results being 4.9 metres
from 4.8 metres @ 11.1 grams/tonne gold, including
2 metres @ 21.1 grams/tonne, and
7.75 metres from surface @ 4.67
grams/tonne, including 1.95 metres @ 11.8
grams/tonne. A deeper drill hole, drilled at low
angle to the lode, intersected 18.35 metres @
1.52 grams/tonne gold from 91.95 metres including
1.0 metre @ 5.72 grams/tonne and
1.0 metre @ 5.25 grams/tonne.
The eight drill holes at SWB have completed
the infill program to an approximate 15
metre x 15 metre grid which will allow the
company to upgrade the resource estimate.
Checking nickel laterite samples from Mindoro Resources’
Agata project.
44 | ASIA Miner | January/February 2012

Philippines
First nickel from Acoje pilot plant
THE first nickel has been produced at ENK’s
pilot plant on Luzon Island in northern Philippines.
About 50kg of nickel hydroxide product
(NHP) was released from the filter press,
with initial assays showing the product contains
about 49% nickel and 4% iron.
The plant is about 250km north of Manila
and can produce about 200kg of NHP each
month using ion exchange to separate and
purify the nickel and cobalt. The initial NHP is
being sent to potential off-takers for evaluation.
It has wide market appeal due to significantly
low metal impurities.
ENK’s managing director Robert Gregory
says, “It is a magnificent effort by the Acoje
team to go from being on care and maintenance
last year to building and commissioning
the pilot plant 10 months later.”
ENK has two deposits on Luzon Island,
with a combined JORC estimate of 840,000
tonnes. The company hopes to use its lowcost
heap leach process to extract nickel laterites
at both the Acoje and Zambales
chromite deposits.
The company has demonstrated the percolation
and extraction of nickel at its largescale
demonstration plant at Çaldag in Turkey
with continuous operations over a three year
period. At this flagship project, ENK irrigates
the heaps with dilute sulphuric acid, producing
saleable mixed hydroxide product from
The pilot plant and research facility at ENK’s Acoje
Nickel Project.
the downstream precipitation plant. Recoveries
of 72% have been used in the Çaldag
bankable feasibility study (BFS) for both nickel
and cobalt. However, this mixed hydroxide
product (MHP) has a higher level of metal impurities
than the NHP produced from the pilot
plant. Test work on an atmospheric pressure
tank leach (ATL) in China is also continuing
with encouraging results to date. ATL is an alternative
leaching process to heap leaching
and the company hopes test work on this
system will help it to decide which leaching
process will be taken forward to the Acoje
BFS, which remains on track for completion
by June 2012.
ENK has started a comprehensive drilling
program on the nearby Zambales Chromite
Mining Corporation (ZCMC) tenement, which
is about 5km north of Acoje and 250km north
of Manila. It is owned 40% by ENK and 60%
by an associated entity, Montemina Resources
Corporation, and contains a JORC
inferred resource of 23.5 million tonnes of
nickel laterite ore at a grade of 1.18% nickel
and 0.05% cobalt.
The drill program of 255 holes totalling
about 3000 metres is designed to provide infill
drill data to upgrade the limonite estimate
to indicated status as well as provide sufficient
data to estimate an indicated resource
for the untested saprolite horizon. The company
expects the saprolite horizon will be
similar Acoje where the saprolite could make
up at least 50% of the total resource. Drilling
will continue until the end of the first quarter.
Joint venture for iron sands development
ASTRA Far East, a subsidiary of Astra Resources,
has signed a joint venture agreement
with Cagayan River Construction & Development
Corporation (CRCDC) to dredge, develop
and manage iron sands reserves in the
Cagayan River Delta and off-shore in northeast
Luzon. Geological studies and extensive sampling
suggest that at dredging depths of 14
metres, well above 9 billion tonnes of iron
sands are available with iron grades between
27 and 59% with an average of 46%.
The operation will be fully mechanized from
river/sea bed preparation through to suction
and discharge to barges. The project is expected
to be supervised by dredging experts.
Once dredged, the magnetite sands will need
to be washed and separated and production
of 60%-plus iron sands for export is expected
to result from 30 to 60% of the sands, depending
on the layers to be dredged.
The Astra Group will maintain a super-majority
of the joint venture entity in terms of equity
and profit share entitlement, and is
subject to Astra providing bond finance facilities
for development and operation.
Astra’s CEO Jaydeep Biswas says the
dredging, developmental and mining permits
currently allocated to CRCDC have now been
assigned to the benefit of the joint venture.
“Third party reports including geological studies
from CRCDC have been positive, indicating
that the area is an established producing
region that exports to nearby steel manufacturing
markets in China, Korea and Taiwan.
“CRCDC has signed a memorandum of
agreement with a provincial board in the
Province of Cagayan, allowing the dredging
of the delta with the responsibility to dispose
of the sand metal content and residue. The
unusually high grade iron content is disposable
through export and the residue is recyclable
into other construction uses.”
Astra’s managing director Silvana De Cianni
says, “For the specific purpose of disposing
the sandstone waste and residue, and marketing
the processed iron component of the
sands, a separate subsidiary with Astra at the
helm shall be incorporated in Hong Kong.”
The iron sands project is expected to supply
Astra with a significant potential export
business to some of the largest steel producing
markets, with a key advantage of the project
being its close proximity to China, the
world’s largest iron ore importer.
Additional geological work and feasibility
studies are being conducted in the area prior
to finalizing the funding from bond financiers.
January/February 2012 | ASIA Miner | 45

Central Asia
Kazakhstan world’s largest uranium miner
KAZAKHSTAN’S international energy image
is now that of one of the world’s rising oil exporters,
an extraordinary feat given that, two
decades ago its hydrocarbon output was beyond
insignificant when the USSR collapsed,
and the vast Central Asian nation, larger than
Western Europe, has quietly passed another
energy milestone.
Kazakhstan produces 33% of world’s mined
uranium, followed by Canada at 18% and
Australia with 11% while Kazakhstan contains
the world’s second-largest uranium reserves,
estimated at 1.5 million tonnes. Until two years
ago Kazakhstan was No 3, following Australia
and Canada. The trio is responsible for about
62% of global production.
According to Kazakhstan’s State Corporation
for Atomic Energy, Kazatomprom, during
January-September 2011, the country mined
almost 14,000 tonnes of uranium, 11%
higher than the same period in 2010.
Kazatomprom’s revenues also soared 72%
year-on-year. Kazatomprom is the national
operator for the export of uranium, as well as
rare metals, nuclear fuel for nuclear power
plants, special equipment, technologies and
dual-purpose materials. To put this accomplishment
in context, just five years ago Kazakhstan
produced 5279 tonnes of uranium.
While the disaster at Japan’s Fukuhima nuclear
complex caused several European nations
to reassess their commitment to nuclear power,
Kazakhstan’s regional markets seem assured in
Asia’s rising economic powerhouses China and
India. While Beijing reacted to Fukushima by ordering
thorough inspections of nuclear power
plants, China’s Commission of Science Technology
and Industry for National Defence in its
11th Five-Year Plan for the Nuclear Industry announced
China intended to produce 40 gigawatts
of nuclear power electrical generating
capacity within a decade, even though nuclear
power currently accounts for just 1.4% of
China’s electrical power generation.
If China follows through with its nuclear
power plant construction plans the country will
need an estimated 44 million pounds of uranium
annually, as by 2020 the country will have
a total of 77 planned and proposed new reactors.
Of China’s 11 nuclear power plants, the
oldest, Qingshan-1, only came online in 1991.
India’s nuclear ambitions parallel China’s.
While nuclear power accounts for only 3-4%
of the country’s electrical output, India has 19
planned and proposed nuclear power reactors
on the drawing board.
The Japanese nuclear crisis has not overshadowed
Astana’s optimism. Speaking at the
Minex conference in Astana, Kazatomprom
president Vladimir Shkol’nik stated that the
Fukushima debacle would not greatly influence
the Kazakh state atomic company’s plans.
Kazakhstan is moving beyond mining of uranium
to producing nuclear fuel rods. On November
4 French Industry and Energy Minister
Eric Besson signed a contract with the Kazakh
government allowing France’s Areva to open a
nuclear fuel plant with Kazatomprom.
A statement from Besson’s office noted,
“This deal commits to the creation in Kazakhstan
of a nuclear fuel production plant dedicated
to the Asian market. The construction
of this plant could start as soon as the feasibility
study is completed by the end of the first
quarter of 2012.” According to the agreement,
the facility will consist of a new production
line at Kazakhstan’s ULBA metallurgical
plant that will be 51% owned by Kazatomprom
and 49% by Areva.
And flush with cash, Kazatomprom may buy
into the Russian Federation’s Urals Electrochemical
Integrated Plant, the largest uranium
enrichment facility within Russian State Nuclear
Energy Corporation Rosatom. Rosatom’s CEO
Sergei Kirienko said, “We are involved in purely
technical procedures now, taking into account
the organization and relevant restrictions (of a
closed nuclear facility). We are moving within a
set timetable. We have a plan - to complete all
work in 2012. And we should begin working
with Kazatomprom in 2012.”
In the final quarter of 2011, the International
Energy Agency released its ‘World Energy
Outlook’ which states that if the world
is serious about global warming, it should
consider the continued use of nuclear power
to reduce greenhouse emissions. With
Kazakhstan’s daily oil exports running at
1.74 million barrels and it being the world’s
largest uranium miner, it would seem Astana
is going to continue to rake in the cash no
matter what energy policies the world
adopts in the short term.
—By John CK Daly of http://oilprice.com
Chaarat on track for Tulkubash production
CHAARAT Gold Holdings is on track to begin
production at the Tulkubash deposit of its
Chaarat Gold Project in northwest Kyrgyz Republic
in the second quarter of 2013. The
company has been encouraged by a 56% increase
in resources to 501,000 ounces.
The company has been upgrading the resource
to reserve status and increasing the
overall project size and production rate as well
as carrying out permitting, design and detailed
engineering. Ongoing work also includes infrastructure
development and construction as
well as recruitment and team building.
Exploration has focused on improving the
resource and generating reserves from the
open pittable section of the Central
Tulkubash ore body, both of which provided
encouraging results. This has helped improve
Chaarat’s understanding of the project to the
extent that it believes the resource may have
the capability of supporting a larger daily production
base of 2500 tonnes.
A total of 15,413 metres of drilling generated
an open pittable resource of 404,000
ounces from a total of 501,000 ounces. Further
drill results to the south and north indicate
the reserve can be increased significantly. The
strike extension and the geometry of the pit
mean production can be increased without
changing the strip ratio and without interrupting
mining activities.
Drilling in the Tulkubash zone suggests that
the mineralized zone extends by a few kilometres
due north and that this extension
should make it possible to significantly increase
production. The generation of a feedstock
that is amenable to free milling from a
low strip ratio open pit will provide cash generation
opportunities.
The engineering of the process plant has
been mandated to ProMet from South Africa,
which is affiliated to a large Chinese engineering
and construction company, Dadi Engineering.
As such a large part of the detailed
design work is being executed in China.
46 | ASIA Miner | January/February 2012

Central Asia
Studies boost value of Shambesai project
MANAS Resources’ Shambesai Gold Project
in the Kyrgyz Republic is expected to generate
net cash flows of up to US$190 million during
the first five years of production, with more
than 200,000 ounces of gold being produced.
A revised mining evaluation and pit optimization
study has upgraded the project’s potential,
with increases to throughput, cash flows
and mine life prompted by further oxide ore
discoveries and future sulphide ore treatment.
Estimated net cash flows attributable to indicated
oxide resource material only totals
more than US$137 million over five years with
a further possible US$53 million from inferred
oxide resource. The current probable reserve
of oxide material is estimated to be 180,000
ounces over the five-year mine-life with the
potential of a further 40,000 ounces from currently
inferred oxide material that is contained
within the pit shell.
Annual production is expected to peak at
50,000 ounces in year 3 and average 40,000
ounces for the five years of the projected
mine life from the indicated and inferred oxides.
More than 75,000 ounces of gold contained
within sulphide material stockpiled
during oxide mining is not included in the
cash flow estimates. Cash costs are estimated
at US$370 per ounce for the first four
years and US$465 per ounce for life-of-mine.
Manas’ managing director Stephen Ross
says, “We are extremely pleased with the updated
cash flow numbers from the pit optimization
study which, when compared to the
November 2010 scoping study, demonstrate
that we can expect a much improved production
rate and subsequent improved cash flows
for the Shambesai shallow oxides alone.
“Despite this conservative approach to the
mining plan focusing on the near-surface
oxide material only, project cash flows from
the updated pit optimization work have almost
doubled. We look forward to the granting
of our mining licence and an early move
into the implementation phase of the
Shambesai gold project.”
Shambesai is in the Tien Shan Belt and is
expected to be one of the world’s lowestcost
gold operations. Manas is the largest
and most active gold explorer in the Kyrgyz
Republic with nine projects under exploration.
The company’s second largest gold project,
Obdilla, is 7km from Shambesai and has a resource
estimate of 485,000 ounces.
The project’s feasibility study, which was
scheduled for completion by the end of 2011,
includes the recently completed mining evaluation
and pit optimization study as well as
basic engineering for the proposed processing
plant and updated capital and operating
costs. In September, Shambesai was upgraded
to an indicated and inferred resource
of 11.6 million tonnes @ 2.1 grams/tonne
gold for 766,000 ounces of gold.
An impression of the mineral inventory in the preliminary pit at Manas’ Shambesai project.
Raisama lifts Kashkasu interest to 97.5%
RAISAMA Limited has completed the acquisition
of a further 22.5% interest in the
Kashkasu II Uranium Project in the Kyrgyz
Republic from Orca Energy and now holds
97.5%. This acquisition has removed any future
joint venture funding issues that may
have arisen given Orca no longer considered
its interest in this project as a core asset.
As part consideration for the purchase of
this further interest Raisama has issued
870,000 fully paid shares to Orca. Moving to
a 97.5% position will allow the ASX-listed
company to plan the future of the project with
a greater degree of certainty.
Raisama has completed its 2011 field season
exploration activities at the Kashkasu II
project, including its phase 4 drill program.
This program targeted down-dip and structural
extensions of the known mineralization
within the Turakavak formation.
Due to difficult conditions in the uranium
market as a result of the Fukushima Nuclear
incident the company decided to halt the program
after completing four holes. Despite
that, the drilling intersections have more than
doubled the known extent of mineralization
down-dip, with economic uranium mineralization
at depths of up to 394 metres.
The best drill intersection was 10 metres @
2130 ppm U3O8 and this section included 0.5
metres @ 14,458 ppm U3O8. The highest individual
assay was 14,941 ppm U3O8, or
1.5% U3O8, from 274.5 metres to 274.75 metres
depth down hole. A total of four mineralized
zones were encountered within this hole,
including the deepest of the project so far.
Uranium is present both in sandstone and
coal-bearing beds of the Turakavak formation.
Structural interpretation has also highlighted
the potential for additional zones of mineralization
to be present due to folding and possible
thrust faulting of the mineralized stratigraphy.
January/February 2012 | ASIA Miner | 47

India
Astra secures third iron ore trading licence
ASTRA Minerals, a subsidiary of Astra Resources,
has secured an iron ore trading licence
for the Joda and Barbil areas in the
Keonjhar district of Orissa state. It is the third
of five trading licences Astra is securing covering
the main iron ore producing regions in
Orissa to Paradip Port, where Astra holds a
storage and export site. Astra’s CEO Jaydeep
Biswas says securing this licence is a
further step towards turning the company’s
5000 square metre plot at Paradip Port into
a major iron ore export province.
“Astra has already secured trading licences
covering the Koira Mining Circle in the Sundergarh
district and the Jajpur Road Mining Circle
in the Jajpur district. Securing a third trading licence
expands the company’s reach, allowing
Astra to trade and transport self-mined and
third party mined iron ore to Paradip Port for export
into the international market while further
developing our own mining operations for domestic
use and export.
“Being one of the few companies with export
licences for iron ore, while also having possession
of leasehold land at Paradip Port for storage
and shipping, makes Astra a serious
contender in the resources industry.”
A further two trading licences are being applied
for by Astra in the districts of Keonjhar
and Cuttack, also in Orissa.
Astra’s managing director Silvana De Cianni
says the trading licence allows Astra to obtain
iron ore from the specified area and transport
it to its plot at Paradip Port for storage and
export. “The plot size will allow Astra to trade
and ship 200,000 to 400,000 tonnes of iron
ore per month, bringing a substantial income
stream into the company,” she says. “Astra
Iron ore beneficiation plant takes shape
NSL Consolidated’s US$2.3 million iron ore
beneficiation plant at Kurnool in the southeast
Indian state of Andhra Pradesh is taking
shape with first stage commissioning scheduled
to start by the end of 2011. The ASXlisted
company is developing the plant on its
stockyard site, which is adjacent to its Kuja
iron ore mine and just 5km from its Mangal
iron ore mine, both of which are being readied
for full-scale mining and plant start-up.
The plant footings were completed in December
and delivery of key plant components
to the stockyard site began in the last week of
November, with erection of those components
beginning immediately upon their arrival.
NSL is the only foreign company to own and
operate iron ore mines in India, which is the
world’s third largest iron ore exporter, in parallel
with having a strong domestic steel market.
The company’s first sales from Kurnool, scheduled
for the first half of 2012, will represent its
maiden revenue stream. The plant has the potential
to lift NSL’s ROM iron ore grades to between
58-61% iron from as low as 25-27%
iron with good yield and recovery rates.
NSL’s trial mining operations and subsequent
operational and financial modelling has
suggested a return on capital within just three
months of Kurnool completing full commissioning.
The plant has annual capacity of
196,000 tonnes of concentrate, which NSL
says will deliver a steady net cash flow of
US$800,000 per month at full production.
The Kurnool and Kuja projects have access
to established road and rail infrastructure.
The road to the projects links directly to the
has already been granted an export licence,
and with arrangements already in place to
buy iron ore from third party mines, trading
can begin immediately.” A number of other licences
are being applied for in numerous different
regions in Orissa.
Although Orissa has a long coast line of
480km, Paradip is the major all-weather port,
with expansion plans only enhancing the accessibility
of the port to internal and external
exports. Paradip has its own railway system
and is connected to East Coast Railways and
various other highways, enabling iron ore to
be transferred to the port with ease.
Work to modernize the existing port infrastructure
has been agreed to, which will include
deepening the approach and entrance channel,
enhancing the draught at existing docks and
extending the existing iron ore berth.
highway leading to Krishnapatnam Port,
which is around 330km by road and the closest
point of departure for bulk exports from
Andhra Pradesh. The road also connects to
two rail sidings that have infrastructure for
loading iron ore ion to trains. These are about
18km and 30km respectively by road from
the Kuja mine gate with the sidings about
460km by rail from the port.
NSL began mining at Kuja in February
2010 and focused on excavation of trial pits
and small scale productivity assessments in
preparation for the beneficiation plant. The
Kuja project has an approved mining plan
allowing an annual mining rate of up to
331,000 tonnes of iron ore although this
should not be taken as a forecast of production
by NSL.
Trial mining operations at NSL Consolidated’s iron ore projects in Andhra Pradesh state.
48 | ASIA Miner | January/February 2012

Malaysia
Updated Bau resource expected soon
AN ongoing infill and step-out drilling program
continues to intersect significant gold mineralization
at the Bau Central deposit of Olympus
Pacific Minerals’ Bau Gold Project in
Sarawak, East Malaysia. An updated gold resource
estimate is expected to be announced
early this year.
A conceptual model of Olympus Pacific Minerals’ Bau Gold Project in East Malaysia.
Recent results around the old BYG open pit
in the Bekajang sector of Bau Central include
15.9 metres @ 7.35 grams/tonne gold, 11 metres
@ 11.71 grams/tonne, 3 metres @ 10.25
grams/tonne, 4.7 metres @ 8.14 grams/tonne,
9 metres @ 7.49 grams/tonne, 78.3 metres @
2.01 grams/ tonne and 16.5 metres @ 3.08
grams/tonne. The company aims to complete
20,000 metres in the program with a fourth rig
contracted for delivery to the site during December
while the Bau Central definitive feasibility
study (DFS) for stage one production is
advancing on schedule.
Olympus Pacific’s CEO John Seton says,
“The Bau Central DFS continues to deliver
positive outcomes while concurrent exploration
continues to deliver exciting results
from within the Bau Central deposits with
strong analogies to Nevada’s Carlin trend.
Progress to date supports our expectation
that Bau Central start-up production will
commence in 2014 and that the Bau Goldfield
will ultimately become a substantial gold
producing district.”
Olympus has been aggressively exploring
the 17km-long Bau Central mineralization
trend since first acquiring the property in
2009. The Bau trend contains 34 known gold
prospects at various stages of exploration
advancement. The current JORC/NI 43-101
global resource stands at 2.45 million
ounces, comprising 560,000 indicated
ounces and 1.89 million inferred ounces.
Geological, geophysical and geochemical
studies, including surface trenching and the
diamond drilling programme are in progress
to further expand and upgrade this resource
and support concurrent mining feasibility
studies. A fully independent, internationally
accredited fire assay laboratory has been established
on site by SGS to ensure international
standard assay quality controls and
expedite sample turnaround time.
Exploration is also concurrently in
progress within the Jugan sector, where
trenching and step-out drilling is testing
open-ended strike and depth extensions.
Analysis of a DIGHEM geophysical dataset
has also revealed other prospective Juganstyle
anomalies coincident with positive geological
and geochemical indicators.
New facility will process palm oil waste
MISSION NewEnergy, a global provider of environmentally
sustainable biofuels, will build a
major waste material processing facility at Sandakan,
in Sabah state, East Malaysia. The plant
will be the first of its kind to recover palm oil from
spent bleached earth (SBE), a kind of waste
material that historically has no application.
The facility will allow Mission to recover
palm oil from waste material in the palm oil
refining process. The waste material, called
SBE has historically had no application.
Mission expects to begin construction of
SBE Solvent Extraction Facility in January
and expects it to be fully operational by September
2012. The plant will have annual capacity
of 66,000 tonnes The company has
secured agreements and understandings
with almost all the palm oil refiners in the state
of Sabah to provide a supply of SBE and has
received all necessary sanctions from government
authorities, including the Department
of Environment.
Mission Group CEO Nathan Mahalingam
says, “Mission is delighted to be working in
collaboration with the government and the
local palm oil processing industry. The facility
will reduce waste being sent to the landfill,
create jobs and provide Mission with a lowcost,
environmentally-friendly raw material to
produce biofuels.
“Producing biodiesel from this recovered
non-food grade waste palm oil provides Mission
with access to lower cost feedstock and
therefore increased overall margins. Further,
as a waste material, the greenhouse gas savings
are increased and hence viewed as
more desirable by the market.”
Mission has selected a proven technology
provider for the project while the construction
of the plant and civil works is expected to be
done through local Sabah companies. The
facility will cost RM30 million (US$10 million)
and will be funded with equity and debt from
a Malaysian commercial bank.
Palm oil refineries typically use bleaching
earth for bleaching and removing gum and
other impurities when refining crude palm oil.
In the process of refining, the bleaching earth
absorbs and retains some of the palm oil
which cannot be recovered in the normal refinery
process. Once the bleaching earth is
used, it is referred to as spent bleaching
earth, which is a waste material and traditionally
disposed of in landfills.
50 | ASIA Miner | January/February 2012

Vietnam
Phuoc Son mill now at design capacity
OLYMPUS Pacific Minerals expected to reach its 2011 production
forecast of 40,000 ounces of gold by December 31 despite a delay
of several months in commissioning of the processing plant at the
Phuoc Son Gold Project due to record-breaking monsoon rains. The
Phuoc Son plant is the company’s second processing operation in
Vietnam behind Bong Mieu.
The Phuoc Son mill now regularly operates at its current daily design
capacity of 500 tonnes. Olympus Pacific continues to mine the Bai
Dat mine at Phuoc Son while developing the Bai Go mine that is expected
to be in production by March 2012.
During the first three quarters of 2011 consolidated gold production
was 22,067 ounces from 161,634 tonnes milled at an average grade
of 5.51 grams/tonne gold. Phuoc Son contributed 11,253 ounces,
with 162 ounces in the first quarter, 1455 in the second and 9636 in
the third as production ramped up. Bong Mieu contributed 10,814
ounces in the first nine months of 2011.
Bong Mieu gold production for the third quarter of 2846 ounces decreased
compared to the previous quarter by 1416 ounces resulting
from decrease in ore feed, recovery rate and tonnes milled during
general maintenance of the plant. Repairs and rehabilitation of the
plant began on September 22, 2011, and were completed in late October.
Activities included replacement, maintenance, and optimization
of equipment to improve gold recovery.
During the third quarter the company’s gold sales totalled 7314
ounces for proceeds of $12,464,450 with an average realized price
of US$1704 per ounce. On September 30, 2011, 6882 ounces of
gold bullion and 3132 ounces of gold dore bars were on hand. Gold
bullion can be sold and cash transferred within three business days.
Olympus is a diversified gold company focused on four advanced
properties - the Bau Goldfield in East Malaysia, the Bong Mieu and
Phuoc Son mines in Central Vietnam, and Capcapo in the Philippines.
The company expects to substantially expand its combined gold
production capacity by 2014. East Malaysia is its primary focus, and
phase one of Bau Central is now in full feasibility. Vietnam will continue
its production development activities to enable continued cash contribution
to assist in funding a significant portion of the company’s future
development expenditures.
The Phuoc Son Gold Project of Olympus Pacific Minerals in Central Vietnam
January/February 2012 | ASIA Miner | 51

2012 Calendar
Coaltrans Asia Coal Trading Forum
January 11-12, 2012, Singapore
www.coaltrans.com
Managing Commodity Risks and Riding the Spikes
February 20-21, 2012, Singapore
www.claridenglobal.com
PDAC 2012
March 4-7, 2012, Toronto, Canada
www.pdac.ca
Assaying short course
January 20, 2012, Perth, Australia
www.mets.net.au
Capital Raising for Junior and Midcap Mining
February 20-22, 2012, Perth, Australia
www.resourcefulevents.com.au
Global OHS
March 5-9, 2012, Kuala Lumpur, Malaysia
www.ibcasia.com
Mineral Processing Course
January 24-25, 2012, Perth, Australia
www.mets.net.au
2nd Rare Earths and Strategic Metals
February 21-22, 2012, Sydney, Australia
www.rareearthsandstrategicmetals.com.au
Mining Vietnam 2012
March 7-9, 2012, Hanoi, Vietnam
www.oesallworld.com
4th International Mining, Exploration, Minerals
Processing Technology and Machinery Exhibition
January 28-31, 2012 Kolkata, India
www.internationalminingexhibition.com
Coaltrans USA 2012
February 2-3, 2012, Miami, Florida, USA
www.coaltrans.com
Coal Mongolia 2012
February 9-10, 2012, Ulaanbaatar, Mongolia
www.coalmongolia.mn
Coal Operators’ Conference
February 16-17, 2012, Wollongong, Australia
www.Coalconference.net.au
Metal and Steel Asia
February 21-23, 2012, Karachi, Pakistan
www.biztradeshows.com/trade-events/metalsteel-asia.html
10th Annual Coal Markets Conference
February 21–24, 2012, Singapore
www.coalmarketsasia.com
Environmental Management in Mining
February 22-23, 2012, Perth, Australia
www.environmentalmining.com.au
Safety in Resources
February 27-29, 2012, Brisbane, Australia
www.resourcefulevents.com.au
Indonesia Mining 2012
March 12-13, 2012, Bali, Indonesia
www.claridenglobal.com
11th Coaltrans India
March 13-14, 2012, New Delhi
www.coaltrans.com
Mines & Money Hong Kong
March 19-23, 2012, Hong Kong
www.minesandmoney.com/hongkong
8th Asia Mining Congress
March 26-30, 2012, Singapore
http://www.terrapinn.com/conference/asia-mining-congress/
52 | ASIA Miner | January/February 2012

Chinese Investments Abroad
Drilling extends Lady Colleen discovery
EXPLORATION drilling has further extended the
new Lady Colleen copper discovery at Hong
Kong-based CST Mining Group’s Lady Annie
Copper Project in northwest Queensland. The
latest drilling in transition/sulphide mineralization
has returned broad intersections at greater than
1% copper and an initial mineral resource estimate
is expected by the end of quarter 2, 2012.
Significant intersections from the drilling include
17 metres @ 1.05% copper from 56
metres in transition, 17 metres @ 3.30% copper
and 1086ppm cobalt from 138 metres in
transition-sulphide, and 19 metres @ 1.37%
copper from 159 metres and 34 metres @
2.73% from 157 metres in sulphide.
CST has pursued an aggressive exploration
campaign during 2011 to increase the
oxide/transition resource inventory at Lady
Annie. The Lady Colleen deposit, 700 metres
to the west of Mt Clarke West Pit, continues
to return exciting exploration drilling results.
The new mineralized intervals confirm extension
of the mineralized zone to the northeast.
Copper mineralization remains open to
the north, south and down plunge. Of particular
interest are the significant elevated cobalt
values in association with copper. Further extension
drilling will enhance understanding of
the copper-cobalt association in the deposit
and is ongoing with a combination of reverse
circulation and diamond drilling.
Lady Annie is a copper mine and SX/EW
processing facility about 120km northwest of
the mining town of Mount Isa. CST owns
100% of Lady Annie and resumed copper
production in November 2010. The operation
has the capacity to annually produce 25,000-
30,000 tonnes of copper cathodes. Total resources
to date consist of 65.16 million
tonnes @ 0.71% copper for 459,900 tonnes
of contained copper metal.
CST’s chief executive officer Yang Yi-fang
said in November that lower than expected
copper grades mined at Lady Annie had
caused the company to downgrade full year
production guidance for 2011 from 24,000-
25,000 tonnes to around 20,000 tonnes.
Lady Annie lies within the Mount Isa Inlier
which contains numerous world-class base
and precious metals ore bodies. The potential
for additions to resources and reserves are excellent
in and around the existing ore bodies
and on the company’s highly prospective
3000sqkm of exploration tenements.
The company is conducting infill drilling and
metallurgical test work aimed at increasing
reserves and mine life while a wider nearmine
and regional exploration program on
surrounding tenements continues to bring
successful results.
Copper heap leaching at CST Mining’s Lady Annie project in northwest Queensland.
钻 探 作 业 扩 大 了 Lady Colleen 铜 矿 体
钻 探 作 业 进 一 步 扩 大 了 总 部 位 于 香 港 的 中 科
矿 业 集 团 旗 下 Lady Annie 项 目 的 Lady
Colleen 铜 矿 体 , 该 项 目 位 于 昆 士 兰 州 西 北
部 。 过 渡 矿 / 硫 化 矿 矿 体 中 发 现 多 个 厚 度 较
大 的 矿 段 , 铜 品 位 大 于 1%。 预 计 在 2012 年
第 二 季 度 末 完 成 初 步 的 资 源 估 算 。
钻 孔 中 主 要 的 见 铜 矿 段 包 括 :56 米 以 下 17
米 @1.05 % 铜 过 渡 矿 ,138 米 以 下 17 米 @
3.30 % 铜 过 渡 矿 - 硫 化 矿 及 138 米 以 下 17 米
@1086 ppm 钴 过 渡 矿 - 硫 化 矿 ,159 米 以 下
19 米 @ 1.37% 铜 硫 化 矿 ,157 米 以 下 34 米 @
2.73 % 铜 硫 化 矿 。
中 科 矿 业 于 2011 年 积 极 进 行 勘 探 活 动 , 致 力
于 提 高 Lady Annie 的 氧 化 物 / 过 渡 资 源 储
量 。Lady Colleen 矿 床 位 于 Mt Clarke 西 部 采 场 以
西 700 米 处 , 继 续 取 得 令 人 鼓 舞 的 勘 探 结 果 。
新 见 矿 矿 段 确 认 为 从 矿 化 区 伸 延 至 东 北
方 。 铜 矿 化 向 北 、 南 , 及 倾 伏 方 向 均 未 封
闭 。 其 中 最 令 人 感 兴 趣 的 是 与 铜 矿 化 相 关 的
重 大 钴 矿 化 。 向 矿 化 区 进 一 步 伸 延 钻 探 将 加
深 对 矿 床 内 铜 - 钴 关 联 的 了 解 , 并 继 续 以 反
循 环 和 金 刚 石 钻 探 一 并 进 行 。
Lady Annie 为 位 于 澳 大 利 亚 昆 士 兰 州 Mount
Isa 区 西 北 部 约 120 公 里 的 铜 矿 和 溶 剂 萃 取 / 电
解 加 工 设 施 。 中 科 全 资 拥 有 Lady Annie, 铜 矿
于 2010 年 11 月 复 产 。 该 营 运 可 每 年 生 产 2.5-3
万 吨 电 解 铜 。 迄 今 , 总 资 源 包 括 6516 万 吨
@0.71% 铜 , 当 中 45.99 万 吨 为 含 铜 金 属 。
中 科 的 首 席 执 行 官 杨 宜 方 于 11 月 称 ,Lady
Annie 开 采 的 铜 矿 品 位 较 预 期 为 低 , 导 致 公
司 将 2011 年 的 生 产 指 引 从 2.4-2.5 万 吨 降 至 2
万 吨 左 右 。
Lady Annie 位 于 Mount Isa Inlier 内 , 其 中 包
括 多 个 世 界 级 的 有 色 金 属 和 贵 金 属 矿 藏 。 在
现 有 和 附 近 的 矿 藏 以 及 该 公 司 高 度 预 期
3000 平 方 公 里 的 探 矿 区 域 内 , 资 源 量 和 储
量 上 升 潜 力 巨 大 。
公 司 正 在 进 行 加 密 钻 探 和 冶 金 测 试 工 作 ,
旨 在 提 高 储 量 及 矿 场 寿 命 , 并 在 矿 场 附 近 更
广 泛 的 地 方 和 区 域 周 边 积 极 进 行 勘 探 计 划 ,
实 现 理 想 成 果 。
January/February 2012 | ASIA Miner | 53

Chinese Investments Abroad
Funds boost for CuDeco’s Rocklands
eco has also made a second payment to Chinese
State-owned Sinosteel Equipment and
Engineering Co for $US10 million which is required
under the procurement agreement between
Sinosteel and CuDeco. The agreement
is for componentry for the Rocklands 3 million
tonne/annum production facility.
The second payment is in addition to the
$US11.6 million already paid to Sinosteel and
provides the capital for the long lead items including
the ball mill being manufactured to
CITIC Group in China, the HPGR (high pressure
rolls grinder) from Polysius Corporation
from Germany and the continuous Native Copper
Process Circuit from Alljig in South Africa.
CuDeco has also recently signed compensation
agreements with a landholder and
Cloncurry Shire Council which were the final
requirements for the Department of Employment,
Economic Development and Innovation
of a wide intersection of 23 metres from surface
@ 50.1 grams/tonne gold and 101
grams/tonne silver. The hole also returned tellurium
values of up to 2190ppm, uranium of
up to 3140ppm and molybdenum.
Wilgar was initially identified as a potential uranium
prospect by CRA in 1972 but it appears
that gold was never tested for. In 2007 CuDeco
Mineralized core from CuDeco’s Rocklands Group Copper Project in northwest Queensland.
A SHARE placement by CuDeco to Hong
Kong Resource Fund will raise about
Aus$100 million for the Rocklands Group
Copper Project in northwest Queensland.
The unconditional placement will see the
Hong Kong-based group obtain a 15% interest
in CuDeco and provide funds to enable
development of the project to continue. CuD-
for the granting of the mining lease over the
Rocklands project. The granting of the lease
will trigger major events on site with immediate
commencement of the drilling and construction
of dewatering bores and monitoring bores
to be completed over a three-month period.
Ongoing drilling at the Wilgar prospect of
Rocklands has returned the highest grade
gold assay results yet achieved. One hole returned
6 metres from 7 metres @ 185
grams/tonne gold, including 1 metre from 7
metres @ 1090 grams/tonne. This was part
conducted a first-pass, wide-spaced reconnaissance
soil sampling program over the
Rocklands area, part of which traversed an area
close to Wilgar and identified anomalous base
metals. Follow-up soil sampling and limited
bedrock drilling subsequently identified a potential
area of high-grade gold mineralization.
After advancing copper exploration at
Rocklands to pre-development stage, CuDeco
shifted its focus back to regional exploration
in early 2011 and Wilgar is producing
exceptional results.
CuDeco 筹 资 推 进 Rocklands 项 目
CuDeco 公 司 将 通 过 向 香 港 资 源 基 金 发 行 股
票 为 昆 士 兰 州 西 北 部 的 Rocklands Group 铜
矿 项 目 筹 集 1 亿 澳 元 。 此 次 无 条 件 的 股 票 配 售
将 使 这 个 总 部 位 于 香 港 的 集 团 获 得 CuDeco
公 司 15% 的 股 份 , 并 为 项 目 的 继 续 开 发 提 供
资 金 支 持 。CuDeco 公 司 还 按 照 与 中 钢 与 之
间 达 成 的 采 购 协 议 向 中 国 国 有 企 业 - 中 钢 设
备 有 限 公 司 支 付 了 第 二 笔 款 项 , 即 1000 万 美
元 。 该 协 议 的 目 的 是 为 Rocklands300 万 吨 /
年 的 生 产 设 施 购 买 部 件 。
该 款 项 是 在 向 中 钢 支 付 1160 万 澳 元 后 的 第
二 次 付 款 , 为 包 括 为 中 国 中 信 集 团 制 造 的 球
磨 机 、 来 自 德 国 伯 力 鸠 斯 公 司 的 高 压 辊 磨 机
以 及 南 非 Alljig 的 连 续 自 然 铜 工 艺 流 程 在 内 的
长 期 投 产 项 目 提 供 了 资 金 。
CuDeco 最 近 已 经 与 一 个 土 地 所 有 者 和 克 朗
克 里 郡 委 员 会 签 署 了 赔 偿 协 议 , 这 是 就
业 、 经 济 发 展 与 创 新 部 对 发 放 Rocklands 项 目
矿 场 租 约 的 最 终 要 求 。 租 约 一 旦 授 予 , 一 些 重
大 活 动 将 在 矿 场 展 开 , 钻 探 作 业 以 及 排 水 孔 与
观 测 孔 的 建 设 工 作 将 在 三 个 月 内 完 成 。
Rocklands 项 目 Wilgar 远 景 区 继 续 进 行 的 钻
探 作 业 的 测 试 结 果 得 到 的 金 品 位 较 以 往 相 比
达 到 了 最 高 值 。 一 个 钻 孔 得 到 的 结 果 为 :7 米
深 处 有 6 米 岩 芯 金 品 位 为 185 克 / 吨 , 其 中 7 米
深 处 有 1 米 岩 芯 品 位 达 到 1090 克 / 吨 。 以 上 是
一 个 距 离 地 表 23 米 的 较 厚 矿 段 的 一 部 分 , 金
品 位 为 50.1 克 / 吨 , 银 品 位 为 101 克 / 吨 。 该 钻
孔 的 测 试 结 果 还 显 示 具 有 品 位 高 达 2190ppm
的 碲 , 品 位 高 达 3140ppm 铀 和 钼 。
Wilgar 最 初 是 在 1972 年 被 CRA 确 定 为 潜 在
的 铀 远 景 区 , 但 是 金 从 来 没 有 被 测 试 过 。 在
2007 年 ,CuDeco 对 Rocklands 区 域 进 行
了 初 次 低 密 度 土 壤 取 样 概 测 ,Rocklands 区
域 的 部 分 临 近 Wilgar, 被 确 定 存 在 基 础 金 属
异 常 。 后 续 的 土 壤 取 样 和 有 限 的 基 岩 钻 探 随
后 确 定 了 一 个 潜 在 的 高 品 位 金 矿 化 区 域 。
在 将 Rocklands 的 铜 勘 探 项 目 推 进 至 前 期
开 发 阶 段 后 ,CuDeco 在 2011 年 初 期 将 重
点 重 新 放 在 区 域 勘 探 上 , 目 前 ,Wilgar 取 得
了 显 著 的 成 果 。
54 | ASIA Miner | January/February 2012

Chinese Investments Abroad
DFS confirms Hera deposit’s viability
A DEFINITIVE feasibility study (DFS) for YTC Resources’ Hera goldbase
metal deposit in the Cobar Basin of New South Wales confirms
the technical and financial viability of the deposit as a shallow underground
mine and processing plant to produce gold and silver dore
bars as well as a bulk lead-zinc concentrate. The Hera DFS represents
stage 1 of the development of YTC’s Hera-Nymagee project.
Stage 1 will see establishment of the Hera gold mine and construction
of a processing facility at the Hera site. Feasibility studies
are progressing on stage 2 to evaluate the integration of the Nymagee
deposit utilizing stage 1 infrastructure.
YTC, in partnership with its alliance partner China’s Yunnan Tin
Group, has adopted a two-stage approach to developing the project
to fast track gold revenue and to establish mining and process infrastructure
with a view to self-funding the development and integration
of the larger Nymagee deposit.
The DFS has demonstrated that greater than Aus$510 million of
revenue can be generated in stage 1 at a gold price of Aus$1450. It
shows a C1 operating cost of Aus$395 per ounce after lead-zinc
credits with average annual production exceeding 50,000 ounces
over the life of the mine.
It is based on a maiden ore reserve of 423,471 gold equivalent ounces
at an average grade of 7 grams/tonne gold equivalent with a minimum
7.3 year mine life. It indicates production of more than 390,000 gold
equivalent ounces with life-of-mine gold recovery of 94%.
YTC is also pursuing an aggressive drilling program at the Nymagee
deposit, 4.5km to the north of Hera, with a view to demonstrating an
integrated development of the deposits. The company purchased an
80% interest in the Nymagee joint venture from CBH Resources as
part of the Hera transaction in September 2009 and has subsequently
earned a 90% interest through sole funding exploration.
Strong results have been returned from drilling at the historic Nymagee
Copper Mine as well as the area around it and the ground between Hera
and Nymagee. Recent drilling has concentrated on deeper prospects
with the first two holes returning encouraging results. One hole returned
33 metres from 422.42 metres @ 0.96% copper including 1 metre
from 438.7 metres @ 12%; 61 metres from 547 metres @ 0.8% including
4 metres from 558 metres @ 2.0% and 4 metres from 602
metres @ 2.1%; and 10 metres from 644 metres @ 0.5%. The other
returned 16 metres from 364 metres @ 0.82%, 2 metres from 416
metres @ 2.7%, 67 metres from 450 metres @ 0.55% and 37 metres
from 542 metres @ 0.30%.
YTC Resources’ advanced projects are in the Cobar Basin of New South Wales.
最 终 可 行 性 研 究 确 定 了 Hera 矿 床 的 可 行 性
YTC 资 源 公 司 的 Hera 黄 金 及 基 础 金 属 矿 床 的 最 终 可 行 性 研 究 (DFS)
确 定 了 该 矿 床 作 为 一 个 近 地 表 地 下 矿 和 加 工 厂 生 产 金 条 、 银 条 以 及
铅 锌 混 合 精 矿 在 技 术 和 经 济 上 的 可 行 性 , 该 项 目 位 于 新 南 威 尔 士 州
科 巴 盆 地 。Hera 的 最 终 可 行 性 研 究 代 表 了 YTC 的 Hera-Nymagee
项 目 开 发 的 第 一 阶 段 。
第 一 阶 段 包 括 Hera 金 矿 的 建 立 和 加 工 设 施 的 建 设 工 作 。 第 二 阶 段
将 进 行 可 行 性 研 究 , 对 利 用 第 一 阶 段 基 础 实 施 整 合 Nymagee 矿 床
进 行 评 估 。
YTC 与 其 联 盟 伙 伴 中 国 云 南 锡 业 集 团 采 纳 了 一 个 两 阶 段 方 法 开 发
项 目 , 以 快 速 获 取 黄 金 收 入 并 建 立 采 矿 和 工 艺 基 础 设 施 , 以 便 为 规
模 较 大 的 Nymagee 矿 床 的 开 发 与 整 合 自 筹 资 金 。
最 终 可 行 性 研 究 已 经 证 实 在 金 价 为 1450 澳 元 的 基 础 上 , 第 一 阶 段
带 来 的 收 入 将 高 于 5.1 亿 澳 元 。 矿 场 服 务 年 限 的 铅 - 锌 平 均 年 产 量 超
过 5 万 盎 司 后 , 每 盎 司 的 C1 运 营 成 本 为 395 澳 元 。
该 研 究 基 于 423471 金 等 价 盎 司 的 初 始 矿 石 储 量 , 金 当 量 平 均 品 位
为 7 克 / 吨 , 采 用 7.3 年 的 最 短 矿 山 服 务 年 限 。 这 表 明 , 产 量 超 过 39.9
万 金 等 价 盎 司 , 其 中 矿 场 服 务 年 限 的 黄 金 回 收 率 达 94%。
YTC 正 在 Hera 以 北 4.5 公 里 的 Nymagee 矿 床 实 施 积 极 的 钻 探 作
业 , 以 期 证 实 这 两 个 矿 床 的 综 合 开 发 。 公 司 于 2009 年 9 月 从 CBH 资
源 公 司 收 购 了 Nymagee 合 资 项 目 80% 的 股 份 , 作 为 Hera 协 议 的 一
部 分 , 目 前 已 经 通 过 独 资 勘 探 作 业 逐 步 获 得 了 90% 的 股 份 。
在 历 史 上 重 要 的 Nymagee 铜 矿 及 其 周 围 地 区 以 及 Hera 和
Nymagee 之 间 的 区 域 实 施 的 钻 探 作 业 得 到 了 极 佳 的 测 试 结 果 。 在
最 初 的 两 个 钻 孔 获 得 了 鼓 舞 人 心 的 结 果 后 , 最 近 的 钻 探 作 业 集 中 于
更 深 的 远 景 区 。 其 中 一 个 钻 孔 得 到 的 结 果 为 :422.42 米 深 处 有 33 米
岩 芯 铜 品 位 为 0.96% , 其 中 438.7 米 深 处 有 1 米 岩 芯 品 位 为 12%;547
米 深 处 有 61 米 岩 芯 品 位 为 0.8% , 其 中 558 米 深 处 有 4 米 岩 芯 品 位 为
2.0%,602 米 深 处 有 4 米 岩 芯 品 位 为 2.1%;644 米 深 处 有 10 米 岩 芯 品
位 为 0.5%。 另 一 个 钻 孔 得 到 的 结 果 为 :364 米 深 处 有 16 米 岩 芯 品 位
为 0.82%,416 米 深 处 有 2 米 岩 芯 品 位 为 2.7%,450 米 深 处 有 67 米 岩
芯 品 位 为 0.55%,542 米 深 处 有 37 米 岩 芯 品 位 为 0.30%。
January/February 2012 | ASIA Miner | 55

Chinese Investments Abroad
Jiangli funds for Radio Hill resumption
FOX Resources has signed a Memorandum of
Understanding with Jiangxi Jiangli Sci-Tech Co
regarding the development of the Radio Hill
and Sholl Nickel/Copper Bacterial Heap Leach
Project in Western Australia. Jiangli will provide
Aus$30 million to fund the initial phase of the
project and other associated activities.
Fox plans to mine an inventory of 6 million
tonnes of mineralization containing weighted
average grades of 0.59% nickel and 0.79%
copper over an initial mine life of nine years
from the project, which is 35km south of Karratha
in the Pilbara region.
The Radio Hill mine produced nickel and
copper concentrate for four years, before
being placed on care and maintenance in
2008 following adverse commodity prices.
Fox has recently finalized a detailed scoping
study which outlines how the mining operation
can recommence using a bacterial heap
leach process to deliver project revenues of
$815 million over the initial mine life.
Utilization of heap leaching saves the company
power costs and yields higher metal recoveries
than the conventional crush, grind,
and float process. The end product contains a
much higher metal content than conventional
concentrate material. The existence of established
infrastructure including granted mining
leases, operating licences, offices, buildings,
accommodation, underground mine, tailings
dam, grid power, mains water and roads will
result in a rapid ramp-up, lower start-up capital
costs and lower ongoing operating costs.
At least one-third of the ore feed for the initial
year of production will be derived from existing
surface stockpiles of about 300,000 tonnes,
representing a significant saving in mining costs
and leading to further cost savings.
It confirms the potential of the project and reflects the culmination
of many months of hard work optimizing processes.
With the proposed funding arrangements under way we can
look forward to the commencement of construction to develop
the bacterial heap leach project.
Fox Resources is on track to resuming nickel and copper operations in the Pilbara region of Western Australia.
Fox’s interim CEO Laurie Chew says the
MoU represents a significant milestone in returning
Radio Hill to production. “It confirms
the potential of the project and reflects the culmination
of many months of hard work optimizing
processes. With the proposed funding
arrangements under way we can look forward
to the commencement of construction to develop
the bacterial heap leach project.”
As part of the proposed arrangement, Fox
will provide Jiangli with 100% of nickel and
copper sulphide concentrates produced from
the project over the initial mine life, and extensions
to this term will be negotiable. The $30
million, plus interest, will effectively be repaid by
shipments of concentrates to Jiangli. The concentrates
will be transported to and shipped
from Dampier Port, which is about 40km away.
江 锂 为 Radio Hill 项 目 的 复 产 提 供 资 金
Fox 资 源 公 司 已 与 江 西 江 锂 科 技 有 限 公 司 签
署 了 一 份 关 于 开 发 西 澳 大 利 亚 州 Radio Hill
和 Sholl 镍 / 铜 细 菌 堆 浸 项 目 的 谅 解 备 忘 录 。
江 锂 将 提 供 3000 万 澳 元 资 金 , 用 于 该 项 目
的 初 始 阶 段 和 其 他 的 相 关 活 动 。
Fox 计 划 在 矿 场 寿 命 的 前 九 年 中 开 采 600 万
吨 矿 化 物 , 其 中 加 权 平 均 品 位 为 镍 0.59%、
铜 0.79%, 该 矿 场 位 于 皮 尔 巴 拉 地 区 的 卡 拉
沙 以 南 35 公 里 。
Radio Hill 矿 场 在 2008 年 由 于 商 品 价 格 低
迷 而 进 入 维 护 与 保 养 阶 段 之 前 的 四 年 里 一 直
生 产 镍 与 铜 精 矿 。 最 近 ,Fox 完 成 了 一 份 详
尽 的 概 况 研 究 , 其 中 概 括 了 采 矿 运 营 如 何 通
过 采 用 细 菌 堆 浸 工 艺 恢 复 生 产 , 使 该 项 目 在
初 始 的 矿 场 寿 命 里 收 入 达 到 8.15 亿 澳 元 。
堆 浸 工 艺 的 使 用 会 减 少 公 司 电 力 成 本 , 与
传 统 的 破 碎 、 研 磨 和 浮 选 工 艺 相 比 , 金 属 回
收 率 更 高 。 最 终 产 品 的 金 属 含 量 比 传 统 的 精
矿 材 料 高 很 多 。
已 具 备 的 基 础 要 素 包 括 采 矿 租 约 、 运 营 执
照 、 办 公 场 所 、 建 筑 、 宿 舍 、 地 下 矿 、 尾 矿
库 、 电 网 、 自 来 水 和 道 路 , 这 意 味 着 产 量 的
快 速 增 加 、 较 低 的 启 动 资 金 和 较 低 的 持 续 运
营 成 本 。
投 产 第 一 年 给 矿 量 最 少 有 1/3 将 来 自 现 有
的 约 30 万 吨 的 地 表 储 矿 堆 , 显 著 的 减 少 了 采
矿 成 本 , 从 而 进 一 步 节 省 总 成 本 。
Fox 的 临 时 首 席 执 行 官 Laurie Chew 称 ,
谅 解 备 忘 录 的 签 署 是 Radio Hill 重 新 投 产 的
重 大 里 程 碑 。“ 这 证 实 了 该 项 目 的 潜 力 ,
反 映 了 长 时 间 优 化 流 程 的 艰 苦 工 作 达 到 了
顶 峰 。 随 着 拟 议 的 供 资 安 排 的 实 施 , 我 们
期 望 建 设 工 作 的 启 动 , 以 开 发 这 个 细 菌 堆
浸 项 目 。”
作 为 拟 议 的 约 定 的 一 部 分 ,Fox 将 为 江 锂
提 供 该 项 目 在 初 始 矿 山 寿 命 生 产 的 所 有 的 镍
和 铜 硫 化 精 矿 , 该 条 款 的 延 期 将 再 进 行 协
商 。3000 万 澳 元 的 资 金 以 及 利 息 将 在 精 矿
运 往 江 锂 时 支 付 。 精 矿 将 被 运 输 至 大 约 40
公 里 外 的 丹 皮 尔 港 口 , 然 后 从 丹 皮 尔 港 装 船
运 出 。
56 | ASIA Miner | January/February 2012

Chinese Investments Abroad
Sundance and Hanlong advance Mbalam project
SUNDANCE Resources and Hanlong (Africa)
Mining Investment have been working together
with the governments of the Republic
of Cameroon and the Republic of Congo with
a view to confirming the ratification of the
Mbalam Convention and Congo Mining Permit.
These tasks form part of the Scheme Implementation
Agreement (SIA) between the
Australian and Chinese companies covering
the Mbalam Iron Ore Project.
The SIA has a two phase structure. During
phase 1, the companies are to use all reasonable
endeavours to progress the Mbalam
Convention in Cameroon and the Congo
Mining Permit, and Hanlong is to confirm its
funding arrangements. These conditions
must be met prior to progressing to phase 2.
Sundance and Hanlong executive management
have attended a number of meetings
together with senior government
officials of Cameroon and Congo to demonstrate
their unified commitment to development
of the project.
In July 2011, Sundance and Hanlong along
with representatives from CITIC Securities
and China Development Bank met with the
President of Cameroon, Paul Biya, in Beijing
to discuss the project. On October 21 the results
of the Cameroon Presidential election
were announced and confirmed the re-election
of Paul Biya for another seven year term.
On October 27 the President of the Republic
of Congo, Denis Sassou-Nguesso,
met with Sundance and Hanlong in the
country’s capital Brazzaville where the President
gave his support to the Nabeba development
and expressed his understanding of
the necessary trans-border requirements for
stage one of Mbalam.
The final Environment and Social Assessment
Report for the Congo was expected to
be submitted by the end of November 2011,
which completes the requirements for the
application process for the mining permit. It
is anticipated a successful mining permit
from the government will be awarded within
three months.
Sundance and Hanlong also met with a
number of officials in the Cameroon capital of
Yaounde. Following the meetings in Cameroon
and Congo, Sundance and Hanlong executives
left the countries confident that an acceptable
outcome for all parties was within
reach and should align with the previously reported
target timetable within the SIA.
In Australia, Sundance and Hanlong met
the Prime Minister of Cameroon, Philémon
Yang, in Perth. The Prime Minister further expressed
the government’s strong support of
the project, confirming it was a project of national
interest that they are eager to see developed
in the near term.
Sundance aimed to have the final terms of
the convention agreed by the end of December
2011 and then expects an Enabling
Act which makes the convention effective to
be passed by the Cameroon National Assembly
when it is next expected to meet in
March 2012.
The Mbalam Iron Ore project straddles the border of Cameroon and the Republic of Congo.
Sundance 和 汉 龙 公 司 推 进 Mbalam 项 目
Sundance 资 源 公 司 和 汉 龙 ( 非 洲 ) 矿 业 投
资 公 司 一 起 与 喀 麦 隆 共 和 国 和 刚 果 共 和 国 政
府 协 商 , 以 确 认 Mbalam 协 议 得 到 正 式 批
准 , 并 获 得 刚 果 采 矿 许 可 证 。
这 些 任 务 是 澳 洲 和 中 国 公 司 之 间 关 于
Mbalam 铁 矿 项 目 的 《 安 排 执 行 协 议 》(
SIA) 的 一 部 分 。
该 协 议 包 括 两 个 阶 段 。 在 第 一 阶 段 期 间 ,
两 家 公 司 将 尽 最 大 可 能 推 进 喀 麦 隆 的
Mbalam 项 目 , 并 获 取 刚 果 采 矿 许 可 证 , 同
时 汉 龙 公 司 将 确 认 其 融 资 协 议 。 这 些 条 件 满
足 后 方 可 推 进 至 第 二 阶 段 。
Sundance 公 司 和 汉 龙 公 司 的 高 管 一 起 与
喀 麦 隆 和 刚 果 政 府 高 级 官 员 进 行 了 多 次 会
晤 , 以 显 示 两 家 公 司 对 开 发 这 一 项 目 的 决 心
和 承 诺 。
在 2011 年 7 月 ,Sundance 和 汉 龙 公 司 与
中 信 证 券 以 及 中 国 国 家 开 发 银 行 的 代 表 一 起
在 北 京 会 见 了 喀 麦 隆 总 统 Paul Biya, 就 该
项 目 的 问 题 进 行 了 商 谈 。
10 月 21 日 , 喀 麦 隆 总 统 选 举 结 果 公
布 ,Paul Biya 确 认 再 次 当 选 , 将 在 今 后 七
年 的 任 期 内 继 续 执 政 。
10 月 27 日 , 刚 果 共 和 国 总 统 Denis Sassou-Nguesso
在 该 国 首 都 布 拉 柴 维 尔 会 见
了 Sundance 和 汉 龙 公 司 的 代 表 , 他 表 示
支 持 Nabeba 矿 区 的 开 发 , 并 对 Mbalam
项 目 第 一 阶 段 跨 国 界 开 发 的 必 要 要 求 表 示
理 解 。
刚 果 的 最 终 环 境 和 社 会 评 估 报 告 预 计 将 于
2011 年 11 月 底 之 前 提 交 , 由 此 采 矿 许 可 证
申 请 程 序 所 需 的 工 作 全 部 完 成 。
预 计 三 个 月 内 可 以 顺 利 获 得 政 府 颁 发 的 采
矿 许 可 证 。
此 外 ,Sundance 和 汉 龙 公 司 也 在 喀 麦 隆
首 都 雅 温 德 会 见 了 多 位 喀 麦 隆 政 府 官 员 。 在
喀 麦 隆 和 刚 果 的 会 晤 之 后 ,Sundance 和 汉
龙 公 司 高 管 离 开 这 两 个 国 家 时 满 怀 信 心 , 他
们 相 信 很 快 就 能 达 成 一 个 对 于 各 方 都 能 够 接
受 的 结 果 , 并 且 与 之 前 在 《 安 排 执 行 协 议 》
中 提 出 的 时 间 表 相 吻 合 。
在 澳 大 利 亚 的 珀 斯 市 ,Sundance 和 汉 龙
公 司 会 见 了 喀 麦 隆 总 理 Philémon Yang。 总
理 进 一 步 表 达 了 政 府 对 于 这 个 项 目 的 支 持 。
他 强 调 , 该 项 目 关 系 到 喀 麦 隆 的 国 家 利 益 ,
他 们 热 切 期 待 着 能 在 近 期 得 到 开 发 。
Sundance 公 司 希 望 在 2011 年 12 月 底 之 前
达 成 协 议 最 终 条 款 , 并 期 望 下 一 届 喀 麦 隆 国
民 大 会 在 2012 年 3 月 份 召 开 时 能 通 过 一 项 授
权 法 , 批 准 该 协 议 生 效 。
January/February 2012 | ASIA Miner | 57

Chinese Investments Abroad
East China funds for Mount Peake test work
TNG Limited has signed a subscription
agreement with the East China Mineral Exploration
& Development Bureau (ECE), formalizing
a $13.4 million investment in TNG as
part of a broader strategic partnership. The
funds will underpin a pilot plant test work program
for TNG’s TIVAN hydrometallurgical
process for the Mount Peake Iron-Vanadium
Project in Australia’s Northern Territory (NT).
The subscription agreement between TNG,
ECE subsidiary Ao-Zhong International Mineral
Resources and a private investor introduced by
ECE, Aosu Investment and Development Co,
was signed in Tianjin, China as part of the 2011
China Mining Conference. The ceremony was
attended by NT Minister of Resources Kon
Vatskalis, NT Department of Resources CEO
Richard Galton, ECE deputy director-general
Xu Jianrong and TNG Board members.
The agreement encompasses funds to underpin
the ongoing pre-feasibility study (PFS)
and test work program for Mount Peake and
forms part of a broader strategic alliance aimed
at developing a long-term strategic metals
business in the NT. It will also give Ao-Zhong
Drilling at TNG Limited’s Mount Peake project in
the Northern Territory.
ECE director Ms Lu, TNG managing director Paul Burton, ECE deputy director-general Xu Jianrong, TNG nonexecutive
director Stuart Crow and ECE deputy director Mr Jingbin at the signing of the subscription agreement
between the two companies at China Mining 2011.
and Aosu a combined 30% stake in TNG.
TNG’s managing director Paul Burton says
signing of the agreement marks a significant
milestone. “Once completed, this transaction
will provide significant funding for the company
in a very uncertain economic environment
– putting TNG in a strong position for
growth, creating the foundations to develop
our world-scale vanadium project at Mount
Peake and enabling us to complete the commercialization
of the TIVAN process.
The PFS is based on TNG’s recently updated
JORC indicated and inferred resource
of 160 million tonnes grading 0.3% vanadium,
5.0% titanium and 23.0% iron, making it one
of Australia’s largest undeveloped vanadium
projects. The final PFS will be delivered early
in 2012 incorporating results of the test work
program designed to underpin commercialization
of TNG’s patented TIVAN process.
TIVAN is able to recover all three valuable
metals from the ore, offering lower capital and
operating costs than conventional pyrometallurgical
processing routes. The process uses a
combination of acid leaching, solvent extraction
and chemical stripping to selectively recover
the valuable metals – rather than the
alternative of energy-intensive roasting.
ECE is a major Chinese mineral exploration,
development and mining group, based in
Nanjing, which has been set up since 1955.
It has more than 5000 employees and is one
of the few organizations authorized by the
Chinese Government to carry out geological
exploration and scientific research in major
State classified projects.
华 东 地 质 勘 查 局 为 Mount Peake 的 测 试 工 作
提 供 资 金
TNG 有 限 公 司 与 华 东 地 质 勘 查 局 (ECE) 签 署
了 一 份 认 购 协 议 , 作 为 更 广 泛 的 战 略 合 作 关 系
的 一 部 分 , 华 东 地 质 勘 查 局 向 TNG 注 入 1340 万
美 元 。 该 资 金 将 用 于 支 持 TNG Mount Peake
铁 - 矾 项 目 的 TIVAN 湿 法 冶 金 工 艺 的 实 验 厂 测 试
工 作 , 该 项 目 位 于 澳 大 利 亚 北 领 地 。
TNG 与 华 东 地 质 勘 查 局 的 子 公 司 澳 中 国 际
矿 产 资 源 有 限 公 司 及 私 营 投 资 方 澳 苏 投 资 与
开 发 公 司 之 间 达 成 的 这 份 认 购 合 同 是 在 中
国 天 津 举 办 的 2011 年 中 国 矿 业 大 会 上 签 署
的 。 出 席 仪 式 的 有 北 领 地 资 源 部 部 长 Kon
Vatskalis、 北 领 地 资 源 部 首 席 执 行 官
Richard Galton、 华 东 地 质 勘 查 局 副 局 长
许 建 荣 以 及 TNG 董 事 会 成 员 。
该 协 议 涉 及 的 资 金 用 于 加 强 Mount Peake
的 预 可 行 性 研 究 (PFS) 和 测 试 工 作 , 以 及
通 过 构 建 大 范 围 战 略 合 作 关 系 在 北 领 地 发 展
长 期 战 略 性 金 属 业 务 。 澳 中 和 澳 苏 将 通 过 协
议 获 得 TNG 总 计 30% 的 股 份 。
TNG 公 司 董 事 总 经 理 Paul Burton 称 , 该 协
议 的 签 署 是 一 个 重 要 的 里 程 碑 。“ 该 交 易 完
成 后 将 在 当 今 十 分 动 荡 的 经 济 环 境 下 给 公 司
提 供 重 要 的 资 本 - 使 TNG 在 发 展 中 处 于 有 利
地 位 , 为 我 们 Mount Peake 这 个 世 界 级 钒
矿 项 目 打 下 了 基 础 , 也 使 我 们 能 够 完 成
TIVAN 工 艺 的 商 业 化 。”
此 次 预 可 行 性 研 究 以 TNG 最 近 更 新 的 符 合
JORC 标 准 的 1.6 亿 吨 控 制 与 推 断 资 源 量 为 基
础 , 其 中 钒 品 位 为 0.3%, 钛 品 位 为 5.0%,
铁 品 位 为 23%, 使 之 成 为 澳 大 利 亚 最 大 的 未
开 发 钒 项 目 。 最 终 的 预 可 行 性 研 究 将 于
2012 初 期 与 用 于 支 持 TNG 的 TIVAN 工 艺 专 利
商 业 化 的 测 试 工 作 结 果 一 起 提 交 。
TIVAN 可 以 从 矿 石 中 提 取 三 种 贵 重 金 属 ,
与 传 统 的 高 温 冶 金 法 相 比 , 具 有 低 风 险 资 本
和 运 营 成 本 的 优 势 。 该 方 法 综 合 使 用 酸 浸 ,
溶 剂 提 取 和 化 学 剥 离 来 选 择 性 的 提 取 贵 重 金
属 , 而 非 耗 能 的 煅 烧 方 式 。
华 东 地 质 勘 查 局 位 于 南 京 , 成 立 于 1955
年 , 是 中 国 重 要 的 地 质 勘 探 、 开 发 和 开 采 集
团 。 拥 有 超 过 5000 名 员 工 , 并 且 是 为 数 不
多 的 几 个 获 得 中 国 政 府 授 权 可 以 对 主 要 国 有
项 目 进 行 地 质 勘 探 和 科 学 研 究 的 机 构 。
58 | ASIA Miner | January/February 2012

Chinese Investments Abroad
Scope of Selwyn feasibility expanded
PROMISING drill results and a review of metallurgical
processing have prompted joint venture
partners Selwyn Resources and Chihong
Canada Mining to expand the scope of a feasibility
study at the Selwyn zinc and lead project
in northwest Canada. Chihong is a whollyowned
subsidiary of Yunnan Chihong Zinc &
Germanium Co and is earning a 50% interest
in the project, with expenditure of Can$100
million on exploration and development.
Wardrop, a Tetra Tech Company, was engaged
in January 2010 to undertake the engineering
and technical work required for a
feasibility study. The initial proposed work on
the development plan is nearing completion,
however JV company Selwyn Chihong Mining
has determined that the scope of the proposed
engineering work and feasibility study
needs to be expanded and revised.
As at September 30, 2011, Selwyn Chihong
had spent about Can$73 million of the
total amount. The project is in eastern
Yukon and straddles the border with the
Northwest Territories.
Exploration drilling at the XY West deposit
and at depth in the area between Don and
Don East deposits, referred to as Don Connector,
has defined excellent mineral potential
that may be beneficial to include in the mine
plan being evaluated.
To advance this goal, Selwyn Chihong will
resume drilling on Don Connector to confirm
the presence of significant new mineral resources
and, if successful, undertake preliminary
mine evaluation to determine whether
these mineral resources should be integrated
into the current mine plan.
It plans to drill an additional 12,000 metres in
the Don Connector area to better define the
tonnage and grade of the shallow dipping mineralization.
The target area has dimensions of
900 metres by 250 metres, with several thick
intercepts of high grade mineralization indicated
from recent drilling, which included
54.94 metres @ 7.78% zinc and 2.84% lead,
including several zones of very high-grade mineralization.
The new drilling is projected to be
completed by March 2012 at which time a new
resource estimate will be completed for Don
Connector, and an evaluation undertaken to
determine whether it should be included in the
mine plan for the feasibility study.
Selwyn Resources is concentrating on exploration at and around the XY West deposit.
In recent drilling Selwyn Chihong completed
22,488 metres of diamond drilling on XY West
deposit and a new mineral resource estimate is
in progress to provide an updated resource for
XY West. Proximity to the XY Central deposit,
and modest pre-development requirements for
accessing the deposit, makes it an attractive
addition to the mine plan for XY Central.
Preliminary information from a recent reevaluation
of the inclusion of dense media
separation (DMS) technology in the crushing
circuit indicates that it could provide significant
reductions in overall energy consumption
in processing. Additional work is planned
to further evaluate the implications of including
DMS in the mill plan.
赛 尔 温 项 目 扩 大 可 行 性 研 究 范 围
积 极 地 钻 探 结 果 和 对 冶 金 加 工 的 重 审 使 位 于
加 拿 大 西 北 部 的 赛 尔 温 锌 - 铅 项 目 扩 大 了 可
行 性 研 究 的 范 围 , 该 项 目 是 赛 尔 温 资 源 有 限
公 司 和 驰 宏 加 拿 大 矿 业 有 限 公 司 之 间 的 合 资
项 目 。 驰 宏 是 云 南 驰 宏 锌 锗 股 份 有 限 公 司 旗
下 全 资 子 公 司 , 目 前 正 在 通 过 为 项 目 勘 探 和
开 发 提 供 1 亿 加 元 的 资 金 来 收 购 赛 尔 温 项 目
50% 的 合 资 权 益 。
2010 年 1 月 公 司 已 聘 用 一 家 Tetra Tech 公
司 - Wardrop 来 进 行 赛 尔 温 项 目 可 行 性 研 究
所 需 的 工 程 和 技 术 工 作 。 有 关 开 发 计 划 的 初
步 拟 议 工 作 已 接 近 完 成 , 但 合 资 公 司 - 赛 尔
温 驰 宏 矿 业 已 决 定 , 拟 议 工 程 工 作 和 可 行 性
研 究 的 范 围 需 要 扩 大 和 修 订 。
截 至 2011 年 9 月 30 日 , 赛 尔 温 驰 宏 已 花 费 了
约 7300 万 加 元 费 用 。 这 是 驰 宏 收 购 赛 尔 温 项
目 50% 权 益 需 要 支 付 的 $1 亿 费 用 中 的 一 部 份 。
该 项 目 位 于 育 空 东 部 , 横 跨 西 北 地 区 边 界 。
在 XY West 矿 床 和 Don 与 Don East 矿 床 之
间 区 域 的 深 部 - 即 Don Connector 实 施 的 钻
探 作 业 确 定 了 极 佳 的 矿 化 潜 力 , 有 可 能 有 益
于 纳 入 已 评 估 的 开 采 计 划 中 。
为 了 推 进 这 一 目 标 , 赛 尔 温 驰 宏 将 继 续 在
Don Connector 进 行 钻 探 作 业 , 以 确 定 重
大 的 新 矿 化 资 源 的 存 在 , 如 果 取 得 成 功 , 公
司 将 采 取 初 步 的 矿 场 评 估 以 确 定 这 些 矿 化 资
源 是 否 应 该 并 入 当 前 的 开 采 计 划 中 。
公 司 计 划 在 Don Connector 区 域 开 展 1.2
万 米 的 金 刚 石 钻 探 工 作 , 从 而 更 好 的 定 义 这
个 微 倾 的 成 矿 带 的 吨 位 数 和 品 位 。 目 标 区 域
为 900 米 x 250 米 , 最 近 实 施 的 勘 探 作 业 确
定 了 一 些 高 品 位 的 较 厚 的 矿 段 , 包 括 54.94
米 岩 芯 锌 品 位 为 7.78%, 铅 品 位 为 2.84%,
其 中 一 些 区 域 矿 化 品 位 极 高 。 新 的 钻 探 作 业
预 计 在 2012 年 3 月 完 成 , 届 时 Don Connector
的 新 资 源 评 估 将 完 成 , 并 且 将 进 行 评
估 以 确 定 其 是 否 应 该 纳 入 可 行 性 研 究 的 开 采
计 划 中 。
在 最 近 的 钻 探 中 , 赛 尔 温 驰 宏 共 在 XY
West 矿 床 完 成 了 22488 米 金 刚 石 钻 探 作 业 ,
新 矿 产 资 源 评 估 正 在 进 行 之 中 , 以 期 为 XY
West 提 供 更 新 的 资 源 量 。 靠 近 XY Central
矿 床 及 较 低 的 前 期 开 发 要 求 使 其 成 为 了 被 列
入 XY Central 开 采 计 划 的 一 个 极 具 吸 引 力 的
矿 床 。
从 最 近 对 破 碎 流 程 中 纳 入 重 介 质 选 矿
(DMS) 技 术 的 重 新 评 估 得 到 的 初 步 信 息 表
明 , 该 技 术 将 大 大 减 少 流 程 中 整 体 的 能 源 消
耗 。 公 司 计 划 展 开 更 多 的 工 作 , 对 DMS 纳 入
选 厂 计 划 的 实 施 做 进 一 步 评 估 。
January/February 2012 | ASIA Miner | 59

Chinese Investments Abroad
Fusion first development option for JV
THE Fusion magnetite project in South Australia
is the preferred option for the first mining
development of joint venture partners
Centrex Metals and Wuhan Iron and Steel
Corporation (WISCO). The site is west of
Tumby Bay on the Eyre Peninsula where
large-scale drilling is planned at three deposits
to further evaluate the project’s current
resource of 454.4 million tonnes.
Fusion is one of a number of advanced exploration
assets being assessed by the joint
venture across the southern Eyre Peninsula.
It consists of four deposits which have been
targeted by the JV managers Eyre Iron for environmental,
social and resource testing.
Three of the deposits – Koppio, Brennand and
Kapperna - are seen as capable of supporting a
large-scale, long-life magnetite concentrate operation
as well as the necessary infrastructure.
The fourth deposit, Iron Mount, is on the eastern
An impression of Centrex’s proposed deep water port facilities at Port Spencer.
An aerial view of the Bungalow project, a joint venture
between Centrex and Baotou Iron & Steel Group.
edge of the Fusion area and could provide ore
feed for the project in the longer term. Eyre Iron
is confident of proving a large enough resource
base at the three main deposits to underpin the
initial 20 year life of the mine.
Environmental and scoping studies are
under way as well as large diameter drilling to
provide diamond core results for metallurgical
test work. Test work to date shows a high
quality concentrate blend can be produced.
Fusion is 40km from the proposed Port
Spencer deep water export facility that is
under development by Centrex to transport
product from mine to port via a low impact
slurry pipeline. The company says water for
the Fusion project will be provided by a desalination
plant at Port Spencer with a return
water pipeline to the site.
Centrex has recently received payment of
Aus$8 million from another joint venture partner,
Baotou Iron & Steel Group Company
(Baogang), which will provide for commencement
of stage 3A of the Bungalow Magnetite
Joint Venture. It is the third progress payment
by Baogang which has now invested Aus$24
million in to the joint venture.
The payment will enable the project, also on
the Eyre Peninsula, to steadily continue rather
than wait for the completion of stage 2 in
2012. A number of key tasks on the critical
path to development have now commenced,
including further resource definition drilling,
metallurgical test work and baseline environmental
studies to support the mining lease
proposal and pre-feasibility study.
The payment has resulted in Baogang
being assigned a further 10% interest in the
iron ore rights on the licence, taking its equity
in these rights and the JV to 30%.
武 钢 与 Centrex 合 资 的 首 选 - 富 绅 项 目
南 澳 大 利 亚 州 的 富 绅 磁 铁 矿 项 目 是 Centrex
金 属 公 司 与 武 汉 钢 铁 公 司 (WISCO) 的 合 资 公
司 首 个 矿 业 开 发 项 目 的 首 选 。 该 项 目 位 于 艾
尔 半 岛 塔 姆 比 湾 的 西 部 , 大 型 的 勘 探 作 业 计
划 在 三 个 矿 床 实 施 , 以 期 对 项 目 当 前 的 4.544
亿 吨 资 源 进 行 进 一 步 评 估 。
富 绅 是 该 合 资 企 业 在 艾 尔 半 岛 南 部 评 估 过
的 众 多 优 质 的 勘 探 资 产 之 一 。 艾 尔 矿 业 有 限
公 司 的 经 理 已 经 针 对 富 绅 的 四 个 矿 床 进 行 环
境 、 社 会 和 资 源 测 试 。
其 中 的 三 个 矿 床 - 科 皮 奥 、 布 雷 南 德 和 卡 珀
纳 - 能 够 支 持 一 个 大 型 的 、 服 务 年 限 长 的 磁 铁
精 矿 运 营 及 必 要 的 基 础 设 施 建 设 。 第 四 个 矿
床 - 铁 山 - 位 于 富 绅 区 域 的 东 部 边 缘 , 能 够 在 更
长 的 时 期 内 为 项 目 提 供 矿 石 。 艾 尔 矿 业 有
信 心 在 三 个 主 要 的 矿 床 提 供 足 够 大 的 资 源 基
础 , 以 巩 固 矿 区 最 初 的 20 年 服 务 年 限 。
环 境 与 概 况 研 究 及 大 直 径 钻 探 作 业 都 在 进
行 之 中 , 旨 在 为 冶 金 测 试 工 作 提 供 金 刚 石 钻
探 结 果 。 迄 今 为 止 , 测 试 工 作 表 明 矿 场 将 产
出 高 品 位 的 混 合 精 矿 。
富 绅 距 离 拟 议 的 斯 宾 塞 深 水 港 出 口 设 施 40
公 里 , 该 设 施 目 前 正 由 Centrex 建 设 , 将 通
过 一 个 低 冲 击 矿 浆 管 道 从 矿 区 运 输 产 品 至 港
口 。 公 司 称 斯 宾 塞 港 的 一 个 海 水 淡 化 厂 将 通
过 与 矿 场 相 接 的 回 水 管 为 富 绅 项 目 供 水 。
Centrex 最 近 收 到 了 另 一 个 合 资 伙 伴 - 包 头
钢 铁 集 团 公 司 ( 包 钢 ) 支 付 的 800 万 澳 元 ,
将 用 于 班 格 鲁 磁 铁 矿 合 资 项 目 的 3A 阶 段 的 启
动 。 这 是 宝 钢 第 三 次 支 付 款 项 , 迄 今 已 经 对
该 合 资 项 目 投 资 了 2400 万 澳 元 。
此 次 支 付 将 使 这 个 同 样 位 于 艾 尔 半 岛 的 项
目 能 够 稳 步 推 进 , 而 非 在 2012 年 第 二 阶 段 完
成 后 才 得 以 进 行 。 一 些 对 发 展 起 着 至 关 重 要
的 主 要 任 务 已 经 启 动 , 包 括 进 一 步 的 资 源
界 定 钻 探 作 业 、 冶 金 测 试 工 作 和 环 境 基 线 研
究 , 旨 在 对 矿 产 租 约 提 案 与 预 可 行 性 研 究 提
供 支 持 。
宝 钢 在 此 次 支 付 后 进 一 步 获 得 了 该 铁 矿 项
目 10% 的 股 权 , 使 其 在 这 些 矿 权 和 合 资 中 的
权 益 达 到 了 30%。
60 | ASIA Miner | January/February 2012

Education Training
Money Mining Intelligence By Lanita Idrus, publisher, The ASIA Miner
DESPITE the impending rubber-stamping of the
mining tax by the Senate after approval by the
Lower House, the mining industry in Australia is
truly alive and well if not thriving. It will also continue
to survive and traverse the mining tax and
carbon tax issues for some time to come.
Australia, and the world’s mining industry,
can thank Australian individuals, organizations
and institutions for the innovative investments
they have made to the industry.
Australian’s innate inclination for ‘global roaming’
has facilitated this transfer of knowledge
worldwide and is feeding improvements in
the education of the workforce for the mining
industry globally.
Such innovative investments and innovations
generally arise out of experiences and experiences
that shape the way we think. What we
think enables us to design the future we want.
Underpinning all this is our education – how we
learn, whom or what we learn from and how
we understand our experiences.
It is through education that we shape our
future leaders and it is no different in our mining
industry. Leaders in this industry must
continue to forge the path ahead in order to
resolve the skills shortage issue.
Education in mining has been under-estimated,
under-valued and under-funded but
not until it is more widely realized and understood
that we are fast becoming ‘resourceless’
in providing manpower to the industry
will it become a hot topic again.
The three prime reasons for people to look at
education as a solution source are (i) improving
ROIs, (ii) the need for manpower; and (iii) specific
technical challenges within the industry.
For whatever reason that applies to you or
your company - it is never too late to invest in
education for the overall good of oneself but
more importantly for the mining industry.
Take Money Mining for example. Now a
course run by Whittle Consulting, it is the epitome
of more than 25 years of research and
dedication to the mining industry resulting in a
rigorous plan of action to revise and revitalize
the way we think about what we do, how we
do it and how wisely we dissipate our company’s
funds. Though having a fundamental
basis in mathematical algorithms, you need not
be a mathematical genius to do the course. All
you need is an open mind and your experiences.
Whittle Consulting director Gerald Whittle,
who is also mentor/leader of this course,
will do the rest with you. How can one course
improve the ROI of a company by more than
5%, and the Net Present Value by 5%-35% or
more Well Money Mining can… case studies
upon case studies have proven this to be true.
Working hand-in-hand with Money Mining is
Gemcom whose partnership helps Whittle deliver
an outstanding software program so companies
can review, monitor, evaluate and
improve their performance. Gemcom is who
mining companies turn to if they want to increase
mine productivity. To ensure that their
software yields the results that companies
want, Gemcom offers ongoing training. As recent
as October 2011, Gemcom announced its
support of other education innovations such as
the MEA (Mining Education Australia) Engineering
Program. MEA is a national education joint
venture between four mining education
providers in Australia – Curtin University, University
of Adelaide, The University of New South
Wales and The University of Queensland.
Among the most talked about innovative investments
the mining industry has made in recent
years are the development of research
centres, such as IMER (Institute for Mineral
and Energy Resources), MCRF (the Mineral
Characterization Research Facility), CRC Mining
and the newly mooted International Mining
for Development Centre. This centre, hailed by
Prime Minister Gillard recently in Perth, can be
best described as yet another opportunity for
the transfer of knowledge from Australian expertise
(from government, academia and industry)
to the mining industry in more than 30
developing countries in Africa, the Asia Pacific
region and Latin America.
During a visit to the University of Western
Australia, where the centre will be based, the
Prime Minister espoused: “We want to make
sure resource-rich developing countries use
opportunities generated by mining to create
much needed education and job opportunities
for some of the world’s most vulnerable people.”
This new Centre is a partnership between
the University of Western Australia’s Energy
and Mineral Institute and the University of
Queensland’s Sustainable Minerals Institute.
Some of the mining industry’s giants are
also supporting education. Take Metso, for
example, who has partnered with the University
of Queensland to research the effectiveness
of grinding solutions for the industry;
and OK Tedi Mining Co in Papua New Guinea
which is spending money on education to
train 32 new apprentices. Barminco which is
committed to industry education, received
two awards recently for its commitment to
training and education while Joy Global-P&H
Minepro has started programs to train staff
on the financial measures and operations that
the company undertakes which ensures the
sales force has a clear understanding of how
and why business decisions are made. This
translates to delineating customer needs and
enhancing financial success.
As for ensuring that the mining industry continues
to have engaging and transformational
leaders in the future, the Australian education
system is not short of providing courses to
groom them, including the Mt Eliza Business
School, MGSM (Macquarie Graduate School
of Management), and the AGSM (Australian
Graduate School of Management in NSW. In
fact, almost every state and territory of Australia
has a Graduate School of Management
where one can simply apply and attend with
the aim of learning something that will transform
them into a leader and provide their company
(the employer) with a competitive
advantage in the industry. For an overview of
these institutions please review our Education
Directory in this issue.
If you are located in the Asia Pacific region
education opportunities in management and
leadership may be found through Australia’s
Open University programs or through companies
such as Caliden Global, which is
based in Singapore and professes expertise
from world renowned schools such as Wharton,
Stanford and the like.
Whatever your view on learning, training or
the recruitment crises in mining, you will agree
that action needs to be taken. It is heartening
to see the rise in industry supporting education
initiatives both within industry and with specialist
institutions. It is also good to see government
recognition and acknowledgement of the
need to invest in education.
If mining is to support nations then it is prudent
to invest in education. After all, how can
mines make money without money mining intelligently
Special commentary by Lanita Idrus, who holds an
M.Ed.St (Monash), B.App Sci (education) former senior academic
at University of Melbourne and Australian Catholic
University (Melbourne). Post graduate education specialist.
Mentor for Masters and beginning PhD students.
62 | ASIA Miner | January/February 2012

Education Training
Learning Calendar 2012
The Challenge of leadership
8 December, 2011-9 January, 2012
http://executive.education.insead.edu/calendar.php
MBA in Financial Modelling
9-13 January—5 Day, www.terrapinn.com
Accelerated Development for Emerging Managers
13-17 February, www.mteliza.mbs.edu
Managing Global Commodity Risks and Riding the Spikes
20-21 February, www.claridenglobal.com
Asian International Executive Programme
20 Feb – March 2
http://executive.education.insead.edu/calendar.php
Global Business Leadership Institution
Clariden Global is the pre-eminent and influential global business
leadership institution in Asia. At Clariden, our core mission is to help
global organizations in Asia build sustainable competitive advantages
by empowering people with knowledge and insights that are impactful
and highly relevant in today's competitive business environment.
Through partnership with renowned thought leaders from
around the world, Clariden provide strategic insights and impactful
world-class global executive education, training and conferences to
global organizations and FORTUNE 500 companies across Asia. We
have partnered with renowned professors from prestigious universities
such as Wharton, Stanford, Columbia, Michigan and other universities
that have produced over 150 Nobel Laureates and thought
leaders from around the world.
AIMS: Advanced Industrial Marketing Strategy
12 – 16 March
http://executive.education.insead.edu/calendar.php
Maximising your Leadership Potential
14–15 March, www.mteliza.mbs.edu
3 International Business Park
#04-31 • Nordic European Centre
Singapore 609927
Tel: +65 6899 5030 • Website: www.claridenglobal.com
Money Mining – Value extraction on a vast scale
A unique approach to Enterprise Optimisation helps mining companies
make a step change in their economic performance, by developing
long term plans with significantly better cash flow profiles, increasing
their Net Present Value by 5% to 35%, or considerably more.
Quotes from previous attendees:
"I have been putting what I learnt .. into practice and .. have added a significant
amount to the NPV in our recent business plan."
"There were lots of new insights and ideas presented which can change the way
we have done our planning in the past."
"Every serious mining professional should attend ….. In 2 days he changed 25
years of traditional mining thinking and principles. Beware, this dynamic and inventive
thinking will change everything ever believed to be the norm in optimization
and mine planning. No feasibility study should be done without these
principles."
"Earth Shattering"
January/February 2012 | ASIA Miner | 63

Supplier News
New Caterpillar plant for Indonesia
CATERPILLAR will build a mining truck facility
on the Indonesian island of Batam to improve
its support of mining customers in the Asia Pacific.
A range of mining truck chassis and bodies
will be produced at the facility and shipped
to mining customers throughout the region.
The company plans to invest US$150 million
in the facility, which is expected to be operational
in 2012 for truck bodies, with first
trucks produced in the third quarter of 2013.
It will be Cat’s second manufacturing operation
in Indonesia. The existing facility, in Cileungsi,
West Java, opened in 1982 and is
focused on producing excavators and skidders.
The company has approved plans to
triple excavator production at Cileungsi.
Since the beginning of 2010, Caterpillar has
announced a series of investments and capacity
expansion plans for operations across
Asia, including a quadrupling of excavator
production in Xuzhou, China, and a total of
nine new facilities, which are under construction
in China. The company has 16 facilities in
China, along with four research and development
centres and three logistics and parts
centres. It has previously announced the construction
of two new manufacturing operations
in Thailand.
Its Indian operations have started producing
40 ton and 50 ton class off-highway
trucks (770G and 772G) and the 998 H
loader for construction, quarry and mining
applications. Manufacturing facilities are at
Hosur, Thiruvallur and Pondicherry in southern
India. The facilities produce engines and
power generation equipment, quarry and
construction trucks, mining trucks, backhoe
loaders, wheel loaders and a wide variety of
New features for the Cat D9T include enhanced operator safety, comfort and convenience, refined performance and
increased productivity.
related components.
Meanwhile, Caterpillar has announced a
number of new features for the Cat D9T aimed
at easing the operator’s job and boosting production.
There are adjustable arm rests, new
automatic climate control and the standard Cat
Comfort Series Seat is now available with optional
heat and ventilation. The new Dynamic
Inclination Monitor provides readouts of the
tractor’s pitch angle and side-to-side slope
while a new operator-presence system locks
out the power train and hydraulic system to
avoid unintentional machine movement when
the operator is entering or leaving the cab.
An available visibility package includes mirrors
on the lift cylinders and a ROPSmounted
camera system with an 18cm
colour monitor near the rear view mirror. Incab
sound levels are decreased from 79 to
77 dB(A), and a new dash display, high-current
12-volt connector, IPOD/MP3 wiring and
optional window shades add convenience.
New for the D9T is the Enhanced Auto Shift
(EAS) system, which provides operator-selectable
forward and reverse speeds. The
system can provide increased production,
fuel efficiency and ease of operation. Cooling
system refinements include a new radiator
featuring an aluminium bar-plate design that
is extremely durable and corrosion-resistant.
A new air-to-oil hydraulic cooler results in
lower hydraulic-oil temperatures for extended
component life, and the hydraulically driven,
variable-speed demand fan provides optimal
cooling while using less power, reducing fuel
consumption and lowering sound levels.
Shell Tellus delivers for Barrick Gold
LEADING international gold producer Barrick
Gold Corporation sought assistance from
Shell Lubricants in a bid improve performance
and reduce energy consumption at its Plutonic
gold mine in Western Australia. Barrick
operates 25 gold mines around the world, including
seven in the Australia–Pacific region.
Shell Lubricants worked with Barrick engineering
staff to identify energy-efficiency
opportunities and suggested that the company
would benefit by changing its hydraulic
motor lubricant from Shell Tellus S2
M to Shell Tellus S4 ME.
Barrick agreed to implement a six-month trial
of the new lubricant in two Hägglunds MA 200
hydraulic motors installed on conveyors at the
mine. During the trial, Barrick measured several
factors including load, temperature, filters,
filter ratings, lubricant viscosity and viscosity
index. The results were recorded by a highly
accurate power monitor provided by Shell.
The results of the trial showed that using
Shell Tellus S4 ME in the two hydraulic motors
reduced annual energy consumption by
the equivalent of 5.27%, which equates to
US$10,520 a year. Barrick also benefited
from extended oil-drain intervals and reduced
labour costs and downtime, and expects
to extend equipment life. The
company is planning to use Shell Tellus S4
ME across its operations. Shell Tellus S4 ME
hydraulic fluids are designed to help users
to improve the energy efficiency of their hydraulic
systems without compromising the
system protection or maintenance procedures
of their equipment and operations.
Shell Tellus S4 ME has been demonstrated
statistically to produce energy savings
in applications such as plastic injection
moulding and metal pressing, with typical results
in the range of 1–4%. In addition, Shell
Tellus S4 ME is also designed to help prolong
equipment service life and lower maintenance
costs by providing outstanding
wear protection and long oil-life capability.
64 | ASIA Miner | January/February 2012

Supplier News
ALS and Stewart Group expand in Asia
ALS Group’s acquisition of Stewart Group
adds a range of inspection and analysis expertise
to existing services in the Asia Pacific
region. The Minerals Division of ALS has a
strong presence in the area with geochemistry,
metallurgy, coal, environmental, tribology,
food, pharmaceutical and industrial
services offered through dedicated labs in
China, Mongolia, Laos, Cambodia and Australia.
The acquisition now means customers
can also benefit from Stewart Group’s expertise
in inspection and analysis services.
Stewart Group Inspection and Analysis inspects,
weighs, samples, analyses and reports
on the quantity and quality of commodities to
produce findings that can be used for final
commercial settlement purposes. It also provides
accurate global services for metals, including
copper, as well as minerals, ores,
precious metals, ferro alloys and solid fuels.
Teams of surveyors are strategically located
in major ports, smelters, refineries and steelworks
around the world to undertake precise
inspection and sampling of commodities.
Major Asian markets covered by Stewart
Group Inspection and Analysis include China,
Mongolia, Kyrgyz Republic, Singapore,
Malaysia, Thailand and India. Many of these
are key areas for copper testing.
ALS and Stewart Group’s Singapore facility
The acquisition of Stewart Group adds inspection and analysis expertise to the services provided ALS Group in the Asia Pacific.
is strategically positioned to offer minimized
freight and travel times. It offers a comprehensive
selection of independent inspection
and analysis services to the metals and minerals
industry, with an emphasis on quality,
service, rapid turnaround times and providing
accurate, consistent results. The Singapore
lab is an LME-approved sampler and
assayer, offering pre-shipment inspection, supervision
of loading and discharge, sampling
and sample preparation, moisture determination
and analytical services for alloys, base
metals, precious metals, ferrous and non-ferrous
metals and LME-listed materials.
Stewart Group Inspection and Analysis provides
Asia with globally-recognized testing,
inspection and certification services to ensure
customers have access to industry-leading
technology, quality results and staff with indepth
industry knowledge and experience.
The Singapore lab includes industry-leading
laboratory plant and equipment. The business
is ISO 9001-compliant and the laboratory
is accredited by SAC-SINGLAS to ISO
17025. The laboratory will continue to develop
and expand service provisions for precious
metal testing in Asia.
Stewart Group Inspection and Analysis group
general manager Chris Walker says, “The Asia
Pacific region is clearly a key growth area and a
vital part of our future success. Our advantage
is that, with Stewart Group combining with ALS
Group, we have a good spread of locations in
the area from which to offer our services, keeping
us ahead of the game.”
Third Hitachi equipment plant for Japan
HITACHI Construction Machinery plans to build
its third mining equipment factory in Japan as
demand for thermal coal rises in Asia. The plant,
near a port in Ibaraki prefecture, is expected to
start production in 2013 and is part of Hitachi’s
three-year, $2.4 billion expansion plan.
Hitachi aims to increase mining revenue as
competition in its main construction-equipment
business intensifies from China. The new assembly
plant is expected to increase Hitachi’s
sales from mining equipment to 220 billion yen
(US$2.8 billion) by March 2014, or 20% of revenue.
Demand for coal is rising in nations such
as China and India, where demand exceeds
supply by as much as 14% during peak hours.
This demand is expected to lead to further investments
in mines in nations including Australia,
Indonesia, Africa, Russia and China.
Hitachi, Japan’s second-largest maker of
construction equipment, holds 40% of the
global share for mining excavators weighing
between 120 tonnes and 800 tonnes. A 550-
tonne excavator, which is twice as heavy as
an Airbus SAS A380 superjumbo and as high
as a three-storey building, is used to scoop
ore and load to dump trucks.
So strong is the demand for its equipment
that at present Hitachi’s waiting list for supply
of equipment is at least 12 months and the
company is in discussions with customers
about new orders to be delivered in 2013.
Hitachi plans to expand supply of excavators
weighing at least 120 tonnes by 60% to
360 units by March 2014 and more than double
output to 510 units in the following five
years. A company spokesman also says
sales of dump trucks weighing at least 140
tonnes will probably triple in three years.
Hitachi’s larger Japanese rival Komatsu in
November 2011 agreed with Rio Tinto Group
to supply at least 150 driverless trucks to Australia’s
Pilbara iron ore mines by 2015 while
Caterpillar, the world’s largest construction and
mining equipment maker, forecast revenue in
2012 will rise as much as 20%.
66 | ASIA Miner | January/February 2012

Supplier News
Boart Longyear expands Mine Water Services
INTEGRATED drilling products and services
provider Boart Longyear plans to expand
Mine Water Services to the Asia Pacific region
as well as Latin America, Europe and
the Middle East.
During the last 25 years, Boart Longyear
Drilling Services has developed and honed
an effective reverse circulation method in
North America, and has established what it
says is the leading process within the industry
while creating the most highly specialized
crews in the world.
Boart Longyear’s global director of drilling
services operations Dale Johnson says, “Boart
Longyear utilizes a unique process capable of
drilling large diameter holes in the most difficult
ground conditions in a single-pass.
“Drilling a large diameter borehole in a single-pass
as opposed to multiple passes
which can degrade the bore-hole improves
the likelihood of drilling a straight borehole to
target depth successfully. Our unique method
of drilling and completing wells provides better
overall well efficiency and production - ultimately
saving our client’s downtime and
money over the life of a well.”
Boart Longyear offers a complete range of
mine and other water services drilling, including
production, de-watering, re-injection,
monitoring, geothermal and municipal wells.
In North America, the company also provides
pump installation and servicing.
Dale Johnson says, “Our documented procedures
create reliable and effective large diameter
and deep hole drilling systems.
“Our water well services in the mining industry
are primarily utilized for monitoring water tables
in and around the mine, water supply
needed in the mining process and/or lowering
water tables to allow safe and efficient mining.
We also install piezometers and other instrumentation
holes for ground monitoring, and
horizontal drains to eliminate perched water
causing pressure on mine pit walls.”
Boart Longyear has assembled an international
strategic operations team that is currently
training drill crews from the resource-rich nations
of Russia, Kazakhstan and Peru.
Boart Longyear is a 120-year-old global mineral
exploration company providing mineral exploration
services and drilling products for the
global mining industry and also has a substantial
drilling presence for water exploration, environmental
sampling, energy, and oil sands
exploration. Headquartered in Salt Lake City,
Utah, with 2010 sales of US$1.476 billion and
more than 10,000 employees worldwide, the
company conducts contract drilling services in
more than 40 countries, and provides mining
products to customers in more than 100 countries.
Regional offices and operations are located
in Adelaide, Australia; Geneva, Switzerland;
Santiago, Chile; and Mississauga, Canada.
For more information on Boart Longyear
Drilling Services, please visit www.boartlongyear.com
Fortescue buys 14 Vermeer Terrain Levelers
VERMEER Corporation and its authorized regional
dealer Vermeer Western Australia and
Northern Territory have announced that
Fortescue Metals Group of East Perth, Western
Australia, has agreed to purchase 14 Vermeer
Terrain Leveler surface excavation
machines (SEMs) to be used in its vast mining
operations in the state’s Pilbara region.
Vermeer’s senior director for specialty excavation
Mark Cooper says, “This order
comes after significant investment in product
development by Vermeer, as well as commitment
by the local dealer to support the operations.
Having a respected industry leader
like Fortescue embrace the technology further
validates its place in the market.”
The Vermeer surface excavation machines
allow mines to utilize precision surface mining
meaning mine operators can selectively extract
mineral seams in surface mining applications.
Operators can also control material sizing
thus producing small-sized material in a uniform
configuration so minerals can be handled
more efficiently than product produced by
drilling and blasting. The uniform product size
allows more efficient settings on secondary
and tertiary crushing systems, savings that can
continue well past the primary crushing stage.
The delivery of machines was scheduled to
begin in December 2011 and additional machines
will ship through September of 2012.
Vermeer Corporation of Pella, Iowa, USA,
manufactures a full line of tub and horizontal
grinders, brush chippers, stump cutters and
tree spades, as well as horizontal directional
drilling systems, mini skid steers, utility and
track trenchers and agricultural products.
Vermeer offers worldwide sales, support,
service and parts through an independent,
authorized dealer network.
January/February 2012 | ASIA Miner | 67

Product News
Steinert Boomerangs return export efficiency
THE removal of tramp iron and metal from bulk materials at ship loading
facilities is important to maintain efficient exports from Australian
ports. This is particularly the case for the coal industry where the volume
of coal exported is only limited by the ability to load the bulk carriers.
Steinert ‘Boomerang’ magnets are playing a vital role in this
process at key export terminals on Australia’s eastern seaboard.
The coal from the surrounding mine sites is delivered by train to
these sites where the requirement for high powered, deep and wide
field magnets is paramount for efficient and effective tramp iron removal.
As port and ship loading facilities are developed to cope with
future export needs, so too is Steinert well positioned to service the
industry’s needs.
The latest Steinert Boomerang left the Melbourne factory in September
2011 and six of these super-sized and powerful magnets exist in
Australia today. The first three were installed in the mid-to-late 1990s at
Port Waratah Coal Service site on Kooragang Island. Two more were
installed in 2009 for Newcastle Coal Infrastructure Group (NCIG) and
the latest 43 tonne addition joined them a few weeks ago. These magnets
are the largest of their kind in Australia and all are installed within
a radius of 1km of each other in Newcastle, New South Wales.
Steinert Australia is a specialist in delivering separation technologies
not only for upgrading coal, but also minerals and iron ore, and
for the removal of damaging contaminants. Steinert offers an unrivalled
and extensive product range to enhance the operations of Australia’s
leading local and international mining projects. The company
provides comprehensive services in customized design, application
and commissioning of ore sorting, beneficiation and tramp removal
systems to increase product yield, improve concentrate quality, reduce
operating costs and boost process efficiencies.
Steinert Australia also invests heavily in product development and
testing both locally and in Germany, where it enjoys the confidence of
having a fully appointed test facility for equipment performance analysis
at the corporate head office. Steinert Australia has the benefits of
more than 120 years of experience and offers both traditional and innovative
leading edge solutions, as well as guaranteeing fast service
and ensuring efficient, effective and reliable performance.
The Steinert range includes:
• Tramp material detection & removal systems to protect conveyors,
crushers & HPGRs
• Heavy media recovery & iron ore beneficiation
• Mineral processing, upgrading upstream concentrator feed stock
• Wet & dry low, medium & high intensity magnetic separators
• Induction, X-Ray, XRF, 3D/laser, colour & near infra-red ore sorting
systems
• Electro and permanent suspension magnets
• Metal detection systems
• Magnetic drums/pulleys
Steinert Boomerang magnets remove tramp metal from coal at ship loading facilities.
Steinert says its knowledge of applications and the ability to meet
almost any customer’s requirements is its strength. From a small
magnet recovering steel in a recycling facility to a 43 tonne electromagnet
used in Australia’s major port loading facilities, Steinert is able
to meet the most stringent of mining applications.
www.steinert.com.au
68 | ASIA Miner | January/February 2012

Product News
New T-thread system ‘toughest on market’
ATLAS Copco has introduced a patented T-thread drilling system
called T-WiZ, which has been designed to be the toughest (trapezoidal)
T-thread system on the market. It features a stronger thread
surface and other proprietary improvements to provide less wear on
the threads and faster rod changes, with results indicating up to a
30% longer service life.
The T-WiZ was designed to work in the toughest rock formations,
including fractured rock that could result in off-line drilling or overstressed
threads. The T-WiZ drilling system provides better thread efficiency
and greater thread stability for quicker rod changes. The
company says all drilling applications, including underground, construction
and surface mining will benefit from this new design.
Keeping the standard T-threaded profiles allows T-WiZ components
to be operated with standard T-threaded components, however, the
longer service life can only be achieved when the complete drill string
is made up of Atlas Copco T-WiZ products. The company says the
‘secret’ is hidden in a stronger thread surface and other proprietary
improvements to the T-WiZ drill rods and striking bars.
Atlas Copco T-WiZ components are provided in three dimensions:
T-38, T-45, and T-51 threaded (M/F) Speedrods and shank adapters.
Meanwhile, Atlas Copco Fluidcon has opened a new, 6300 square
metre building in Balikpapan, Indonesia, including one of the largest
Atlas Copco Mining and Rock Excavation workshops in Asia. Atlas
Copco Fluidcon director Robin Stephens says, “This new parts and
service distribution centre should make it possible for us to exceed
our customers’ expectations. We believe this new building will contribute
to sustainable productivity for our customers.”
The new facility, known officially as the Atlas Copco Mining and Rock
Excavation Kalimantan Parts Distribution, Remanufacturing & Training
Centre, is also a sign of the progress achieved after the integration of
Atlas Copco with Fluidcon in early 2011.
The new T-WiZ drilling system from Atlas Copco is designed to be the ‘toughest on
the market’.
Company Profile
CREATING PRODUCTIVE HUMAN ENVIRONMENTS
Consulting • Design • Training
• Australian based consultancy firm
• Deliver specialized environmental community
engagement solutions in the resources sector
• Enabling stakeholders to transition from dependency to self
reliance creating productive sustainable human environments
• Our clients are leading mining companies and government
entities in Australia and internationally
Edge5 uses its specialized knowledge of earth envir onments,
agriculture science and social education to restore human environments
with sustainable & productive communities that thrive
on secure food supply lines with healthy soils and clean water
systems.
Clients whom we have served include BHP Billiton, Azumah,
Indophil,TiWest, Keegan, Telstra, FESA, Landgate and others.
These companies see the value and specialist skill of Edge5.
January/February 2012 | ASIA Miner | 69

Product News
DRX Impact Beds offer maximum belt protection
FLEXCO exhibited the newly-upgraded DRX (Dual Relief Xtra) Impact
Beds at Mining Indonesia 2011. Designed to deliver maximum protection
to conveyor belts in the load zone, DRX impact beds are carefully
engineered to maximize belt protection, offering unprecedented
ease of installation and maintenance.
Recent upgrades to the DRX200, DRX750, and DRX1500 impact
beds have further improved installation and serviceability. The Slide-
Out Service feature on the DRX allows direct access to the bars and
bolts for easy inspection and quick, safe maintenance when required.
Flexco’s BCP product manager Ryan Grevenstuk says, “Reducing
the number of bolts and improving their accessibility enhanced an already
highly serviceable product.”
While other beds rely solely on the support bars to reduce impact,
DRX impact beds incorporate Velocity Reduction Technology in the
Upgrades to Flexco’s DRX Impact Beds have improved installation and serviceability.
structure design. This multi-level support effectively deadens impact
energy and reduces reaction forces for less rebound and material digestion.
The impact bar supports have a unique inverted design that
acts as a first level of impact defence, while channel crossbeams
transfer impact energy to the isolation mounts. These isolation mounts
provide additional force reduction, absorbing energy and minimizing
transmission back to the belt. Angled impact bars help centre material
on the belt and anti-migration tabs prevent them from moving with
the belt if bolts loosen.
Also among the Flexco innovations at Mining Indonesia was the new
PT Smart Belt Trainer. This was developed to further enhance the
Flexco line of belt tracking products, joining the Belt Positioner and the
heavy-duty PT Max Belt Trainer as an option for ‘medium-duty’ tensioned
belts. Flexco says the economical and versatile PT Smart
works with both mechanical and vulcanized belts, is made of durable
materials and is easy-to-install.
The PT Smart Belt Trainer adopts the same characteristics of the PT
Max, including the patented Flexco ‘pivot and tilt’ design. With this
technology, Flexco says the PT Smart applies greater belt tracking
discipline than conventional pivot-only belt-steering devices, correcting
even the most stubborn tracking problems on medium-tension
belts. A fully-enclosed, stainless steel pivot bearing is found downstream
from the roller, creating an almost immediate tracking result.
The bearing requires no lubrication and is guaranteed not to seize.
Cummins QSK95 extends mining power capability
CUMMINS has extended its mining power capability with the new QSK95
engine which will provide a 4000hp (2983kW) capability for ultra-class mine
haul trucks. Cummins says this represents the highest ever power output
introduced by the company for severe duty-cycle operation. The 95 litre
displacement QSK95 is purpose-designed to provide enhanced strength
for 360 ton and 400 ton (327 and 363 tonne) payload class trucks, with the
capability to increase truck speeds for climbing steep gradient haul roads
and boost hauling productivity with reduced operating cycle times.
The QSK95 will be available as a global mining engine platform capable
of operating at mine sites anywhere in the world and meeting
all emissions standards, including Tier 4 Final in North America by
using Cummins Selective Catalytic Reduction (SCR) after-treatment.
Cummins says the 16 cylinder QSK95 reaches the mining power
output previously available only from 20 cylinder engines. High power
density is achieved with a hardened power cylinder featuring the
strongest single piece forged steel piston available in the industry.
Deep structural strength is provided by an all new ductile iron skirted
block. This increased strength contributes to higher engine uptime
availability, extended life-to-overhaul and more cost effective rebuilds.
Cummins Mining Business executive director Jason Rawlings says,
“The QSK95 is designed to meet the highest expectations in the mining
industry for uptime availability, reliability and durability that will exceed
all other previous engines intended for ultra-class haul trucks.
“This combination of deep inherent strength and proven systems
means that the QSK95 will be ready to provide outstanding performance
on the mine site from Day One. The QSK95 will fully complement
the success of the QSK60 and QSK78 engines in ultra-class
haul truck applications. These engines offer the widest and most flexible
power choice in the industry.”
The 4000hp (2983kW) output of the QSK95 engine is well within its design
capabilities, with potential power increases available in the future to
provide the possibility for the next generation of ultra-class haul trucks to
move beyond 400 ton (363 tonne) payload capacity.
Cummins says the stronger engine design of the QSK95 means
more reliability in-service and less to rebuild at engine overhaul, considerably
reducing total life cycle costs.
70 | ASIA Miner | January/February 2012

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January/February 2012 | ASIA Miner | 71

Exploration
Drilling confirms Copper Bore extension
The Copper Bore Project of Southern Cross Goldfields is in Western Australia’s Mid West region.
ASSAY results from recent step-out drilling have confirmed a significant
down-plunge extension of the recently discovered Southern
Gossan prospect, which is part of Southern Cross Goldfields’ Copper
Bore Project in Western Australia. Additional step-out drilling and
geophysics are now being carried out to test for further extensions to
the mineralized horizon.
One step-out diamond drill hole returned an intersection of 2.6 metres
from 265.4 metres down-hole @ 3.0% copper, 0.9 grams/tonne gold,
4.2% zinc, 19.2 grams/tonne silver and 0.2% lead within a broader intersection
of 4.0 metres from 265 metres @ 2.2% copper, 0.7
grams/tonne gold, 3.1% zinc, 14.3 grams/tonne silver and 0.2% lead.
It was the second step-out hole to be drilled at Southern Gossan
and tested the mineralized horizon 60 metres to the south and 80
metres down-dip of an earlier hole which intersected 5 metres @
2.0% copper, 1.9 grams/tonne gold, 7.1% zinc, 25.4 grams/tonne
silver and 0.4% lead.
VMS mineralization at Southern Gossan has now been defined over
a strike length of about 150 metres and to a vertical depth of 230 metres
and remains open down-plunge and along strike to the north and
south. The latest intersection, including its higher copper grade than
previous results, is viewed as highly encouraging by Southern Cross’
geological team, providing further significant evidence for an emerging
VMS discovery at Southern Gossan.
The Copper Bore project area is 400km north-east of Perth with the
Southern Gossan prospect at the southern end of a 10km-long
prospective VMS horizon. Base metals mineralization has now been
confirmed at multiple locations along this prospective horizon.
The company is extremely encouraged by the results received to date
from the Copper Bore Project and intends to progress exploration activities
at this project as a priority in parallel with its ongoing gold exploration
and development activities. The Copper Bore activities include
further step-out drilling, down-hole electromagnetic surveying to identify
off-hole conductors representing accumulations of massive sulphide
mineralization, surface EM across the remaining 10km strike of the host
horizon and particularly across two aeromagnetic bullseye anomalies,
and new detailed aeromagnetic surveys.
Bashkol reconnaissance exceeds expectations
RESULTS of reconnaissance work by Kentor Gold over the Bashkol
exploration licence area in the far east of the Kyrgyz Republic have exceeded
the company’s expectations. Kentor can now confidently plan
a geological and geophysical program that should lead to identification
of drill targets.A program of geological traverses, chip sampling
and one channel sample was completed to assess the overall potential
of the area following encouraging results at Bekbulaktor
prospect. The primary focus was a belt of mineralized granite stretching
15km from Bekbulaktor to Sharkatma. Kentor geologists sampled
the latter in 2008 and recorded gold assays of up to 12 grams/tonne
from channel sampling.
The most encouraging result from the 2011 reconnaissance program
was a continuous channel sample of 14 metres @ 5.74 grams/tonne
gold, 1.03% copper and 97 grams/tonne silver in the valley of the Molo
Stream. There was also widespread presence of gold and copper in mineralized
granite in numerous locations over the 15km.
The Molo and Sharkatma areas are at altitudes ranging from 3000
to 4000 metres on the north side of Kuyliu Stream in the Teskey Ala-
Too Range of the eastern Kyrgyz Tien Shan Mountains. The Bashkol
area is accessible from a major road used for access to the Saryjaz
Valley and the Inylchek tin deposits. A minor road runs along Kuyliu
Valley and provides vehicle access to the Molo and Sharkatma areas.
Kentor is also planning an exploration drilling program at Bekbulaktor
prospect this year after channel sampling over a large area returned
high-grade gold and copper results. A program of bedrock
channel sampling, geophysics and soil sampling was undertaken to
gain a deeper understanding of the potential of a large zone of mineralized
granite studied in the 2009 and 2010 field seasons.
The program established the presence of widespread gold and copper
mineralization over an area 2km-long and 1km-wide. A best result
of 12 metres @ 14.07 grams/tonne gold and 1.83% copper was returned.
Other results included 13 metres @ 4.90 grams/tonne gold,
8 metres @ 5.65 grams/tonne gold and 0.6% copper, 10 metres @
2.53 grams/tonne gold, and 11.5 metres @ 2.83 grams/tonne gold.
72 | ASIA Miner | January/February 2012