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Advancing Science and DiscoverySEGNEWSLETTERThe Mineral Exploration Business:Innovation Requiredwww.segweb.orgAPRIL 2006 NUMBER 65David J. Hall (SEG 1999 F), GoldQuest Mining Corp., Suite 1500, 67 Yonge Street, Toronto, Ontario, M5E 1J8,Canada. E-mail: david@goldquestcorp.com, and Stewart D. Redwood (SEG 1992 F), Consulting EconomicGeologist, P.O. Box 0832-1784, World Trade Center, Panama, Republic of Panama. E-mail: info@sredwood.com.INTRODUCTIONIn this paper we investigate the managementof the mineral explorationbusiness, focusing on precious andbase metal exploration. We defineexploration and discovery (E&D) as theresearch and development (R&D) ofthe mining industry, and draw comparisonsfrom R&D in other industries.We stress the need for innovation andleadership among exploration geologistsand exploration managers, whoneed to understand clearly that explorationis a business, competing forfunds from the investment communityand from the dwindling number ofmajor mining houses.The mining industry, which comprisesthe mineral exploration, extraction,and processing sectors, is a relativelysmall part of the global economyin financial terms, yet an essential one.However, the mining industry’s overallrecord for the investment communityhas not been good. Despite record profitsfor many companies from high metalsprices in the past two years, theindustry failed to produce returns thatmet its cost of capital in the precedingquarter century (McDonald, 2000). So itis hardly surprising that the investmentcommunity is shy and ambivalentregarding mining investments.Mineral exploration is, of course,intrinsically linked to the rest of themining industry: no mine exists withoutthe discovery and definition processesthat make up the business of mineralexploration.However, in an industry increasinglyconcerned with improving its rate ofreturn to investors and attracting moreinvestment in a competitive market forcapital, the “exploration budget” isalways a tempting item for cost-cutting.Exploration is too often considered anexpense, rather than seen as an investment.Moreover, this financial vulnerabilityis only one of the many ways in whichexploration groups have always beensomething of a misfit in the miningindustry. The focus of the miningindustry is firmly on maximizing productionand profits from mines, and itsappeal to investors is all about steadygrowth and stability from well-managedproduction facilities. The managementof production is completely differentfrom that of exploration and istypified by methodical, safety-consciousstaff who prefer to work regular hoursand who, like the investors, seek steadygrowth rather than too much excitementfrom their lives.At the other end of the spectrum arethe truly speculative investor and thatclose relative of the old-time prospector,the exploration geoscientist. Managementof exploration involves the managementof creativity—of corporatemavericks, and of geologists who enjoythe ride maybe more than the reward. Itis a distinctive business but one that hasto be reviewed in light of its associationwith the extractive side.THE STATE OF THE INDUSTRYThe mining industry is small relative toother sectors; however, its importanceshould not be understated. The globalmining industry’s market capitalizationstood at US$461 billion as of December2004. The industry is dominated by thefour largest players—BHP Billiton, RioTinto, Anglo American, and CVRD. AtUS$43 billion, the market capitalizationof Anglo American, for example, issmall compared to BP in the oil sectorat US$228 billion, and GlaxoSmithKlinein the pharmaceuticals sector at US$152billion. Another salutary comparison ofscale is that the entire gold miningindustry has a total market capitalizationless than McDonald’s (Dow, 2002).Since 2000, a spate of mergers andacquisitions has resulted in the disappearanceof a large number of familiarmining company names,to pageincluding Amax, Asarco, 9 ...Wealth Creationin theMinerals Industrywww.seg2006.orgSEG 2006May 14–16, 2006Integrating Science, Business, and EducationKeystone, CO USA

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APRIL 2006 • No 65 SEG NEWSLETTER 3SEGNEWSLETTERNº 65—APRIL 2006EXECUTIVE EDITORBrian G. HoalNEWS EDITORAlice BouleyPRODUCTION MANAGERChristine HorriganSociety of Economic Geologists, Inc.7811 Shaffer ParkwayLittleton, CO 80127 USATel. +1.720.981.7882Fax +1.720.981.7874Email: seg@segweb.orgWEB PAGE:http://www.segweb.orgFeature articles arepeer reviewed before theyare accepted for publication.Please submit material to theExecutive Editor.Tel. +1.720.981.7882Fax +1.720.981.7874E-mail: director@segweb.orgThe SEG Newsletter is published quarterly inJanuary, April, July and October by the Societyof Economic Geologists, Littleton, Colorado,exclusively for members of the Society.Opinions expressed herein are those of the writersand do not necessarily represent officialpositions of the Society of Economic Geologists.When quoting material from the SEG Newsletterplease credit both author and publication.©2006 The Society of Economic Geologists, Inc.Designed & Produced by Type CommunicationsWestminster, ColoradoPrinted by Johnson PrintingBoulder, Colorado— FOR CONTRIBUTORS —The SEG Newsletter is published for the benefitof the worldwide membership of theSociety of Economic Geologists. We invitenews items and short articles on topics ofpotential interest to the membership. If youhave questions on submittal of material,please call the SEG office at +1.720.981.7882or send details by FAX to +1.720.981.7874; byemail to Format: Manuscripts should be double-spaced;if possible, please submit paper copy AND acomputer diskette in PC format, using WORD orWordPerfect. Illustrations will be accepted indigital format or in camera-ready form at publicationscale. All contributions may be editedfor clarity or brevity.Advertising: Paid advertising is solicited tohelp offset publication and mailing costs; forrates, contact the Production Manager.DEADLINE FOR NEWSLETTER #66:May 31, 2006ContentsFEATURE ARTICLE1 The Mineral Exploration Business: Innovation RequiredNEWSLETTER COLUMNS4 From the Executive Editor: Summary of Activities for the Year 20056 Presidential Perspective: Connecting with Communities7 SEG Foundation: Officers and Trustees for 2006SEG NEWS16 Mentoring: Jared Lubben (SEG 2006): An Interview17 SEG Student Chapter News19 Geological Society of Perú Expresses ThanksSHORT ARTICLES20 Feasibility of Asteroid MiningEXPLORATION REVIEWS21–Africa · 23–Alaska · 25–Australasia · 28–Canada ·31–Contiguous United States · 33–EuropeMEMBERSHIP39 SEG Membership: Candidates and New Fellows, Members and Student Members41 SEG Membership Application42 Personal Notes & NewsANNOUNCEMENTS2 Hugo T. Dummett Memorial Economic Geology Archive36 XI Congreso Geologico Chileno36 Gold Deposits: New Developments and Exploration (SEG Workshop)36 Environmental Geology and Geochemistry of Mine Wastes (Pre-Congress Workshop)37 Northwest Mining Association Annual Meeting37 Economic Geology 100th Anniversary Volume37 UNESCO-SEG-SGA Latin American Metallogeny Course38 SEG-GSA Annual Meeting — Call for Papers38 Earth and Ocean Sciences38 12th Quadrennial IAGOD Symposium43 SEG Announcements and Deadlines47 SEG Announces Special Publication 12 (inside back cover)48 SEG 2006 Conference: Wealth Creation in the Minerals Industry (back cover)48 SEG Contact Information (back cover)PUBLICATIONS44-45 Publications Order FormCALENDAR46 CalendarADVERTISERS—2 Actlabs, Ltd. (inside front cover)18 American Heritage Center8 Anzman, Joseph R.17 Balbach Colorado, Inc.8 Big Sky Geophysics24 DeRuyter, Vernon2 Exploration wth Aster(inside front cover)13 Geocon, Inc.24 Kuhn, Paul W.19 Laravie, Joseph A.29 LTL Petrographics13 Lufkin, John L., Ph.,D.17 McKelvey, G.E.29 Mining Activity Update46 Petrographic Consultants Intl.2 PGC Publishing (inside front cover)15 Phelps Dodge33 Recursos del Caribe S.A.46 Resource Geosciences de Mexico33 Shea Clark Smith19 Sinclair Knight Merz37 Spectral International, Inc.15 Zonge Engineering & Research

4 SEG NEWSLETTER No 65 • APRIL 2006FROM THE EXECUTIVE EDITORSUMMARY OF ACTIVITIES FOR THE YEAR 20052005 was a year during which Societymembership reached an all-time highand we celebrated the one hundredthanniversary of Economic Geology with alandmark publication and the productionof a DVD archive of the journal from1905. The SEG has never been in bettershape and future prospects are brightindeed. Thanks are due to all the members,journal subscribers, contributors,and sponsors for making this possible.MembershipSEG membership in all categoriestotaled 3,818, about 7% higher than thetotal of 3,573 at the end of 2004.Members are currently distributedthrough 82 countries worldwide, comparedwith 81 countries at the end oflast year. About 61% of members workfor industry (corporate and selfemployed);the remainder for academiaand government. Approximately 67percent of our members are from threecountries, namely the United States(36%), Canada (18%), and Australia(13%). About 80% of new applicantsare from outside the United States, withthe bulk of applications coming fromSouth America (28%) and Canada(21%). For the year, the Society has processed482 new applications (10 Fellows,283 Members, and 189 StudentMemberships). In addition, 28 Membersupgraded to Fellowship. The breakdownof these applications is given by locationand category of membership in theAdmissions report.The Society currently has 45 StudentChapters located in Canada (14), theUnited States (10), Australia (4), Peru(2), United Kingdom (2), South Africa(1), France (1), Germany (1), Bulgaria(1), Switzerland (1), Hungary (1),Argentina (1), Mexico (1), Greece (1),Russia (1), Chile (1), Ukraine (1), and 1inactive chapter in the United States(Texas/El Paso). Students make upabout 9% of the membership.The SEG Foundation continues toprovide important subsidies required tosustain special membership classes suchas Students, Senior Fellows, andLindgren Awardees.Conferences, Field Trips, and ShortCoursesIn 2005, the Society organized, sponsored,or participated in the followingconferences, workshops, symposia, fieldcourses, and field trips:• SEG was an exhibitor at the BCYCMMineral Exploration Roundup inVancouver, Canada, January 24–27.A record 5,200 delegates from 29countries, including over 200exhibitors, attended this event entitled“Discovering Our Future.”• SEG sponsored the joint field trip bySEG Student Chapters of theUniversite du Quebec a Montreal andUniversidad Nacional de la Plata inArgentina (Feb. 27-March 7). Thefield trip visited the Bajo de laAlumbrera mine and was attended by22 students.• SEG organized five geology sessions(“Mexico, Mineral Exploration andDevelopment Update – Alaska,”“North America – Still Ripe for NewBase Metal Discoveries,” “Carlin-typeGold Deposits – New Ounces and NewIdeas,” and “Precious Metals Geology”)and exhibited at the SME AnnualMeeting in Salt Lake City, Utah, Feb.28–March 2. The SEG meeting coordinatorwas Fred Barnard.• SEG sponsored a three-day shortcourse entitled “Evaporites, SaltTectonics, and Brines: A PracticalApproach to Their Role in MineralDeposits,” March 2–4, in Golden,Colorado. The short course was organizedby the Colorado School ofMines SEG Student Chapter.• SEG sponsored the University ofWestern Ontario SEG Student Chaptershort course in Ontario, Canada, onMarch 4 entitled “The Geology andMineral Deposits of the GrenvilleProvince: A Land of Giants”.• SEG conducted a pre-meeting jointshort course entitled “Charactersiticsof and Exploration for EpithermalPrecious Metal Ore Deposits” (presentedby Jeff Hedenquist and NoelWhite) and exhibited at the PDAC inToronto, Canada, March 6–9. Themain convention was attended by anestimated 12,000 delegates, 283exhibitors, and 362 exhibiting companies.The SEG Council and SEGFoundation Trustees’ meetings wereheld on March 6 at the Holiday Innon King in Toronto.• SEG sponsored the attendance of presentersJeremy Richards and RichGoldfarb atthe EastEurasianGeologicalSymposium2005, March9–11, inUlaanbaatar,Mongolia. Twopost-conferenceSEG shortcourses on “Orogenic Gold” andBRIAN G. HOALSEG Executive Directorand Editor“Copper-Gold Porphyry Deposits”were followed by a field trip to theBoroo gold mine and Erdenet Cu-Moporphyry deposit. The meeting organizerwas Sereenen Jargalan.• SEG sponsored the LaurentianUniversity SEG Student Chapter workshopin Sudbury (April 11–16) entitled“Target Selection Criteria forMesothermal Au and VMS Deposits.”• SEG President, Murray Hitzman, providedthe opening address to 30attendees at the European ScienceFoundation Exploratory Workshop onNonsulfide Zn-Pb Ore Deposits (April21–23) in Iglesias, Italy. The workshopwas organized by Maria Boni.• SEG sponsored the attendance ofkeynote lecturer Jeff Hedenquist(“Epithermal Au and Ag-Au veinDeposits: Old Styles, New Targets”)and Regional Vice President for SouthAmerica, Pepe Perello (“Principal Cu-Au Deposits of the Andes: ASynopsis”), at the I BrazilianSymposium on Metallogeny inGramado, Brazil (May 1–4). The SEGexhibited at the meeting and was furtherrepresented by the chairman ofthe symposium, Jose Frantz.• SEG held a one-day forum on“Controversies on the Origin ofWorld-Class Gold Deposits: Carlinand Witwatersrand,” May 14, prior tothe Geological Society of Nevada’ssymposium entitled “Window to theWorld” in Reno, Nevada. JohnMuntean was the meeting organizer.SEG exhibited at the main meeting,May 15–18.• SEG exhibited at the IV InternationalCongress of Prospectors and ExplorersProEXPLO 2005 meeting, May 24-27in Lima, Peru.• SEG exhibited at the 4 th AnnualMeeting of the Geological Society ofSouth Africa in Durban, South Africa

APRIL 2006 • No 65 SEG NEWSLETTER 5... from 4From The Executive Editor (Continued)(July 4–7) with the assistance of theSouth Africa SEG Student Chapter.• SEG sponsored the Gorden Conferenceon Inorganic Geochemistry and OreDeposits held in Andover, New Hampshire,USA, July 31–August 5. Themeeting focused on sources, transportand deposition of metals in ore-formingsystems, and was organized bySteve Garwin, Chris Heinrich, andJean Cline.• SEG co-sponsored a MAC shortcourse entitled “Exploration for PGEDeposits” at the 10 th International PtSymposium in Oulu, Finland (Aug.6–7). The course was organized byJim Mungall.• SEG organized a technical session,gold workshop and joint field tripwith IAGOD (Aug. 17–18) to copperporphyries in Mongolia as part of itscontribution to the SGA 8 th BiennialMeeting in Beijing, China, August18–21. The overall meeting themewas “Mineral Deposit Research:Meeting the Global Challenge” andthe SEG thematic session was entitled“Exploration, Discovery, and MineDevelopment in China.” SEGPresident, Murray Hitzman, deliveredan address at the conference. The SEGmeeting coordinator was Craig Hart.• SEG again sponsored student andinstructor participation at the 2004UNESCO-SEG Latin AmericaMetallogeny course, this time inLima, Peru (Aug. 22–Sept. 2). Thecourse, devoted to the topic of acidmine drainage, was organized byBernhard Dold.• SEG provided publicity for the STOMP– Structure, Tectonics, and Ore MineralizationProcesses meeting in Townsville,Australia (Aug. 29–Sept. 2). Themeeting was organized by the SEGStudent Chapter at James CookUniversity.• SEG sponsored a field trip for students/youngprofessionals to northeastQueensland in Australia byJames Cook University (September7–11). The SEG meeting coordinatorwas Ricardo Presnell.• SEG celebrated the Centennial ofEconomic Geology at the GSA meetingin Salt Lake City, Utah, USA(October 13–19). Events included aspecial symposium, anniversary andawards dinner, field trips to BinghamCanyon and Lisbon Valley, technicalsessions, and an exhibit booth.• SEG promoted and held an exhibitbooth at the New Zealand MineralsConference (November 13-19).• The SEG Regional VP for South andCentral America, Pepe Perello, organizedan exhibit booth at the VIIICongreso Argentinode GeologiaEconomica in La Plata, Argentina(November 15–17).• SEG sponsored a symposium, “NewDevelopments in Porphyry CopperDeposits: Geologic Origins,Exploration and EnvironmentalAspects,” at the Northwest MiningAssociaton meeting in Spokane,Washington, USA (December 5–9).John Dilles was the session organizer.PublicationsThe 100 th Anniversary volume, 1148pages, met the October deadline, withleather-bound presentation copies readyfor the SEG 100th Anniversary banquet.Also, the Hugo Dummett MemorialEconomic Geology Archive (1905-2004)on DVD was launched on schedule forthe GSA meeting. Total non-subscriptionsales revenue exceeded $141,000, atwo-thirds increase over the previousyear. Revenue was attributed to sales of12 different Guidebooks (including 4CD-ROMs), 11 Reviews volumes, 8Special Publications, 3 Monographs, 17Videos, as well as back issues and theIndex to Economic Geology. The mostpopular print publication was the 100 thAnniversary Volume of EconomicGeology, edited by Hedenquist,Thompson, Goldfarb, and Richards (592volumes sold), and the most populardigital publication was the HugoDummett Memorial Economic GeologyArchive 1905-2004 (131 units sold). Inthe Video series, Jeff Hedenquist’s VideoNo. 3, The Porphyry to EpithermalContinuum: Evidence from Volcanoes andOre Deposits and Characteristics of andExploration for Epithermal Gold Deposits inthe Circum Pacific, was the most popular(37 tapes sold). The four scheduledissues of the SEG Newsletter and 7 issuesof Economic Geology were releasedthrough December. This included onejournal issue carried over from 2004.Although the final two issues(November and December) carried overinto 2006, we were only one issuebehind the typical schedule at year-end.The online journal through GeoScienceWorld is now available to members andsubscribers, who can access it throughthe SEG website. Guidebook 37, LisbonValley Sediment-hosted Copper Depositsand Paradox Basin Fluids, edited by Jon P.Thorson, was available on CD-ROM forthe post-GSA Lisbon Valley field trip.Special Publication 12, Wealth Creationin the Minerals Industry – IntegratingScience, Business, and Education, editedby John R. Parry and Michael D.Doggett, remained on schedule fordelivery prior to the SEG 2006 Keystoneconference in May 2006. SpecialPublication 11, Andean Metallogeny, wasthe recipient of the 2005 Gold InkAward, a nationally recognized publicationsaward. The awardee is selected onthe basis of composition, layout, andquality of printing; SP 11 was cited inthe category for scientific and technicalpublications. Two new videotapes werealso released, with lectures by JeanCline and David R. Cooke. Video 16,Jean Cline, includes Characteristics andGenesis of Carlin-type Gold Deposits, NV;and Upwelling Hot Water at a ProposedNuclear Waste Repository. Video 17,David Cooke, covers Breccias inEpithermal and Porphyry Deposits: TheBirth and Death of Magmatic-Hydrothermal Systems; and The GiantSediment-Hosted Zn-Pb-Ag Deposits ofNorthern Australia. In May, SEG releaseda non-audio CD entitled SEG Forum2005: Controversies on the Origin ofWorld-Class Gold Deposits: Carlin andWitwatersrand from a pre-GSN forumorganized by John Muntean.EducationThe SEG Foundation awarded studentresearch grants worth US$132,125 to 63applicants, while the SEG CanadaFoundation awarded a total ofC$14,400 to four students. The awardssupported 44 Ph.D., 22 M.S., and one BS(Honors) projects. Individual awardswere in the range $550-5,400 each andaveraged about $2,060. These grantsare designed to assist students with fieldand laboratory expenses involving thestudy of mineral deposits leading toadvanced degrees at accredited universities.A total of $405,000 was requestedby 104 student applicants from 56 universitiesand involved projects in 34 differentcountries. The 67 award recipientswere based at 38 differentuniversities in 15 countries.A further $12,732 pluspromotional support wasto pageprovided by the7 ...

6 SEG NEWSLETTER No 65 • APRIL 2006PRESIDENTIAL PERSPECTIVEConnecting with CommunitiesA recent series of anti-mining articles inthe New York Times and other U.S. mediaillustrates the problem the mineralsindustry continues to have with widercommunity perceptions of its business.This should be a real concern to SEG asa learned society, as two-thirds of ourmembers are employed within the miningindustry.Outside the United States, in othercommunities where mining is animportant aspect of the economy, weare frequently portrayed as an industrywhich is dirty, distant, and dangerous.Until the recent boom in mineral commodityprices we were regularly cast asa sunset industry whose time was up.It amazes me how these images,mostly the product of an earlier era,continue to haunt the modern miningindustry. It shows how easy it is to get abad reputation and how hard it is toturn things around.Today, exploration and mining arehigh technology industries; there havebeen orders of magnitude improvementin safety performances over the past 10years, and most miners got their environmentalhouse in order years ago. Inmore remote locations the switch to flyin/fly-outoperations has removed someof the disincentives of distance. Miningwill rarely be a big-city business, but asa career it by now should haveimproved its appeal to top talent.It is easy for knowledgeable insidersto condemn the crusading nature ofinvestigative journalism with its factualerrors and emotive language and wonderat the motives of the authors. But inan age when the media is as muchabout entertainment as it is about reliablereporting, this stuff sells newspapersand in the process perpetuates thepopular prejudices and negative stereotypesof mining.Why, then, is there this continuingunfortunate public perception? Thereare several reasons, but let me suggestthree.1. Miners and explorers have notalways seen themselves as an integralpart of wider society. It is easy for themto work in isolation in remote locationsand have little daily contact with thewider community. They hold strongviews on the economic value they contributeto society but can have anotherwise shallow perception of mining’sother social impacts. Remember thebumper stickers “Earth first—we’ll minethe other planets later” or “If it can’t begrown it must be mined”? That level ofin-your-face intellectual hubris is whatused to pass for community debate.2. Communities nearer to mines perceivethis disdain, too. They ask, notunreasonably, what benefits will flow tothem after the neighborhood is minedout?3. Indigenous communities, stirredup by anti-mining and anti-global nongovernmentalorganizations, and nowlinked globally to the internet, havewaged very effective media campaignsagainst miners large and small. Theviewpoint of responsible miners can belost in the clamor.Since the Mining, Minerals andSustainable Development project firstgalvanized the world’s leading miningcompanies in 2001, the notion of leavingsomething sustainable after miningis over has gathered widening support.Sustainable development is what communitiesare now demanding, and leadingcompanies are seeing that engagingconstructively with their communitystakeholders is not only the right thingto do but also makes smart businesssense, as well. This is probably the bestopportunity for miners to win back theircredibility with the wider community.What Can SEG Members Do?Developing improved community attitudesand awareness requires the commitmentof all of us who make our livingfrom earth science. We have a role toplay and values and opinions to sharewith friends, neighbors, our children’sschools, and elsewhere. If we avoid thepublic debate it is no wonder that publicattitudes towards the minerals industryhave become so unbalanced.There are many good things beingdone by the professional bodies thatspeak for our industry. However, if weexpect our communities to take morenotice of the personal and corporatevalues which guide exploration andoperational decision-making and whythese are important for all of society,then we need to personalize the issuesand stand up and speak about themourselves. My sense is that most of ushave personalvalues not thatdifferent fromthose of ourstrongest critics.JOHN A.S. DOWSEG President2006SEG itself canbe more proactivein fostering debateand improving social and communityawareness and understanding amongall of our members. We should encouragesenior managers in the mineralsindustry and our leading academics tobe more visible socially and politically.And we should be more forthcoming onour website in advancing ethical behaviorin the minerals industry and in recognizingthe strong community connectionto our profession.There are other practical developmentsin the pipeline. For example,there will be a keynote address on sustainabledevelopment at the Society’s“Wealth Creation” Conference atKeystone, Colorado, in May this year, aswell as a workshop on the same topic.We need to become more aware of thiscritical aspect of our business.Another very useful source of informationon sustainable communitydevelopment has just been published bythe International Council of Mines andMetals (ICMM) in conjunction with theWorld Bank. A practical toolkit andhandbook with a wealth of information,as well as the social and economicrationale for community development,can be downloaded from the ICMMwebsite, .Finally, as an example of an articlewhich does provide a better balance,take a look at Patrick Moore’s reportfrom the Ntotoroso mine developmentproject in Ghana (Rocky Mountain News,February 4, 2006). Moore, one of theoriginal founders of Greenpeace, concludes,“Since my entry into the globalenvironmental movement in 1971—and especially in the last decade—mininghas contributed to a more sustainableworld economy, and keybeneficiaries of this progress are miningworkers, families and communities.How unfortunate the media is missingsuch an important part of the sustainabilitydiscussion.” 1

APRIL 2006 • No 65 SEG NEWSLETTER 7FOUNDATIONOfficers and Trustees for 2006Officers and new Trustees were elected,respectively, by the Board of Trusteesand the Foundation Members at theirmeetings last November in Salt LakeCity, Utah, and took office on January1, 2006. The SEG Foundation electedofficers and new Trustees are as follows:President – John A. Thoms. John willserve a second term as President. Heagreed to stand for re-election at therequest of the Board following advicefrom César Vidal, the then VicePresident who was to succeed to thepresidency. Due to increased responsibilitiesat his company, he regretfullyhad to decline the opportunity. Thedecision by César produced an in-depthdiscussion among Board members onsuccession planning.Vice President – M. Stephen Enders.Steve is the Vice President World WideExploration for Newmont MiningCorporation. He is a fourth-year Trusteeand currently serves on the SEGF Executiveand Nominating Committees, andthe joint SEG-SEGF Budget Committee.Secretary – Donald M. Davidson, Jr.and Treasurer – Harold J. “Harry”Noyes. Both Don and Harry will continueto serve respectively as Secretaryand Treasurer. Don is a fourth-yearTrustee (Class of 2007), and has heldoffice for three years. Harry has servedas Treasurer for both SEG and SEGFsince 2003. Both the Secretary and theTreasurer are elected annually.Trustees – Class of 2010. The three newTrustees are:Leendert G. “Len” Krol. Lenrecently served as President andDirector of Brazauro Resources, acompany actively exploring inBrazil, and is a former Vice PresidentInternational Exploration ofNewmont Gold Company. He previouslyserved as a FoundationTrustee 1998 – 2002, and currentlychairs the SEGF 2006 NominatingCommittee and serves on the jointSEG/SEGF Audit Committee. He hasbeen an active fund-raiser for boththe Society and the Foundation.RichardLeveille. Rich isthe President ofPhelps DodgeExplorationCompany, withoffices inPhoenix,Arizona. He was the Society’sJOHN A. THOMSSEG FoundationPresident 2006Regional Vice President Lecturer forSouth America in 2005.A. James Macdonald. James recentlyleft BHP Billiton where he was GlobalGeoscience Leader based in Brisbane,Queensland and is now an independentconsultant, retaining his residencein Brisbane. He is serving onthe SEGF Student Grants Committeeand the SEG 2006 NominatingCommittee, with previous service asan SEG Councilor and as a memberof several Society committees.Other Foundation News. A regularlyscheduled meeting of theBoard of Trustees wasto page 8 ...... from 5From The Executive Editor (Continued)Foundation and Society to studentchapters for a variety of activitiesincluding seminars, short courses,speakers, and field trips.Awards and LecturershipsA special awards dinner took place onOctober 15, 2005, and the followingSEG Awards were presented: PenroseGold Medal to Richard W. Hutchinson,Silver Medal to John J. Gurney, Ralph E.Marsden Award to Thomas A. Loucks,Lindgren Award to Anthony C. Harris,and Brian J. Skinner Award to C. EricSeedorff and Marco T. Einaudi. Councilapproved the following 2005 SEGAwards for presentation in May 2006:Penrose Gold Medal to Brian J. Skinner,Silver Medal to Holly J. Stein, Ralph E.Marsden Award to Tommy B.Thompson, and Lindgren Award toStephen J. Piercey. Council furtherapproved the following Lecturerappointments: Distinguished Lecturer –John J. Gurney, International ExchangeLecturer – Douglas J. Kirwin, ThayerLindsley Lecturer – A. JamesMacdonald, and Regional VicePresident Lecturer – Nicolas J. Beukes.The Traveling Lecturer program continuedto provide great visibility to theSociety. International ExchangeLecturer Michael D. Doggett (Queen’sUniversity, Ontario, Canada) presentedlectures in Canada (DalhousieUniversity/St. Mary’s University SEGStudent Chapter), Ireland (IrishAssociation of Economic GeologyConference), Mexico (University ofChihuahua, University of Sonora), Chile(Santiago), Australia (MacquarrieUniversity, AusIMM in Perth), andBrazil (Brasilia University, ADIMB,Federal University of Minas Gerais).Further lectures took place in Canada(University of Alberta, University ofOttawa, Acadia University) and areplanned for the USA (Colorado Schoolof Mines). Thayer Lindsley LecturerDavid R. Cooke (CODES, Tasmania)gave lectures at MDRU, University ofBritish Columbia, Canada, at theColorado School of Mines, Golden,Colorado, and at Colorado StateUniversity. He gave additional lecturesin Chile and the Phillipines. RegionalVP Lecturer for 2005 Richard A. Leveille(Phelps Dodge, Arizona, USA) deliveredlectures at ProEXPLO and UNESCO-SEG,both in Lima, Peru. SEG DistinguishedLecturer for 2005, Robert J. Bodnar(Virginia Polytechnic Institute), deliveredhis lecture entitled “The role offluid inclusions in ore genesis research:Yesterday, today and tomorrow” at theone-day Centennial CelebrationSymposium in Salt Lake City, Utah. 1

APRIL 2006 • No 65 SEG NEWSLETTER 9... from 1The Mineral Exploration Business: Innovation Required (Continued)Battle Mountain, Cyprus, Homestake,Lac, Magma, MIM, Noranda, Normandy,North, Rio Algom, Santa Fe,and, most recently, Placer Dome. Thenumber of new names is far fewer,Xstrata being the only significant one.This consolidation began with thefall in exploration expenditures fornonferrous minerals exploration from1997 to 2002, and somewhat surprisingly,has continued as explorationbudgets have climbed back to their1997 levels (Fig. 1; Metals EconomicsGroup, 2005a, b). The so-called juniorsector, an important generator anddiscoverer of new projects, sufferedseverely after the Bre-X scandal in1997, the subsequent diversion ofinvestment into the technology boom,and the profound depression of metalsprices. The loss of exploration budgetsas a result of mergers has beenoffset by a strong revival since 2003 inthe junior sector.Although the substantial six-yeardecline in exploration spending doesnot appear to have had much effect onexisting production, the decline in newdiscoveries moving up the pipeline willprobably significantly reduce new minedevelopment in the near future. Theconsensus of senior executives at theReuters Mining Summit was that thereis serious lack of good new projects ofthe kind that last for decades and makea company’s fortune. Donald Lindsay,Chief Executive of Teck Cominco,expects “the scarcity of good explorationprojects to become a serious issuein three to five years from now”(Industry Outlook, InternationalMining, September 2005, p. 29–30). Ithas been pointed out that there arelarge, unexploited gold resources available,if the gold price is right (Burton,2003). However, the quality of thesedeposits in terms of grade, metallurgy,infrastructure, and legal-fiscal regimesis often suspect. Indeed, Barrick’s golddiscovery at Alto Chicama in Peru illustrateshow a near-surface oxide golddeposit in a favorable mining country ispreferable to lesser quality orebodieselsewhere despite their availability. Interms of copper exploration, the availableresources around brown-field sitesin the advent of better prices is vast,and thus the exploration for new copperdeposits must take this into account:the question is, are there quality targetsto compete? Zinc is very much in a$6,000$5,000$4,000$3,000$2,000$1,000$01996 1997 1998 1999 2000 2001 2002 2003 2004 2005FIGURE 1. Global exploration budgets for nonferrous metals, estimated totals in US$ million(Metals Economics Group 2005a, b).similar position, although the view isthat zinc oxide deposits (technologydriven) are the way forward.Clearly, there is always going to be ademand for new, quality projects,because the major mining houses muststrike a balance between growth strategiesof exploration versus acquisition—the product they deal in is finite andhas to be replaced. This bodes well forcompanies involved in E&D, especiallyfor successful ones capable of providingreturns for investors on a par with, oreven better than, the high-technologyand dot.com sectors. Interestingly,despite phenomenal returns forinvestors in these sectors, the inabilityto be profitable drove them into a spectaculardecline.THE BUSINESS OFEXPLORATION:MEASURING SUCCESSIn order to determine whether or notexploration is profitable, exploration asa cost item must be compared with thereturn generated as a result of thisexpenditure (Doggett, 2000). This comparisonis complicated by the long-termnature of exploration. In even the mostfavorable geological environments, itwill take, on average, several years todiscover and delineate an economicmineral deposit—the basis for calculatingreturns from exploration. In thisrespect, there is clearly a need toshorten the time frame of exploration toallow the returns to be seen by the relevantcompany and the investor.The most direct evidence that explorationis profitable in the long term isprovided by the survival and growth ofindividual companies (Doggett, 2000).From the perspective of the explorationindustry, the market should provide anindication of actual and expected profitsthrough valuation of explorationcompanies and availability and cost offunds required for exploration. Theaverage cost of exploration should notexceed the average return from exploration.From a corporate perspective,this is the bottom line for survival. If theprofits from the development and productionof economic deposits do notoutweigh the costs of finding (or acquiring)them, then economic ruin will bethe long-term outcome.Yet E&D companies that do notdevelop and produce cannot use revenueas a measure of success. Survivalis about securing funding and beatingthe probability of failure—in otherwords, continual discovery.Given the importance of R&D inother business sectorsand its high cost, manyto pagecompanies struggle to 10 ...

10 SEG NEWSLETTER No 65 • APRIL 2006... from 9The Mineral Exploration Business: Innovation Required (Continued)determine how well they are doing(Loch and Tapper, 2001). This can alsobe said for E&D. It is interesting to notethat Loch and Tapper (2001, p. 459)state that “evaluating results by financialcriteria has not provided ananswer. In fact, companies using ONLYfinancial measures in R&D fundingdecisions perform worse than thoseusing qualitative criteria.” This findingcan be related to the fact that in E&Dthe effort is not directly observable, andthere is great uncertainty about discovery:at what point is it certain that youhave discovered an orebody? The incentiveto invest in what mining companymanagement perceive as risky is low,especially if management cannot“own” the benefits. For example, inlarge corporations, a discovery may notbe credited back to the managementthat discovered it.The best means of measuring successin R&D/E&D for any company is byusing the notion of benchmarking,which implies that being at least asgood as the market leader is a prerequisitefor being competitive. The first stepis to keep careful track of one’s own andthe competitors´ performance, lookingespecially for unexpected success or forunexpected poor performance, particularlyin areas where one should havedone well. The successes demonstratewhat the market values and will pay for(Drucker, 1999)—they indicate wherethe business enjoys a leadership advantage.The failures should be viewed asthe first indication that either the marketis changing or the company’s competenciesare weakening.The market for the exploration businessis the major mining houses. Nonsuccessin terms of lack of discovery orproduct will ultimately cause an E&Dcompany to die because it will not beable to secure funding, either from themarket or major mining houses. Yet inmajor company exploration departmentsthis urgency rarely exists. If anE&D company is successful in discoverybut the market does not want the producton the basis of size, location, orwhatever, then the company mightconsider the option of developing theproduct on its own. However, thischoice will likely be decided by theresource banking sector: does it considerthe deposit worthy of funding? Ofcourse, as soon as a company goes fromE&D to mining, it immediately faces thesame questions as a major mining companywith regards to exploration andthe role of this activity within the company.What level of profits does one putback into exploration to balance riskversus opportunity versus growth?The message is therefore “perform ordie.” Exploration companies must innovateif they are to compete and be successful.Innovation is the specific instrumentof entrepreneurship. It is the actthat endows resources with a newcapacity to create wealth (Drucker,1985). All survivors in this new businessera, whether individuals or corporations,must adopt an entrepreneurialmind-set (Snow and Juhas, 2002, p. 14).Entrepreneurial entities thrive on innovation;however, most of the innovationis not in high technology, but ratherincremental improvements in productquality, more flexible managementapproaches, better marketing concepts,and better service to customers(Drucker, 1985). What can explorationcompanies do to embrace innovation?It is appropriate at this point to examinehow R&D is viewed in other businesssectors.THE BUSINESS OFEXPLORATION:COMPARISON WITH R&DWe have compared the R&D process asdefined by Nellore (2001) with theprocess of E&D in Table 1: the similaritiesare clear. The R&D process withinthe pharmaceutical industry provides agood comparison of risk and opportunitywith that of the exploration andmining business.The stages, timing, and risksinvolved in the drug development process(Table 2) are remarkably similarto the mineral exploration process. Asdescribed by one of the major pharmaceuticalcompanies, GlaxoSmithKline,“It is getting more difficult and takinglonger—currently an average of 12years—to develop new medicines.Despite a substantial increase in globalR&D expenditure, fewer novelmedicines were launched in 2003 thanat any time during the last 20 years.”(Glaxo SmithKline, 2005, p. ii). Theycontinue, “It takes well over £500 million[US$900 million] and between 10and 12 years to develop a new drug.For every million compounds screened,approximately 250 make it to pre-clinicaltesting, 10 advance to clinical trialsand just one is approved for patientuse.” (GlaxoSmithKline, 2005, p. 6).This sounds very similar to the mineralextraction industry, and is somethingthat needs to be explained to theinvestment market. Another comparisonof risk is shown in Figure 2, from astudy by the Industrial ResearchInstitute of Washington, D.C. (1999),which looks at the ideas that succeedin all industries. A success rate of 1 in3,000 to 5,000 compares well with thatoften quoted for exploration projects (1in 1,000). The point to make here isthat while exploration is a high-riskTABLE 1. The Similarity of the Research and Development (R&D) Process of Industries inGeneral (Nellore, 2001) with the Exploration and Discovery (E&D) Process of the MiningIndustryThe R&D ProcessLong-Range ResearchGeneral scientific/technology researchunrelated to any specific productAdvanced Product EngineeringResearch and development focusingon product linesProduct EngineeringAdapting the product concepts foruse in productsThe E&D ProcessGrass-roots explorationGeneral exploration of country or region;target generation explorationAdvanced ExplorationExploration and discovery focusing onquality economic orebodies incorporatinggeology, mine engineering, metallurgyand economics focusing on the productMine Engineering, Mineral processingand Geological ModellingPreparing the product – reserves formining and the market

APRIL 2006 • No 65 SEG NEWSLETTER 11TABLE 2. The Drug Development Process: What Happens and When, Compared with the Exploration and Discovery Process (Source:Pharmaceutical Research & Manufacturing Association)CLINICAL TRIALSEarlyFDAResearch/ReviewPreclinicalProcess/Testing Phase I Phase II Phase III Approval On Market Phase IVYears 6.5 1.5 2 3.5 1.5 Took 15 yearsto get HERETest Test Tube 20-80 100-300 1000- PatientsPopulation and animal healthy patients 3000studies volunteers patientsPurpose Look for Determine Evaluate Confirm Postsafety, safety and effectiveness, effectiveness, marketingdesired activity dosage for look for look for surveillancenext phase potential side effects of the patientstoxic side from long term to look foreffects use potentialproblemsSUCCESS 5000 5 compounds 1RATE Evaluated enter clinical trials COMPOUND APPROVEDMINING EXPLORATION PRE-FEASIBILITY POSITIVE ECONOMICFEASIBILITYMINEbusiness, it is no more so than otherindustries. Therefore, it is worth consideringwhat innovative approachesother R&D sectors have used toincrease their chances of success.WINNOWING AWAYIdeas succeeding at each new product-development stageProjects succeeding at each new discovery-development stageRAWIDEASUNWRITTENIDEASSUBMITTEDSMALLPROJECTS1 2 3 4 5 6 7The first-generation biotechnologyfirms revolutionized how drugs weremade and also created a new kind ofcompany environment. The focus wason productivity, not established1. Entry into country or region 5. Definition drillingLARGEDEVELOPMENTSMAJORDEVELOPMENTS2. Regional exploration 6. Pre - feasibility study50001000500100501051LogScale3. Drill targets 7. Positive feasibility study4. Follow - up drilling after initial favourable resultsLAUNCHESSUCCESScorporate behavior. Scientists were supportedby management and touted asthe key ingredient for success. Thebiotechnology industry showed itself tobe extremely adept at creating newways to support the front end of theprocess—discovery. The industrybecame so successful that the largepharmaceutical companies now devotea hefty share of their R&D budget tosupporting research within thesesmaller biotechnology companies(Robbins-Roth, 2000). It has long beenrecognized that managing R&D at acorporate scale often does not produceresults proportional to the expenditure—youcan’t just throw money atit—and that smaller R&D companiesare far more successful in this regardbecause they are motivated andfocused. However, the same caveatapplies, that exploration success willnot necessarily be proportional to thelarge increase in spending in the juniorsector (Metals Economics Group,2005a).In addition to investing in thebiotechnology sector, the major pharmaceuticalcompanies have tried toemulate their success by copying theirstructure and splitting their R&D intosmaller, competitive divisions. Pfizer,the largest pharmaceutical company inthe world with a £4.3 billion($7.7 billion) R&DFIGURE 2. Winnowing away. Risk in all industries compared with risk in exploration and discoveryin the mining industry. Adapted from Industrial Research Institute, 1999. to page 12 ...

12 SEG NEWSLETTER No 65 • APRIL 2006... from 11The Mineral Exploration Business: Innovation Required (Continued)budget in 2004, created eight separate“Discovery Sites” and a CentralDevelopment Site in 2000 with a viewto maintaining the excitement of asmall discovery unit (http://pfizer.com/pfizer/main.jsp). GlaxoSmithKline, thesecond pharmaceutical company with a2004 R&D budget of £2.8 billion ($5.0billion), also restructured their R&D in2001 into six “international biotechnologycompanies” which would competefor resources and operate autonomously.These are called “Centres of Excellencefor Drug Discovery” (CEDDs). The unitsare divided along therapeutic or diseaselines (equivalent to commodities).Their job is to deliver drugs with“proof of concept” to GSK’s drug developmentorganization—in other words,their role is discovery. They describe theidea as being to maintain agility,entrepreneurial spirit, and individualaccountability. The parent companywill then carry out the high cost development(clinical trials, equivalent toreserve definition and feasibility studyin the mining sector) in theirDevelopment Organization. At thattime, GSK had a “less-than-ideal latestagepipeline”—i.e., a lack of new discoveries—with50 drugs at the trialstage. In a mining company, thisequates to depletion of reserves andlack of new projects. By 2004 they wereable to claim substantial R&D growthfrom 118 to 140 projects in clinicaldevelopment between 2001 and 2004,including an 80% increase in “NewChemical Entities” in their pipeline.Building on the success of theCEDDs, they introduced six MedicineDevelopment Centres (MDCs) in 2004to integrate R&D with manufacturingand marketing in order to speed up thedelivery of new products to the market(i.e., patients; GlaxoSmithKline, 2005).However, in spite of high spendingand innovative management of R&D,many of the big pharmaceutical companiesare failing to deliver significantnew products (Wood Mackenzie,2005a), leading some analysts to questionthe current R&D focus on blockbusterdrugs (those with sales of over $1billion per year—read, world-classmines).Yet there is a strong “junior” sector,well-funded biotech companies developingnew ideas. Why should biotechnologycompanies share their ideas andpotential development with companiesthat could be seen as competitors? Itcomes down basically to survival, andalso that a major corporate partner providescredibility to that biotechnologyfirm’s research.Typical biotechnology/big pharmaceuticalcompany deals include the following(Robbins-Roth, 2000):• An up-front licensing fee that givesthe big pharmaceutical partnerrights to use the technology;• R&D funding for the life of the agreement(typically 3 to 5 years, initially),which covers the people andsupplies used by the biotechnologypartner to carry out the work;• Milestone payments that give thebiotechnology partner rewards formoving the project forward andreaching benchmarks that are significantfor product commercialization(for example, filing for FDA permissionto start clinical testing, startingPhase I / II / III trials, filing for marketingpermission, product launch);• A purchase of equity in the biotechnologypartner by the big pharmaceuticalpartner.The last point is not always included.Robbins-Roth (2000) points out that thebig pharmaceutical companies do notalways see stock as useful commodity,and usually buy shares only becausethe biotechnology firm wants them to.The amount of money a biotechnologycompany can command for each ofthese points is very dependent on theperceived quality of the company andits technology; i.e., whether the technologyis seen as “cutting edge” or thethird runner-up in an area, how crucialthe technology is to the big pharmaceutical’sinternal strategy, and how hungrythe big pharmaceutical partner isfor new product candidates to fill itspipeline.Although associations betweenmajor mining companies and explorationcompanies are becoming morecommon, there is a need for innovativefinancing models that require less capitalto get to discovery, which meansthat we need management teams thatcan do more with less.The oil business is in a similar situationto mining, with a decline inreserves considered to be partly responsiblefor the oil price reaching over $70per barrel recently. Oil companies areno longer replacing reserves throughnew discoveries (Wood Mackenzie,2005b). Exploration spending is at twothirdsof the 1998 level, resulting in a50% decline in reserve replacement. Thereduction in exploration spending hasbeen caused by growing technical risksand uncertain oil prices, and while thishas resulted in good returns for thecompanies, it has been at the cost ofreserve depletion. This is due to the philosophyof “capital discipline” whichhas been in vogue since at least 1998when the oil price last crashed(Brethour, 2004). This is a conservativestrategy of risk-avoidance which focuseson the short-term returns of quarterlyresults at the expense of buildingreserves. As a result, exploration spendingis 73% of six years ago in the top 10listed oil companies, down from $11 billionin 1998 to $8 billion in 2003. In relativeterms, the fall has been evengreater, with the average annual explorationexpenditure per unit of productionfalling from US$1.70/barrel of oilequivalent (boe) to US$1.00/boebetween 1998 and 2003. This is at amuch lower level than the mid-cap peergroup where relative spends have fallenfrom US$2.80 to US$2.50/boe (WoodMackenzie, 2004).THE BUSINESS OFEXPLORATION:MANAGING FOR SUCCESSMany articles have been written on theingredients required for success inexploration (e.g., Miller, 1976; Bailly,1979; Frost, 1980; Eggert, 1993; Sillitoe,1995; Stevens, 1996). Sillitoe (1995), inanalyzing the case histories of the 54most important discoveries made in theCircum-Pacific region from 1970 to1995, concluded that the most importantelements were the following: longtermexploration, systematic and wellplanned,scientifically groundedprograms, quality of the geologicalteam; competitive remuneration toattract and retain the right people, androck contact time of those quality people.Yet from our experience, manycompanies pay only lip service to theseingredients.The importance of people is a recurringtheme in analysis of explorationsuccess. Stevens (1996, p. 37) wrote that“... best people, in my experience are

APRIL 2006 • No 65 SEG NEWSLETTER 13the only competitive explorationadvantage.” The best people are a company’sdistinctive capability. For thepurposes of strategy, the key distinctionis between distinctive capabilities andreproducible capabilities (Kay, 2000).Distinctive capabilities are those characteristicsof a company that cannot bereplicated by competitors, or can onlybe replicated with great difficulty, evenafter competitors realize the benefitsthey yield for the originating company.In terms of exploration management,one must identify the distinctive capabilityof the company, i.e., quality people,and seek to surround them with acollection of reproducible capabilities orcomplementary assets that enable thecompany to sell its distinctive capabilitiesin the market in which it operates;e.g., exploration focused in a certainregion or deposit type.If people are such a key componentfor success, one would consider that themajor companies are in the best positionto attract such people by offeringlucrative remuneration packages.However, this is no guarantee. Due tothe structure in such established firms,innovation is often difficult. Firms mayemploy the most capable people, butthen set them to work within processesand business models that doom them tofailure, a problem not unique to themining industry (Christensen andOverdorf, 2000), which is beingaddressed in the big pharmaceuticalindustry, as discussed above.The other factor to consider is that,with the market upturn, the miningindustry is now short of skilled people.Many experienced geologists left theindustry during the past decade, eitherreleased by the major companies inmergers and cost-cutting, or forced toseek alternative employment by thelack of financing during the severedownturn in the junior sector. Inaddition, universities have cut back ongeology and related degree programs,so there are fewer new graduates cominginto the business.On the understanding that the qualityof the geological team is vital forsuccess, how can management of thiscritical element further enhance a company’scompetitive advantage?Economic geologists fit a category ofemployee defined as the knowledgeworker (Drucker, 1999). They own their“means of production,” which is theirknowledge. An increasing number ofpeople who are full-time employees,such as knowledge workers, have to bemanaged as if they were volunteers(Drucker, 1999). Volunteers have to getmore satisfaction from their work thanpaid employees, precisely because theydo not get a paycheck. Knowledge workersare paid, of course, but they havemobility. They can leave. Money alonedoes not motivate people to perform,although dissatisfaction with themoney earned grossly demotivates.Knowledge workers need, above all,challenge. They need to know the company’smission and to believe in it.They need continuous training. Theyneed to see results. Drucker (1999)believes that the productivity of theknowledge worker is likely to becomethe focus for the management of people.But in terms of exploration groups,as in R&D, one does not “manage” peopleso much as lead them, and the goalis to make productive the specificstrengths and knowledge of each individual.It is in this context that the bigcorporations, even if they maintainexploration teams, are less likely to besuccessful.However, assembling a quality teamof geologists is not enough. As pointedout by Sillitoe (1995), their value isenhanced by maximizing the rockcontact time of the exploration team.It is often stated that the high cost ofexploration is one of the main disincentivesfor exploration. However, ifpeople—the geological team—are oneof the critical factors in explorationsuccess, this is actually a relativelylow-cost investment. Essentially, thesystematic testing of ideas is whatenables E&D companies to discoverand define resources. What is criticalin E&D is that unpromising propertiesare eliminated at the earliest possibletime before expenditure becomes toohigh, instead of becoming an expensivemistake. This equates to Dow’s(2002) conclusion that if explorationgeologists are to play a leading rolethey have to understand the realbusiness difference between ore andmineralization.In terms of managing for success,comparison with R&D is critical.Management publications need to becontinually reviewed for ideas. Anexample is a recent article by Thomke(2001) which has some very enlighteningpointers for the E&D sector. Brieflystated, the writer points out that innovationrequires the right R&D (E&D)systems for performing experiments(fieldwork) that will generate the informationneeded to develop and refineproducts (resources, reserves) quickly.The challenges are managerial as wellas technical:1. Organize for rapid experimentation:for E&D, organize for rapid exploration;2. Fail early and often, but avoidmistakes;3. Anticipate and exploit earlyinformation;4. Combine new and traditionaltechnologies.to page 14 ...John L. Lufkin, ConsultantUniversity of Colorado/Denver12505 W. 7th AvenueGolden, CO 80401(303) 284-2646Ore Petrology/MicroscopyFeasibility StudiesEnvironmental AssessmentsPROPERTY EVALUATIONS — PROJECT GENERATIONGEOCON, INC.REGIONAL STUDIES — U.S. AND FOREIGNRICHARD L. NIELSEN, CONSULTANTExploration and Mining Geology13741 Braun DriveGolden, CO 80401 Phone/FAX (303) 279-3118PAID ADVERTISEMENTPAID ADVERTISEMENT

14 SEG NEWSLETTER No 65 • APRIL 2006... from 13The Mineral Exploration Business: Innovation Required (Continued)Under the first point, the main objectivesare to examine and if necessaryrevamp entrenched routines, organizationalboundaries, and incentives toencourage rapid exploration.The second point emphasizes thenecessity to embrace failures that occurearly in the development process(exploration program) and advanceknowledge significantly. A critical yetdifficult concept for management tounderstand, and even more so forinvestors, is that failures should not beconfused with mistakes. Thomke (2001)points out that mistakes produce littlenew or useful information and aretherefore without value. A poorlyplanned or badly conducted experiment(exploration), for instance, might resultin ambiguous data, forcing researchers(explorationists) to repeat the experiment(drill again). Another mistake forexample, is repeating a prior failure orbeing unable to learn from that experience.Unfortunately, even the best organizationsoften lack the managementsystems necessary to distinguish carefullybetween failures and mistakes.The third point is probably the mostsignificant. Thomke (2001) uses IDEO, aleading design firm in Palo Alto,California, as an example of followingthe principle of the three Rs: Rough,Rapid, and Right. The final R recognizesthat early prototypes may be incompletebut can still get specific aspects ofthe product right. In terms of E&D, thiscould be re-phrased as “recognizes thatearly exploration models may beincomplete but can still get specificaspects of the style of mineralization,the important controls on that mineralization,and the spatial scale right.”Establishing such a process generatesimportant information when it is mostvaluable: at the early stages of exploration.For the investor, the importanceof adding value (i.e., to the asset of thecompany) or a property is good news.In addition to saving time and money,exploiting early information helpsproduct developers (explorationists) tokeep up with customers’ (major mininghouses) preferences that might evolveover the course of a project.Thomke (2001) introduces the benefitsof “front-loaded development”—i.e.,solving problems early. In terms of anexploration project, this requires theinput of mining engineers, metallurgists,legal-fiscal back-up, as well asgeology to determine if a specific property(product) will make it to the market(major mining houses). The solving ofproblems early equates to shorteningthe time frame of exploration.Lastly, Thomke (2001) notes that theincreased automation of routine experimentswill not remove the need for thehuman element in innovation.However, he points out that automationwill allow people to focus on areaswhere their value is greatest, i.e., ingenerating novel ideas and concepts,learning from experimentation, andultimately making decisions thatrequire judgment.In E&D terms, advances in databasemanagement and better geochemicaland geophysical data do not removethe human element in exploration.However, they do allow geologists tofocus on interpreting their data better,learning from on the ground exploration,and ultimately making decisionson the economic potential of a prospector area. The value of the geologist as aknowledge worker actually increases,because he is, firstly, in a position to usehis knowledge to decide if the data areof value, especially if the data are froman area he is familiar with. Secondly,they can focus on target areas withpotential, rather than doing routinefieldwork to define targets. Finally, thegeologist knowledge worker is in a positionto turn over prospects rapidly inorder to define quality targets, thusfocusing on shortening the time fromexploration to discovery.CONCLUSIONSMineral exploration, although intimatelylinked with the mineral extractionand processing industry, is a distinctivebusiness sector. E&D is the R&Dsector of the mining industry, and canbe defined as the generation and applicationof scientific knowledge to the discoveryof new orebodies, either by grassrootsexploration or in the vicinity ofexisting mines.There is a shortage of new preciousand base metal exploration, development,and production projects in thepipeline. This shortage could significantlyreduce new mine development inthe near future. This follows a six-yeardecline in exploration activity, andeven though exploration expenditureshave recovered in the past two years,the decline is compounded by the loss ofsenior geologists from the industry andthe shortage of new graduates.The exploration business needs toattract investment, and if explorationgeologists are going to play a leadingrole in this business, they must innovate.The business must get better in terms ofshortening the time frame to discovery,and being as cost effective as possiblewithout wasting vital funds. It must alsofind better financial models and mustlearn to manage people better. People,i.e., the quality of the geological team,are the only competitive advantage anexploration company has over its rivals.The ability to motivate these people is apart of the innovative capacity thatmanagement must develop.ACKNOWLEDGMENTSWe would like to thank the manypeople with whom the topic of explorationhas been discussed over theyears. We are particularly indebted tocritical reviews by Richard Sillitoe,Owen Bavinton, Graham Brown, FredDaley, John Thompson, Bill Williams,and Walter Sellmer, to name a few. TheSEG reviewers kindly pointed out manyaspects of the original draft that neededcritical rewriting and we are muchindebted to them.REFERENCESBailly, P.A., 1979, Managing for ore discoveries:Mining Engineering, v. 31, p. 663–671.Brethour, P., 2004, Oil: Too much disciplineat $50: The Globe and Mail, October 2,2004, p. B5.Burton, P., 2003, Elephants: World Gold,April 2003, p. 1.Christensen, C.M. and Overdorf, M., 2000,Meeting the challenge of disruptivechange: Harvard Business Review, March-April 2000, p. 67–76.Doggett, M.D., 2000, Exploration in the newmillennium: Will it be profitable?: Paperpresented at the Prospectors andDevelopers Association of Canada AnnualMeeting, March 2000, 6 p.Dow, J.A.S., 2002, Exploration geology—business and leadership challenges for thefuture: SEG Newsletter, no. 50, July 2002, p.17–21.Drucker, P.F., 1985, Innovation andentrepreneurship: New York, Harper &Row, 277 p.——1999, Management challenges for the21 st century: New York, HarperCollinsPublishers, 224 p.

APRIL 2006 • No 65 SEG NEWSLETTER 15Eggert, R., 1993, Managing for successfulexploration: Resources Policy, September1993, p. 73–176.Frost, J.E., 1980, The successful explorationorganization—an entrepreneurialapproach: Mining Congress Journal, v. 66(5), p. 35–40.GlaxoSmithKline, 2005, New challenges,new thinking: Annual Review 2004. 32 p.(Available online at http://www.gsk.com/financial/reports/ar2004/annual-review-04)Industrial Research Institute, 1999,Innovation in industry survey: Washington,D.C., Industrial Research Institute.Kay, J., 2000, Strategy and the delusion ofGrand Designs, in The University ofChicago et al., Mastering strategy: London,Financial Times Prentice Hall, p. 5–10.Loch, C., and Tapper, S., 2001, Measures ofsuccess for R&D teams, in Pickford, J.,ed.,Mastering management 2.0: London,Financial Times Prentice Hall, p. 459–464.McDonald, R.J., 2000, The economic performanceof an old industry—mineral extractionand processing: Mining Finance, June2000, p. 35–41.Metals Economics Group (MEG), 2005a,World exploration trends: A Special Reportfor the PDAC 2005 InternationalConvention, 4 p. (available online atwww.metalseconomics.com)——2005b, Preliminary 2005 estimate ofworldwide nonferrous exploration budgetsreaches US$5.1 billion: Press Release,September 21, 2005. (available online atwww.metalseconomics.com/frame_press_release.html)Miller, L.J., 1976, Corporations, ore discovery,and the geologist: Economic Geology,v. 71, p. 836–847.Nellore, R., 2001, R&D structures to keepfocus on products, in Pickford, J., ed.,Mastering Management 2.0: London,Financial Times Prentice Hall, p. 453–457.Sillitoe, R.H., 1995, Exploration and discoveryof base- and precious-metal deposits inthe Circum-Pacific region during the last 25years: Tokyo, Metal Mining Agency ofJapan, 127 p.Snow, G.G., and Juhas, A.P., 2002, Trendsand forces in mining and mineral exploration:Society of Economic GeologistsSpecial Publication no. 9, p. 1–16.Stevens, D.L., 1996, Mineral explorationmanagement challenges in the nextdecade: CIM Bulletin, v. 89 (997), p. 34–38.Robbins-Roth, C., 2000, From alchemy to IPO:The business of biotechnology: Cambridge,Massachusetts, Perseus Publishing, 253 p.Thomke, S., 2001, Enlightened experimentation:The new imperative for innovation:Harvard Business Review, February 2001, p.66–75.Wood Mackenzie, 2004, Development expenditureon upstream projects is at recordhigh according to New Wood MackenzieReport: Edinburgh, Wood Mackenzie, pressrelease October 11, 2004. (Available onlineat www.woodmacresearch.com)——2005a, $44.5bn investment in R&D todeliver poor returns for big pharma saysWood Mackenzie: Edinburgh, WoodMackenzie, press release June 5, 2005.(available online at www.woodmacresearch.com)——2005b, Oil & gas exploration, reservereplacement down worldwide: Edinburgh,Wood Mackenzie, press release October2005. (Available online at www.woodmacresearch.com)1GEOPHYSICAL SERVICES• Geophysical Consulting, Survey Design,Data Interpretation• Subsurface Structural Mapping• Ground Water Delineation• Minerals Exploration• Rentals• Equipment Sales• Physical Properties LabElectromagnetic(EM) Techniques,Induced Polarization(IP) Techniques, Gravity,Magnetics, Shallow Seismic,& Downhole TechniquesZONGEENGINEERING & RESEARCH ORGANIZATION1-800-523-9913 or 520-327-5501Fax 520-325-1588, seg@zonge.com, www.zonge.comOffices World WideUSA: -Tucson, Arizona -Sparks, Nevada -Anchorage & Fairbanks, AlaskaOther: -Australia -Chile -Brazil -IndonesiaPAID ADVERTISEMENTPAID ADVERTISEMENT

16 SEG NEWSLETTER No 65 • APRIL 2006SEG NEWSMENTORINGThe Mentoring column is a regular feature of the SEG Newsletter, with contributions of up to 700 words. If you would like to contributeto this column via an interview or have a personal anecdote, please contact Steve Garwin (Steve.Garwin@geoinformex.com) or LucyChapman (Lucy.Chapman@jcu.edu.au).Jared Lubben (SEG 2006): An Interviewby Steve Garwin (SEG 1996 F)Jared Lubben graduated from WinonaState University with a B.S. (geology) in2000, and in 2004 completed an M.S.(economic geology) at the University ofNevada, Las Vegas,on the Betze-PostCarlin-type gold system located in northcentralNevada. Betze-Post is a Barrickownedmine and Jared had the opportunityto address critical questions regarding orefluid properties, sources, and migrationpathways. At the time, he was working fulltimeas an exploration geologist for PlacerDome. Throughout his two years at PlacerDome, Jared had been charged with theresponsibilities of project developmentalong the Battle Mountain-Eureka goldtrend located in north-central Nevada.Jared was interviewed by Steve Garwin overthe telephone and by e-mail in February.Q: When did you know that you wanted tobe a geologist? Was there an experiencethat led to this decision?A: My exposure to geoscience before collegewas minimal. My interest in geologywas sparked by my enrollment in an introductoryclass my freshman year. Throughlearning basic geologic principles and discoveringthe unique opportunities geologistsare provided with in terms of projects,travel, and working environments, I discoveredthat geology was the career pathfor me.Q: What attracted you to work in the mining& exploration industry in Nevada? Is itall that you thought it would be?A: I am most interested in field methodsand mineral system genesis. This combinationled me into exploration. My attractionto exploration in Nevada developedthrough my thesis work on Carlin-typedeposits and has been most of what Ithought it would be. Most surprising is thegeneration gap between experienced andnew incoming geologists. The average agedifference is approximately 20 years. Ithink this shows a glaring need for strongmentoring relationships in today’s industry.Q: Do you see yourself following a careerin the exploration businesses? If so, whatdrives you in this direction?A: The thrill and challenge of the hunt iswhat drives me to exploration and keepsmy interest strong. Furthermore, explorationinvolves problem solving in a teamenvironment. I get great satisfaction fromcontributing to a group that may somedaybe responsible to finding the next majorsuccessful mine. The rewards can be overwhelming.Q: You have worked in industry for almosttwo years now; what are your experienceswith mentoring?A: Early on, I experienced situations wherepositive interaction took place betweensenior geologists and myself, both in theoffice and field environments. However, Ifeel that the increased pace of the explorationindustry has limited my exposure tomentoring activities. Since my recent promotionto project geologist, it has been difficultto gain constructive evaluation of myproject work.Q: Where do you see yourself professionallyin 10 years?A: In 10 years I hope to have had a continuouscareer in mineral exploration and fillan exploration management position for acompany that is considered one of theleaders in the industry. Over those 10 yearsI hope to have successfully transformedfrom a mentee into a solid leader whoplaces high value on mentoring studentsand young professionals. I also wish tocontribute to the consistent flow of newyoung talent into the mining industry.Q: What would you like to see more of inthe actions of companies today that wouldattract young geoscientists like yourself tothe industry?A: Throughout my undergraduate studiesand into my graduate work, I found myselfas one of only a few students workingtowards a degree in economic geology andone of a few students hoping to obtain ajob in the mining industry. Increasing theawareness of what the mining industrycan offer young geologists would changethis trend. A conscious effort to interactwith potential mineral explorationistsfrom undergraduate level would greatlyincrease the number of students interestedin economic geology. I fear the miningindustry has a stigma that turns studentsoff to any potential exploration career.This may solely be based on a lack ofunderstanding. Thus, informing studentsabout opportunities early in their schoolingcould develop their desire to work inthe mining industry.I think companies could offer programsto junior geologists that enable continuedlearning and development including mentoringin the work place as well as bysponsorships on field trips and relatedshort courses. The learning curve is steepand based on discussions with other younggeologists, many new hires are not fullyprepared for the challenges this businesspresents.Q: How could industry contribute to universityto help prepare graduating studentsfor future work?A: Short courses and field trips on topicsthat specifically address the skill set neededto successfully conduct mineral exploration.Provide summer employmentopportunities in a setting where studentsfulfill roles that normal employees fill.Furthermore, provide them with the sameresponsibilities that a normal junioremployee would have while providingexperienced support (mentoring) throughoutthe process. This, I think, is critical toincreasing the number of students interestedin economic geology and would helpmaintain a solid influx of young qualityprofessionals into industry.Q: It was stated by James MacDonald(mentoring column, January 2005) that asystem “where the mentor and mentee areplaced together by a structured process isdoomed for failure.” This article goes on tostate that corporations should be challengedwith creating “an environment inwhich mentoring occurs naturally andinformally.” What is your opinion?A: I agree and disagree with the statements.I fear that with the speedy pace ofthe mineral exploration business, a systemwhere the onus of mentoring young geologistsis strictly on the mentor may get “lostin the shuffle,” so to speak. On the otherhand, based on my experiences, a mentorcannot be forced to provide leadership andknowledge for mentees. I think a balanceshould be found in the work place wherethere is time for mentoring. It is veryimportant to me to work for a companythat holds mentoring as a core value(something that I have found not to be acommon in the exploration business). Itshould be up to management to develop asystem that creates a working environmentthat promotes mentoring of young professionals.Thank you Jared!If you would like to get in touch with Jared, orwould like to contribute to this column via aninterview, please contact Steve Garwin or LucyChapman (contact information above). 1

APRIL 2006 • No 65 SEG NEWSLETTER 17SEG STUDENT CHAPTER NEWS DALHOUSIE-SAINT MARY’S UNIVERSITIES SEG STUDENT CHAPTER SEG NEWSFIELD TRIP REPORT: Exploration in the context of mineral supply: Focus on copperSONORA, MEXICOMichael Doggett (SEG 2001), Department of Geological Sciences andGeological Engineering, Queen’s University, Kingston, CanadaFIELD TRIP TO CHILEDuring February of 2005 a group of studentsfrom Saint Mary’s and DalhousieUniversities went on a field trip to studythe geology, mineral resources, and cultureof Sonora, northern Mexico. The trip,co-organized with the University ofSonora, began in the capital city ofHermosillo, where the students visitedthe geology department of the Universityof Sonora and got to know some of thefaculty and laboratory facilities. Duringthe next two days, Dr. Francisco Paz ofthe University led a trip to the Pinacatequaternary volcanic field, which focusedmostly on volcanic rocks and volcanicstructures. Day 3 consisted of a visit to theAu-Ag open-pit mine of “La Herradura,”owned by Minera Penmont. During thatvisit the students learned about epithermalAu-Ag deposits. The last two daysfocused on the porphyry deposit of “LaCaridad” in northeastern Sonora, whichis owned by Grupo Mexico and is one ofthe largest open-pit copper mines inNorth America. Not only did the studentslearn about the geology of Cu-Mo deposits,but also about open-pit mining and thedifferent metallurgical processes by whichCu and Mo are extracted from the ore.The trip provided a positive linkbetween SMU-Dal and the University ofSonora.SEG-DAL-SMU sponsored a field trip toChile led by Marcos Zentilli. BetweenAugust 29 to September 15, 21 participantsstudied the development of theAndean orogen, with traverses at thelatitudes of Antofagasta, theAconcagua, and the Maipo Rivers, coveringstructure, stratigraphy, magmatism,ore deposits, petroleum geology,geomorphology, and environmentalgeoscience. The following ore depositswere visited: El Soldado manto type Cudeposit, the Andacollo porphyry Cu deposit,the El Peñón low-sulfidation Au-Ag deposit, and the Chuquicamataporphyry copper deposit. Workshopsand lectures completed an enormouslyeducational trip.Sonora Field Trip 2005 members, representing the SEG-DAL-SMU Student Chapter.Some of the Chile Field Trip members at El Peñón, Meridian Gold.Christian Cubelli, Superintendent Mina El Peñón, Meridian Gold, issecond from right.to page 18 ...G.E. McKelveyProfessional GeologistMineral Exploration & DiscoveryP.O. Box 15996454 Ruin Hill Loop, Lot 57Pine, Arizona85544-1599[928] 476-6550mobile: [602] 769-2480fax [928] 476-6572gempress@earthlink.netPAID ADVERTISEMENTPAID ADVERTISEMENT

18 SEG NEWSLETTER No 65 • APRIL 2006SEG NEWS... from 17The Laurentian University SEG studentchapter led a successful trip to Arizonafrom February 17 to 28, 2005. Over thistime, we toured four currently producingcopper-molybdenum porphyrydeposits—Mineral Park mine, Bagdadmine, Sierrita mine and Morencimine)—as well as the Hoover Dam, LAURENTIAN UNIVERSITY SEG STUDENT CHAPTER TRIP ORE DEPOSITS AND GEOLOGY OF ARIZONA, USAElectrowinning at Mineral Park.SEG Student Chapter News (Continued)Students gather for a group photo at Morenci.Laurentian students who participated wereStephen Zubowski, Stephanie Hocker, KimberleyBailey, and Robert Jones.Petrified Forest National Park,Meteor Crater park, GrandCanyon National Park, andSunset Crater Volcano NationalMonument. Participants in thetrip included four graduate studentsfrom the LaurentianUniversity Department of EarthSciences: Stephen Zubowski,Kimberley Bailey, StephanieHocker and Robert Jones.The trip was a very positiveexperience for eachparticipant and helped usdevelop an understandingfor a completely differentstyle of mineralization than thevolcanic massive sulfide andmagmatic deposits we are used toseeing. Each mine tour focused ona different aspect of mine operations:geology, exploration, mining,and ore processing. By theend of the trip, we had a verygood appreciation for the mechanismsof porphyry-style mineralization,mining, and ore processing.The added benefit of touring suchplaces as the Petrified Forest, MeteorCrater, the Grand Canyon, and SunsetCrater Volcano was that these sites gaveus a better understanding Arizona geology,as well as allowing us to see someof the most scenic places in theAmerican Southwest.Stephen Zubowski 1Look for complete reports and more student news on the SEG website:PAID ADVERTISEMENT

APRIL 2006 • No 65 SEG NEWSLETTER 19Geological Society of Perú Expresses ThanksTranslation:SOCIEDAD GEOLOGICA DEL PERUSEG NEWSLima, February 21 st , 2006Mr. Lewis TealDirector of ExplorationMinera Yanacocha S.R.L.On behalf of the Geological Society of Perú, it is a pleasure toexpress our gratitude regarding the donation of the EconomicGeology collection along with two shelves for its exhibition.In addition, we ask that you extend our sincere gratitude toDr. William Atkinson of the University of Colorado (U.S.A),Dr. Brian Hoal, Executive Director of the Society ofEconomic Geologists, and Minera Yanacocha Engineers JulioRodas, Carlos Loayza, Jaime Gómez, and you, who all cooperatedin taking the necessary steps to make this donation possiblefor our institution.Again, the donation of this important collection by MineraYanacocha will be of great value to the library of theGeological Society of Perú.Sincerely,Barbara Bruce Ventura, PresidentSociedad Geológica del PerúStanding in front of their newly acquired collectionof Economic Geology, displayed on shelvesdonated by Minera Yanacocha, are Dr. SilviaRosas, Vice-President of Sociedad Geologica delPerú, and Mr. Jaime Gomez, Yanacocha seniorexploration geologist.Joseph A. Laravie M. Sc.135 Flora PlaceSpring Creek, NV 89815jlaravie@frontiernet.net775-777-8223775-397-1424 (Cell)Mapinfo - MapBasicDiscoverArcView-ArcGISGIS datasetswww.greatbasingis.comDETAILED GEOLOGIC MAPS IN GIS VECTOR FORMATSPAID ADVERTISEMENTExploration GeologistGIS ProgrammerAuFor specialists in hydrothermal mineralizationEpithermalOrogenic gold depositsPorphyrySkarnVHMScontact: Dr Phil White email: pwhite@skm.co.nztel: +64 9 913 8914 fax: +64 9 913 8901www.skmconsulting.com/mineralsSinclair Knight Merz has offices throughout the worldComplete petrology servicesIntegrated prospect studiesMineralization modelsTraining coursesField visitsPAID ADVERTISEMENT

20 SEG NEWSLETTER No 65 • APRIL 2006Feasibility of Asteroid MiningMichael W. Busch † , Division of Geology and Planetary Science, California Institute of TechnologyMC 150-21, Pasadena, California 91125SHORT ARTICLESAbout 2% of meteorites observed to fall toEarth are near-pure nickel-iron, implyingNiFe objects somewhere in the solar system.Over the last decade, radar observationsof asteroids have located four suchobjects (Table 1). The NiFe asteroids arethe largest accessible reserve of platinumgroupelements (PGEs) in the solar system.Nickel-iron meteorites contain about 60ppm of PGEs on average, uniformly distributedin the NiFe matrix. The richestcontain over 150 ppm (Table 2).Carbonyl processing, similar to operationsat the International Nickel plant atSudbury, Ontario, is the best method ofextracting PGEs from an asteroid on anindustrial scale (Lewis and Lewis, 1987).Since the PGEs are uniformly distributed,the entire mass must be ground andreacted with CO to form carbonyls, whichare then decomposed according to species.This process requires about 40 Mw of solarthermal and electrical power to process3.25 million metric tonnes (t)/year. Othermethods, such as thermal separation, arefar more energy-intensive.The largest contributor to the cost ofany space mission is the total massneeded in Earth orbit, since launch costsare currently about US$15,000/kg (allcosts are in January 2006 U.S. dollars).Therefore, the target should require thesmallest possible velocity change fromEarth orbit, to decrease the mass of fuelthat must be brought up from Earth. Thetarget should also have the highest possiblesolar flux, to minimize the mass ofthe power plant. Asteroid 1950 DA is thebest known target.If 1950 DA has an average concentrationof PGEs, a total system mass ofabout 190 t in Earth orbit is sufficient toprocess 3.25 million t/yr and return theresulting 180 t/yr of metal from the asteroidto the Earth’s surface. The carbonylprocess requires a large number of moving† E-mail: busch@caltech.eduTABLE 1. Known Nickel-Iron AsteroidsTABLE 2. Precious Metals in Nickel-IronMeteoritesConcentrationElement Average HighestPlatinum 20 ppm 30 ppmPalladium 10 ppm 20 ppmRuthenium 10 ppm 30 ppmGold 5 ppm 20 ppmIridium 5 ppm 20 ppmOsmium 3 ppm 35 ppmAverages over nickel-iron meteoritesfrom Krinov, 1960; the highest PGE contentsare from the type IIA irons(Goldberg et al. 1951, Crocket 1972)parts, however, so a crew is desirable tomaintain the equipment. A crew of four tosix in a closed-cycle life support systemadds 60 t to the Earth-orbit mass. The costof such a 250-t spacecraft would likely bein the vicinity of $5 billion, including thecost of assembly before launch. For comparison,the initial cost of an Earth-basedplatinum-palladium mine producing 22t/yr of PGE is about $1 billion (ImpalaPlatinum, 2005).The revenue from selling 180 t/yr ofPGEs in the ratios present in nickel-irondepends on Earth demand. Using priceand production data for the last decade,assuming linear price elasticity andadjusting for inflation, I estimate the revenueat $1.9 to $2.8 billion/yr, with theprice of PGEs decreasing by up to 35%.The range represents uncertainty in theEarth production and price elasticity ofeach species. For example, I have notincluded the effects of a decrease in PGEprices on Earth-based mining.Because an asteroid mining missionmust be able to operate almost independentlyof Earth, operating costs are muchsmaller than the uncertainty in my revenueestimates. Revenue of $1.9billion/yr is sufficient to repay a $5 billioninitial cost within three years,Asteroid Volume Surface Est. PGE Content (troy oz) ∆v Solar(km 3 ) density Pt Pd Au (km/s) flux(g/cm^3)16 Psyche ~3.3×10 6 ~5 1.1×10 16 5.3×10 15 2.7×10 15 14.60 0.12216 Kleopatra ~670,000 ~3.5 1.5×10 15 7.5×10 14 3.8×10 14 14.10 0.131986 DA ~4 ~5 1.3×10 10 6.5×10 9 3.2×10 9 7.13 0.151950 DA ~0.8 ~5 2.6×10 9 1.3×10 9 6.4×10 8 6.86 0.40Notes: PGE contents were computed using the volume and surface density for each objectand the average concentrations from Table 2; Dv is the approximate velocity changerequired to go from low Earth orbit to the object; the solar flux is averaged over the orbitand expressed relative to Earth; 1986 DA and 1950 DA are on eccentric orbits that bringthem close to the Earth at intervals, while Kleopatra and Psyche never leave the asteroidbelt; volumes and surface densities are derived from radar observations (Ostro et al. 2002)assuming a discount rate of 6%. If theinitial cost is higher than $5 billion, thetime to repay increases. Costs up to $14billion would be repaid within a decade.The reserves in 1950 DA are comparableto the Bushveld Complex, althoughthe PGE concentrations are much higher(Cawthorn, 1999). At several times theextraction rate given above, the reserveswould last for centuries. If the profitsfrom the mission described are appliedexclusively to financing additional missions,the revenue can exceed $7 billion/yrwithin a decade of the start of thefirst mission.No one has applied carbonyl techniquesin space on any scale, so a technologydemonstration mission would bethe logical first step in a mining venture.One such mission would be a 1/100 th -scale version of the mission describedabove, obviously without a crew. Thedemonstration: go to 1950 DA, processsome tens of tonnes of material andreturn the resulting kilogram of PGE toEarth. This smaller spacecraft would costsome hundreds of millions of U.S. dollars,because fixed costs such as the launchvehicle must be considered.The potential of asteroid mining istheoretically great, although the cost ofany large-scale mission is quite high.There are good launch opportunities to1950 DA throughout much of this century.A demonstration mission could belaunched in 2008 or 2010, with the largemission launching a few years later. Thefirst profits would be made within adecade of today.ACKNOWLEDGMENTSThe author thanks Roger Scoon for hishelpful review.REFERENCESCawthorn, R.G., 1999, Platinum and palladiumresources of the Bushveld Complex: SouthAfrican Journal of Science, Nov/Dec 1999.Crocket, J.H, 1972, Some aspects of the geochemistryof Ru, Os, Ir and Pt in iron meteorites:Geochimica et Cosmochimica Acta, v.36, p. 517–535.Goldberg, E., Uchiyama, A., Brown, H., 1951,The Distribution of nickel, cobalt, gallium,palladium and gold in iron meteorites: Geochimicaet Cosmochimica Acta, v. 2, p. 1-25.Impala Platinum, 2005, 2005 Annual Report:Johannesburg, Impala Platinum.Krinov, E.L., 1960, Principles of meteoritics,Oxford, Pergamon Press.Lewis, S.J. and Lewis, R.S., 1987, SpaceResources, Columbia University Press.Ostro, S.J., Hudson, R.S., Benner, L.A.M.,Giorgini, J.D., Magri, C., Margot, J.-L.,andNolan, M.C., 2002, Asteroid radar astronomy,Asteroids III: Tucson, University of ArizonaPress, p. 151–168 p. 1

APRIL 2006 • No 65 SEG NEWSLETTER 21EXPLORATION REVIEWSAFRICARegional Correspondent:Judith Kinnaird (SEG 2002)SEG Regional Vice President AfricaSchool of GeosciencesUniversity of the Witwatersrand,South AfricaTel: +27 11 7176583Fax: +27 11 7176579E-mail: kinnairdj@geosciences.wits.ac.zaANGOLAPetra Diamonds report that kimberliticoccurrences at Alto Cuilo increased toabout 1,323 ha in estimated surfacearea and 33 kimberlitic occurrenceshave now been confirmed by drilling. Athird core drill rig was ordered in 2005to expedite drilling of the substantialnumber of anomalies and 350 alluvialpits are now complete.BOTSWANAMount Burgess commenced an infilldrilling program at its Kibhabe basemetals project to bring the 2.4-km zoneof zinc, lead, silver anomaly with copperand vanadium credits into a JORCcompliantresource/reserve. Earlierresults from four drill sections showedaverage grades of 3% zinc, 1% lead,and 28 g/t silver.DEMOCRATICREPUBLIC OF CONGOSouth African-based Metorex Ltd hasannounced it will begin cobalt productionat its Ruashi mine by April 2006with an initial output expected to bearound 1,000 tpa.Banro Corporation states thatdrilling results from its wholly ownedNamoya project on the Twangiza-Namoya gold belt include 7.98 m at38.63 g/t , 7 m at 16.01 g/t, 15.74 m at7.46 g/t and 10.4 m averaging 4.5 g/t.GABONSouthernEra Diamonds has commencedmicro-diamond testing of kimberlitebodies, confirming the discoveryof seven new kimberlitic bodies, one ofwhich contained five high-pressure G10garnets, while others contained spinels.GUINEAThe government of Guinea has granteda mining concession for GlobalAlumina Corp (GAC) to supply itsrefinery. GAC has signed an agreementwith Glencore International AG whichwill take 420,000 tpa of alumina over a20-year period. GAC has now secured20-year off-take agreements for 55% ofthe planned 2.8 Mt/yr capacity of itsproposed operation, including 40% tobe shipped to Dubai Aluminium Corp.Ltd.LESOTHOLetseng diamond mine, producer ofsome of the biggest diamonds in recentyears, produced 19 658 carats whichfetched an average $1,708 per carat inthe six months to September 2005. Therecovered grade was 1.71 ct/100 t.LIBERIAMano River Resources has confirmedthat the kimberlite pipe K007 at Kpo isdiamondiferous. Kpo is being exploredin a joint venture with Trans Hex.Approximately 600 kilos of weatheredkimberlite obtained by pitting waswashed, jigged, and concentrated onsite and then examined in Mano’srecently established diamond laboratoryin Monrovia. A single >3 mm gemqualitydiamond weighing 0.4 caratswas recovered from the sample. A3,000-m drilling programme is nowplanned.MADAGASCARPan African Mining Corporation hasdiscovered a nickel-bearing lateriteabove an ultramafic complex in northernMadagascar. The highly weathereddeposit on the company’s Nickel Valleyproperty is about 1 km long and 250 mwide and oval in shape. Sampling byauger-drilling, trenching and pittinghave been completed to depths of 10 mwith the best grades being 2 m at 2.6%Ni.Jubilee Mining has intersected 48 mof high-grade nickel-copper mineralization15 m below surface in boreholeANT1 on its Antsahabe property on theLondokomanana concession. Bulj-miningweighted average grades are up to0.64% nickel and 0.13% copper.MALAWIPaladin Resources began re-examiningthe Kayelekera uranium deposit in late2004 following the improved uraniumoutlook. Revised resources based onassays and down-hole gamma-logging(after standard radiometric calibration)are given at two cutoff grades, as thecompany expects the economic cutofffor any mine developed at Kayelekerawould be between 300 and 600 ppmU 3 O 8 . Measured resources would be 2.20Mt based on 300 ppm with 13.11 Mtindicated and 3.40 Mt inferred. At a cutoffof 600 ppm, measured resourceswould be 1.58 Mt with 6.98 Mt indicatedand 1.19 Mt inferred.NAMIBIAAfri-Can, a Canadian-based company,has signed an agreement with marinemining contractor International Miningand Dredging Holding Ltd (IMD) toundertake a US$2.5 million offshorediamond exploration program on its994 km 2 Block J marine concession beginningin early 2006. Afri-can currentlyholds a 70% interest in Block J with“black economic empowerment” companyWoduna Mining Holdings owning30%. The concession, which lies 105km north of Luderitz, has water depthsranging between 70 and 170 m andwork will begin with a geophysical surveyof up to 3,100 line-km followed bycollection of around 300 large samples.Rio Tinto is to expand the Rossinguranium mine in the Namib desert in aUS$112 M program that will extend thelife of mine by seven years. Annual outputwill be increased from 3,600 tpa to4,000 tpa of uranium oxide. The mineis unusual in that it extracts primaryuranium from granite dikes rather thansecondary sedimentary-hosted uranium.Paladin Resources has 44,000 t ofuranium oxide at its Langer Heinrichproject in and it is expected to start producingwithin a year. This new opencastsedimentary-hosted uranium mineis situated about 85 km east ofSwakopmund, in the Namib NaukluftNational Park. The Park is doing a greatdeal to protect the environment, especiallyaround the site, and there arestrict requirements to ensure the protectionof plant, animal,and insect life. Thisto pageincludes keeping22 ...EXPLORATION REVIEWS

22 SEG NEWSLETTER No 65 • APRIL 2006... from 21Exploration Reviews (Continued)EXPLORATION REVIEWSdriving routes around the site to a minimum.There are a number of challengesassociated with completing this fast-trackproject, one of which is the remote locationof the site. The dirt road to the site is85 km long and corrugated, there is nowater immediately available on site, andgetting water to site is an ongoing logisticalchallenge as some of the water has tobe trucked in from Swakopmund.NIGEROrezone Resources Inc. andGreencastle Resources have formed agold exploration joint venture. Underthe terms of the agreement Orezone canearn a 50% interest in Greencastle’sNamaga and Koyria properties in differentgreenstone belts. Orezone mustspend USS1 M on each property overthe next three years and can raise itsinterest to 75% in either property bycompleting a bankable feasibility studyon the property.NIGERIAAlthough Nigeria is not one of the topdestinations for mining investment inAfrica and mining contributes just 1% tothe country’s GDP, under the presentleadership of General Olusegun Obesanjo,the federal government has refocused itsattention on the mining sector under theproject entitled “Accelerated developmentof Nigeria’s solid mineral potential.”In spite of this, artisanal and smallscalemining continues to constitute over90% of the nation’s mining activities. Inearly 2005, the World Bank approvedUS$120 M for a project to integrate theartisanal sector into the formal economy.The World Bank report on Nigeriain 2005 reports the percentage of firmsreporting bribery has declined significantly.ignificant interest is thereforenow focussing on alluvial and eluvialgold in schist belts in northwest andsouthwest Nigeria, particularly in theAnka, Maru, Tsohon Birnin Gwari,Gurmana, and Bin Yauri areas. Coltanbearingpegmatites are widespread inthe Pan-African basement and cassiteritedeposits associated with the Jurassic ringcomplex granites has been worked sincethe 1920s.SIERRA LEONETitanium Group Resources Ltd, anAIM-listed company, has resumeddredging after an 11-year break. SierraLeone was once a major producer ofrutile, accounting for 75% of the country’sexports but the site was overrun byrebels in 1995. The company’s initialproduction plans are 100,000/yr ofrutile and 15,000 tpa of ilmenite. A seconddredge planned for commissioningin 2007 will double rutile output.Meanwhile, TRG has rehabilitated itsbauxite mining operations with productionplanned at 1.2 Mt/yr and with firstshipments about to made.SOUTH AFRICAAnooraq Resources, the Canadianbasedcompany, reports significant platinumgroup metal mineralization onthe farm Cyferkuil 1 JQ, one of threefarms on the eastern Bushveld underthe Thusong joint venture with AngloPlats. More than 700 m of drilling onfour vertical holes has been completed.In TH002, weathered Merensky reefwas intersected between 23.3–24.2 mwith upper and lower chromitite bandsat the contacts. The underlying UG2was intersected at 46.4–47.3 m depthdipping westward at 26°.Canadian-based Platinum GroupMetals Ltd. has announced increasedresources on its Western Bushveld jointventure. (37% PTM, 37% AngloPlatinum, 26% Africa Wide) Theupdated independent resource calculationshows an increase in indicatedplatinum, palladium, rhodium, andgold resources for the project of 96%from 1.31 to 2.57 Moz. In addition,inferred four-element resources havegrown by 32% from 3.91 to 5.14 Moz.About 40% of the prospective projectarea has now been classified as aresource by the drilling to date. Drillingis planned to continue as the prefeasibilityadvances.Recent drilling confirms increasedresources are accessible with lower capitalcost declines rather than the moreexpensive vertical shaft option that wasinvestigated in previous studies. Theprefeasibility study now underway isconcentrating on the decline option.With these results the project team continuesto target the prefeasibility studyfor summer 2006 and full feasibilitystudy by December 2006.First Uranium, a subsidiary ofSimmer and Jack Mines, has completeda SAMREC-compliant mineral resourceestimate for all surface tailings dams atSimmers Buffelsfontein as the firststeps in a feasibility study to determinethe viability of uranium extraction. Thedams are estimated to contain measuredand indicated resources of 43.6Mlb of U 3 O 8 grading at 0.15 lb/t and 2.8Moz of gold grading at 0.3 g/t.Harmony Gold Mining Companyhas announced that ih has acquired atotal of 44.99 million shares in westernareas on the Witwatersrand goldfield.Lonmin, the third largest producer ofplatinum, has increased output by 31.5%in the December quarter to 196,045 ozcompared to 149,066 oz for the sameperiod in 2004. Palladium output alsorose from 64,615 oz in the Decemberquarter 2004 to 68,452 oz in 2005 andrhodium production similarly increasedfrom 16,141 to 18,641 oz. They expectto produce 1 Moz of platinum in theyear ending September 2006.Sasol, the world’s biggest producer ofsynthetic fuel from coal, has invested 46million rand to form a joint coal-miningventure with Eyesizwe Coal. Sasol,which will own 65% of Igoda Coal, willprovide 46 million rand in equity, andEyesizwe, which will own the rest, willprovide 25 million rand. The companywill mine, market, and supply utilitycoal for the international export market.Igoda will produce a minimumexport production of 3.6 M tpa and willsupply about 4 M tpa of middlings coalto Sasol. Igoda Coal has coal reservesfor around 30 years.ZAMBIAThe substantial improvement in basemetal prices since the end of 2003 hasled to increased production followingprivatization of the larger copper-miningcompanies in 2000. In order toreduce dependency on copper, theChamber of Mines has proposed thatgovernment reduces withholding tax onmining operations conducted outsidethe country from 15% to 10%. Thiswould encourage mining operations inneighboring countries to process theiroutput in Zambia, which has some ofthe most efficient smelters and refineriesin the world. This, coupled with the centrallocation, makes it an attractivefocus for processing especially for neighboringcountries such as the Republic ofthe Congo, which have infrastructureconstraints.

APRIL 2006 • No 65 SEG NEWSLETTER 23Outukumpo of Finland has beenawarded a contract to design anddeliver a new copper flash smelter forKonkola Copper Mines. This followsthe decision by Vedanta Resources,which has a controlling stake in KCM,to invest US$ 125 M in expanding theNkana smelter. It is anticipated that itwill be commissioned in 2007. Copperconcentrate will be sourced largely fromKCM’s mines to produce 300,000 tpacopper.Gemfields Resources, the newlyAIM-listed company is reevaluating theemerald production. Zambia alreadyproduces up to US$100 M worth of goodquality rough emeralds annually, but itis a highly fragmented industry.Gemfields assets include 50% of theLivingstone amethyst mine KaribaMinerals—the largest in Africa, and theMbuva-Chibolele emerald projectsouth of Kitwe, which covers a kilometeralong the strike of the Purala belt in theNdola Rural Emerald restricted area. Amineral resource of 18 Mt has beenidentified to a depth of 150 m, giving a10-year life of project. Working costs of$15–17/t compare with an expected revenueaveraging $42/t.ZIMBABWEZimbabwe Platinum Mines Limited(Zimplats) is not closing despite anongoing problem sparked by governmentplans to amend the Mines andMinerals Bill to enable a 51% statetakeover of foreign owned mines. ASouth African platinum mining giant,Implats has a controlling stake of 86%in Zimplats and has indicated its intentionto invest $US2 billion as part of anexpansion drive.ALASKARegional Correspondent:Curtis J. Freeman (SEG 1996)Avalon Development Corp.P.O. Box 80268Fairbanks, AK 99708Tel. 1.907.457.5159, Fax 1.907.455.8069E-mail: avalon@alaska.netWebsite: www.avalonalaska.comAlaska is off to a fast start in 2006: ithas already seen start-up of its firstmajor gold mine in 5 years (Pogo) andapproval of permits for the Nixon Forkcopper–gold mine. We also sawannouncement of substantial increasesin copper, gold, and molybdenumresources at two advanced exploration/development projects (Donlin Creekand Pebble). New development planswere offered for heap leaching at theFort Knox gold mine and initial fundingwas approved for evaluation of a coalto-liquidsfacility at the Beluga coaldeposits. Red Dog and Greens Creekreported stellar operating results, inpart due to robust metals prices. As forexploration plans, there are dozens ofprograms in the offing. All in all, not abad way to start off a year that promisesto be very busy. So, as the old cowboysaid, “When the pony runs, you ride.”WESTERN ALASKATeck Cominco American announced a$325 M operating profit for the year atits Red Dog mine. The mine produced568,000 tonnes (t) of zinc in concentratefrom ore averaging 22.3%. The minealso produced 102,000 t lead in concentratefrom ore averaging 6.6% whilemill recoveries decreased to 55.7%.NovaGold Resources and new partnerBarrick Gold (which took overPlacer Dome in late January)announced increased resources at theDonlin Creek deposit in southwesternAlaska. Measured and indicatedresource categories increased by 3.7Moz or 33% to 14.8 Moz of gold grading2.76 gpt gold using a 1.2 gpt cutoffgrade. Inferred resources decreased by0.7 Moz to 13.6 Moz grading 2.72 gptgold through conversion of thoseounces to the measured and indicatedcategory. Total gold resource is now28.4 Moz in all categories.Northern Dynasty Minerals Ltdannounced new resource estimates at itsEast zone at the Pebble deposit nearIliamna. At a 1.00% Cu equiv cutoff,the inferred mineral resources are estimatedat 947 Mt grading 0.77% copper,0.48 gpt gold and 0.040% molybdenum(1.28% Cu equiv), containing 16.0 billionlb of copper, 14.5 Moz of gold, and830 Mlb of molybdenum. The PebbleEast deposit is open to expansion in alldirections. Plans for 2006 include30,500 m of drilling at a budgeted costof US$20 M.St. Andrew Goldfields announcedthat all permits have been approved forthe operation of the Nixon Fork goldcoppermine near McGrath. Plansinclude upgrading and refurbishing theexisting gold mill, including the installationof a cyanide leach circuit. Inaddition, facilities will be installed toextract and retreat the existing tailingsfrom the previous operation whichcontain an estimated 30,000-oz goldresource. Retreatment of the existingtailings is expected to begin in July withprocessing of underground ore expectedin the early fall.Full Metal Minerals Ltd. and TriexMinerals Corporation announced thatseveral new geochemical anomalieshave been identified at their BoulderCreek uranium prospect on the SewardPeninsula. These results suggest potentialextensions along strike to the existingdeposit, as well as potential newdeposits along the same granite-sandstonecontact. Additionally, four newareas with multi-element geochemicalanomalies covering a strike length ofapproximately 9 km were identified.Several of the anomalies are larger inarea and stronger in terms of elementabundances than the baseline data collectedover the known extent of the currentresources at Boulder Creek.Planning is currently underway for a3,000-m drill program including downholegeophysical surveys.Liberty Star Gold Corp. announcedpreliminary results from its Big Chunkcopper-gold project near Iliamna. TheBaltusrol project is hosted by felsic porphyryintrusives, intrusive breccias, andporphyry-style alteration and mineralizationand returned 50 ft grading 1033ppm copper and 0.0018 gpt gold. A singledrill hole at the Point Grey prospectintercepted 0.0078 gpt gold over 177 ftincluding 10 ft of 0.059 gpt gold. At theAugusta prospect on the western side ofthe claim block the company has outlineda 5.7 × 2 mile area of anomalousgold and molybdenum in vegetationsamples.INTERIOR ALASKAKinross Gold is currently conductingpreliminary feasibility-level work on thepossibility of adding a heap leachingcircuit to its Fort Knox mine operationsnear Fairbanks. The company indicatedthat evaluations are on-going ona possible 160-million-ton valley-leachoperation in the Walter Creek drainageabove the current tailings impoundment.Geotechnical studies identifiedWalter Creek as a suitable site for thevalley leach, which the company hopeswill operate at approximately one-thirdthe cost of it current 40,000-tpd millingoperation. If economic evaluations arepositive, initial ground work for the projectcould occur asto pagesoon as late 2006.24 ...EXPLORATION REVIEWS

24 SEG NEWSLETTER No 65 • APRIL 2006... from 23Exploration Reviews (Continued)EXPLORATION REVIEWSFreegold Ventures announced additionalresults from trenching completedat their Golden Summit project nearFairbanks. The six-trench programencountered two new veins at surfacewith gold grades of 35.3 gpt gold over 5ft (grab sample of 63.7 gpt gold) and28.6 gpt gold over 5 ft (grab samples of139.0, 22.1, and 12.0 gpt gold). In addition,the strike length of the Wackwitzvein was extended to 730 ft where theshear zone hosting the vein returned 10ft grading 2.89 gpt gold. Two additionalshort trenches were excavated along theWackwitz vein and returned 59 ft grading6.4 gpt gold with four grab samplesof the vein returning grades rangingfrom 0.38 to 16.35 gpt gold.The biggest news so far in 2006came from Teck Cominco and partnerSumitomo, who announced that thePogo mine poured its first gold bar, a31.55-kg brick, on February 12. Withthis pour the mine and mill began aseveral-month shakedown of operatingsystems with the goal of reaching fullscaleproduction in the second quarterof 2006. For those of you counting, thePogo deposit was discovered in 1994and has been under continuous explorationand development since then.Total construction costs for the mine arenow estimated at $347 M. Congratulations,Teck Cominco and Sumitomo!Geoinformatics Explorationannounced that its partner, MidasResources Ltd., plans to conduct a winterdrilling program at the Uncle Samgold project in the Richardson district.The RC program will follow-up pastdrilling by Kennecott Exploration thatreturned 11 m at 2.4 gpt gold, 8 m at2.1 gpt gold, 6 m at 10.6 gpt gold, and5.5 m at 4.9 gpt gold.ALASKA RANGEUsibelli Coal Mine recently celebratedtwo milestones for their 63-year-oldoperations near Healy. The first wasthe completion of a full year of operationswithout a lost time accident during2005. This seminal event is accompaniedby a coveted Sentinels of Safetyaward to be issued by the Mine Safetyand Health Administration in conjunctionwith the National Mining Assoc.The second milestone was passing 700days without a lost time accident, arecord the company has neverexceeded. Congratulations, Usibelli!Piper Capital announced resultsfrom the Long Creek prospect on itsGolden Zone project in the centralAlaska Range. Highlights include 7 gptgold, 20.1 gpt silver, and 0.72% copperover 12.2 m and 2.35 gpt gold, 80.1 gptsilver, and 0.55% copper over 3 m inexploration trenches while diamonddrill holes returned 0.08 gpt gold, 29.2gpt silver, and 0.62% copper over 6.1 mand 1.11 gpt gold, 36.1 gpt silver, and0.40% copper over 3.0 m in hole 05 LC-1. Mineralization was extended morethan 1.5 km south from the trenchedand drilled area with rock chip sampleswhich contained up to 3.73 gpt gold,163 gpt silver, and 1.25% copper. Goldcopper-silvermineralization at LongCreek is characterized by crudely stratabounddisseminated to massive carbonatereplacement zones in limestone andcalcareous conglomerate which are cutby northeast-striking massive sulfideveins.Piper Capital also announced that ithas staked the South Estelle prospect inthe south-central Alaska Range. Reconnaissancesampling by the companyconfirmed mineralization in the previouslyreported Revelation Vein andidentified three new prospects designatedShoeshine, Train, and Saddleprospects. Highlights of grab and chipsampling from this effort include 34.4gpt gold, 8.1 gpt silver, and 0.1% copperin a vein on the Revelationprospect, 112.5 gpt gold, 245 gpt silver,and 0.13% copper in an intrusivehostedvein on the Shoeshine prospect,23.8 gpt gold, 91.4 gpt silver, and0.33% copper in a sulfide boulder trainon the Train prospect and 7 gpt goldand 1.9 gpt silver in a mineralized dikeon the Saddle prospect.Nevada Star Resource Corp.announced that JV partner AngloAmerican Exploration (USA), Inc.intends to continue exploration on theMAN project in 2006. A spring 2006drill program has been approved to testhigh-ranking targets, including electromagneticgeophysical anomalies, multielementgeochemical anomalies andpredicted down-plunge extensions ofsurface nickel-copper sulfide showings.The Alaska Industrial Developmentand Export Authority has approved a$500,000 contribution to a $1.5 M feasibilitystudy of a proposed coal-to-liquidsalternative fuels plant in the BelugaRiver coal fields 50 miles west ofAnchorage. The funding is contingenton private partners in the study completingtheir financing of the remaining$1 M needed for the study. The projectis being proposed by Alaska NaturalResources to Liquids LLC, an Alaskacompany that could act as developer.The coal-to-liquids project wouldrequire approximately 17 million tonsof coal a year for 40 years. If the projectis feasible, the plant could require anVernon DeRuyterExploration GeologistTel: 520-419-2645, 744-8600 6880 West Ina RoadFax: 520-744-8601 Tucson, Arizona 85743E-mail: • International and domestic mineral projects •Exploration • Development • ProductionProspect Generation and EvaluationGeologic Mapping • Drilling ProjectsResource EstimationPAUL W. KUHNRegistered Professional GeologistWorldwide mine exploration/productionExploration project generation/managementPK 69, Kavaklıdere PTT, 06691 Ankara, TURKEYTel: +90-542-675-1603 or +90-536-875-1333U.S. mobile tel: 1-509-990-6786e-mail: kuhnpw@cs.comPAID ADVERTISEMENTPAID ADVERTISEMENT

APRIL 2006 • No 65 SEG NEWSLETTER 25investment of $5 billion and would produceabout 80,000 barrels per day ofclean diesel and other products for U.S.markets.SOUTHEAST ALASKAHecla Mining (29.73%) and KennecottMining (70.27%) announced 4 th quarterand year-end production resultsfrom its Greens Creek mine nearJuneau. For the year the mine produced9,665,428 oz silver, 72,758 oz gold,21,913 t lead and 64.611 t zinc. Cashoperating costs were negative $0.66/ozwhile total operating costs were$2.18/oz. Average head grade mined forthe year was 18.17 gpt silver. Year-endproven and probable reserves stood at2,223,872 tons grading 0.12 gpt gold,14.5 gpt silver, 3.9% lead, and 10.2%zinc. Inferred resources stood at 654.214tons grading 0.14 gpt gold, 14.5 gpt silver,4.1% lead, and 11.2% zinc.Due to the number and length of newsreleases relating to mineral activity inAlaska during the quarter and thespace limitations allowable for Alaskanactivities in the SEG Newsletter, not allactivities can be included here. Anunabridged version of this section of theSEG Newsletter can be found on theSEG’s website (http://www.segweb.org/RecentArticles.html) or at AvalonDevelopment’s website (www.avalonalaska.com).AUSTRALASIARegional Correspondent:Brent McInnes (SEG 1999)CSIRO Exploration and Mining (CEM)With contributions fromJim BeestonQueensland NRMWTony Christie (SEG 1992) – New ZealandNZ Institute of Geological & Nuclear SciencesSue Daly – PIRSAGeoff Green (SEG 2000)Mineral Resources TasmaniaTim McConachy (SEG 1987 F)CSIRO Exploration & MiningRussell Meares (SEG 1996) –New South WalesMalachite ResourcesTASMANIAZinifex Ltd. has discovered a new orebodyat the Rosebery mine 400 m northof K Lens. There are four economicintersections so far with values such as11.7 m (apparent thickness) @ 26% Znand 1.4 g/t Au.Lefroy Resources Ltd. hasannounced a JORC Inferred Resourcefor the Pinafore reef at Lefroy of304,000 tonnes (t) at 22.9 g/t Au, basedon a reef thickness of 2 m.Allegiance Mining NL hasannounced upgraded resource figuresfor the Avebury deposit that amount toan 89% increase in the amount of containednickel in the deposit. The newglobal resource is 11.59 Mt @ 1.02%nickel, for a contained 118,000 tof themetal. The initial reserve in the smallerfeasibility study area is 4.4 Mt @ 1.16%Ni above a 0.85% cutoff.Zelos Resources NL has announcedan inferred resource of 4 Mt @ 40% ironat the Nelson Bay River prospect nearTemma.Bass Metals Ltd. has defined a combinedindicated and inferred resource of370,000 t @ 1.7% Cu, 4.2% Zn, 1.4% Pb,64 g/t Ag, and 0.3 g/t Au in the QueRiver “S” lens, 3.5 km SW of Hellyerand has recently reported a number ofintersections of Cu-rich mineralizationoutside the resource envelope. Bass isalso drilling at the Mount Charterprospect, 3 km further to the SW andhas reported near surface intersectionsof Au-Ag-Zn-Pb mineralization (e.g.,15.4 metres grading 2.1 g/t Au, 38 g/tAg, 4.8% Zn and 1.9% Pb from 56 m).Bass, together with joint-venture partnersGeoinformatics and Zinifex Ltd.have identified 13 exploration targetson the Hellyer mine lease.TasGold Ltd. has intersected Aumineralization in the 666 Lode thatparallels and lies 100 m NE of theHiggs deposit near Moina in northernTasmania with intersections of 31.9 m@ 1.2 g/t Au and 2.0 m @ 14.8 g/t Au inseparate holes.The Beaconsfield gold mine jointventure partners have announced thefirst drill hole at Middle Arm Gorge,near Beaconsfield, has intersected 1.9 mof quartz-ankerite-sulfide alteration.Assaying is underway.QUEENSLANDStraits Resources have discovered alarge mineralized system beneath theold Yandan epithermal gold mine. Aninitial intersection of 176 m @ 2.4 g/tAu, including a high-grade zone of 27.5m @ 8.1 g/t Au, was followed up withanother encouraging intersection of 194m @ 2.1 g/t Au including 30.5 m @ 8.6g/t Au.Newcrest and SedimentaryHoldings Ltd. continue to explore thenewly discovered Kilkenny structurewest of the Cracow mining operation.Initial and subsequent high-grade intersectionshave been reinforced by additionaldrilling results, including 12 m @8.9 g/t and 4.4 m @17 g/t Au.Republic Gold Ltd. reported drillingat its Hodgkinson Basin projects innorth Queensland. Recent Tregooraproject drilling at the prospect targetsinclude 9 m @ 3.4 g/t Au and 15 m @1.59 g/t Au at the Honey prospect; 11 mat 3.92 g/t Au and 4 m at 3.89 g/t Au;16 m at 2.40 g/t Au at Retina Far North.Deep resource modelling diamonddrilling was undertaken by ResoluteMining Ltd. at the Mount Wright projectto assist in the technical aspects ofthe project feasibility study. Resultsincluded 37 m @ 4.34 g/t Au from 559m, 26 m @ 3.97 g/t Au from 559 m and62 m @ 5.43 g/t Au from 602 m. Theresource of 9.8 Mt at 3.35 g/t Au willnow be developed.Echelon Resources Ltd. has drilledthe first hole at the Cockatoo/Parsonsprospect 700 m south of the old MountLeyshon open pit. Results included 5 m@ 37 g/t Au, 56 g/t Ag, 0.1% Cu, 0.4%Pb, and 3.1% Zn from 975 m downhole.Kagara Zinc Ltd. announced aninterim upgraded resource of 3.3 Mt at3.9% Cu, 18 g/t Ag and 0.43 g/t Au attheir Balcooma project in NorthQueensland. Further high grade drillresults from four drill holes outside theresource include 57 m @ 3.1% Cu,including 9 m @ 8.6% Cu; 43m @ 4.0%Cu, including 10 m @ 7.2% Cu; 17 m @4.5% Cu, including 6 m @ 8.0% Cu; 17m @ 10.2% Cu, including 11 m @ 14.4%Cu.Glengarry Resources Ltd.announced Co-Mo mineralization intersectionsat its Maitland prospect withinthe Greenvale project. Results in onehole included 12 m @ 4.27% Cu from160 m including 7 m @ 5.59% Cu from165 m and 5 m @ 0.31% Mo from 153m. Continuous, high-grade Cu mineralizationhas now been intersected in fiveholes.Copper Strike Ltd. announced copperintersections from drilling at itsEinasleigh project northwest ofTownsville. Intersections reportedinclude 15 m @ 11.76% Cu from 244 m,11 m @ 3.10% Cu from 269 m and 2 m@ 9.83% Cu from 235 m. Later resultsreleased included 3 m@ 6.93% Cu from 232to pagem, 13 m @ 6.71% Cu 26 ...EXPLORATION REVIEWS

26 SEG NEWSLETTER No 65 • APRIL 2006... from 25Exploration Reviews (Continued)EXPLORATION REVIEWSfrom 241 m, and 30 m @ 9.2% Cu. Aninferred resource for Einasleigh is840,000 t at 3.6% Cu, 0.19 g/t Au, and16 g/t Ag. The inferred resource at thenearby Kaiser Bill prospect is 11 Mt at0.84% Cu, 0.15 g/t Au and 6.3 g/t Ag.CopperCo Ltd. reported that drillingat the Lady Annie project yielded anintersection of 22 m @ 6.7% Cu from173m downhole below the Lady Annieoxide resource. Other intersectionsincluded 23 m @ 0.45% Cu from 103 mand 10 m @ 0.82% Cu from 144 m.Recent drilling at Mount Kelly faultzone near Flying Horse gave results of24 m @ 4.7% Cu, 18 m @ 4.22% Cu,and 25 m @ 1.58% Cu.Matrix Metals Ltd. reported 28 m @2.93% Cu from 235 m at its McCabedeposit south of Cloncurry. This drillingwas to test extensions to the existingmineralization. The latest follow updrilling gave 18 m @ 3.5% Cu, and 8 m@ 3.39% Cu.Current exploration in Queensland isbeing assisted by the Department ofNatural Resources, Mines and Water’s$20M Smart Exploration initiativewhich is currently running groundgravity and airborne geophysics surveysin the Mount Isa region to expand discoveryin one of the world’s largest copperand base metals province.NEW SOUTH WALESThe search for Intrusion Related GoldDeposits (IRGD) in New South Waleshas accelerated, particularly in the Sn-W terrains of central and eastern NewSouth Wales. In the Lachlan Fold Belt(LFB), Moly Mines Dargues Reefdeposit is a recognized member of thisdeposit type, and farther west CullenResources is searching for similardeposits and their W analogues. In theNew England fold belt (NEFB) the onlyrecognised IRDG deposit is the minedoutTimbarra Au-Bi-Mo deposit, howeverMalachite Resources Phoenix discoveryalso displays characteristicstypical of this deposit type.At Boonoo Boonoo in the northernNEFB, Macmin Silver has drilled fourAu-Ag lodes with best results of 5 m @3.45 g/t Au and 133 g/t Ag at the Starof Hope Lode. Farther east, DrakeResources has recently completed adrilling program which has emphasizedthe potentially valuable zones of Zn ina previously defined resource below theStrauss pit at Drake. Intersections includedrill holes DP19 (20 m @ 6.2 g/t Au and2.03% Zn from 17 m depth, including 2m @ 9.1% Zn) and DP20 (11 m @ 3.8 g/tAu and 3.93% Zn from 6 m depth).In the LFB, very significant highgradeassays have been received for twoinfill holes in Triako Resources’ HeraAu-base metal deposit. Economic modellingof the project during the prefeasibilitystudy concluded that the returnfrom developing the Hera project ismost sensitive to changes in headgrade, in particular the gold headgrade. These new high-grade assays willfurther enhance the economics of theproject.Also in the LFB, results received byAlkane Resources from diamond drillingcontinue to add high-grade interceptswithin the Wyoming One resource.Intercepts include holes WY 838D (9 m@ 9.57 g/t Au from 207 m including 5m @ 15.6 g/t gold from 208 m) and WY839D (15 m @ 4.43 g/t Au from 99 m,and 6 m @ 7.98 g/t Au from 151 m).Visible gold was observed in severalintervals and these will be checked byscreen fire assay. These results follow onfrom the recent discovery of a new highgradestructure intersected by WY 831D,which returned an intercept of 66 m @19.49 g/t Au from 268 m.News from the Broken Hill provincehas been scarce lately with all the operatorsvery busy. However, another majorhas recognized the potential for worldclassbase metal deposits with TeckCominco entering into a JV with a syndicateof local NSW-based companiesover the Stephens-Centennial project.In the NE section of the province, theKoonenberry belt is considered highlyprospective, in part due to the recentmapping work by the GeologicalSurvey of NSW. Black Range Mineralshas reported high-grade Cu intersectionsat its Flagship prospect at BrokenHill, including 7 m @ 5.51% Cu located2 km west of the existing workings.SOUTH AUSTRALIAJoint venture partners AdelaideResources and Iluka Resourcesannounced the discovery of significantheavy mineral sand occurrence at theTripitaka prospect in the Eucla basin. Amineralized zone up to 2 km in lengthand over 1 km in width has been identified,with drill traverse lines identifyinga central core of heavy mineral sandscontaining 68% zircon. Some of thebetter intersections include: 21 m at5.6% HM from 1.5 m below surface, 21m at 4.1% HM from 1.5 m below surface,19.5 m at 3.5% HM from 6 mbelow surface.Gunson Resources reported theresults of a deep drilling program at itsChianti Cu prospect at Mount Gunsonin the Gawler craton. Hole MGD 34,completed to a depth of 600 m returned2 m at 3.4% Cu and 0.2 g/t Au from549-551 m. The mineralization occursas bornite and chalcopyrite in hematiterichgranite breccia.Havilah Resources intersected newCu-Au-Mo mineralization at a PIRSAsupportPACE drilling project 6 km S ofits Kalkaroo Cu deposit. Best resultsinclude 63 m @ 0.4% Cu and 69 m @0.67 g/t Au. The Kalkaroo deposit has aresource estimated of 70 Mt @ 0.47%Cu, 0.46 g/t Au, and 124 ppm Mo.Marathon Resources has commenceda 19-hole drilling program targetingthe Hodgkinson, Mt Gee, andArmchair-Streitberg U prospects locatedin the Mt. Painter inlier in the NorthernFlinders Ranges. Best results from thefirst three diamond holes from theHodgkinson prospect include 12 m @0.46% uranium oxide from 51 m and 2m @ 0.23% uranium oxide from 53 m.Maximus Resources have commenceddrilling to explore the downdippotential of the historic Bird in Handgold mine in the Adelaide Hills. Initialresults include 9 m (true width estimatedat 6.5 m) at 31.2 g/t Au, 58.3 g/tAg, 5.8% Pb, and 4.6% Zn from 158 m.Metals Exploration acquired theWingellina Ni laterite project in theMusgrave Range province and undertookat 20,000 m RC drill program.Wingellina contains an estimated 227Mt of ~1% Ni and 0.07% Co in a predominantlylimonitic host assemblageassociated with a layered dunitic intrusivecomplex. Drilling results include184 m @ 1.05% Ni, and 0.09% Co from8 m and 132 m at 1.18% Ni and 0.08%Co from surface.NORTHERN TERRITORYRenison Consolidated Mines has completeda 20-hole diamond drilling programat its Tom’s Gully gold mine,located 90 km south east of Darwin.The resource estimate for the deposit is

APRIL 2006 • No 65 SEG NEWSLETTER 27now around 2 Mt at an average gradeof 7.9 g/t Au.Following a $4 M capital raising,Redbank Mines (formerly Burdekin-Pacific) acquired the breccia-hostedRedbank Cu deposit in the NorthernTerritory. The company reports a mineralresource estimate of 4.2 Mt at anaverage grade of 1.5% Cu, for approximately63,000 t of contained Cu. Thefirst stage of production in March 2006will target a 54,000-t Cu oxide portionof the orebody with a 6% Cu grade.Thor Mining reported new resourceestimates for its Molyhil W-Mo explorationproject, located 220 km northeastof Alice Springs within the ProterozoicEastern Arunta Block. The updatedresource estimate for the skarn deposithas increased significantly to 2.4 Mt at0.8% combined WO 3and MoS 2 .XStrata Zinc announced a $66 Mplan to extend the life of the McArthurRiver Zn-Pb-Ag mine by 25 years bymoving from an underground to opencutmining operation. Located 900 kmSE of Darwin, the HYC deposit becamea mining operation in 1995, 40 yearsafter the MIM discovery of sedimenthostedPb-Zn mineralization at theremote McArthur River Station. Theshallow-dipping stratiform deposit ofMiddle Proterozoic age has measured,indicated, and inferred resources ofaround 124 Mt at approximately 13%Zn, 6% Pb and 60 g/t Ag. Annual productionis around 160,000 t Zn and30,000 t Pb.The redevelopment plan will requirea number of environmentally sensitivechanges to the existing site, includingthe rechannelling of a 5.5-km section ofthe McArthur River. XStrata says that ifthe open cut plan is not approved, themine will be forced to close. Approvalfor the development plan rests with theNT Minister for Mines and Energy.WESTERN AUSTRALIACBH Resources reports new drillingresults and resource estimates from itsSulphur Springs VMS Cu-Zn projectlocated 160 km SE of Port Hedland inthe Pilbara region. The new resourcecalculation based on open pit cut-offgrades have substantially increased theresource estimate to a total of 13.8 milliontonnes @ 3.7% Zn, 1.4% Cu, and21 g/t Ag (or 6.4% zinc equiv). CBHResources also announced a joint-venturedeal with Teck Cominco to explorethe Napier Range section of theLennard Shelf zinc-lead province.Ivernia is ramping up production atits unique Magellan Pb-oxide depositnear Wiluna to around 100,000 tpa Pbby mid-2006—equivalent to 3% ofworld production. Ivernia has stated itsmeasured and indicated resources as21.4 Mt grading 5.8% lead and containing1.24 Mt of lead, plus an inferred 7.2Mt at 4.6% lead.Jubilee Mines has conducted an infilland exploration drilling program tofirm up a resource estimate for itsProspero Ni deposit at 911,500 t grading6.64% nickel for 60,500 t of nickel.Intersections include 7 m grading 8.4%Ni, 4.3 m at 5.2% Ni and 3.4 m at10.6% Ni. The deposit remains open intwo dimensions.Fox Resources has announced a newZn discovery at its Ayshia prospect,located 1.6 km NE of its West WhundoVMS Cu-Pb-Zn deposit near its RadioHill Ni mine, 30 km SE of Karratha.Significant drill results include 14 m @10.4% Zn and 32.3 g/t Ag from 30 m,4m @ 3.2% Zn, and 35 g/t Ag from 28m, and 4 m at 5.2% Zn and 43 g/t Agfrom 33 m. Four of the eight holesshowed no significant mineralization.The company is targeting an open-pitoperation exploiting the West Whundoresource of 894,000 t grading 2% Cu,1.4% Zn, and 3.3 g/t Ag.Abra Mining Ltd. reported significantdiamond drilling results from its MulgulPb-Zn-Cu project, located 200 km N ofMeekatharra. Hole AB28 returned ahigh-grade zone of 12 m @ 12.6% Pbwithin an overall intersection of 178 m@ 4.5% Pb, 0.1% Zn, and 0.12% Cufrom 358 m. Hole AB33 had a highgradezone of 8 m @ 20.2% Pb, withinan overall intersection of 276 m @ 3.1%lead, 0.1% zinc, and 0.11% copper from344 m. The high-grade zone, which typicallyassays in excess of 10% Pb, hasnow been identified over an area ofapproximately 200 m diameter. Thepolymetallic deposit, discovered in 1981by GeoPeko, has characteristics similarto sedimentary exhalative (SEDEX) Pb-Zn deposits but with a poorly understoodzone of Cu-Au enrichment.Jabiru Metals reported furtherencouraging drilling results at itsJaguar VMS Cu-Zn deposit, including79.5 m @ 3.9% Cu, 3.5% Zn, 79 g/t Ag,and 0.2% Pb. Development work isunderway at the project with productionplanned to begin in mid-2007. TheJaguar mine is expected to produce123,400 t zinc, 41,000 t copper and3.921 Moz of Ag over its five-year life.NEW ZEALANDNeptune Minerals commenced a 3 millionpounds sterling (~US$5 M) explorationproject for sea-floor massive sulfidedeposits on inactive vents along theKermadec Arc, northeast of the TaupoVolcanic Zone. The Kemadec 2005expedition, completed in December2005, collected 23 cores, 29 sea-floorsamples, and 70 line km of high-resolutionmulti-beam swath mapping of thesea-floor bathymetry. Assays confirmthat sampled massive sulfide chimneyshave elevated base and precious metalcontent.Aurora Minerals Ltd. completed 350m of diamond drilling in 3 holes and1,600 m of RC drilling in 16 holes intheir Backyard prospect of theHazelbrook epithermal gold project inNorthland. A fourth diamond hole wasstarted. Drilling intersected quartz veiningand brecciation, but assays availableto date for the 3 DDH returnedonly trace gold.Glass Earth Ltd. acquired HPD NewZealand Ltd. and its 20 permits totaling4,040 km 2 in the Coromandel,Marlborough, and Otago regions. In theTaupo Volcanic Zone, Glass Earth commenceddetailed CSAMT resistivity surveyingover 16 of its 21 priority epithermalgold target areas, in conjunctionwith soil geochemical surveys, Drillingis planned to commence in April 2006.Underworld Resources (NZ) Ltd.completed EM and resistivity surveys,and follow-up trenching at the LottinPoint VMS prospect in the East Capearea, North Island. Results are beingevaluated to define drill targets.Auzex Ltd. completed reconnaissanceexploration on their Buller andRoss permits in western South Island.Tungsten and Mo-Cu mineralisationwas confirmed at Mt Radiant (Buller)and Kirwans (Ross), and mapping atthe historic Lyell gold mine (Buller)enhanced its potential for Au mineralization.Laser ablation analysis hasconfirmed that the granites near Rossand Buller have the potential to hostgranite gold systems. Detailed geochemicaland drilling programs are beingplanned.OceanaGold commenced drilling atthe Inkerman/Supreme mesothermalgold prospect 2.5 km south of theirGlobe-Progress project in the Reeftongold field, South Island. The Globe-Progress mine developmentis proceedingto pagewith a target gold28 ...EXPLORATION REVIEWS

28 SEG NEWSLETTER No 65 • APRIL 2006... from 27Exploration Reviews (Continued)EXPLORATION REVIEWSproduction by the end of 2006, miningtenders and construction contracts arecurrently being let. In Otago, Frasersunderground project is expected to commencecutting a new portal in April2006.A joint venture between GreatAustralian Resources and SouthwestExploration completed 501 m of RCdrilling in 22 holes in the Arethusamesothermal gold prospect of theLongwood Range in Southland. Bestreported result was 3 m @ 1.61 g/t Aufrom surface in hole ARAC002.PAPUA NEW GUINEAThe truism that sovereign risk isinversely proportional to metal prices isreflected by increasing explorationinvestment in Papua New Guinea andmore confidence in the regulatory andfiscal policies of the PNG government.The Yandera copper-molybdenumprospect is back in the news with Perthbasedexplorer Marengo Mining buyingout its join-venture partner for acash and script offer of AUD$6 M.Yandera has been intermittentlyexplored by a number of major companiessince the 1960s, including BHP,Kennecott, and Phelps Dodge. Marengois aiming to establish a resource ofaround 100 Mt at 1% copper equiv.Allied Gold reported a resource ofabout 17.1 Mt @ 1.3 g/t Au for 712,000oz Au at the Simberi gold deposit in theTabar Island Group west of Lihir Island.Optimization studies suggest mining75,000 oz/yr over a mine life of 7.8years with operating costs of aroundUS$256/oz. Total capital cost estimatefor the project is around $44 M. Themost recently reported explorationdrilling results from the Sorowarprospect include 10 m at 29.9 g/t Aufrom 73 m.Following the election of a newautonomous government in 2005 therehave been reports of recent meetingsbetween Bougainville Copper and thePNG government discussing the possibleresurrection of the Panguna Cu-Aumine which contains a resource ofaround 625 Mt @ 0.4% Cu and 0.4 g/tgold. Previous cost estimates at restartingthe Panguna operation have beenput at more than AUD $1 billion. Therehas been a moratorium on any form ofexploration on Bougainville Islandsince the closure of the mine in 1989.In the waters of PNG, Placer DomeInc., through its subsidiary PlacerDome Oceania Ltd, completed a majordrilling program at the Suzette prospectin the Eastern Manus basin ~100 kmnorth of Rabaul, where high-grade Cu-Au sea-floor massive sulfide depositswere discovered in the early 1990s by ajoint CSIRO-University of Torontoexpedition. Ltd. details of this pioneeringwork have been provided by Placer’sjoint-venture partner, NautilusMinerals, which pegged the ground in1997. Placer Dome has committed tospend US$7 M by April 2006 to earn a40% interest in all deposits with at least3 g/t Au, with rights to earn a further35%. Under the terms of the farm-inagreement, Nautilus retains the exclusiveright to any rich Cu-Zn depositswith less than 3 g/t Au. Drill sampleshave been sent for assay.CANADARegional Correspondent:T.G. (Tom) Schroeter (SEG 1988 F)300-865 Hornby StreetVancouver, British ColumbiaCanada V6Z 2G3Tel. 1.604.660.2812E-mail: Tom.Schroeter@gov.bc.caWith contributions fromMonique Lavergne – ManitobaRoss Sherlock (SEG 1989 F) –Nunavut and NWTDaniel E. Jiricka (SEG 2000) – SaskatchewanMANITOBAExploration expenditures in Manitobaare expected to exceed $53 M for 2005,a 47% increase in spending from 2004.The bullish sentiment for nickel hasrestored interest in former producingproperties and camps in Manitoba.Inco announced in August that it willspend $45 M to develop the 1-D Lowerorebody in Thompson. Inco also continuesto search for new ore sources inthe prolific Thompson Nickel Belt (TNB)and in 2005 spent approximately $6.5M for in-mine and surface exploration.In addition, Inco has joint-venture partnershipsin place with CanadianRoyalties on the TNB South projectand with Nuinsco Resources on theMel project. Crowflight Minerals conductedan extensive winter drill campaignin the Thompson and Wabowdenareas on their large portfolio of propertiesunder option from Falconbridge. Afeasibility study on the Bucko deposit atWabowden determined an indicatedresource of 1.8 M tonnes (t) of 2.1% Ni.A summer surface in-fill drill programincreased Bucko’s indicated resourcebase by 300,000 t. Seymour Explorationis exploring on mineral leaseswhich cover the past-producing LynnLake nickel mine. A recent independentresource calculation confirmed that theproperty contains measured and indicatedresources of 5.8 Mt grading 0.85%Ni and 0.39% Cu, remaining in-situ.In southeast Manitoba, MustangMinerals’ Maskwa nickel deposit containsan indicated open-pit and undergroundresource of 6.0 Mt grading0.74% Ni and 0.15% Cu. In 2005,Mustang discovered a wide zone ofnickel-copper mineralization at theirnearby Mayville property, with intervalssuch as 33.6 m grading 1.06% Cuand 0.50% Ni, within 61 m of slightlylower-grade sulfides. Lac des Iles Mines(LDI) entered an agreement to earn a50% interest in Gossan Resources’ BirdRiver property. The project covers 21km of the Bird River Sill, which containsconcentrations of PGEs, nickel, copper,zinc, and chromite.In the Flin Flon-Snow Lake area,Hudbay Minerals (formerly OntZincCorporation) acquired Hudson BayMining and Smelting from AngloAmerican in late 2004. In February,Hudbay announced that they wouldspend $10 M on exploration in the FlinFlon greenstone belt.Bema Gold and Wolfden Resourcescompleted 70 holes during winter andsummer/fall drilling at theirMonument Bay property in northeastManitoba. Inferred resources atMonument currently (not including2005 drill results) stand at 1.07 Mt grading15.36 g/t Au, using an 8 g/t cutoff.Claude Resources and partner PioneerMetals conducted drilling to test thestrike potential of the Nokomis Lakegold zone near Sherridon. Claude wasalso conducting work at the former producingTartan Lake gold mine nearFlin Flon. Drilling completed by BlackPearl Minerals defined new high-gradegold shoots at the Gold Dust andMcCafferty zones at Wekusko Lake. AtGold Dust, two shoots were discovered,returning values up to 17.4 g/t Au over4.5 m; a new shoot discovered at

APRIL 2006 • No 65 SEG NEWSLETTER 29McCafferty returned 63.74 g/t Au over1.45 m. San Gold Resources and GoldCity Industries amalgamated to formthe new company San GoldCorporation. San Gold owns the Bissettgold operation in southeasternManitoba which consists of an 1100-tpdmill and mine with proven and probablereserves of 818,000 t grading 9.2 g/tAu. First production is scheduled forApril 2006, with production forecast at30,000 oz for 2006. The company alsohas three other near-surface gold depositslocated near the Bissett operation thatcan supply additional feed to the mill.Wildcat Exploration completed winterdrill programs at their Poundmaker andSiderock properties near Bissett. Drillingnear the Poundmaker shaft intersectednear-surface mineralization grading 41.5g/t Au over 0.6 m.The search for diamonds inManitoba heated up again in late 2004as interest shifted to the Hudson BayLowland and Seal River areas west ofChurchill. De Beers Canada secured a20,000 km 2 land package at Seal Riverbased on positive sediment samplesobtained in earlier surveys. WesternWarrior Resources has outlined 35kimberlite targets at their Eppler Lakeproperty near Seal River. Drilling isplanned for 2006. In the Hudson BayLowland, juniors Falcon Ventures,Diamonds North Resources, ForanMining, and Indicator Explorationsacquired exploration licences to searchfor diamonds. Diamonds NorthResources and Stornoway Diamondsentered a 50:50 joint venture agreementto explore Diamonds North’s ManitobaHighlands project.The recent surge in uranium priceshas renewed exploration interest in thenorthwest corner of Manitoba. The areareceived considerable exploration foruranium in the 1960s and 1970s.CanAlaska Ventures conductedprospecting and a detailed lake-sedimentsampling survey on their NorthEast Athabasca project, and SantoyResources acquired a mineral explorationlicence adjoining CanAlaska’sproperty to the northeast.NUNAVUTStarting in the east in the Qikiqtaaluk(Baffin) region and working west,Commander Resources is planning a5,000-m drill program on its gold projectson Central Baffin Island.Baffinland Iron Mines is continuing towork on the Mary River iron ore projectin northern Baffin Island and haveannounced a 7,000-m drill programand plans to advance the project to abankable feasibility stage. In 2005,Stornoway Diamond Corporation andContact Diamond Corporation conducteda 76-day field program in southcentralBaffin. Results from an aeromagneticsurvey directly led to thestaking of approximately 75,000 acresin the south central region of BaffinIsland which will be followed up in2006.In the Kivalliq (Keewatin) region,Cumberland Resources is advancingthe Meadowbank project with a finalEIS hearing that was scheduled forMarch 27, 2006, and has recentlyannounced a 9,000-m drill programdirected at adding additional resourcesat the newly defined Cannu zone.Comaplex Minerals has updated theresource estimate on the Tiriganiaqdeposit, part of the Meliadine group ofdeposits near Rankin Inlet, resulting in1.2 Moz indicated and 1.6 Moz inferred.In 2006, Comaplex is planning a15,000-m drill program, with the goalof advancing the deposit to production.In 2006, newly listed Kaminak Gold isplanning on drill testing it’s WesternChurchill gold project and hasoptioned its Baker Lake uranium project,to Pacific Ridge Exploration whohas committed to spending at least$250,000 during 2006. Kaminak Gold’sMatrix project, optioned to NewmontCanada, has been successful in outliningauriferous conglomerate andNewmont has announced that in 2006they will be drill testing this target.Committee Bay Resources hasregained 100% control of theCommittee Bay greenstone belt asGoldfields Exploration converted theirinterest into common shares. In 2006,Committee Bay plans an aggressiveexploration program that will includedrilling at Three Bluffs and the newdiscovery areas West Plains, Raven,and Anuri. Starfield Resources is continuingto advance the Ferguson LakeNi-Cu-PGE project; between 1999 and2005 Starfield drilled about 92,000 mon the project and are continuing withmetallurgical work and advancedexploration in 2006.Strongbow Exploration andBayswater Ventures acquired theNorth Thelon uranium project, consistingof 330,794 acres over the northernpart of the Thelon basin in Nunavut.The Thelon basin represents an underexplored,major Proterozoic sandstonebasin that shares many geological characteristicswith the Athabasca basinlocated in Saskatchewan, approximately350 km to the south.The Churchill diamond project iscomprised of mineral rights to morethan 2 million acres, located near thecommunity of Rankin Inlet andChesterfield Inlet in the Kivalliq region.The project is owned by joint venturepartners Shear Minerals (51% andoperator), Stornoway (35%), and BHPBilliton (14%). The partners recentlyannounced high counts of G10 pyropegarnets and kimberlitefragments within 30 to page ...EXPLORATION REVIEWSPAID ADVERTISEMENT◆ News Summaries◆ Deposit Statistics◆ Research Information100 Lemming Dr. • Reno, Nevada 89523phone: 775 345-2343 • fax 775 345-1317http://www.activityupdate.com • info@activityupdate.comORE AND THIN SECTIONPETROGRAPHYLTL PetrographicsL. T. LARSON, PHD.35 YEARS EXPERIENCE WITHROCKS AND ORES FROM ALL OVERTHE WORLD. OPTICAL MICROSCOPY,SEM AND MICROPROBE.Phone: 775-849-0587340 Sparrow Way Email: RockdocL@Netscape.netCarson City, Nevada 89704 LTLPetrographics@yahoo.comPAID ADVERTISEMENT

30 SEG NEWSLETTER No 65 • APRIL 2006... from 29Exploration Reviews (Continued)EXPLORATION REVIEWSa till sample from the Sedna Corridor.Follow-up detailed ground magneticsand potentially drilling are planned.The Aviat Joint Venture is a partnershipbetween Stornoway (70% and operator),BHP Billiton (20%), and HunterExploration Group (10%) that coversapproximately 4 M acres of the MelvillePeninsula. To date, a cluster of ninekimberlite bodies within a confinedarea have been identified, all of whichare significantly diamondiferous, withfavorable early-stage microdiamonddistribution. Diamonds North will continueto be active in Nunavut, and withthe recently acquired 100% interest inthe 5-million-acre Amaruk property,work in 2006 will include drilling,prospecting, and geophysical surveys.In the Kitikmeot (Slave province)region of Nunavut, Miramar Mining isstarting a 34,000-m drill program on itsHope Bay project. The final EIS hearingon the Doris North project was conductedin Cambridge Bay in lateJanuary 2006 and the results areexpected by early March. In 2006,Dundee Precious Metals will be conductinga 25,000-m drill program on itsBack River project, mainly testing theGoose and George Lake deposits.Wolfden Resources is rapidlybecoming the major landholder inNunavut, with the recent acquisition ofthe Izok, Hood, and Gondor basemetal projects from Inmet and theacquisition of the Lupin mine fromKinross. In the last several yearsWolfden’s main focus as been the HighLake base metal project and the Ulugold project, both in the High Lakegreenstone belt in the northern Slaveprovince. The Izok deposit is one of theworld’s highest grade undeveloped basemetal deposits. The acquisition ofLupin provides significant infrastructurein the region, as well as potentialfor near-term production. Also withbase metal projects, Sabina Silver willbe commencing a winter drill programon its Hackett River silver-zinc projectin March-April.Strongbow Exploration had a successful2005 season in the Regan Lakeand Anialik belt, optioned fromNunavut Tunngavik Incorporated(NTI). This will allow them to focustheir efforts in 2006 on priority targetswithin these prospects. TaheraDiamond completed construction andbegan production from the Jerichodeposit in 2005, following in the footstepsof the Ekati and Diavik diamondmines in the NWT. This has becomeCanada’s third diamond mine andNunavut’s only producing mine.Tahera is planning further explorationon the Rockinghorse property and theHood River claims along with bulksampling of the Muskox kimberlite,part of Tahera’s Polar project.NORTHWESTTERRITORIESIn the NWT, Seabridge Gold started a15,000-m drill program at its 100%-owned Courageous Lake gold project.This project covers 53 km of theMatthews Lake greenstone belt whichhosts the 2-km-long FAT deposit. TheFAT deposit contains an estimated 3.72Moz in the measured and indicated categories(plus an additional estimated5.23 Moz in the inferred category). TyheeDevelopment continues to advance theYellowknife gold project with a prefeasibilitystudy on the Ormsby zone.Fortune Minerals continues to advancethe NICO gold-cobalt-bismuth deposittowards a bankable feasibility studyand recently announced an agreementto purchase the Golden Giant mill forthe project. The deposit is proposed tobe mined by a combination of undergroundand open pit methods, and theore would be processed in a 3,000 tpdmill and hydrometallurgical plant toproduce gold doré, cobalt cathode, andbismuth concentrate.De Beers is developing the SnapLake project—an underground diamondmine in the NWT, with constructionthrough 2006 and productionscheduled for 2007. In addition, DeBeers has an advanced evaluation projectat Gahcho Kué in the NWT.Peregrine Diamonds is completing abulk sample on the DO-27 kimberliteand has started a drill program at thePellatt Lake property. Both of theseprojects are located near the Diavik andEkati mines.SASKATCHEWANThe year 2005 was a stellar year formineral exploration in Saskatchewan;estimated expenditures are CAN $120M, up from $60 M last year.Approximately $67 M (56%) of thetotal exploration expenditures werespent in the search for uranium. Theuranium spot price has ballooned from$7 (US) per pound in 2001 to $37 (US)currently. Consequentially, in the twoyears since Dec. 1, 2003, land dispositionshave almost doubled in number,and quadrupled in area from 1,300totaling 1.4 M ha to 2,355 totaling 5.6M ha. There are more than 70 registereddisposition holders in theAthabasca region, mostly concentratingon grassroots exploration and depositdelineation.Exploration results in 2005 wereimpressive. COGEMA and UEX havefound more high-grade uranium attheir Shea Creek project south of theformer Cluff Lake mine. Recentlyreported intersections included 5.4%U308 over 37.7 m and 5.8 U308 over13.7 m, among the best ever intersectedin the Athabasca basin. Under its participationagreement, UEX can earn a49% interest in 10 western Athabascaprojects, including Shea Creek, by funding$30 M in exploration over 11 years.Cameco’s exploration efforts in theAthabasca basin remain a combinationof brown-field (around existing mines)and green-field (throughout the remainderof the basin) targets. Brown-field oradvanced exploration programs werecompleted at Rabbit Lake, Dawn Lake,Cree Extension, and McArthur River,with all programs encountering significantresultsThe Millennium discovery on theCree Extension project 35 km north ofKey lake remains Cameco’s mostadvanced exploration project. Diamonddrilling last year was concentrated onthe deposit and directed towards increasingthe indicated resource inventory.Green-field exploration continues toget encouraging results at theCentennial discovery on the VirginRiver project located 125 km westnorthwestof Key Lake. Intersections ofup to 5.83% U308 over 6.4 m have beenreported from this zone.UEX’s Hidden Bay project, haveannounced results of 4.93% U308over10.1 m at their West Bear depositand 4.52% U308 over 0.5 ms at thenewly discovered Telephone Lakedrilling area.JNR Resources Inc. and lnternationalUranium Corp. (IUC) havereported results from summer drilling atMoore Lake, southeast of Key Lake.Two new zones of unconformity-style

APRIL 2006 • No 65 SEG NEWSLETTER 31uranium mineralization were reported,the most significant of which was theMaverick Northeast yielding an intersectionof 0.47% U308 over 3.5 m.Canalaska Ventures Limitedreported encouraging results from itsNortheast Athabasca project near theSaskatchewan-Manitoba border.Highlights reported included uraniumboulder trains with boulders grading 0.2% to 11.1 % U 3 O 8 and mineralized outcropswith grab samples containing upto 9.5 % U308.Approximately $9.7 M was spentexploring for gold in 2005 (8% of thetotal). The only current producer is theSeabee mine, which has produced700,000 ounces since Dec. 1991. ClaudeResources Inc. bulk sampled the PorkyWest zone, located three km north ofthe Seabee mine, and completeddril!ing at Santoy 8 and 8 East. AtSantoy, about 14 km east of Seabee,inferred mineral resources of 910,000 thave been delineated in the area averaging8.7 glt Au, uncut. Claude is planninga ramp and bulk sampling programin the first quarter of 2006.Wescan Goldfields Inc. is takinganother look at the Jasper area north ofLa Ronge. Cameco’s Jasper mine operatedin 1990 and 1991, mining nearsurfaceore and producing 155,000 tgrading 0.54 glt Au. The ore was processedat the nearby Star Lake mill, producing83,700 oz gold.Golden Band Resources holds aland package of more than 73,000 hawithin the La Ronge gold belt. Thisincludes seven known gold deposits,four former producing mines and alicensed mill. Recently, the companyhas concentrated on the Waddy Lakearea (particularly Tower East andMemorial) and the Bingo deposit,where an exploration decline helpeddefine the deposit.Diamond exploration accounted for$37.36 M, about 32% of total explorationexpenditures. Claims have doubledfrom 2,012, totaling 710,000 ha inDecember 2003, to 3,416 dispositions,totaling 1.4 M ha in November 2005. Inthe Fort a la Corne area, De BeersCanada and Shore Gold are the mainplayers. Shore in particular has recoveredover 35,000 t kimberlite from itsStar underground test mine, containing5,188 carats worth an estimated $135per carat. Shore Gold has merged withKensington Resources, a 42.25% partnerwith De Beers in the Fort a la Corne(FALC) kimberlites adjacent to Shore’sStar property. Shore also negotiated anagreement with minority partnerCameco, giving it an effective 58% votingmajority on all properties in the area.Great Western Diamonds Corp. hasdefined two large kimberlite pipes containingdiamonds in the Candle Lakearea. The Candle Lake project is 110 kmnortheast of Prince Albert, and north ofSmeaton.CONTIGUOUSUNITED STATESRegional Correspondent:Roger C. Steininger (SEG 1978)Consulting Geologist3401 San Mateo Ave.Reno, NV 89509Tel. 1.775.323.7775 Fax 1.775.323.1134E-mail: audoctor@aol.comARIZONAAmerican Bonanza released resourceestimates for the Copperstone depositin La Paz County. The measured andindicated resource is 1.07 Mt (Mt) at0.313 opt Au with an additionalinferred resource of about 200,000 t at0.317 opt Au. This higher grade core iswithin a broader resource of about 3 Mtwith an average grade of 0.16 opt Au.Phelps Dodge is moving ahead withdevelopment of the Stafford coppermine in Graham County. This is thefirst totally new major copper mine tobe opened in the United States in morethan three decades.Quincy Resources completed adrilling program at their uraniumbearingRose breccia pipe in CoconinoCounty. Two mineralized zones wereencountered; one 49.5-ft interval averages0.14% eU 3 O 8 and a second 10-ftinterval averages 0.065% eU 3 O 8 . Thesezones are 1400–1450 and 1756–1766 ftdown the drill hole.Augusta Resources completed alarge drilling program at the Rosemontcopper-molybdenum deposit (PimaCounty) to improve the resource estimate.As a result, the deposit containsa measured and indicated resource of442 Mt of 0.51% Cu and 0.015% Mo,with an additional inferred resource of145 Mt of 0.45% Cu and 0.015% Mo, allat a 0.20% Cu cutoff.Quadra Mining acquired theCarlota oxide copper deposit (GilaCounty) and plans to develop a SX-EWoperation that will produce about 66Mlb of copper per year for 11 years.CALIFORNIACanyon Resources drilled 18 reservecirculation and one core hole at Briggs(Inyo County) with the intent of definingsufficient mineralization to restartthe mine. This drilling was around themargins of the Briggs mine and betweenBriggs and the Goldtooth mine. Several10- to 15-ft intervals of 0.2X opt Au andwider intervals of 0.0X opt Au were encounteredand supplied sufficient encouragementto plan additional drilling.MONTANAMining operations were suspended inOctober 2005 at Montana Tunnels(Jefferson County) and a notice of layoffwas recently given to all employees.This sounds like the end of the line forMontana Tunnels.United Balero started developmentof two molybdenum properties. Miningis moving forward at Bald Butte (Lewisand Clark County) and ore will beshipped to a 1,000 tpd mill in Phillipsburgh.The historic resource is about131 Mt with an average grade of0.077% Mo. Permitting is also underwayat the Cannivan Gulch (BeaverheadCounty) molybdenum depositwhich has a resource of about 300 Mtwith an average grade of 0.100% MoS 2 .Of particular interest is a higher gradezone within the deposit that might be ofmore economic interest.NEVADANevada claim filings increased 14.4% in2005 over 2004, and 2004 was up24.9% over 2003. Unfortunately, thereis no way to track the number of claimsthat are re-papered every 90 days toavoid the filing fees. At least that partof the industry uses a lot of paper whichhelps keep the loggers busy.Is Rob McEwen, ex-Goldcorp, intenton buying Nevada? Initially heinvested several million dollars to buycontrolling interest, or at least significantstakes, in U.S. Gold, White KnightResources, Coral Gold Resources,Nevada Pacific Gold, and ToneResources. The next move was to offerslightly north of $250 M to buy each ofthese companies. McEwen stated goal isto form the “premier exploration company”in Nevada, or maybe he just likesliving along the Battle Mountain-Eureka Trend?White Knightto pagecontinues to report32 ...EXPLORATION REVIEWS

32 SEG NEWSLETTER No 65 • APRIL 2006... from 31Exploration Reviews (Continued)EXPLORATION REVIEWSresults from last year’s drilling at GoldPick in Eureka County. Nineteen reversecirculation holes totaling 11,700 ft weredrilled to test the extent of the golddeposit. Most of the mineralized intervalsare in the 10- to 25-ft range withgrades up to 0.10 opt Au. At theirSlaven Canyon project (Lander County)initial results are encouraging, with a50-ft intercept that averages 0.092 optAu starting at about 80 ft below the surface.Gold is hosted in brecciated chertand argillite of the Slaven Chert.Gateway Gold released a resourceestimate for the Big Springs deposit inElko County. Several cutoff grades wereused but the largest reported resourcewas at a 0.025 opt Au cutoff and containsabout 15.4 Mt with an average grade of0.078 opt Au. Drilling has apparentlynot defined the entire deposit.As Cortez Mines begins developmentof the Cortez Hills deposit (LanderCounty) two adits were started to provideunderground access for explorationof the deeper portion of the deposit.This is the first modern undergrounddevelopment along the BattleMountain-Eureka Trend.Given the higher metal prices, QuadraMining reevaluated its reserves atRobinson (White Pine County) andconcluded that the deposits contains anaggregate proven and probable reserveof about 145.5 Mt with an averagegrade of 0.69% Cu and 0.007 opt Au,plus by-product molybdenum. The projectedmine life was increased from 8.3to 10.3 years.Queenstake Resources continues toexpand the Starvation Canyon golddeposit (Elko County). Since October2005, an additional 27 core and reversecirculation holes have been completed,totaling 15,544 ft. Two of the moreimpressive holes contain 60 ft of 0.357opt Au and 45 ft of 0.413 opt Au. Thedeposit is still open in several directions.Midway Gold continues to explorethe Spring Valley gold deposit (PershingCounty). Gold mineralization is beneath50 to 300 ft of alluvium in the basal portionof the Rochester rhyolite that consistsof intercalated lithic tuff, weldedtuff, flow banded rhyolite, and spheruliticrhyolite. Mineralization is along thenortheast margin of a large diatremewith secondary breccias. Gold occurs ina hydrothermal breccia, stockwork veinsalong the diatreme margin, and stockworkveins and breccias in the rhyolites.Gryphon Gold is in the midst of alarge drilling program in the Borealismine area (Mineral County) and identifiedadditional resources around theexist pits and significant expansions ofthe Graben deposit. Significantmineralization was also identified in anarea not previously drilled between theEast Ridge and Northeast Ridge pits.One hole in this area contains an intervalof 145 ft of 0.021 opt Au, startingfrom the surface. One hole at the northeasternmargin of the Freedom Flatsdeposit encountered 245 ft of 0.054 optAu, including 35 ft of 0.189 opt Au. Twoholes along the eastern margin of theGraben deposit near Freedom Flats,encountered 85 ft of 0.069 opt Au and250 ft on 0.061 opt Au. All of these mineralizedareas are still open.Gold Summit is renewing drilling atMonte Cristo (Esmeralda County) andcompleted a 43-101 evaluation of theproperty. The document puts the inferredresource at 365,000 t with a grade of0.19 opt Au opt Au and 0.60 opt Ag.It is only fair to report all of theaction on a property. Remember thosedrill hole intercepts that New SleeperGold announced from the Sleeper property(Humboldt County)? They were sogood that New Sleeper has terminatedthe agreement with X-Cal and took awrite-down of about $20 M.Metallic Ventures completed a 14-hole reverse circulation drilling programtotaling 6,300 ft at Gemfield andagain failed to define the edges of thedeposit. Most of the holes encounteredsignificant intervals (up to 100+ ft) oflow- to mid-0.01X opt Au. Much of themineralization is oxidized and occurs inthe Sandstorm Rhyolite Formation.Hecla Mining is developing undergroundaccess for drill stations at theHollister Development Block of theIvanhoe property (Elko County). About2,700 ft from the portal the Gwenivereveining was intersected. Channel samplingof the west and east ribs producedan average thickness of 11.7 ft with anaverage grade of about 1.4 opt Au.The last issue of this column containeda summary of favorable resultsat AuEx Ventures’ Pequop drilling(Elko County). After those results werereleased, NewWest Gold Corp. steppedforward and notified AuEx that it ownsthe mineral rights to a substantial portionof the Long Canyon mineralizedarea. After much soul-searching andrenewed land-status investigations, AuExconcluded that the NewWest claim has“merit.” Two actions are on-going,negotiations between the two companiesare in progress, and every landmanin Nevada is searching their records tosee if they have any liability. In the lattercase there are several calls to insuranceagents for liability insurance.Miranda Gold reports that BarrickGold completed a 1,500+ ft core hole attheir Horse Mountain project (LanderCounty). The hole encountered theRoberts Mountains thrust at about 940ft which contained some gold mineralizationin the upper plate rocks and asubstantial thickness of gold mineralizationin the Roberts Mountains Formationbelow the thrust. The interval is96.2 ft thick with an average grade of0.023 opt Au. The interval is stronglydecalcified, oxidized, argillized, andbrecciated. I continue to ask the questionabout these types of deep plays to testunder the Roberts Mountains thrust:now what? It is really expensive to chaselow-grade gold mineralization at thesedepths in the hope that the gold zonewill become higher grade and larger.Klondex Mines’ on-going drilling atFire Creek (Lander County) continuesto intersect high-grade gold mineralization.The latest release of assays containsa 10-ft section of 1.73 opt Au, withothers in the 5- to 10-ft range of 0.25opt Au and greater.Royal Standard Minerals completed14 holes in and around the PODresource (Elko County) to collect metallurgicalsamples and to further test thehigh-grade core of the deposit. One holeintersected 110 ft of 0.134 opt Au, whichresulted in extending the core of the depositand opened addition possibilities.Staccato Gold Resources drilledthree core holes at its South Eurekaproject (Eureka County) which in a previouslife was known as Ratto Canyon.All holes intersected higher grade goldintervals that are sulfide bearing. Thebest interval is 65 ft of 0.344 opt Au.NEW MEXICOWhen was the last time any miningnews from New Mexico appeared in thecolumn? Amazing what the price ofuranium will do to the mining industry.Miners will go to places previouslyunthinkable. Quincy Energy, rememberthem in Oregon as Quincy Gold,

APRIL 2006 • No 65 SEG NEWSLETTER 33optioned the Crownpoint property inMcKinley County. They estimate aresource of 9.966 Mt of 0.1048 eU 3 O 8 .UTAHWestern Utah Copper/PalladonVentures intersected about 15 ft of3.7% Cu and 24.6 opt Ag in a drill holenear the Beaver carbonate mine(Beaver County). This is part of a widerexploration program in the SanFrancisco and Beaver Lake Mountainsdistricts. Farther to the east in the RockyRange of Beaver County, the joint venturedrilled three holes into the CandyB deposit and intersected from 100 to150 ft of from about 1% Cu to 0.50%Cu. This drilling is part of developmentplans for several small skarn copperdeposits in the district.WASHINGTONThis I could not resist. You know youare in a boom cycle if a local indigenousgroup decides to vote on lifting themoratorium on mining on the reservationand to consider molybdenum miningat Mount Tolman. Is Mt. Emmonsnext? Those are about all the molybdenumdeposits that are left on the shelf.EUROPERegional Correspondent:Mac Canby (SEG 2003)Phelps Dodge Exploration Corp.Cobham, Surrey KT11 3HYUnited KingdomTel. +44 1932 865 367E-mail: mcanby@phelpsd.comContributions fromPeter Kodera (SEG 2002) – SlovakiaThis and next few quarters are key periodsin development decisions at majoradvanced exploration and expansionprojects across Europe, including RosiaMontana Au (Romania), ChelopechCuAu (Bulgaria), Copler Au (Turkey),Surikusiko Au (Finland), and CaldagNi (Turkey). While previous explorationnews has largely come from Cenozoic-Mesozoic magmatic-related districts insouthern and eastern Europe, goldexploration in the Precambrian ofFennnoscandia has rather quietly succeededand continuously expanded;odds are that one of these projects willevolve into another world-class metamorphic-hostedAu terrain. Meanwhile,juniors continued further diversificationinto silver and uranium, reflecting amarket appetite for these.ARMENIAIberian Resources’ scoping study forLichkvaz Au (8.86 Mt at 3.78 g/t Au,23.9 g/t Ag, 0.31% Cu) confirms apotential low cash-cost producer (totalcash operating costs of approximatelyUS$200/oz Au equiv). Initial stage-onecapital cost is approximately US$4 M.Preliminary financial assessment indicatesthe project will be cash flow positivein the 4th quarter of 2006.BULGARIAThanks to their dogged persistenceagainst the forces of evil to derail theirwork, EurOmax Resources Ltd. willresume exploration activities on itsPetelevo high-sulfidation Au target onPopintzi license as soon as possible,since the injunction restraining theCompany from exploring was terminatedon March 3, 2006.Teck Cominco and Euromax initiatedan agreement wherein Teck mayearn up to 70% interest in Euromax’sgranitoid-hosted Trun Au targets (BigHill and K prospects). Previous Euromaxwork returned trenches with up to 40 mat 4.3 g Au and 257 g Ag, and drillintercepts with up to 108 m at 0.8 g Auand 18 m 1g Au with 163 g Ag.The Supreme Environmental Councilof Bulgaria voted in favor of a resolutionto approve Dundee PreciousMetals Environmental ImpactAssessment (“EIA”) for the ChelopechCuAu expansion project. Final approvalawaits signature of the Minister ofEnvironment and Water of the resolutionon or before March 15, 2006SE Europe Geoscience Foundation(SEEGF), completed a two-day epithermal-porphyryshort course by JeffHedenquist in January. SEEGF alsoawarded over $45,000 in 16 researchgrants to a broad range of geosciencestudents in five countries. If you are notcurrently involved in this excellent effortat supporting young geoscientists, pleaseconsider doing so—it is remarkablyeffective support of student work largelyon behalf of the mining community.Cambridge Minerals/Asia Goldreports a drill intersection of 9 m of 1.29g Au, 40 g Ag from a six-hole, 1293.3-mcore program at a newly recognized targetat the southern part of their TashlakaHill low-sulfidation epithermaltarget, Rhodopes mountains. Interceptsof chalcedonic and brecciated amethystinequartz, not seen hitherto at Tashlaka,contains high Ag/Au ratio which Cambridgeinterprets as potential above-oremineralization. Adjacent holes hit lowgrademineralization including 11.0 mat 0.46 g Au, 12 g Ag. Asia Gold hasspent $1.14 M to date on the project.CYPRUSEastern Mediterranean drilled theNorth Alestos, Kilrou and South PanoKoutrafas Cu-Zn prospects; best resultswere at North Alestos, where holes partiallytested deep EMand IP targets within to page 34 ...EXPLORATION REVIEWSMINERALS EXPLORATION &ENVIRONMENTAL GEOCHEMISTRYAdvanced survey, analytical and interpretational methodsfor exploration through exotic overburden.Plant • Soil • Gas • Rock • StandardsSpecialty Sample PreparationP.O. Box 18325, Reno, Nevada 89511Tel: 775-849-2235 • Fax: 775-849-2335SheaClarkSmith@compuserve.comPAID ADVERTISEMENTRecursos del Caribe, S.A.Contract Mineral Exploration in CentralAmerica and the Caribbean BasinCarl E. Nelson, PresidentTel: 303-939-9517 • www.CBMap.netPAID ADVERTISEMENT

34 SEG NEWSLETTER No 65 • APRIL 2006... from 33Exploration Reviews (Continued)EXPLORATION REVIEWSa magnetic low. All holes intersected~150 m of chlorite-altered, sulfidic pillowlavas apparently typical of peripheryof Cyprus-style copper deposits, andcontained up to 4.0 m at 0.4% Cu, 0.2%Zn; drilling has thus established Cubearing,strong alteration over 1 km atNorth Alestos. Eastern Mediteraneanexpects the alteration system to extendfurther under cover, thus making itlarge enough to host several 10 Mt copperpods that they seek.SPAINCambridge Minerals acquired the MasaValverde massive sulfide deposit which,by their own preliminary resource modeling,contains inferred resources at 0.5%cutoff, of ~80 Mt 0.76% Cu 0.38% Pb1.28% Zn 22.4 g Ag and 0.43 g Au. MasaValverde was discovered by Penarroya-ADARO, the former Spanish state-ownedconsortium, by drilling a 1,000 × 850 mgravity anomaly.Despite recent high-grade Au drillintersections from “Area 107” located~250 m from its existing undergroundworkings, Rio Narcea will close the ElValle/Carles Au operations in 2006,partially as a result of the Asturiasregion’s August 2005 rejection of their“change of land use” applicationrequired to develop the intrusion-hostedSalave Au project, some 70 km distant.Salave concentrates were intended forprocessing at El Valle.Eurozinc announces that surfacedrilling (2,170 m/6 holes) extended theNeves orebody 190 m westward, withintersections of up to 9.5 m (true) ofmassive sulfides, including 5.1 m 2.08%Cu, 2.44% Pb and 5.82% Zn. Averagethickness of massive sulfide in therecent drilling is 12.2 m. These and previousresults substantially extend thedeposit over a 1 km strike length.Updated reserves/resources at NevesCorvo total 16.81 Mt of 5.47% (provenand probable) Cu ore; 10.6 Mt of 7.86%Zn (probable) as Zn ore; total resources(measured and indicated) are 18.67 Mtof 5.97% Cu, 0.26% Pb, 1.1% Zn; andindicated Zn resources are 24.1 Mt at0.41% Cu, 1.4%Pb, 5.5% Zn, 62.05g Ag.TURKEYAnatolian Mineral-RT joint venturereported encouraging preliminaryflotation tests on supergene-enriched Cu(Au-Mo) mineralization at theKizilviran porphyry, with recoveries of95% Cu, 92% contained Au and80–85% Mo. The exploration communityawaits news of a resource numberon this interesting deposit, which likelyrepresents Turkey’s largest porphyryCu(AuMo) discovery to date, as well asindication whether it will be developedby RT. Meanwhile, feasibility study forAnatolia’s 1.8-Moz Çöpler oxide Auresource was on track for completion bythe end of the first quarter 2006; thestudy contemplates a 5,000 tpd milland a 10,000 tpd heap leach, generatingin excess of 150,000 oz Au per year.Odyssey Resources embarked on a100-hole/2,800 m RVC drill program on100-m grid at its Tavsan epithermal Autarget. The program will cover a 3-kmstrike length from the Sivri zone in thesouth, north to the End zone in thenorth. Much of the large shallow-dippingslab of gold-bearing jasperoid atTavsan has never been drilled.Ariana Resources discovered Aubearingepithermal quartz floatcontaining 2.2–6.1g Au on theirCinarpinar license, western Turkey.Rock chip samples at Kösedere returnedup to 0.19% Cu and 0.25% Zn. Arianacontinues to report encouraging channelsamples at their low-sulfidationKepez Au vein target in BalikesirProvince, western Turkey. All five channelsamples intersecting significantmineralization including 8.68 g/t Auover 16 m and 6.28 g/t Au over 11 m;one of which ended in >8 g/t Au at eachend. The KV vein at Kepez has nowbeen mapped for 475 m and remainsopen along the strike. Evaluation of anASTER target, located 0.5 km south ofKV, was scheduled to resume in April.Channels spaced at 40-m intervalsalong 240-m of strike at the Arzu,Kepez, intersected from 1.25 g/t over17.5 m to 2.12 g/t over 12.0 m; the systemis open in all directions and severaltrenches terminated in mineralization.Vein textures and trace elements indicatethe upper part of an epithermalsystem and, supported by historic drilldata, gold grades are expected toincrease with depthEuropean Nickel (ENickel) reportedthat pilot recoveries at its Çaldag projectreached 73.2% Ni and 75.8% Co,exceeding planned recoveries of 70%used in the feasibility study announcedin November.Eurasian Minerals reports weakAu(Cu) intersections in 4 core holes/520m from Barrick’s second drill phase atthe Sissorta high-sulfidation Au target,northern Turkey, best of which was 33.7m of 0.47g Au, as well as intervals of~200 to 400 ppm Cu, downdip andalong strike of previous intervals containingsomewhat higher grades.Barrick has terminated its potentialearn-in on Sissorta.Eldorado Gold continues to reportisolated encouraging drill intervals ofup to 144.9 m at 0.75 g Au and 0.81%Cu within a cluster of lower-grade adjacentdrill intervals (~0.1–2 g Au and0.1–0.3% Cu) at its 50% joint ventureAS porphyry CuAu target, westernTurkey. Eldorado’s aggressive 2006 programof $6 M and 25,000 m drillingsuggests there may be more here thanmeets the eye.ROMANIACarpathian Gold Inc. reports encouragingintersections in both holes drilledinto quartz-magnetite stockworkedmicrodiorite at the previously identifiedColnic Au(Cu) porphyry on its Rovinalicense including 244.5 0.86 g Au and0.13% Cu in angle hole RCD-1; bothholes bottomed in mineralization.Carpathian will expand on theseresults. Carpathian also intersected of2.5 m at 2.83 g Au and 63.7 g Ag in calcareoussediments at 25 m below surfaceon the Carbunari-Stinapariprospect, Oravita License.European Goldfields signed a JV withGeneral Samara whereby they can earn80% of the Magura Tebii Au target bytaking the project to full feasibility.Magura Tebii hosts phreato-magmatic,hydrothermally altered polymictic brecciawithin neogene quartz-amphiboleandesites, containing NW-striking quartzveins and quartz andesite dikes. Historicworkings indicate a ~800 × 300 m zone,where several trenches on 80 m spacingsshow from 9 m at 2.9 g Au to 55 m at2.8 g Au. Deva Gold S.A. grab samplingconfirms grades of 2 to 5 g Au. AtPitigus Au, 7 km from EuropeanGoldfield’s Certej Au deposit, gold occursin a north striking quartz-calcite-baritevein system with several associatedsplays and adjacent potassic/argillicaltered andesites between the veins, overa strike of 300 m with an average truewidth of 12 m. Drilling on ~80 × 30 m

APRIL 2006 • No 65 SEG NEWSLETTER 35grid returned from 1 m at 1.1 g Au to 23m 2.8 g Au 3 g Ag. At Hondol Carol,0.5 km from Certej, diamond drilling on20 × 30 m grid works to define an openpittable resource; mineralization ishosted in three crosscutting quartzbaritevein systems and in potassicallyaltered andesites.Gabriel Resources reports positivedevelopments at Rosia Montana Auand has launched a concerted mediacampaign on the merits of Europe’slargest potential new open-pit metalmine, a porphyry deposit in scale if notin geology. Gabriel reports that reservesare expected to decline by approximately5%, primarily as a result ofexpanding the buffer zone around theprotected area (reducing the size ofthree of the four pits), as well as a moreconservative estimating method. TheirEIA was on track for completion at endof 1 st quarter 2006 and constructionpermits are expected in 2 nd half 2006,with first gold pour expected in spring2009. Successful start-up of this minewould be a historic milestone for a newgeneration of mining in Europe.UKRAINEEurogold reports that the first five of its94-hole underground confirmation andresource expansion drill program showearly signs of confirming the 578,000-ozAu resource (categories C1+C2 by Sovietsystem) defined historically at Saulyak.Intercepts to date, including 8.82 m at7.88 g Au and 7.08 m at 5.58 g Au, sofar confirm previous results.SERBIA-MONTENEGROEurasian Mineral’s delineated a coherentAu soil anomaly with 0.03 g to0.328 g Au at their Bukovic high-sulfidationAu target, Plavkovo license; systematicrock samples within thisanomaly contain 0.005 to 1.74 g Auand average 0.267 g, with a high of 8 m0.62 g Au. At the adjacent Plavkovotarget, located 2700 m NE of Bukovik,chip sampling along 360 m strike acrossa 150-m, east-west striking zone ofquartz-sulfide veinlets returned up to 8m 1.41 g Au and 26.7 m 0.37 g Au,including 16.2 m of 0.21% Cu; the“gypsum zone” located ~400 m eastyielded 14.2 m 0.58 g Au, suggestingpossible a potential mineralized strikeof 800 m if the two zones are connected.At Eurasian Mineral’s Gradiste target,a 200-m soil grid defines a centralzone 2,500 × 500 m containing 100 to450 ppm Cu, flanked by a peripheralAu soil anomaly with 0.036 to 0.489 gAu including an isolated sample with8.66 g Au; outcrops within the zonecontain up to 6 m at 0.56% Cu and0.482 g; mineralization occurs asquartz-carbonate veins and veinlets, aswell as CuBiAuAg veins similar to theabandoned Aldin Do mine nearby.Float samples in the Miljanina Cukaarea averaged 10.8 g Au 0.32% Cu witha maximum of 55 g gold.SLOVAKIATournigan drilled 3 holes/1,500 m attheir Jahodná U-Mo target to confirmresults from 53 preexisting holes. Bestintervals include 0.9 m of 10.33% U 3 O 8and 1.13% Mo. According to previousexploration, Jahodná hosts a resourceof 19 Mlb U 3 O 8 and 19 Mlb Mo at0.39% U 3 O 8 and 0.38% Mo, hosted byquartz-carbonate stockwork zone 500 malong strike, 500 m down dip, and 2.54m thick, in Permian volcanic-sedimentaryrocks. The top of the potentiallyunderground-minable resource blockbegins approximately 150 m below surface.Eastern Mediterranean Resoucesseeks bedrock source of historical placerdeposits Zlatníky Au, and announcedanomalous stream sediments including0.226 g and 0.183 g Au; float veinquartz from a third adjacent streamassayed 3.9 g Au.FINLANDAgnico-Eagle upgraded confidence levelsat Suurikuusikko Au to 2.3 Moz ofprobable reserves (13.8 Mt at 5.3 g Au);measured and indicated resources are1.9 Mt at 4.2 g Au for 252,000 oz Au;inferred resources are 6.7 Mt 4.4 g Au or934,000 oz Au. A feasibility study nearingcompletion contemplates 3,000 tpdinitially from open pit and transitioningto underground; capital expendituresare estimated at ~$170 M.Taranis Resources, joint venturedwith Royal Gold Inc., continueddrilling on Kettukuusikko Au prospect.Northland plans a next phase ofdiamond drilling at Barsele Au as soonas permits are obtained and drill rigsare available. Highlights at Barseleinclude 178 m @ 1.26 g Au. EuropeanDiamonds began first stage processingof 500 t of kimberlite from theLahtojoki pipe, southern Finland, atthe Geological Survey of Finland’s diamondfacility at Outokumpu. SunriseDiamonds reports a further kimberlitediscovery as a result of follow-updrilling of a geophysical anomaly some200 m away from of the Anomaly 45kimberlite at Kuusamo; 4.4 m of kimberlitehosted in granite was intersectedat a down-hole depth of 12.2 m.SWEDENMawson Resources Ltd will drill fiveAu targets in Sweden, including a 150-hole, ~1,500 m “peek hole” bedrockprogram at Middagsberget North,where the company discovered bonanzagrade Au in surface boulders during2005; the large angular boulders containedfrom 0.01 g Au to 60.8 g Au,averaging 6 g Au. The drilling programwill attempt to locate the bouldersource. At Vargbäcken Au, RC drillingwill test a new soil Au anomaly located600 m to the north east of main mineralizedbody, associated with a goldbearingdiorite. Mawson added to itsexisting uranium portfolio at Flitsjarn,with acquisition of uranium targets atDuoblonn, Klappibacken, and Tasjo.Mawson’s Angesdal Au project lies onthe southern “gold line” and a 75-holebedrock drill program is planned to testmagnetic anomalies located 7 kmalong strike from Lappland Goldminers’1.9 Moz Fäboliden gold project, currentlyunder prefeasibility.Tumi Resources Ltd is aggressivelyacquiring Ag and Ag-polymetallic targetsin the Bergslagen district. 1SEG DECEASED MEMBERSFOR 2005G. Christian Amstutz (SF 55)Amado Anda (M 99)Ross L. Andrew (F 94)Edward M. Bennett (LF 63)David F. Blight (F 89)Johannes J. Brummer (SF 54)Stanton W. Caddey (F 85)Keith B. Duguid (F 04)Alaster C. Edwards (M 79)Christopher B. Gillette (M 98)Tsu-Ming Han (SF 60)William P. Johnston (SF 51)Richard A. Keele (M 04)Colin D. McLachlan (M 03)Horacio A. Magliola-Mundet (F 78)James J. Norton (SF 52)EXPLORATION REVIEWS

36 SEG NEWSLETTER No 65 • APRIL 2006GOLD DEPOSITS: NEW DEVELOPMENTS AND EXPLORATION (SEG workshop)The Society of Economic Geologists is offering its very successful Gold Deposit Workshop as a two-day course to be heldin Antofagasta, Chile after the XI Chilean Geological Congress. This course will be given in English and is similar tothose previously held in Beijing and Moscow. Speakers will include Richard Goldfarb (USGS) - Orogenic Gold Deposits,Noel White (consultant, Brisbane) - Epithermal Gold Deposits, Craig Hart (Yukon Geological Survey and Centre forExploration Targeting, University of Western Australia) - Intrusion-related Gold Deposits and Steve Garwin (ex-Newmont, now part of Geoinformatics Exploration, Perth) - Carlin-type Gold Deposits. Materials presented will be richin geological descriptions of some of the world’s best examples of these deposit types, and include sections on tectonicandstructural-settings, geochemical and geophysical signatures and exploration methods.This workshop will be of interest to all geologists, particularly those involved in gold exploration. Those interested inattending the workshop should contact Steve Garwin in order to ensure a place.DATE & PLACE: 12-13 August, 2006, in Antofagasta, ChileSPEAKERS: Richard Goldfarb, Noel White, Craig Hart and Steve Garwin (in English).ENROLLMENT: professionals and studentsFEES: Early registration (prior to 16 June) – 300 USD for industry, 180 USD for academic staff and 50 USD for students.Late registration (after 16 June) – 375 USD for industry, 225 USD for academic staff and 65 USD for students.SEG members receive a discount of 80 USD for professionals and 25 USD for students.Professionals wishing to receive the discounted fee may submit an application to join the SEG along with the courseregistration payment or apply in person on the first day of the course. For those students who are not already membersof the SEG, the course registration fee will include a one-year SEG membership.STUDENT TRAVEL SUBSIDY: South American students who wish to attend the course and are in need of assistance withtravel / accommodation costs should contact Steve Garwin.SPONSORS TO DATE (ADDITIONAL CONTRIBUTIONS WELCOME): AngloAmerican – Chile, AngloGold Ashanti – Colombia,Barrick – Chile, Coeur d’Alene – Chile, Goldfields – Chile, Hochschild – Peru, Newcrest – South America; Teck-Cominco –Chile, and the SEG FoundationCONTACT: Steve Garwin (steve.garwin@geoinformex.com).REGISTRATION: Download form at: .Pre-Congress WorkshopANNOUNCEMENTSXI CONGRESOGEOLOGICO CHILENOAugust, 7–11, 2006 — Antofagasta, ChileAntofagasta, situated in the heart of the northernChilean copper province, is hosting the XI CongresoGeológico Chileno.The Departamento de Ciencias Geológicas of theUniversidad Católica del Norte, invites you to thisinternational event and encourages you to present yourresearch papers to the geological community.Several symposia and thematic sessions on topicshighly relevant to South American metallogeny as wellas intra-meeting field-trips to the mines of Escondida,Chuquicamata and El Peñon are planned.CONTACT:Secretaría Ejecutiva, XI Congreso Geológico Chileno 2006,Av. Angamos 0610, Antofagasta Chilee-Mail: congreso2006@ucn.cl – www.congresogeologico2006.clEnvironmental Geology andGeochemistry of Mine WastesThis workshop will take place from August 4thuntil 6th in Copiapó, Chile, and includes a fieldvisit to the Chañaral area. The activity is coordinatedwith the XI Congreso Geológico Chileno andis designed for professional geologists, advancedlevel students as well as mining engineers and metallurgistsinterested in the environmental aspects ofmine wastes. The course will be concentrated ongeochemical and geomicrobiological processes, aswell as recognition and remediation of sources ofcontamination. The course will be taught inSpanish by Dr. Bernhard Dold, University ofLausanne, Switzerland. Registration is open untilMay 31, 2006. Cost for professionals: 230'000Pesos Chilenos (~ 435$ US) a limited number ofstudents will be admitted free of charge.CONTACT: Thomas Bissig, tbissig@ucn.cl;B. Dold, bernhard.dold@unil.ch.Further information and preliminary programavailable on: http://www.congresogeologico2006.cl/?topshow=cursogeologia

APRIL 2006 • No 65 SEG NEWSLETTER 37NORTHWEST MINING ASSOCIATION TAKES ITS 112THANNUAL MEETING, EXPOSITION & SHORT COURSESTO RENO ...DECEMBER 4 - 8, 2006JOHN ASCUAGA’S NUGGET H OTEL & CASINO RESORTSPARKS, NEVADASHORT COURSES INCLUDEUranium ◆◆ Using Remote Sensing Effectively for Exploration ◆◆U.S. Forest Service Permitting Case StudiesMINERAL DEPOSITS, GEOLOGY AND E XPLORATION SESSIONSSEG’s Session ◆◆ State & Province Reports ◆◆ Geology and Exploration in theCortez Hills/Battle Mountain - Eureka Mineral Belt ◆◆ Alaska Projects MovingToward Development ◆◆ New and Re-discoveries ◆◆ Large Left Lateral Leaps◆◆ Nevada Exploration Update: New Successes & Significant Developments◆◆ Re-Discoveries and New Ideas ◆◆ Tungsten & Molybdenum ◆◆Diamonds & Other Precious Stones ◆◆ Industrial MineralsBUSINESS AND F INANCE SESSIONSEducation & Workforce Issues ◆◆ Growth Companies ◆◆Mineral DevelopmentOPERATIONS SESSIONSCanadian Juniors Doing Business in the U.S. ◆◆ Health and Safety ◆◆Metallurgy ◆◆ New Technologies ◆◆ Underground MiningLEGISLATIVE & PUBLIC AFFAIRS SESSIONSSustainable Development ◆◆ Nevada Issues ◆◆ Legislative & Regulatory AffairsENVIRONMENTAL SESSIONSReclamation Successes ◆◆ Restoration of Abandoned MinesFor more information contact NWMAPhone: (509) 624-1158 Fax: (509) 623-1241Email: pheywood@nwma.org Web: nwma@nwma.orgThe best selling Economic Geology100 th AnniversaryVolume celebrates thecentenary of the journal.The volume has threeparts: Earth environmentsand processes, ore deposittypes, and regionalmetallogeny. Its goal isto meet the needs andinterests of economicgeologists in industry,government, andacademia, both professionaland student, forconcise and up-to-dateoverview papers that provide asynthesis of important topics in economic geology.Editors: Jeffrey W. Hedenquist, John F.H. Thompson,Richard J. Goldfarb, and Jeremy P. RichardsSociety of Economic GeologistsHard cover, 1146 pages95 color platesCD-ROM with supplemental materialPrice: $100 (members, $80)Online Bookstore: UNESCO-SEG-SGA LatinAmerican Metallogeny CourseAntofagasta, Chile –June 6–16, 2006This year the course is devoted toMetallogeny of Magmato-Hydrothermal ProcessesPAID ADVERTISEMENT303.403.8383 pusa@rmi.netwww.specmin.comInstructors:Dr. Fernando Barra, University of Arizona, Tucson, USADr. Thomas Bissig, Universidad Católica del Norte, ChileDr. Eduardo Campos, Universidad de Concepción, ChileDr. Larryn Diamond, University of Bern, SwitzerlandDr. Lluís Fontboté, University of Geneva, SwitzerlandDr. Diego Morata, Universidad de Chile, ChileDr. Richard Tosdal, MDRU, University of British Columbia, CanadaDr. Fernando Tornos, IGME, Spain (International AcademicCoordinator)For information contact:Dr. Thomas Bissig,Universidad Católica del Norte, Depto. Ciencias GeológicasAv. Angamos 0610, Antofagasta, ChileTel. + 56 55 355 968 (o directo:...234), Fax. +56 55 355 977E-mail: tbissig@ucn.clWebsite: ANNOUNCEMENTS

38 SEG NEWSLETTER No 65 • APRIL 200612th Quadrennial IAGOD SymposiumMoscow, 21-24 August 2006International Association on the Genesis of Ore Deposits (IAGOD)Society of Economic Geologists (SEG)Society for Geology Applied to Mineral Deposits (SGA)Department of Earth Sciences, Russian Academy of SciencesFederal Agency of Mineral Resources,Ministry of Natural Resources of the Russian FederationMoscow State UniversityThe 12th Quadrennial IAGOD Symposium - 2006 “UNDERSTANDING THE GENE-SIS OF ORE DEPOSITS to meet the demands of the 21st Century” is devotedto bringing together professionals in different fields of economic geology,geochemistry and mineralogy: academic researchers and experts, students,and mining and exploration company personnel. Join us in Moscow to shareunderstanding and to define common goals for today and the future!SEG 2006 International Exchange Lecturer Keynote SpeakerDouglas J. Kirwin (SEG 1997 F)Website: CALL FOR PAPERS —ABSTRACT DEADLINE:JULY 11, 2006SEG at GSAAnnual MeetingPhiladelphia, PennsylvaniaOctober 22–25, 2006Topical Session T26:“Experimental Investigations intoHydrothermal Systems: Implicationsfor Mass Transfer in the Earth’sCrust” Coordinated by Brian Rusk(bgrusk@usgs.gov) and JohnKaszuba (jkaszuba@lanl.gov)Topical Session T43:“Addressing Present and FutureEnergy, Mineral, and Water Issuesin the Classroom: The Need toPrepare Both Educated Citizensand Geoscientists” Coordinated byAndy Buddington (abuddington@scc.spokane.edu) and Eric Cheney(vaalbara@u.washington.edu)For Meeting Information contact:John F. Slack, U.S. GeologicalSurvey, National Center, MS 954,Reston, VA 20192Tel: 703-648-6337,Fax: 703-648-6383,E-mail: jfslack@usgs.govANNOUNCEMENTS→ Note that no SEGSymposium, Luncheon,Field Trips, or Businessmeetings will be heldduring this meeting

APRIL 2006 • No 65 SEG NEWSLETTER 39SEG MEMBERSHIP NEWSCANDIDATES FOR 1 FELLOWSHIPTo All SEG Fellows:Pursuant to the Society’s Bylaws, names of the following candidates, who have been recommended for Fellowship by the AdmissionsCommittee, are submitted for your consideration. Each applicant’s name and current position are followed by the names of their SEGsponsors. If you have any comments, favorable or unfavorable, on any candidate, you should send them, in writing before June15, 2006. If no objections are received by that date, these candidates will be presented to Council for approval.Address Comments To:Chair, SEG Admissions CommitteeSOCIETY OF ECONOMIC GEOLOGISTS • 7811 Shaffer Parkway • Littleton, CO 80127 • USAHenckel, Johannes, Placer Dome Exploration (Africa Eurasia)Ltd., Bedfordview, South Africa; Andrew A. Mitchell,R. N. Scoon;Krcmarov, Rob L., Barrick Gold, Toronto, ON, Canada:John A. S. Dow, Brian G. Hoal;McCuaig, T. Campbell, University of Western Australia,Crawley, WA, Australia: David I. Groves, Richard J.Goldfarb;McDonald, Dean W., Committee Bay Resources, Ltd.,Vancouver, BC, Canada: R. W. Hodder, Norman A. Duke;Mercier-Langevin, Patrick, Agnico-Eagle Mines Ltd., Val d’Or,QC, Canada: Mark D. Hannington, Benoit Dubé;Neff-Kirkpatrick, Linda M., Economic Geology Consulting,Fort Collins, CO: Tommy B. Thompson, Brian G. Hoal;Robinson, Michelle, Minera Camargo SA de CV, Mazatlan,Mexico: Colin I. Godwin, Alastair J. Sinclair;Salfity, Jose A., CONICET, Salta, Argentina: Peter J. Wormald,Ricardo N. Alonso;Scott, Michael J., MSA Projects Pty. Ltd., Craighall Park,South Africa: Laurence J. Robb, Morris J. Viljoen;Tămaş, Călin-Gabriel G., Babeş-Bolyai University, Cluj-Napoca,Cluj, Romania: Gary V. O’Connor, Jeffrey W. Hedenquist;Theart, Hendrik F. J., University of Pretoria, Pretoria,South Africa: A. M. Killick, R. P. Viljoen.The Society WelcomesThe FollowingNEW1FELLOWS:Canon, III, R. Travis, Rangsit, Thailand:Cassidy, Kevin F., Geoscience Australia,East Perth, WA, Australia; Conway, ClayM., Gaeaorama, Inc., Blanding, UT;Eggleston, Ted L., Consulting Geologist,Hillside, CO; Eppinger, Robert G., U.S.Geological Survey, Denver, CO; Farrell,Clifton W., Nuclear Energy Institute,Washington, DC; Hoal, Karin O.,Colorado School of Mines, Golden, CO;Huston, David L., Geoscience Australia,Canberra, ACT, Australia; Juras, StephenJ., Eldorado Gold Corporation, Vancouver,BC, Canada; Lorge, David L., GeologicConsultant, Fernley, NV; Marschik,Robert, Ludwig-Maximilians-University,Munich, Germany; Morritt, Robin F. C.,Morritt Pty Ltd., Nedlands, WA, Australia.The Society WelcomesThe FollowingNEW1MEMBERS:Borohul Adiya, Ivanhoe Mines Mongolia,Inc., Ulaanbaatab, Mongolia; Dani J.Alldrick, British Columbia GeologicalSurvey, Saanichton, BC, Canada; Gavin S.Andrews, Harmony Gold Perú, Lima,Perú; Irvine R. Annesley, SaskatchewanResearch Council, Saskatoon, SK, Canada;Jose Francisco Arata, MedOro ResourcesLtd., Toronto, ON, Canada; Jorge Artal,Antofagasta Minerals S.A., Santiago,Chile; Munkhbat Baatar, Ivanhoe MinesMongolia Inc., Ulaanbaatar, Mongolia;Darcy E. L. Baker, Equity EngineeringLtd., Vancouver, BC, Canada; Douglas B.Barnett, Battelle, Prosser, WA; Colin T.Barnett, Boulder, CO; Charles Beaudry,Falconbridge Limited, Toronto, ON,Canada; Enrique R. Bernuy, CIA MineraOro Candente S.A., Lima, Perú; WarwickS. Board, Snowden Mining IndustryConsultants, Inc., Vancouver, BC,Canada; Maeve A. Boland, Golden, CO;Alex J. Boronowski, North Vancouver,BC, Canada; Jason R. Bressler, PathfinderMineral Services, LLC., Anchorage, AK;Daniel T. Brost, BHP Billiton, Tucson, AZ;Andrew Browne, GeoSynthesis Pty. Ltd.,Toowong, Australia; Michael D.Buchanan, Anglo American Exploration(Canada) Ltd., Vancouver, BC, Canada;Robert Cann, Entrée Gold, Inc.,Vancouver, BC, Canada; Garry J.Carlson, Gradient Geology andGeophysics, Missoula, MT; John A.Chapman, J. A. Chapman MiningServices, Surrey, BC, Canada; William J.Charter, Kilmacolm, Scotland; Brian J.Christie, National Bank Financial,Toronto, ON, Canada; Juan A. Coetzee,Placer Dome S.A. Pty. Ltd., Pretoria(Doornpoort), South Africa; FabrizioColombo, Vancouver, BC, Canada; BrentK. Cook, Solana Beach, CA; RichardCote, Ville Lasalle, QC, Canada; RobertA. Creaser, University of Alberta,Edmonton, AB, Canada; William J.Cronk, Dundee Precious Metals, Argonne,WI; Michel L. Cuney, CNRS - UHP -Nancy I, Vandoeuvre les Nancy, France;Barry Dawes, Martin Place Securities Pty.Ltd., Sydney, Australia; Mel De Quadros,Ymir Consulting, Toronto, ON, Canada;Charles F. Dearin, South Coast Ventures,Inc., St. John’s, NL, Canada; Ed Dewitt,US Geological Survey, Denver, CO;Dominique Doucet, Sirios Resources, Inc.,St. Bruno de Montarville, QC, Canada;Russell J. Dow, Newcrest Mining Limited,East Perth, WA, Australia; Buddy J. Doyle,Lithosphere Services, Inc., Burnaby, BC,Canada; Charl P. Du Plessis, AngloGoldAshanti Limited, Johannesburg, Gauteng,South Africa; Paul B. Dunham, NewcrestMining Ltd., South Orange, NSW, Australia;Peter W. Edwards, Zinifex Ltd., Melbourne,VIC, Australia; Eddy O. Escalante, PanAmerican Silver Corporation, La Paz,Bolivia; Edward D. Fields, Silverfields,Inc., Idaho City, ID; Marco L. Fiorentini,Centre for Exploration Targeting, Crawley,WA, Australia; Eugene T. Flood, NorthVancouver, BC, Canada; Fess Foster,Consultant, Whitehall, MT; John R. Fraser,Fraser Geological Services, Inc., NorthVancouver, BC, Canada; Andrew T.French, Richmond, BC, Canada; HubertB. Gamarra, Minera Antores Perú S.A.,Arequipa, Perú; Michael B. Gareau,Burlington, ON, Canada; Gary H. Giroux,Giroux Consultants Ltd., Vancouver, BC,Canada; John W. Glasscock, CowboyExploration & Development, Jelm, WY;Raymond Goldie, Salman Partners Inc.,Toronto, ON, Canada; Tony Green,Mississauga, ON, Canada; David M.Greenan, Homeland Uranium Inc., Cortez,CO; Jennifer M. Gressier, Gold FieldsCampamento, El Callao, Bolivar, Venezuela;Nutu D. Groza, Rosia MontanaGold Corporation, Rosia Montana, Alba,Romania; William S. Hamilton, W. S.Hamilton GeologicalConsulting Ltd.,to pageToronto, ON, Canada; 40 ...MEMBERSHIP

40 SEG NEWSLETTER No 65 • APRIL 2006... from 39SEG Membership News (Continued)MEMBERSHIPR. E. Harmer, African Platinum PLC,London, Great Britain; Brent Hemingway,Salient Resources, Surrey, BC, Canada;Thomas A. Henricksen, NorsemontMining, Inc., Spokane, WA; John B. Hite,Marifil Mines Ltd., Spokane, WA; WolfgangHofmeister, Johannes-GutenbergUniversity, Mainz, Germany; Mark P.Holdstock, Aurum Exploration Ltd., Navan,Ireland; Yeny Ingaruca, CorporacionMinera San Manuel S.A., Lima, Perú;Jeffrey A. Jaacks, Geochemical ApplicationsIntl. Inc., Centennial, CO; DorjsurenJavkhlanbold, Mineral Resources andPetroleum Authority of Mongolia,Ulaanbaatar, Mongolia; Robert J.Johansing, San Salvador, El Salvador;Robert J. Johnston, Mincord Exploration,Vancouver, BC, Canada; Kathryn P.Kavanagh, Metalleia Exploration CC,Rivonia, South Africa; Thomas R. Kilbey,Newcrest Resources Inc., Sparks, NV; UgurKiziltepe, Teck Cominco Arama vaMadencilik San Tic A.S., Ankara, Turkey;Roger Lainé, Laval, QC, Canada; JustinM. Legg, Falconbridge Ltd., Toowong, QLD,Australia; Sikhonangenkosi D. Lembede,Placer Dome Exploration, Isipingo, KZN,South Africa; Eugenia Lermanda Arias,Servitem, Santiago, Chile; Tom A. Less,Mining Journal, London, Great Britain;Don W. T. Lewis, Oregon Dept. ofGeology & Mineral Industries, West Linn,OR; Paul A. MacRobbie, Teck ComincoAmerican Inc., Spokane, WA; Timothy M.Marsh, Bell Resources Corporation, Mesa,AZ; Manuel E. Martinez, C. M. QuebradaBlanca, Iquique, Chile; Mashudu M.Mashau, Placer Dome Exploration,Polokwane, Limpopo, South Africa;Richard H. Mazzuccheli, Searchtech Pty.Ltd., Kalamunda, WA, Australia; Tracy L.McCrum-Jensen, Queenstake ResourcesUSA, Elko, NV; Clifton T. McGilvray,Arafura Resources, Darwin, NT, Australia;Bruno R Medrano, Minera BarrickMisquichilca S.A., Lima, Perú; Andrew L.Mellgard, Goldman Sachs & Co., London,Great Britain; David G. Mooney, PGE GeoConsulting Ltd., Broederstroom, SouthAfrica; Brice Mutton, Mining AssociatesPty. Ltd., Brisbane, Australia; Trent T.Newkirk, Newmont Mining Corporation,Carlin, NV; Ron Nichols, Santoy ResourcesLtd., Vancouver, BC, Canada; John A.Nicholson, Starfield Resources Inc.,Vancouver, BC, Canada; David G. Nixon,Gosnells, WA, Australia; Michael J.Nugus, Anglo Gold Ashanti, Perth, WA,Australia; Pekka A. Nurmi, GeologicalSurvey Finland, Espoo, Finland; Sean J.O’Brien, Geological Survey, St. John’s, NL,Canada; Olufemi Ogedengbe, GeologicalSurvey of Nigeria Agency, Abuja, Nigeria;Rodney Orr, Golden Band Resources Inc.,Saskatoon, SK, Canada; Morou F.Ouedraogo, Goldbelt Resources (WestAfrica) SARL, Ouagadougou, Burkina Faso;Juan J. Pascual, Cia Minera Oro CandenteS.A., Lima, Perú; Thomas J. Peters, ConsultingGeologist, Elk, WA; David W. Philip,D. W. Philip Mining Services, NorthVancouver, BC, Canada; Bianca Pietrass,Malachite Resources NL, Lindfield, NSW,Australia; Robert H. Pinsent, Vancouver,BC, Canada; Iain K. Pitcairn, Aberlady,Scotland; Simon C. Pollard, Placer DomeAustralia - Henty Mine, Queenstown, TAS,Australia; Jose S. Preciado, SheridanPlatinum Group Ltd., Saskatoon, SK,Canada; James D. Rasmussen, Riverton,WY; Laura B. Reed, Englewood, CO;Adrian J. Reynolds, Randgold Resources,Houghton, Gauteng, South Africa; AlbertoM. Rios, Aruntani SAC, Lima, Perú; StanleyD. Robinson, Lakota Resources Inc.,Downsview, ON, Canada; Erik C. Ronald,Rio Tinto Minerals, Centennial, CO; DeanM. Rossell, Kennecott Exploration Company,Oro Valley, AZ; Robert L. Russell,Idaho General Mines, Inc., Spokane, WA;Michael J. Savell, Falconbridge Limited,Toronto, ON, Canada; Mikkel P. Schau,Brentwood Bay, BC, Canada; KarlSchimann, Vancouver, BC, Canada; JoseR. Sereneo, Guyana Goldfields Inc.,Winnipeg, MB, Canada; John R. Simmonds,NYIICI P/L, Subiaco, WA, Australia; ErrolSmart, Mandorin Goldfields Inc., Sydney,Australia; Simon F. W. Smith, NewmontMining, Alice Springs, NT, Australia; XinyuSong, SRK Consulting, Beijing, China; JohnStanner, Rally Financial Group Ltd., LasCondes, Chile; Robert Stewart, IntegeosInc., Bedford, NS, Canada; James Sullivan,Moto Gold Mines, Perth, WA, Australia;Edward Summerhayes, KimberleyDiamond Company, Derby, WA, Australia;James W. Sweeney, Aurum ExplorationLtd., Dromore, Ireland; Dene J. Tarkyth,Bruce, AB, Canada; Rogeg G. Taylor,Rinkbowl Pty. Ltd., Townsville, QLD, Australia;Harvey Thorleifson, Minneapolis,MN; Hoover I. Torres Taipe, Perubar S.A.,Lima, Perú; Arthur G. Troup, Sultan Minerals,Inc., Vancouver, BC, Canada; KennethN. Tullar, Nevada Gold Exploration,Inc., Reno, NV; Geoffrey R. Turner,Exploration Management Services Pty.Ltd., Strathfieldsaye, VIC, Australia; GlenA. Van Kerkvoort, Dudgerim, Australia;Patricio Vazquez Calvo, Rio Tinto Miningand Exploration, Godoy Cruz, Mendoza,Argentina; Andrew J. Vigar, Mining AssociatesPty. Ltd., Brisbane, Australia; JohnA. Wakeford, Miramar Mining Corp.,North Vancouver, BC, Canada; Janus D.Westraat, Placer Dome Exploration Africa,Voelklip Hermanus, South Africa; MichelleWhite, Golden Star Resources Ltd., LakeGeorge, CO; Robert A. Yambrick, StrataGold Guyana Inc., Georgetown, NC, Guyana.The Society WelcomesThe FollowingNEW1STUDENT MEMBERS:Lina K. Alexandropoulou, University ofAthens, Athens, Greece; Shannon J.Andrew, University of British Columbia,Vancouver, BC, Canada; Akwinga V.Asaah, Technical University of Clausthal,Clausthal-Zellerfeld, Germany; Etienne K.Assie, Technical University of Clausthal,Clausthal-Zellerfeld, Germany;Baatartsogt Baldorj, University ofTubingen, Tubingen, Germany; Sheila M.Ballantyne, Dartmouth, NS, Canada;Eniko Bari, University of Miskolc,Tibzapalkonya, Hungary; MunkturBatbold, MUST School of Geology,Ulaanbaatar, Mongolia; BayarmaaBatdorj, MUST School of Geology,Ulaanbaatar, Mongolia; TsogtbadrakhBatsaikhan, MUST School of Geology,Ulaanbaatar, Mongolia; TankhildulamBayambajav, MUST School of Geology,Ulaanbaatar, Mongolia; BayanmunkhBayarjargal, MUST School of Geology,Ulaanbaatar, Mongolia; Elena A.Belyavtseva, Russian State GeologicalProspecting University, Moscow, Russia;Steve R. Beyer, Kingston, ON, Canada;Enkhjargal Boldbaatar, MUST School ofGeology, Ulaanbaatar, Mongolia; Todd A.Bonsall, Iowa State University, Ames, IA;Jeffrey D. Boyce, Finis Terre ExplorationLtd., Vancouver, BC, Canada; Kevin C.Butak, Southern Illinois University,Carbondale, IL; Vito Coppola, Dept.Geofisica Vulc., Napoli, Italy; AlanD’Hulst, Université Laval, Québec,Canada; Kleopatra Detsi, Athens, Greece;Melissa I. Dimeo, New Mexico Institute ofMining and Technology, Socorro, NM;Hamdy A. El Desouky, KatholiekeUniversiteit Leuven, Leuven, Heverlee,Belgium; Abraham M. Emond, Universityof Utah, Salt Lake City, UT; DandarEnkhbayar, MUST School of Geology,Ulaanbaatar, Mongolia; MolorErdenebat, MUST School of Geology,Ulaanbaatar, Mongolia; OdontuyaErdenebat, MUST School of Geology,Ulaanbaatar, Mongolia; Michael N.Feinstein, University of Texas, El Paso, TX;Matthieu Gagnon, University of Ottawa,Ottawa, ON, Canada; Eric Gloaguen,Université d’Orléans, Orléans, France;Belinda Godel, Université du Québec,Chicoutimi, QC, Canada; Malcolm R.Golban, Dunedin, New Zealand;Jargaljav Gombojav, MUST School ofGeology, Ulaanbaatar, Mongolia; AndrewM. Govert, Golden, CO; Daniel D.Gregory, University of British Columbia,Vancouver, BC, Canada; Tara D.Gunson, University of Alberta, Edmonton,AB, Canada; Shohreh Hassanpour,Karaj, Tehran, Iran; Matthew H.Hastings, Reno, NV; Patrick C. Hayman,Monash University School of Geosciences,Clayton, VIC, Australia; Daniel Hennig,Technische Universitat Clausthal,Clausthal-Zellerfeld, Germany; ThomasC. F. Herbort, ETH Zurich, Zurich,Switzerland; Mauricio Ibanez Mejia,Universidad Nacional de Colombia,Bogota, DC, Colombia; Paul C. Jago,MDRU, Vancouver,BC, Canada;to pageGantulga42 ...

APRIL 2006 • No 65 SEG NEWSLETTER 41SOCIETY OF ECONOMIC GEOLOGISTSMembership ApplicationSECTION I (TO BE COMPLETED BY APPLICANT)Personal Information: (TYPE OR PRINT)Membership in the Society is open to all geoscience graduates holding a bachelor’s degree. Student Membersmust be full-time students. Subscriptions to the journal, Economic Geology, and the quarterly SEG Newsletterare included in the membership. Applicants should submit this form with the appropriate sponsor signature to:Society of Economic Geologists, Inc., 7811 Shaffer Parkway, Littleton, Colorado 80127-3732, USAPhone: +1.720.981.7882; Fax +1.720.981.7874; E-mail: seg@segweb.orgMs / Mr / Dr ________________________________________________________________________________________________________ ______________________LAST NAME FIRST NAME MIDDLE INITIAL DATE OF BIRTH_______________________________________________________________________________________________________________________________COMPANY / INSTITUTIONMAILING ADDRESS_______________________________________________________________________________________________________________________________CITY STATE / PROVINCE POSTAL CODE COUNTRY_______________________________________________________________________________________________________________________________PHONE FAX E-MAILEducation: UNIVERSITY AND LOCATION YEARS (FROM – TO) DEGREE YEARHIGHEST DEGREE: ________________________________________________ __________________________________________________OTHER DEGREES : ________________________________________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Professional Experience: (LIST IN ORDER FROM MOST RECENT AT THE TOP)FROM (Month/Year) — TO (Month/Year) POSITION EMPLOYER_________________PRESENT _________________________________________________________________ ____________________________________________________________________________________ ______________________________________________________ __________________________________________________________________________ ______________________________________________________ ___________________________________________________________________________ ______________________________________________________ ______________________________________________SECTION II (TO BE COMPLETED BY THE SPONSOR WHO MUST BE A FELLOW OF THE SOCIETY)I sponsor the above-named individual for Membership Student MembershipTo the best of my knowledge the information provided by the applicant is correct._____________________________________________________________________________________________________________________________________________________________SPONSOR’S NAME (TYPE OR PRINT)E-M AIL ADDRESS OR TELEPHONE NUMBERFELLOW, SOCIETY OF ECONOMIC GEOLOGISTS________________________________________________________________________ HEAD, EARTH SCIENCE DEPARTMENTSIGNATURE DATE (FOR STUDENT SPON SORSHIPS)WHEN THE APPLICATION IS APPROVED, I AUTHORIZE THE SOCIETY OF ECONOMIC GEOLOGISTS TO CHARGE THE APPROPRIATEMEMBERSHIP DUES TO: __Visa __MasterCard __AmericanExpress __Discover US$_______________MEMBERSHIP_________________________________________________________________________________CARD NO. EXPIRATION DATEMEMBERSHIP CATEGORIES AND BENEFITS ARE DETAILED ON THE REVERSE SIDE -- PLEASE INDICATE YOUR SELECTIONSignature of Applicant_________________________________________________________________DATE_________________

42 SEG NEWSLETTER No 65 • APRIL 2006... from 40SEG Membership News (Continued)Jargalsaikhan, MUST School of Geology,Ulaanbaatar, Mongolia; Owen J. Jung,University of Alberta, Edmonton, AB,Canada; Georgios E. Kaisar, University ofAthens, Athens, Greece; Bernard V.Kavanamur, Kagoshima University,Kagashima City, Japan; KhongorzulKhayanhyarvag, MUST School ofGeology, Ulaanbaatar, Mongolia;Georgia D. Kotsifaki, Ethnikis, Athens,Holargos, Greece; Jean-Yves Landry,University of Ottawa, Crysler, ON,Canada; Robert G. Lee, Oregon StateUniversity, Corvallis, OR; Said Lkhagva-Ochir, MUST School of Geology,Ulaanbaatar, Mongolia; Claire L.McMahon, University of Tasmania,Hobart, TAS, Australia; Nicolas Michael,Athens, Greece; Janina Micko, Universityof British Columbia MDRU, Vancouver,BC, Canada; Veselin P. Mladenov, SofiaUniversity St. Kliment Ohridski, Sofia,Bulgaria; Marilyn E. Moll, LaurentianUniversity, Sudbury, ON, Canada;Catherine E. Morgan, Colorado School ofMines, Golden, CO; Philip A. Mroz,Queen’s University, Stoney Creek, ON,Canada; Stehanie M. Murillo Maikut,New Mexico Institute of Mining andTechnology, Socorro, NM; Kelvin C.Mwamba, University of Johannesburg,Auckland Park, Gauteng, South Africa;Purevdorj Naidan, MUST School ofGeology, Ulaanbaatar, Mongolia; SamuelA. Ndur, New Mexico Institute of Miningand Technology, Socorro, NM; JacquelineL. Nelsen, North Vancouver, BC, Canada;Manchuk Nuramkhaan, MUST School ofGeology, Ulaanbaatar, Mongolia; NesbertNyama, Witwatersrand University,Johannesburg, South Africa; Ochirbat,MUST School of Geology, Ulaanbaatar,Mongolia; Alberto J. Orozco-Garza,Dalhousie University, Halifax, NS,Canada; Lara B. Owens, New MexicoInstitute of Mining and Technology,Socorro, NM; Emmanuel A. Owusu,International Institute for GeoInformation Science, Enschede, TheNetherlands; Ismail O. Ozen, New MexicoInstitute of Mining and Technology,Socorro, NM; Tamal Pal, University ofDelhi, Delhi, India; Roshelly Paliza, NewMexico Institute of Mining andTechnology, Socorro, NM; Amanda L.Palko, Queen’s University, Kingston, ON,Canada; Fani I. Papageorgiou, AgiosDimitrios, Greece; Scott R. G. Parsons,University of Western Ontario, London,ON, Canada; Heidi E. Pass, University ofTasmania, Hobart, TAS, Australia;Alfredo J. Penny, Ombudsman EducationServ., Homestead, FL; Nathaniel DProctor, Colorado School of Mines,Golden, CO; Charles D. C. Rands,University of Otago, Timaru, S.Canterbury, New Zealand; OyunchimegRenchin, MUST School of Geology,Ulaanbaatar, Mongolia; Maria A.Rodrigues da Silva, CSD UNB, Brasilia,DF, Brazil; Daniel P. Russin, University ofArizona, Tucson, AZ; Patrick J. Sack,University of Tasmania, Hobart, TAS,Australia; Dessy W. Sapardina, GadjahMada University, Yogyakarta, Indonesia;Rachel L. Shannon, Cornell University,Ithaca, NY; Benjamin A. Teschner,Colorado School of Mines, Golden, CO;José Texidor-Carlsson, Acadia University,Wolfville, NS, Canada; James S. Tolhurst,Tolhurst Mineral Exploration andConsulting, Cobden, ON, Canada; StavrosS. Triantapyllidis, University of Athens,Athens, Greece; Shubham Tripathi,University of Delhi, Delhi, India; GansukhTserenjab, MUST School of Geology,Ulaanbaatar, Mongolia; BayartsengelTseveendorj, MUST School of Geology,Ulaanbaatar, Mongolia; Gyorgyi Tuba,Eotvos Lorand University, Vecses,Hungary; Bayarsaikhan Tugs-Erdene,MUST School of Geology, Ulaanbaatar,Mongolia; Derick L. Unger, AuburnUniversity, Auburn, AL; Edina Vago,Eotvos Lorand University, Budapest,Hungary; Bram I. Van Straaten,University of British Columbia,Vancouver, BC, Canada; Tyler L.Vandruff, University of Arizona, Tucson,AZ; Elizabeth S. Vaughn, Colorado StateUniversity, Fort Collins, CO; James F.Venendaal, Lakewood, CO; StefanWallier, University of British Columbia,Vancouver, BC, Canada; Desiree T.Wentland, Golden, CO; Maria I. Zavala,University of Arizona, Tucson, AZ; AaronZimmerman, Colorado State University,Fort Collins, CO; Nicholas E. Zulinski,University of Ottawa, Cornwall, ON,Canada. 1personal notes & newsMEMBERSHIPCAREER-RELATEDCHANGESCHRISTOPHER J. CARLON (SEG1989) has been appointed VicePresident-Geosciences withinAnglo American plc based inLondon and has moved from hisposition as Vice President-ExplorationSouth America with AngloChile in Santiago. His newaddress is as follows: AngloAmerican plc, 20 Carlton HouseTerrace, London SW1Y 5AN,United Kingdom; tel: +44 (0)207968 8595; e-mail: ccarlon@angloamerican.co.uk.MURRAY W. HITZMAN (SEG 1987 F)has been named as a director ofCardero Resources.DEATHSDONALD W.LINDGREN (SEG 1962SF) died February 2in Rock Island,Illinois. He was 81years old. BornOctober 3, 1924,Donald received his master’s degreefrom the University of Wisconsinand served in the U.S. Navy duringWorld War II. For 40 years heworked for various companies inmining and metallurgy, establishingLindgren Exploration Companyin 1959. He was a member of severalprofessional and communitygroups, and a director of severalcompanies. Donald is survived byhis wife, Lois.KIMBERLITE RESEARCH UNIT ANNOUNCEDThe University of British Columbia will establisha Kimberlite Research Unit within the MineralDeposit Research Unit (MDRU), the industry-universityconsortium at the UBC. Eira Thomas, CEOof Stornoway Diamonds Corp., and D. GrenvilleThomas, honorary chairman, founder, and directorof Aber Diamond Corp., have pledged $1 milliondollars on behalf of the Thomas familytoward the new unit. Goals for the KimberliteResearch Unit will be to promote a better understandingof kimberlites and their diamondsthrough research, training of geoscientists, andcontinuing education. Barbara Scott Smith hasbeen named Kimberlite Coordinator, and JOHNGURNEY (SEG 2004 F) will be a visiting professorat the MDRU later this year. For additional information,contact DICK TOSDAL (SEG 1996 F),Director of MDRU (rtosdal@eos.ubc.ca), or RoryMoore, Mineral Services (tel. 1.604.817.2600).

APRIL 2006 • No 65 SEG NEWSLETTER 43SEGAnnouncements& DeadlinesSEGCall for Nominations for Penrose and SEGSilver Medals and Marsden Award for 2006Penrose Gold Medal Committee ChairSEG Councilor, Judith L. Hannah (SEG 1989 F)SEG Silver Medal Committee ChairSEG Councilor, David R. Burrows (SEG 2002 F)Ralph W. Marsden Committee ChairSEG Councilor, Reimar Seltmann (SEG 2001 F)Nominations for the Society’s Penrose Gold and Silver Medals and theMarsden Award are due by September 1, 2006, for review by the SEGCouncil. Members and Fellows of the Society are urged to participatein this important process by nominating outstandingcandidates for these prestigious honors.The SEG award nomination form may be obtained from the SEG website.Go to to download theform. If you do not have access to our website, you may request a copy ofthe nomination form from SEG Headquarters. Tel: +1.720.981.7882, ext.210, Fax: +1.720.981.7874; e-mail: seg@segweb.org. To access the SEGawards website go to Call for Nominations – Lindgren Award for 2006Committee Chair – Maria Boni (SEG 1991 F)The Society of Economic Geologists is soliciting nominations for the 2006Lindgren Award. The Lindgren Award is offered annually to a geologistwhose published research represents an outstanding contribution to economicgeology. The contribution shall be measured by consideration ofone to three papers published by age 35. The recipient must be less than37 years of age on January 1 of the year in which the award is presented.The award shall not be restricted as to the candidate’s nationality, placeof employment, or membership in the Society.The deadline for submitting nominations is August 31, 2006.Please go to for details on nominationprocess. Nominations should be sent, preferably in electronicformat, to: Society of Economic GeologistsAttn: Lindgren Award Committee7811 Shaffer Parkway, Littleton, CO 80127-3732 U.S.A.Tel: +1.720.981.7882, ext. 210, Fax: +1.720.981.7874E-mail: seg@segweb.org (preferred method)Call for Nominations –SEG Distinguished Lecturer for 2006Committee Chair – J. Richard Kyle (SEG 1983 F)Now is the time to support your Society and reward a colleague by nominatinghim or her for the highly respected and widely recognized SEGDistinguished Lecturer Award. The 2006 nominee will be selected on thebasis of his/her preeminence in economic geology in some phase of scientificresearch or application of the science to minerals explorationand/or development. See the list of previous winners at . Please include the following informationwith your nomination: name of nominee, nominee’s e-mail address,reason for nomination, brief bio of nominee, and confirmation thatnominee is willing to be proposed. Send all nominations to:Society of Economic GeologistsAttn: Distinguished Lecturer Committee7811 Shaffer Parkway, Littleton, CO 80127-3732 U.S.A.Tel: +1.720.981.7882, ext. 210, Fax: +1.720.981.7874E-mail: seg@segweb.org (preferred method)SEG Welcomes Newly AppointedRegional Vice PresidentsVertrees M. Canby (SEG 2003), EuropeIsidoro B.A. Schalamuk (SEG 1996 F),Latin America & CaribbeanAlexander S. Yakubchuk (SEG 1999 F), North EurasiaSEG Regional Vice-PresidentLecturer for 2006Nicolas J. Beukes (SEG 1985 F) is professorin geology and co-leader of the PaleoproterozoicResearch Group (PPM) at theUniversity of Johannesburg. He is essentiallya field geologist with a special interestin Precambrian paleo-environmentalreconstructions. Nic has a very broadbasedknowledge of early carbonate successions,manganese ore deposits, andiron-formations with associated highgradeiron ore deposits. He is perhaps bestknown for his work on basin analyses and sedimentary oredeposits of the Neoarchean-Paleoproterozoic Transvaal Supergroupin southern Africa. However, he has also worked extensivelyon the siliciclastic gold-bearing beds of the Mesoarchean Witwatersrandand Pongola Supergroups and was the first to provethat they are correlative and had been deposited in the samebasin. He received the Draper Medal, the highest award from theGeological Society of South Africa, in 2002, and HonoraryFellowship from the Geological Society of America in 2004.During the past four years Nic, together with the other coleaderof PPM, Jens Gutzmer, and students have focused muchof their research on the origin of giant high-grade BIF-hostedhematite iron ore deposits in South Africa, India, and Brazil,basin analyses of the various late Paleoproterozoic red-bed successionsof southern Africa, and the MesoarcheanBushmanland Group that is host to the economically importantAggeneys Cu-Pb-Zn deposits. Their stratigraphic work iscoupled with paleomagnetic studies and detrital zircon age datingto allow paleogeographic and provenance reconstructions.Apart from lecturing at various universities in South Africa,Nic is also planning to visit universities in Botswana, Namibia,Zambia, Democratic Republic of the Congo, Gabon, Tanzania,and Ghana.Nic will be available to speak on four topics:• Genesis of superlarge high-grade BIF-hosted iron ore depositsand relevance to deposits in Africa;• Paleoenvironmental and biological significance ofPrecambrian iron-formations, ironstones and laterites;• The origin and distribution of major sedimentary manganeseore deposits through time with special reference to Africa;• Genetic and sequence stratigraphic controls on gold mineralizationin the Mesoarchean Witwatersrand-Pongola basin.Requests for lectures should be addressed to Christine A. Horrigan,Traveling Lecturers Secretary; e-mail, christinehorrigan@segweb.org;tel. 1.720.981.7210 (direct); fax: 1.720.981.7874,Society of Economic Geologists,7811 Shaffer Parkway, Littleton, CO 80127-3732.

44 SEG NEWSLETTER No 65 • APRIL 2006SOCIETY OF ECONOMIC GEOLOGISTSPublications Order FormFull details on publications are available on-line at www.segweb.org / PublicationsTITLE LIST MEMBERPRICE PRICEGUIDEBOOK SERIES:GB 8: Industrial Mineral Resources of the Delaware Basin,Texas, and New Mexico: J.R. Kyle, Editor; 1990, 203p. $24.00 $19.20GB 28: The Carlin-Type Gold Deposits Field Conference:P.G. Vikre, et al., Editors; 1997, 294p; 3 colored figures $36.00 $28.80GB 29: Geology and Ore Deposits of the Oquirrh and WasatchMountains, Utah: D.A. John & G.H. Ballantyne, Editors;1997 (Revised 1998), 308p; 19 colored figures, 2 oversizecolored plates (in pocket) $40.00 $32.00GB 30: Gold Deposits of Northern Sonora, Mexico: K.F. Clark,Editor; 1998, 252p.; 12 colored figures, 1 oversized figure,2 oversized plates (in pocket) $36.00 $28.80GB 31: Epithermal Mineralization of the Western Carpathians:F. Molnár, J. Lexa, & J.W. Hedenquist, Editors; 1999, 274p. $36.00 $28.80GB 32: PART I. Contrasting Styles of Intrusion-AssociatedHydrothermal Systems: J.H. Dilles, et al., Editors;PART II. Geology & Gold Deposits of the Getchell Region;E.J. Crafford, Editor; 2000, 234p. $40.00 $32.00GB 33: Svecofennian Ore-Forming Environments: Volcanic-Associated Zn-Cu-Au-Ag, Intrusion-Associated Cu-Au,Sediment-Hosted Pb-Zn, and Magnetite-Apatite Depositsof Northern Sweden: R.L. Allen, O. Martinsson, and P. Weihed,Editors; 2004, 175 p. AVAILABLE ON CD ONLY. $36.00 $28.80GB 34: Epithermal Gold Mineralization and Modern Analogues,Kyushu, Japan: C.A. Feebrey, T. Hayashi, & S. Taguchi,Editors; 2001 188p. AVAILABLE ON CD ONLY. $36.00 $28.80GB 35: PART I. Proterozoic Iron and Zinc Deposits of the AdirondackMountains of New York and the New Jersey Highlands: J.F. Slack,Editor; PART II. Environmental Geochemistry and Mining History ofMassive Sulfide Deposits in the Vermont Copper Belt;J.M. Hammarstrom & R.R. Seal II; 2001, 294p. $36.00 $28.80GB 36: Cretaceous Porphyry-Epithermal Systems of theSrednogorie Zone, Bulgaria: K. Bogdanov & S. Strashimirov,Editors; 2003, 132 p. AVAILABLE ON CD ONLY. $36.00 $28.80GB 37: Lisbon Valley Sediment-Hosted Copper Deposits andParadox Basin Fluids Field Trip. Jon P. Thorson, Editor; 2005,50p. AVAILABLE ON CD ONLY. $25.00 $21.00ECONOMIC GEOLOGY MONOGRAPH SERIES:EG Mono 9: Mineral Deposits of Alaska: R.J. Goldfarb &L.D. Miller, Editors; 1997, 483p., 9 colored figures $45.00 $36.00EG Mono 10: The Giant Kidd Creek Volcanogenic MassiveSulfide Deposit, Western Abitibi Subprovince, Canada:M.D. Hannington & C.T. Barrie, Editors; 1999, 676p.,32 colored figures; hard bound. $60.00 $48.00EG Mono 11: Massive Sulfide Deposits of the BathurstMining Camp, New Brunswick, and Northern Maine:W.D. Goodfellow, S.R. McCutcheon, & J.M. Peter,Editors; 2003; 930 p., hardbound. Includes CD-ROM. $69.00 $55.20ECONOMIC GEOLOGY PUBLICATIONS:For a complete listing of Economic Geology Special Issues,go to https://store.agiweb.org/seg/The Hugo Dummett Memorial Economic Geology Archive:1905-2004. Complete, searchable digital files ofv. 1 through 99 of the journal (DVD only; 5.2 GB).NOTE: This is NOT A CD-ROM; DVD drive required $1,500.00 $220.00Economic Geology 100 th Anniversary Volume: J.W. Hedenquist,J.F.H. Thompson, R.J. Goldfarb, and J.P. Richards, Editors; 2005,1136 p. hardcover; Supplementary Appendices on CD-ROM. $100.00 $80.00NEWNEWNEW100-5 Special Issue Devoted to Giant Porphyry-RelatedMineral Deposits: Guest Editors, D.R. Cooke,P. Hollings, & J.L. Walshe $50.00 $40.00NEW4/06TITLE LIST MEMBERPRICE PRICEREVIEWS IN ECONOMIC GEOLOGY SERIES:Rev. 5: Sedimentary and Diagenetic Mineral Deposits:A Basin Analysis Approach to Exploration: E.R. Force,J.J. Eidel & J.B. Maynard, Editors $10.00 $8.00Rev. 6: PART A: The Environmental Geochemistry of Mineral Deposits:Processes, Techniques, and Health Issues; G.S. Plumlee & M.J. Logsdon,Editors; PART B: The Environmental Geochemistry of Mineral Deposits:Case Studies and Research Topics; L.H. Filipek & G.S. Plumlee,Editors; 1999, Volume set total 583p. Sold only as a set $55.00 $44.00Rev. 7: Applications of Microanalytical Techniques toUnderstanding Mineralizing Processes: M.A. McKibben,W.C. Shanks, III, & W.I. Ridley, Editors; 1998, 271p. $34.00 $27.20Rev. 8: Volcanic-Associated Massive Sulfide Deposits:Processes and Examples In Modern And Ancient Settings:C.T. Barrie & M.D. Hannington, Editors; 1999, 416p. $40.00 $32.00Rev. 9: Ore Genesis and Exploration: The Roles of Organic Matter:T.H. Giordano, R.M. Kettler, & S.A. Wood, Editors; 2000, 340 p. $49.00 $39.20Rev. 10: Techniques in Hydrothermal Ore Deposits Geology:J.P. Richards & P.B. Larson, Editors; 1998, 264 p. $34.00 $27.20Rev. 11: Metamorphosed and Metamorphogenic Ore Deposits:P.G. Spry, B. Marshall, & F.M. Vokes, Editors; 2000, 310p. $44.00 $35.20Rev. 12: Application of Radiogenic Isotopes to Ore DepositResearch and Exploration: D.D. Lambert & J. Ruiz,Editors; 1999, 208p. $32.00 $25.60Rev. 13: Gold In 2000: S.G. Hagemann & P.E. Brown,Editors; 2000, 560p.; 8 colored figures $69.00 $55.20Rev. 14: Structural Controls on Ore Genesis: J.P. Richards& R.M. Tosdal, Editors; 2001, 190p. $45.00 $36.00SPECIAL PUBLICATIONS SERIES:SP 3: Ore Reserve Estimates in the Real World:J.G. Stone & P.G. Dunn; Third Edition, 2002, 121p. $37.00 $29.60SP 4: Carbonate-Hosted Lead-Zinc Deposits:D.F. Sangster, Editor; 1996, 672p.; hard bound $60.00 $48.00SP 7: Geology and Ore Deposits of the Central Andes:B.J. Skinner, Editor; 1999, 368p. $38.00 $30.40SP 8: New Mines and Discoveries in Mexico and Central America:T. Albinson & C.E. Nelson, Editors; 2001, 362p. $68.00 $54.40SP 9: Integrated Methods for Discovery: Global Exploration in the21st Century: R.J. Goldfarb & R.L. Nielsen, Editors; 2002, 392p. $59.00 $47.20SP 10: Volcanic, Geothermal and Ore-Forming Fluids: Rulersand Witnesses of Processes within the Earth: S.F. Simmons& I. Graham, Editors; 2003, 360p. $59.00 $47.20SP 11: Andean Metallogeny: New Discoveries, Concepts,and Updates: R.H. Sillitoe, J. Perelló, and C.E. Vidal, Editors;2004, 358p. $59.00 $47.20SEG CONFERENCE SERIES: (Note: CD-ROMs listed are not audio)Global Exploration 2002: Integrated Methods for DiscoveryAbstracts of Oral and Poster Presentations, Apr. 14-16, 2002;E.E. Marsh, R.J. Goldfarb, & W.C. Day, Editors; 150p. $10.00 $ 8.00SEG 2004: Predictive Mineral Discovery Under Cover:Extended Abstracts. SEG and the Centre for GlobalMetallogeny (Australia). AVAILABLE ON CD-ROM ONLY. $20.00 $16.00SEG Forum 2005: Controversies on the Origin of World-ClassGold Deposits: Carlin and Witwatersrand, May 14, 2005;John Muntean, Organizer. AVAILABLE ON CD ONLY. $20.00 $16.00SEG Member Discount:Members may purchase a single copy ofeach publication at 20% off the listed price.Sub-Total➥

APRIL 2006 • No 65 SEG NEWSLETTER 45SOCIETY OF ECONOMIC GEOLOGISTSPublications Order FormFull details on publications are available on-line at www.segweb.org / PublicationsTITLE LIST MEMBERPRICE PRICEVHS/DVD SERIES: Indicate format: VHS DVDVid. 1: 1) The Genesis of Magmatic Ni-Cu (PGE) Sulfide Deposits2) Physical Volcanology, Geochemistry and Petrogenesis ofKomatiite Basalt Lava Channels and Channelized Sheet Flowsin the Cape Smith Belt, New Quebec: C. Michael Lesher,Laurentian University, Sept. 1998 $25.00 $20.00Vid. 2: 1) Worldwide Exploration: Can We Afford It?,2) Exploration Strategic Planning: Michael J. Knuckey, President,Noranda Mining Exploration, Ltd., Nov. 1998 $25.00 $20.00Vid. 3: 1) The Porphyry to Epithermal Continuum: Evidence fromVolcanoes and Ore Deposits, 2) Characteristics of and Explorationfor Epithermal Gold Deposits in the Circum Pacific: Jeffrey W.Hedenquist, Consulting Economic Geologist, April 1999 $25.00 $20.00Vid. 4: 1) Epithermal Gold Deposits—Characteristics, Classesand Causes 2) Convergent Evolution and Ore Deposits:Noel C. White, Consulting Economic Geologist, Sept. 1999 $25.00 $20.00Vid. 5: 1) Cordilleran Metallogeny of Western Canada2) Intrusion-related Mineral Deposits: Tectonics, Magmas andFluids: John Thompson, Teck Corporation, Feb. 2000 $25.00 $20.00Vid. 6: 1) Geology and Genesis of the Irish Zn-Pb-Ag Ore Field2) The Lisheen Deposits, Ireland: Discovery and Delineationof a Blind Zn-Pb-Ag Orebody: Murray W. Hitzman,Colorado School of Mines, Sept. 2000 $25.00 $20.00Vid. 7: 1) How Orebodies are Found 2) The ArequipaResources Pierina Project: David J. Lowell,Lowell Mineral Exploration, Feb. 2001 $25.00 $20.00Vid. 8: 1) Tectonic Setting and Structural Controls in the GiantEocene-Oligocene Porphyry Copper Deposits of NorthernChile 2) Late Cenozoic Mineralization and Crustal Evolutionin a Thickening Arc: The Maricunga and El Indio MineralBelts: Constantino Mpodozis, Chilean Geological Survey, Mar. 2001 $25.00 $20.00Vid. 9: 1) Mineral Resources and Mining: Supply, Demand theEnvironment 2) Supergene Oxidation of Copper Deposits:The Zoning of Copper Oxide Minerals and Applications toMinerals Exploration: William X. Chavez, Jr., New MexicoInstitute of Mining, Apr. 2001 $25.00 $20.00Vid. 10: 1) Reflections on the Bre-X Saga2) Pioneering Mining in the Arctic: Graham Farquharson,Strathcona Mineral Services, Ltd., Nov. 2001 $25.00 $20.00Vid. 11: 1) Mississippi Valley-type Lead-Zinc Deposits throughEarth History: Implications for Ore Genesis, Crustal Fluid-Flow,Paleoclimate, and Relation to Shale-Hosted (SEDEX) Deposits:David L. Leach, U.S. Geological Survey, Mar. 2002 $25.00 $20.00Vid. 12: 1) Discovery History and Geology of the CanningtonAg-Pb-Zn Deposit 2) Advances in Micro-Analytical Technologies— What a grain can tell you Steve Walters,Macquarie University, Apr. 2002 $25.00 $20.00Vid. 13: 1) Lode Gold Deposits through Earth History — Patternsin Space and Time 2) Metallogeny of Gold Deposits inChina: R.J. Goldfarb, U.S. Geological Survey, Mar. 2003 $25.00 $20.00Vid. 15: 1) Characteristics of Lode Gold Deposits in GreenstoneBelts 2) Geology and Setting of Gold Deposits in the NorthCarlin Trend, Nevada: François Robert, Barrick Gold, Dec. 2004 $25.00 $20.00Vid. 16: 1) Characteristics and Genesis of Carlin-type GoldDeposits, NV 2) Upwelling Hot Water at a Proposed NuclearWaste Repository: Jean Cline, Univ. of Nevada, Las Vegas,Feb. 2005 $25.00 $20.00Vid. 17: 1) Breccias in Epithermal and Porphyry Deposits:NEWTITLE LIST MEMBERPRICE PRICENEWThe Birth and Death of Magmatic-Hydrothermal Systems2) The Giant Sediment-Hosted Zn-Pb-Ag Deposits ofNorthern Australia: David R. Cooke, Univ. of Tasmania, Feb. 2005 $25.00 $20.00Make Check Payable To:Society of Economic Geologists7811 Shaffer Parkway, Littleton CO 80127-3732Fax:720.981.7874, e-mail: sales@segweb.orgMember #:___________________________Ship to: ____________________________________________________________________________________________________________________________________________________________________________E-mail: ____________________________Tel: ____________________________Sub-TotalShipping and Handling Charges:3.7% Colorado Sales TaxColorado Residents OnlySurface USA-$5.00/item*Surface Foreign-$9.00/item*Airmail (check with SEG)Payment enclosed Check, made payable to: Society of Economic GeologistsGrand Total Visa/MC AMEX DiscoverCard # ________________________________ Exp. __________Signature ______________________________________________*For a shipping discount on four or more items mailed to the same address, please contact the SEG office.____________________________________________________________US$ ____________Your credit card statement/cancelled check is your receipt.4/06

46 SEG NEWSLETTER No 65 • APRIL 2006Calendar ofStar (★) indicates new entry. Send entries to the SEG Office,attn. SEG Production Director: 7811 Shaffer Parkway, Littleton, CO 80127 USATel. +1.720.981.7882 /Fax +1.720.981.7874.SOCIETY OFECONOMIC GEOLOGISTS2006May 14–16. SEG 2006 Conference –Wealth Creation in the MineralsIndustry. Keystone Resort & ConferenceCenter, Keystone, Colorado, USA. Website:.★ June 6–16. UNESCO-SEG-SGA LatinAmerican Metallogency Course.Antofagasta, Chile. “Metallogeny ofMagmato-Hydorthermal Processes”.Website: ContactTom Bissig at e-mail: tbissig@ucn.clJul. 2–6. Geological Society of Australia/Australian Society of ExplorationGeophysicists; Australian Earth SciencesConvention 2006. Melbourne, Australia.To include a keynote presentation byDouglas Kirwin, SEG 2006 InternationalExchange Lecturer. Website: .★ Aug. 4–6. Environmental Geology andGeochemistry of Mine Wastes. Copiapo,Chile. SEG co-sponsored short course to beheld in conjunction with the ChileanGeological Congress. The course will betaught in Spanish by Dr. Bernhard Dold,Univ. of Lausanne, Switzerland. Contact:Thomas Bissig, e-mail: tbissig@ucn.cl.Further information and preliminary programavailable at: Aug. 7–11. XI Congreso GeologicoChileno. Antofagasta, Chile. SEG-sponsoredsymposium to be held in conjunctionwith the Congreso. Website: .Aug. 12–13. SEG Gold Deposit Workshop.Antofagasta, Chile. Immediately follows XICongreso Geologico Chileno. Speakers:Richard Goldfarb, Noel White, Craig Hart,Steve Garwin. Contact Steve Garwin, e-mail:steve.garwin@geoinformex.com. Details onpg. 36.Aug. 21–24. 12th Quadrennial IAGODSymposium; Moscow, Russia. SEG 2006International Exchange Lecturer, DouglasKirwin, to give a presentation in the PlenarySession P2. Website: .Oct. 22–25. GSA Annual Meeting.Philadelphia, PA. SEG Program MeetingCoordinator, John F. Slack. Website:.2007★ Sept. 24–30. AGS-2007 SymposiumOres and Orogenesis-CircumPacificTectonics, Geologic Evolution and OreDeposits. Tucson, Arizona. Website:http://www.arizonageologicalsoc.org/news.htmOTHER EVENTS2006Jul. 23–28. Applied Mineralogy sessionsat International MineralogicalAssociation (IMA) Meeting. Kobe, Japan.Additional information on the meeting isavailable on the IMA2006 website:.Sept. 10–12. CIM Geological Society,Saskatoon Section to host FieldConference: Uranium: AthabascaDeposits and Analogues. Details at.★ Sept. 18–29. Modular Course in MineralExploration in Volcanic Terrains (Field-Based). Sudbury, Ontario, Canada. Information:Harold Gibson, Mineral ExplorationResearch Centre, Department of EarthSciences, Laurentian University, WilletGreen Miller Centre, 933 Ramsey LakeRoad, Sudbury, ON, Canada, P3E 6B5; Tel.+1.705.675.1151 x2371; fax +1.705.675.4898.e-mail: hgibson@laurentian.ca; website:.★ Sept. 24–29. International GeologicalCorrelation Program. IUGS/UNESCO/IGCP-496 2006 Field Workshop, Izmir,Turkey. For information: ★ Dec. 6–15. Modular Course in ExplorationGeochemistry. Sudbury, Ontario,Canada. Information: Steve Piercey, MineralExploration Research Centre, Departmentof Earth Sciences, Laurentian University,Willet Green Miller Centre, 933 RamseyLake Road, Sudbury, ON, Canada,P3E 6B5; tel. +1.705.675.1151 x2364; fax+1.705.675.4898; e-mail: spiercey@laurentian.ca; website: .2007★ Sept. 1–15, Modular Course in Structure,Tectonics, and Mineral Exploration(Field-Based). Sudbury, Ontario, Canada.Information: Bruno Lafrance, MineralExploration Research Centre, Departmentof Earth Sciences, Laurentian University,Willet Green Miller Centre, 933 RamseyLake Road, Sudbury, ON, Canada,P3E 6B5; tel. +1.705.675.1151 x2264; fax+1.705.675.4898; e-mail: blafrance@laurentian.ca; website: .Resource Geosciences de MexicoS.A. de C.VExploration Services Throughout the AmericasDr. Matthew D. Gray, C.P.G. #10688 – PresidentPAID ADVERTISEMENTPAID ADVERTISEMENT

SEG Announces Special Publication 12Wealth Creation inthe Minerals Industry—Integrating Science,Business, and Education(330 pages)The 16 papers in SP 12 focus on integrating thebusiness of exploration and mining with thescience of the minerals industry, and theeducation and training that underpins all wedo. Included are summaries of mineral industrytrends over the past approximately 25 years, therole of exploration in the business of creatingwealth, and issues of sustainability in the mineralsindustry. Authors are authorities in their fields,and the case studies they present will be relevantto explorationists, economists, and academics.Contents and Authors• Metals and Minerals: The Past Twenty-Five YearsPhillip Crowson (University of Dundee)• Depletion and the Long-Run Availability of Mineral CommoditiesJohn E. Tilton (Colorado School of Mines & PontificiaUniversidad Católica de Chile)• An Overview of Costs in the Base Metal and Gold Industries:Definitions and TrendsPaul Smith, Mark Fellows, David Coombs, & Andrew Mitchell (all authors with Brook Hunt & Associates, Ltd.)• Costs, Risks, and Returns of Copper Exploration: Assessing Trends in Discovery and Maturity with Particular Reference to ChileRichard A. Leveille (Phelps Dodge Exploration) & Michael D. Doggett (Queen’s University)• The Role of World-Class Deposits in Wealth CreationRichard Schodde & Jon Hronsky (both authors with BHP Billiton)• Using Real Options to Value and Manage ExplorationGraham A. Davis (Colorado School of Mines) & Michael Samis (AMEC Americas, Ltd.)• The Competitive Position of Countries Seeking Exploration and Development InvestmentJames M. Otto (University of Denver)• The Rise of Sustainability: Changing Public Concerns and Approaches toward ExplorationAlistair MacDonald (Community Research Co-operative) & Ginger Gibson (University of British Columbia)• Changing Mining Industry Approaches to Sustainability: A Focus on Mineral ExplorationIan Thomson & Susan Joyce (both authors with On Common Ground Consultants, Inc.)• The Human Face of Economic Geology: Education, Careers, and InnovationPaul J. Bartos (Colorado School of Mines), Maeve A. Boland (Colorado School of Mines), & Leigh W. Freeman (Downing Teal, Inc.)• Changes in Mineral Exploration Practice: Consequences for DiscoveryRichard H. Sillitoe (London, England) & John F. H. Thompson (Teck Cominco Ltd)• The Role of Geological Mapping in Mineral ExplorationGeorge H. Brimhall (University of California, Berkeley), John M. Proffett (Eagle River, Alaska), & John H. Dilles (Oregon State University)• Mineral Exploration Using Modern Data Mining TechniquesColin T. Barnett (Boulder, Colorado) & Peter M. Williams (University of Sussex)• Mine Design and Costs: Their Impact on Exploration TargetsJean-Michel Rendu (Denver, Colorado), Scott Santti (Newmont Mining Corporation), Phil Hansen (Caterpillar, Inc.), & Dan White(Physical Resource Engineering, Inc.)• Metallurgical Advances and Their Impact on Business and ExplorationKarin O. Hoal (Colorado School of Mines), Terry P. McNulty (T.P. McNulty and Associates, Inc.), & Roland Schmidt (Hazen Research, Inc.)• An Integrated Geometallurgical Approach to Optimize Business Outcomes at the MKD5 Nickel Deposit, Mount Keith,Western AustraliaBen Grguric & Timothy Riley (both authors with BHP Billiton)Available May 14, at the SEG 2006 Conference

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