Australian Institute of Geoscientists

AIG NEWS
Quarterly Newsletter No 72 May 2003

The Glass Earth

INSIDE THIS AIG NEWS:
Prepared by: Joan Esterle and Graham Carr
CSIRO Division of Exploration and Mining
Web: www.em.csiro.au • The CSIRO's Glass Earth P.1

• Greg Corbett's President's Page P.3

THE CSIRO GLASS EARTH is a research initiative developed in 1998 to
provide enabling technologies to support the Australian minerals • No AIG Fee Increase P. 7
exploration industry in overcoming the impediments of cover and depth. It
also provides a vision for the exploration research activities conducted • Tectonic Setting of Sedex Deposits P. 9
within CSIRO.
The long-term vision for Glass Earth is to provide explorationists with the • Mineral Exploration Action Agenda P. 13
capabilities to "make the top kilometre of the Australian continent, and the
geological processes operating within it, transparent" in order to aid the • Changes to JORC P. 14
discovery of the next generation of ore deposits. The metaphor and vision
remain pertinent to the task at hand - sustaining a successful exploration industry • Queensland Geoscience Data P. 15
generating wealth for Australia.
In order to achieve "transparency" for effective exploration, Glass Earth was • ABARE Tax Incentives for
conceived to develop and apply: Junior Explorers P.17
• Innovative geophysical and geochemical detection technologies to increase
the knowledge of the geological processes operating within and beneath the • Book Review: Century Zinc Mine Atlas P. 18
cover in Australia;
• 2003 ASEG Award to Mike Smith P. 19
• Enhanced geological modelling, forward simulation and hypothesis testing
tools that overcome the predictive weakness of current exploration
• Trends in Geoscience Education P. 20
technologies for both the regolith and the underlying basement; and
• Computer-enabled technologies to improve information and knowledge • Kaylene Camuti's Education Report P. 22
management, exchange and visualisation.
Studies in selected terranes will test and demonstrate the technologies and be • 2002 Student Bursary Report
used to generate knowledge and realistic three-dimensional models that consider - Glenn Morgan P. 23
geological evolution through time to identify prospective exploration targets.
These objectives build on the successful outcomes of CSIRO collaboration • Coming Events P.24
within the previous Cooperative Research Centres (CRC) AMET1 and AGCRC2.
CSIRO's involvement in the new CRCs LEME3 and pmd*CRC4 is also focused • NTGS AGES Conference Report P. 25
on delivery of Glass Earth outcomes.
An overview of the project areas that contribute to the Glass Earth is shown • PDAC Conference Report P. 29
schematically in Figure 1 (overleaf) and described in the following sections.
• WA Exploration Strategies Conference
Detection Technologies Report P. 31
Geophysical surveys form an integral part of exploration programs and any
substantial improvement in these technologies has the potential to yield new • Qld. Industrial Minerals Conference
discoveries and lower exploration costs. CSIRO is developing two new airborne Report P. 33
geophysical tools, a Gravity Gradiometer and a Tensor Magnetic Airborne
• David Groves Elected to Academy
of Science P. 34
1
Australian Mineral Exploration Technologies http://www.crcamet.mq.edu.au/
2
Australian Geodynamics Cooperative Research Centre http://www.agcrc.csiro.au/
3
Landscape Environments and Mineral Exploration http://crcleme.org.au/ • Letters P. 35
4
Predictive Mineral Discovery http://www.pmdcrc.com.au/
Cont. Overleaf
2 MINING & EXPLORATION AIG NEWS No 72, May 2003

The Glass Earth Cont. from Page 1

AIG Secretariat
c/- Centre for Association Management
36 Brisbane Street, Perth WA 6000
PO Box 8463, Perth Business Centre,
Perth WA 6849
Contact: Ron Adams
Phone: (08) 9427 0820 Fax: (08) 9427 0821
Email: [email protected]

Figure 1. Current research areas that contribute to the CSIRO Glass

AIG NEWS Earth initiative.
PO Box 8463, Perth Business Centre,
Perth WA 6849 Gradiometer, and associated processing software. These
Tel: (08) 9427 0820 geophysical tools challenge the limits of current knowledge of
Fax: (08) 9427 0821 physical systems, and as such require a long-term commitment and
Email: [email protected] partnering with industry.
Web: http://www.aig.asn.au Airborne gravity gradiometry, with a target of detecting orebodies
300 metres or more below the surface, must measure the gradient in
AIG News now includes a feature article per issue on a topic the Earth's gravity acceleration field to at least 10-9sec-2 from a
relevant to the geoscience community. These articles can be up to mobile platform. This is about the gravity gradient you feel on your
6 pages in length (inclusive of pictures and illustrations) and of
tongue from one of Isaac Newton's standard apples when you are
peer review quality.
about 25 cm from your first crunch! Unlike other systems, which
We invite papers from the community on technical or applied provide sampling of an integrated measurement along the flight line,
geoscience topics for inclusion in AIG News. Please contact the
the CSIRO system is targeted at provision of rapid, totally
AIG Editor, Dave Shatwell ([email protected]) for further
information. independent measurements along the flight line at approximately 50
m intervals for improved spatial resolution without change of line
separation. The project is currently at advanced proof-of-concept
stage and results are commercial-in-confidence.
Full tensor gradiometry, by comparison to total field gradiometry,
has the potential to more accurately reveal the depth of burial, shape,
orientation and magnetisation directions of buried ore deposits, and
to give higher spatial resolution of mineralisation-controlling
structures. This is especially important where anomaly patterns are
skewed by remanence or low magnetic latitudes. The GETMAG
(Glass Earth Tensor Magnetic Airborne Gradiometer) project builds
upon the most appropriate sensors for gradient measurements using
Superconducting Quantum Interference Devices (SQUIDs).
CSIRO has invented a new SQUID-based sensor and
implementation method that allows a 105 improvement in common
mode rejection. This enables gradiometer sensitivity better than 0.01
nT/m, on a baseline of 3 centimetres. With this system, even
anomalies over vertical contacts between bodies with a
susceptibility contrast as low as 600 µSI (in the paramagnetic range)
can be detected at depths of several hundred metres. Anomalies over
bodies with greater susceptibility contrasts and/or higher structural
indices can be detected at greater depths. Currently the ground-
based version is undergoing initial trials. The next stage is to
improve the system further and undertake airborne trials with the
system slung under a helicopter.
Predictive magnetic exploration models are being developed
through the compilation of magnetic characteristics of porphyry,
epithermal and iron oxide copper-gold deposits in a range of
geological settings from around the world (AMIRA P700 project).
Through AMIRA P615, statistical processing techniques that
attempt to filter host geology "noise" from "targets" have been
developed to improve target identification with airborne
electromagnetic (AEM) data. These projects complement the long
Cont. Overleaf
AIG NEWS No 72, May 2003 FROM YOUR PRESIDENT 3

From Your President

Fellow Geoscientists, Australia”, at the 2003 AIG AGM on May 29 in Sydney, will
I expect this to be my last President's Page. I was asked to accept expand on the progress of the Prosser Inquiry and the role of the
the nomination for the position of AIG President at short notice, Australian Geoscience Council.
at a time when I had commitments in electronically inaccessible In early April we received the ABARE recommendation that
places like Kamchatka and China, and so made a slow start. Treasury should agree to some form of tax incentive to aid the
However, when the industry is in trouble there is more to do. I exploration industry. In a later report (see article page 16),
therefore used the President's lecture as an opportunity to travel ABARE estimates a rebate scheme covering all tax-deductible
around the country, meet the members, and try to understand the expenses related to exploration would cost between $26 million
problems confronting them. I needed to talk to geoscientists and $106 million, based upon 1999-2000 exploration levels.
dealing with land access problems, for instance. I thank the state ABARE also points out that in 2001-2 the mining and petroleum
branches which hosted me and organised meetings. AIG Council industry injected $7.25 billion into the WA economy. With
has now allocated a budget to assist future presidents to meet exploration by the junior explorers down by 70%, Blind Freddy
AIG members in this manner. should be able to see a mid to long term return to Treasury and
Your AIG has maintained a high level of activity in response to the community from some form of tax incentive to promote
the challenging state of the mineral exploration industry, an exploration - either as the requested flow-through-share scheme,
important source of employment for AIG members. Membership or as an R & D style deduction for specific exploration activities
continues to increase. State branches continue to hold informative such as drilling. I hope Treasury can focus on the longer term,
technical sessions, and the AIG has recently formed two new rather than the immediate tax income.
branches - South Australia and Tasmania. Western Australia has I feel it is important to demonstrate to parliamentarians that
not only hosted the International Structural Geology Conference, geoscientists aren't boffins in white coats, hands outstretched for
but now holds regular evening technical presentations, providing research grants, but professionals working in industry who could
an opportunity for members to get together. South Australia held add tremendous wealth to the country (including marginal rural
a one-day conference, NSW again staged its annual event in electorates) by finding another Broken Hill or Bendigo. This is a
collaboration with SMEDG, and Queensland has just hosted an long term goal which I hope the AIG will continue to support. In
Industrial Minerals conference. While the technical aspect of addition to alerting Parliamentarians to the role of our industry,
these meetings is important, as under-employment continues we must remember to educate the community about the
these functions are an opportunity for us to keep in contact, and importance of geoscience and mining to Australia (exports of $54
possibly derive some mutual support. billion in 2000-1). A colleague recently told me of his child
You will have noticed in the November AIG News that Council coming home from school in tears, in Kalgoorlie of all places,
planned a fee rise to $100, to meet increased costs and allow for after being told by the teacher that the mining industry is an
some additional expenses, such as the legal component of the unsustainable polluter. Fortunately, the geologist parent became
planned review of the governing documents. As the exploration involved in some community education.
industry continued to perform badly, Council felt very uneasy There is no point in lobbying parliament if the community isn't
about this fee rise. Membership subscriptions are the main on side. It is essential that the politicians know that the
source of revenue for federal AIG, where most of the expenses community (and their votes in marginal electorates) are with us.
are incurred, while state branches also receive income as I recently found it interesting to read the letters to a foreign
proceeds from conferences and symposia. Consequently, some capital city newspaper concerning a proposed mine development.
fund sharing between federal and state AIG has been agreed Many letters appeared to be a plea from the community to be
upon, and no rise in membership fees is proposed this year. educated, and showed how bad public relations can result from
As I've said before, the AIG's role has had to move in recent the lack of public understanding of the environmental issues,
years from the encouragement of highest professional standards, especially with regard to cyanide. Like so many other cases, one
to lobbying for the very survival of our profession. At the 2002 member of our industry could produce serious community
AGM, Dr Mike Leggo pointed out the increasing age of the problems for the rest - and again we've seen several instances
average geoscientist, as 60% of our peers have left the mineral related to cyanide - possibly even shutting exploration down in
exploration and mining sector over the past few years. I was the entire districts. I also recently heard a CEO point out that
youngest member at that AGM! geologists are the first point of contact for the community with
the mining industry, and so must get it right. I therefore see it as
The AIG made a good showing at Science Meets Parliament this
essential that geoscientists help to educate local communities.
year. Ian Macfarlane gave us a good hearing in Canberra, and we
One way is to become involved in activities during Earth Science
hope that, post-election, Bob Carr will become more supportive
Week (October 13-18). In my state (NSW), the Australian
of the mining industry's contribution to regional development at
Museum provides a wonderful focus for this event, in which the
the state level.
Geological Society of Australia is a major participant. Perhaps
We have been waiting to see if the lobbying over the past 12 you might like to assist with this worthwhile task!!
months or so will bring any joy by way of the Prosser Inquiry
Thanks to all AIG members for the opportunity of running our
into Resource Exploration Impediments, following the Bowler
Institute for a couple of years.
Inquiry into Greenfield Exploration in WA. I expect that Dr
David Denham, in his address “The Future of Geoscience in Greg Corbett
4 MINING & EXPLORATION AIG NEWS No 72, May 2003

The Glass Earth Cont. from Page 2

standing AMIRA P223 project that has produced EM modelling survey partial leach systems in semi-arid covered terrains. The
software capable of predicting the EM response of a range of objective is to apply well-designed, statistically valid, experimental
geological settings from complex 3D geology to isolated targets in protocols to produce optimised geochemical survey techniques for
simple domains. blind mineralisation beneath cover.
Analysis of hyperspectral reflectance and emittance spectroscopy Three-dimensional models of supergene dispersion patterns of
now provides a non-invasive remote sensing technique for mapping mineralised zones within selected regolith environments across
ore, alteration and host rock mineralogy at mine, field, and district Australia are being developed and compiled into an atlas that will be
scales from air and space borne platforms. An example is the produced by CSIRO and CRC LEME. Where available, these
collaborative work being undertaken with PIRSA and NSW DMR models are integrated with groundwater and airborne
through the pmd*CRC in the Broken Hill area to integrate multi- electromagnetic data to tie in the hydrology and evolution of the
scene ASTER satellite imagery with geophysical data. In order to landscape to effectively prioritise anomalies for follow-up drill
take this into the 3rd dimension, CSIRO developed the first testing.
prototype automated core-logging system (AMIRA P685). The Also important to mineral exploration is the ability to reconstruct the
core logger is proven technology for the mineralogical logging and thermal and tectonic histories of ore districts and post-mineralisation
imaging of drill core, chips and powders. The system incorporates landscape evolution processes. Glass Earth supported the
technology from an earlier CSIRO instrument OARS (Operational development of an industry-oriented (U-Th)/He thermochronology
Airborne Research Spectrometer) and collects data in the lab, providing a new, highly sensitive and cost-effective method of
wavelength range broader than PIMA-II and similar to that recorded determining the thermal history of ore environments. Ages can be
by the HyMap airborne system. Similar technologies have also been obtained on single crystals of apatite, zircon, titanite and rutile. This
trialled on exposed rock faces in mines to allow mineralogical technique is being used to develop 3D thermal images over
mapping to assist with mining operations, including grade control. prospective terrains to enable geologists to visualize landscape
Underpinning these developments in sensing instrumentation are evolution processes and to identify thermal anomalies potentially
new algorithms and tools for analysing and interpreting spectral related to ore formation processes.
signatures. The outcome is a new method for integrating the data to
Ore forming fluids, preserved intact as fluid inclusions in minerals,
provide diagnostic signatures of mineralised systems from
provide a unique record of metal transport and fluid chemistry in the
exploration through mining and processing. Hyperspectral sensing
ore-forming environment and can complement dispersion studies.
has also been used for several years for environmental monitoring Glass Earth supported the development of nuclear microprobe
around mining operations. techniques for the in situ quantitative analysis of fluid inclusions,
Advanced Geochemical Methods in Groundwater, the using proton induced X-ray emission (PIXE), and the application of
this technique to the study of ore systems with universities. Glass
Regolith and Basement
Earth also supported collaborative work with Geoscience Australia
The discovery process is aided by the development of robust scale- to combine fluid inclusion analysis with geochemical modelling and
and time-integrated geological models that are underpinned by geophysics, with the aim of developing an integrated exploration
targeted and accurate analytical techniques. The geochemical technique for Fe-oxide hosted Cu-Au deposits.
challenges of Glass Earth lie in understanding the geo-hydrological
A pilot project in collaboration with Geoscience Australia and
characteristics of the top 500 metres of the Australian crust and
Tasman Resources demonstrated that fluid chemistry can provide a
applying trace element chemical analytical tools to understanding
critical fertility indicator to add value to combined magnetic and
the dispersion of chemical elements from buried ore bodies within
gravity surveys, showing preserved metal-laden fluids in the vicinity
such hydrological regimes.
of trap sites inferred from geochemical modelling and geophysics.
Decades of CSIRO field research into groundwater pathfinders were The view of Tasman Resources is that the positive PIXE result,
compiled into the volume "Geochemical Pathfinders to Concealed combined with magnetic and gravity data, have proved to be the
Ore Deposits", reported in the February 2003 edition of AIG News. crucial factors in the decision to drill a further 600 m hole aimed at
This work has resulted in the development of fingerprints for waters intersecting ore. Without both of these data sets, drilling could not
that have interacted with many of the more common mineralisation have been considered. In the view of Stan Yeaman, Tasman
styles in prospective terrains. Research and industry collaboration Resources, the PIXE results have reduced risk, and the study has
continues in improving efficiency and reliability of sampling, succeeded in the practical application of fluid inclusion studies to
analytical and exploration protocols. ore discovery.
Projects have been initiated to understand movement of metals in the
regolith and in particular to assess groundwater and partial leach Data Integration, Modelling and Visualisation
anomalies that point to known blind or covered deposits. Lead To assist explorationists to analyse and interpret the vast amounts of
isotopes are being used in particular to distinguish between labile data that can now rapidly be acquired during a typical exploration
metal anomalies in cover which are due to the presence of program, a "Data Mining" tool (CSIRO Self Organising Maps or
underlying mineralisation, and accumulations that are the result of CSOM) is being developed to examine the often-subtle relationships
redistribution by regolith processes. (AMIRA P618). In a related within and between various disparate, spatially located data sets.
theme, GRAMME, a collaborative project in Geochemical CSOM can handle both linear and non-linear relationships, nulls and
Modelling and Mapping for Mineral Exploration between CSIRO "below-level-of-detection" effects in numerical datasets, and even
and the University of NSW, is focussing on optimising whole of combine these with categorical data in an analysis. This tool has
AIG NEWS No 72, May 2003 MINING & EXPLORATION 5

already demonstrated its effectiveness in case studies ranging from geoscience terms enabling relatively inexperienced users to model
prospect identification using a drill-hole geochemical database, geological situations directly relevant to their exploration programs.
through to examining the relationships between various geophysical These activities are now a major component of the pmd*CRC and
data sets, elevation models and remotely sensed airborne and are being developed in conjunction with industry and other research
satellite data. It has also been used to determine the relationships organisations.
between reflectance-spectra (spectral-mineralogy) and Web enabling of these simulation capabilities, as well as access to
geochemistry (mineralisation). the disparate and often complex datasets that constrain the models,
The discovery of ore deposits is also aided by the construction and is facilitated by having standardised input/output formats and using
visualisation of three-dimensional geometric models that integrate software that allows integration across common IT platforms. With
disparate forms of geoscientific data into a common platform such a system one can not only visualise, but also interact with, the
(mapped geology, multi-spectral, potential field, seismic and drilling plethora of data and modelling packages unique to each data type.
records). The dynamic geological processes that led to The development of XMML (eXploration and Mining Mark-up
mineralisation within these terranes can be simulated not only to test Language) is a key element in such a system, as it will allow the
for understanding, but also to create hypotheses that lead to new exchange of various geospatial datasets. XMML is being developed
concepts and targets. The simulations approximate geological in conjunction with the international Open GIS Consortium. In
reality only if the modelling accounts for the inter-related effects of addition to providing the link technology for the Glass Earth models,
thermal variables, chemical reactivity, strain and fluid flow, and is XMML provides interoperability for geospatial and spatial data
underpinned by computational mechanics and an intimate management and integration.
knowledge of the geological processes for a given terrane. Of all the aspects of the Glass Earth program, this component will
Using the 3D Mesh Analysis and Coupling Software (3DMACS), a require the most collaboration and coordination across a number of
geoscientist can set-up a mechanical, fluid, thermal or chemical earth science agencies. Not only is it essential to establish widely
simulation (or any combination of these) through a simple web- accepted standards; it has also been vital to bring in other expertise
browser or by using a more advanced built-in expert-user interface. and resources through partnering with Fractal Technologies and
There is no requirement for the user to learn new software-specific members of the pmd*CRC.
commands, as the scenario to be modelled is described in standard Cont. Overleaf

Avoiding disappointment by due diligence

A minerals resource due diligence assignment should provide
a company with the confidence that their investment will be
secure.
At the very least, the following areas should be considered:
• the accuracy of the resource model,
• the basis of confidence categorisation,
• the geological foundation for metallurgical recoveries.
At Hellman & Schofield we take an independent approach.
That is why we may undertake our own sampling, initiate re-
assaying of pulps with inserted standards using different
assaying techniques from those used in the project and
investigate grade and density models.
Due diligence studies by H&S always involve independent re-
estimation using commercial or in-house software. Our studies
have been used by numerous companies and banks to
highlight risk factors and areas of unrecognised potential.
Phillip Hellman (H&S, Sydney) undertaking detailed sampling on
H&S is happy to be a Platinum sponsor drill core from the Busang prospect, Kalimantan, Indonesia. The
of the AIG Bursary Program and wish results of his work have been published by Canada's Northern
Miner and the AusIMM. Many "experts" and commentators on
awardees success in their future careers the fraud would have benefited from an independent
investigation of the data and the actual mineralisation.

H &S Hellman & Schofield Pty Ltd

www.hellscho.com.au Ph 61 2 9858 3863 (Syd)
6 MINING & EXPLORATION AIG NEWS No 72, May 2003

The Glass Earth Cont. from Page 5 MEMBERSHIP NEWS...

Future Directions
Conceptual models that relate the geologic (or geometric) models to
the development of major ore systems through time (the 4th
2003 AIG Annual
dimension) require precise geochronological information on
sedimentary, magmatic, metamorphic, and hydrothermal events.
General Meeting
These conceptual, or "soft" models, will be translated into "hard"
The 2003 AIG Annual General Meeting will be held on
numerical models to determine how well they fit all the available
data. Like the modelling and visualisation activities, delivery will Thursday May 29 at 5.15 pm for 5.45
continue to be in collaboration with the CRC programs, at the Rugby Club, Rugby Place, Sydney.
state/territory geological surveys, Geoscience Australia, exploration
companies and service companies.
Included in the agenda are:
In order to find the next generation of hidden ore deposits,
• Minutes of last AGM
explorationists must be able to easily, quickly and reliably access the
huge volumes of complex geoscientific data and the processing and • President's report
analysis tools required to generate terrane-specific knowledge • The Treasurer's report, which can be viewed beforehand on
visualised in a mix of 2D to 4D environments. Information and the AIG website, www.aig.asn.au.
communication technologies will continue to underpin the advances • Election of office bearers (nomination and proxy forms have
required to achieve this goal. However, the content, technology and already been sent to members).
access are at different levels of development and reside in different
At 6.45 pm, the AGC's president Dr David Denham will speak
locations amongst industry, services, government, research bodies
about "The Future of Geoscience in Australia".
and universities in Australia. The incompatibility of the tools,
systems and outputs is the major impediment to developing a Glass
Earth, and the greatest technological challenge. You don't have to be an AIG member to attend.
In collaboration with other agencies and services, the Glass Earth is You don't even have to be fifty years old and male!
assessing grid-based computing to facilitate "transparent" access to
the different and non-centralised earth science resources. Grid
computing has the capacity to make access to geoscientific data
repositories, processing packages and computer power as easy as the
web has made access to information. There is an international
AIG News Online
movement to develop standards for interchange of data and
AIG News (including the last four issues) is now
interoperability of services (e.g. the open GIS consortium and the
posted on the AIG website, www.aig.asn.au.
World-Wide Web consortium).. However, to use grid resources
effectively we also need to support and enhance specialised service The AIG website is accessed by several thousand
provision centres that manage data, provide a visual means to users each week. It has been independently ranked
explore data, process, analyse and model data, and record within the top 150,000 of all websites, and is one of
knowledge derived from the data for dissemination and future the most popular geoscience websites in the world
investigation. (AIG News, February 2002).
The provision of a highly visual, multi-level user access platform to
national earth science data and technologies would enable overseas Inclusion of AIG News on the website will add value
mining companies to assess the exploration potential in Australia for advertisers, help to promote Australian
more rapidly, thereby stimulating investment. It would also reduce geoscience internationally, and provide overseas AIG
the technology gap between large, well-equipped companies and members with more rapid access to the newsletter.
small to medium sized explorers, many of which lack high-level
data processing tools. This is where it "takes a village" to deliver a
Glass Earth Australia. ▲ ▲
Contact: Mark Deuter
Acknowledgements
The authors would like to acknowledge Mike Gladwin, Cathy Foley, Phil Schmidt,
Dave Clark, Steve Fraser, Andy Green, Judy Thomson, Ernst Kohler and Jonathan
Law for direct assistance in preparing this document. We also want to acknowledge Airborne Geophysics Specialists
all of the project leaders and scientists working on the Glass Earth projects within the Airborne data processing & imaging
CSIRO Divisions of Exploration and Mining, Telecommunications and Industrial Data compilations, mapping & GIS
Physics, and Math and Information Sciences. More details on the people whose
Overburden FilterTM processing
projects were presented in this article, and other activities within the division can be
found on our website www.em.csiro Depth mapping and interpretation
Ph: 08 8152 0422 Fax: 08 8152 0433
email: [email protected] URL: www.pitt.com.au
AIG NEWS No 72, May 2003 GENERAL 7

MEMBERSHIP NEWS...MEMBERSHIP NEWS...MEMBERSHIP NEWS...

No Increase in AIG Fees Membership Update

Applicants for Registered Professional Geoscientist
Dr Julie Evans of Menai, NSW, in two fields
John Bishop, AIG Federal Treasurer (Environmental Geoscience and Geochemistry)
Mr Toby Hobbs of Albury, NSW in one field
(Environmental Geoscience)
Mr Peter Volk of Beecroft, NSW
(Geotechnical and Engineering)
THE CONSOLIDATED AIG FUNDS are divided up among Members approved at Council Meeting March 2003
accounts operated by state branch sub-committees and the
NEW MEMBERS
Federal Council. Income to the federal account comes
BARR Michael John QLD
mostly from members' subscriptions, from advertising and
BRIGGS* Terry WA
from a proportion of the profits from the various
workshops, conferences and courses organised by the CATTLIN* Travis Vaughan WA
branch sub-committees (thirty percent of the profit if it is a GOLDSWORTHY Julian David WA
local, intrastate meeting and forty percent if it is an GOODGAME Virgle Roland WA
interstate or international event). GROSSER Michelle Ruth VIC
A number of recent initiatives have resulted in increased HEWLETT Geoffery William WA
expenditure of the federal funds in several areas. These include the HOBBS* Toby Philip NSW
provision of an honorarium for the editor of AIG News, partial Mc DONALD Simon John NSW
funding of the costs incurred for AIG participation in Science MOWAT Bruce Andrew NSW
Meets Parliament, provision for payment of some travel expenses NICOLSON Diane Samantha PERU
for future AIG presidents, and the donation of seed funding for PENKETHMAN Andrew Geoffery FIJI
new sub-committees in Adelaide and Hobart. Other initiatives REDDELL Craig Thomas WA
have been accomplished with independent funding - such as the RYPKEMA Henderikus Alfred QLD
delivery of sponsored bursaries to PhD and Honours students in SALE Marc James SCOTLAND
geoscience. SPEERS Roger James TANZANIA
These extra expenses have meant that from time to time the level TURNER Russell Graeme Stuart WA
of the federal account has dropped below $50,000 and sometimes VALENTE* Dianne Lee WA
below $40,000. These low levels have stimulated much discussion WINTERBOTTOM Stephen John WA
at Council meetings as to whether or not the present annual WOLSTENCROFT Alan WA
subscription levy of $77 (for full membership, including GST) * denotes upgrade
should be increased
NEW GRADUATE MEMBERS
Despite the increased federal expenditures, the balance of total
AIG funds has increased over the last year, largely due to the HAMILTON Bryce Robert QLD
energy and initiative of the various branch sub-committees. At the HAMPTON Wendy A NZ
end of 2002, total AIG funds stood at around $311,000 which RUTHERFORD Lachlan Stuart SA
clearly negates an increase in AIG fees. This is especially so in the NEW STUDENT MEMBERS
current employment climate when many geoscientists are BURDETT Mark Nigel SA
finding it difficult to find full-time or even part-time work in the DUTCH Rian SA
industry. However, the problem remained that there was no HASSELL Tracey VIC
established mechanism for the Council to call upon the state
branch sub-committees to transfer funds to the national account
when the need arose.
At a recent Council meeting it was resolved that the annual
Doug Young & Associates
subscription would not be increased in 2004, but that the Council, Mineral Exploration Consultants
ACN 010 645 851
if required, would call on the state branches to make a pro rata
contribution of funds to the national account whenever the balance • digital mapping, geophysical interpretation, image analysis
of the national account fell below $50,000. This is based on the • GIS analysis, 3D modelling, database design
• concept and target generation a specialty, project management
fundamental premise that all AIG funds, whether in the national • extensive experience, all terrains
account or in individual state branch accounts, are ultimately Further information at
controlled by the directors of the Institute, i.e. by the Council. www.home.gil.com.au/~findex/Dougs/Html_files/dougs.html
The Council's resolution to ensure the long term viability of the P.O. Box 217 Phone: +61 7 3369 8396
Paddington QLD 4064 Facsimile: +61 7 3369 0479
Institute with no impact on the personal finances of our members Australia Email: [email protected]
is a most welcome development. ▲ ▲
 Managing Risk in Resources and Reserves
A three-day practical training course on using Perth, WA
conditional simulation to manage risk
in the field August 19-21

Learn how to:

Course presenter Ian Glacken
• Use the principles, algorithms, and applications of conditional simulation is Snowden's Manager
in exploration, grade control and mine planning processes Geology and Resources
and has more than 20 years
• Quantify and qualify risk in mining experience in the
mining industry.
• Initiate and enhance the process of making decisions at all stages in the
mining value chain His specialist skills include
project management, resource
• Use probability-impact matrices to quantify risk estimation, due diligence and
auditing, conditional
• Review the basic principles of probability and statistics simulation, sampling theory
• Incorporate subjective and expert opinions into risk analysis and applications and
reconciliation studies.
• Understand the differences between uncertainty and variability
• Know what risk tools to use and when
• Use risk analysis software such as @RISK
• Apply the concepts of loss functions and risk profiles
For more details, visit www.snowden.com.au or call Gillian Bester on
(08) 9211 8604 or email [email protected]
AIG NEWS No 72, May 2003 MINING & EXPLORATION 9

Tectonic Settings of Sediment-hosted (or Sedex)

Massive Sulfide Deposits
They established 26 distinct sedimentary basin classifications that
Cam Allen (Principal Geologist, Teck Cominco America) formed in divergent, intraplate, and convergent settings. Speaking
as an explorationist (and non-sedimentologist), their classification
This is the text of a MEGWA presentation by Dr Cam Allen in seems thorough, logical, and entirely appropriate to also classify
Perth on February 18 2003. AIG News thanks Dr Allen and Teck sediment-hosted base-metal deposits.
Cominco for permission to use the presentation, and for My message is that seven out of their 26 types of sedimentary
providing a CD containing the text and Powerpoint slides. basins can be shown to be permissive hosts for Sedex deposits (see
Figure 2). The flip side of this is equally important - there are 19
THIS TALK WILL FOCUS on the great diversity of tectonic basin types which are not known hosts to Sedex deposits. This has
settings and sedimentary basins which are hosts to the very considerable implications in exploration as to where you don't go
large Sedex zinc deposits. The common perception in Australia to explore. I won't elaborate on the non-Sedex bearing basins - for
is that it is only the intracratonic sag phase basins such as the that is an entirely different talk. When combined with evidence for
Mount Isa Supergroup that host Sedex deposits. I will show ore fluids of widely varying chemistry, temperature, and salinity;
that this is not the case. The intent is to identify those basin and evidence of varying redox potential in the source aquifer and
types which are known hosts, and ultimately make exploration at the deposition site, it is evident that Sedex deposits are hugely
targeting more effective. diverse. This diversity makes exploration even more challenging,
In this talk I'll advance a very broad definition of Sedex deposits, especially during grassroots exploration stages or when trying to
make the point that a classification of these deposits falls naturally gauge the Sedex potential of a new sedimentary basin.
into the tectonic setting of their respective sedimentary basins,
very briefly examine seven types of permissive basins, and draw Divergent settings
some conclusions. Let's start with divergent settings. A number of Sedex deposits
Sedex deposits are especially attractive exploration targets and display a time and space association with ophiolite complexes,
mining opportunities for zinc, for they offer good-grade, high- suggesting a relationship with the divergent tectonic setting that
tonnage, low-cost, long-life mines capable, in many instances, of creates new oceanic crust. These basins - flanked by young, rifted,
producing in excess of 100,000 tonnes per year of zinc metal. continental margins and floored by oceanic crust - are defined as
proto-oceanic rift troughs.
My definition of Sedex is quite broad - far beyond the original
restriction to pure sedimentary exhalative - see Figure 1. The pure, The Jurassic-aged Duddar deposit in Pakistan is hosted above a
end-member Sedex deposit is typified perhaps by the Selwyn 600-m sequence of sands, silts and limestones deposited on
Basin deposits (Canada). With an increasing volcanic component, thinned continental crust, and overlain by a further 600 m of
they display a transition to VMS deposits such as the Bathurst shales. A tectonic reconstruction of the Bela ophiolite thrust belt
Camp in New Brunswick, Canada, or perhaps even Broken Hill. indicates that Upper Jurassic to Lower Cretaceous ophiolites - i.e.
With increasing carbonate and hydrocarbon component in the new oceanic crust - lay immediately seaward of this rifted
section, they display a transition to entirely sub-surface replacive continental margin. With some confidence, I believe we can
deposits such as the Irish type. The core of the Sullivan deposit attribute the orebody to the sediment prism, the extensional
demonstrates internal zone refining and replacement, so I place process, and the high heat flow. Further examples of deposits in
Sullivan here. this tectonic setting might include the following:
Central to this presentation is a major treatise on the Tectonics of • Western Cuba - Jurassic-Cretaceous
Sedimentary Basins, authored in 1995 by Busby and Ingersoll. • Kholodnina, Russia - Neoproterozoic Cont. Overleaf

Figure 1: Classification of Sedex deposits according to volcanic vs. Figure 2: Classification of Sedex-permissive sedimentary basins.
carbonate/hydrocarbon content of host rock.
10 MINING & EXPLORATION AIG NEWS No 72, May 2003

Tectonic Settings of Sediment-hosted (or Sedex)

Massive Sulfide Deposits Cont. from Page 9

A world map of Sedex deposits should include ophiolite belts and proto-Tintina fault, which crudely marked the boundary of the
their reconstructed continental margins as permissive terrains. oceanic rift trough.
Two critical ore controls were the presence of a thick Proterozoic
Intraplate tectonic settings clastic reservoir beneath the prism, and Paleozoic sedimentation
Intraplate tectonic settings record the most abundant and diverse well below the oxic-anoxic ocean-water boundary. This older
assemblage of sedimentary basins which are host to Sedex Windermere-aged clastic sequence, itself deposited within a rift
deposits. Permissive basin types include passive margins, two framework, in hydrologic connection with the Paleozoic sequence,
stages of intracratonic rifts, and alaucogens. may be the most critical ore element. Other examples of passive-
Passive margins, known more precisely as continental rises and margin-type Sedex deposits include the following:
terraces, represent the most common Paleozoic Sedex • Red Dog, Alaska - Mississippian,
environment. These comprise thick sediment wedges constructed
• Citronen Fjord, Greenland - Ordovician,
on continental crust, facing into a deeply subsided crust beneath
the rise and terrace, and thence towards a once active spreading • Sopokomil, Indonesia - Permian.
ridge. Passive margins are susceptible to extensional and A worldwide map of Sedex potential should display passive-
transtensional stresses caused by sediment loading, reactivation of margin deposits, black-shale facies, and especially those of
basement structures, and by far-field tectonic forces related to Devonian-Carboniferous age. In a global sense, the Devonian-
oceanic plate activity. Carboniferous has a zinc endowment rivalled only by the
The Selwyn Basin deposits in Canada provide an excellent Paleoproterozoic. Passive margins anywhere in the world that
example. These deposits contain collectively greater than 40 were fragmented by late Paleozoic tectonic events would be good
million tons of Zn-Pb metal. The Selwyn Basin is a good instance exploration plays.
of a slowly-accumulated sedimentary prism some 3 to 4 km thick, Intracratonic rift basins which host Sedex deposits have a
developed on a continental rise and terrace adjacent to an ocean basement of continental crust, have undergone anywhere from
basin. Episodic reactivation and subsidence occurred between approximately 30 to 400 percent extension, and are variously filled
Cambrian to Devonian times. Deposits are localised along with continental, lacustrine, evaporite, and marine sediments.
extensional rift-type normal and transform faults related to the They may contain single or multiple cycles of fill, each 3-10 km
thick.
Within rift-generated extensional basins, an important distinction
is whether the zinc deposits formed during the syn-rift phase of
active faulting and coarse clastic infill (hence rift phase), or the
post-rift (or sag phase) stage, when shallow-water quartzite-
carbonate sedimentation predominated. The dramatic locational
differences of Mt. Isa and Sullivan illustrate this - see Figure 3.
The Sullivan deposit, with 16 Mt of contained zinc and lead, is an
example of mineralisation associated with the syn-rift stage of
intracratonic rifting. The Mesoproterozoic Belt Basin resulted
from active extension by a mantle plume; during the rift stage the
basin was filled with 8 or more km of reduced, anoxic to dysoxic
turbidites and conglomerates, producing a good ore fluid aquifer,
and was actively heated by gabbro sill injection. The Sullivan
deposit formed within the turbidite sequence. During the

Figure 3: Sedex deposits and contrasting stages of basin development

- Sullivan (rift phase), and Mount Isa (sag phase) as examples.
AIG NEWS No 72, May 2003 MINING & EXPLORATION 11

subsequent sag-phase stage of basin fill, another 7 km of shallow- A further basin classification associated with intraplate rifting and
water carbonates and quartzites on the upper part of this cross- which can host large Sedex deposits is the alaucogen or failed
section were deposited. These sag-phase sediments are very "triple-point" rift. Alaucogen basins form within cratons as a result
similar to the host lithologies for the North Australian Sedex of rifting generated by a mantle plume. New ocean crust is
deposits. generated along two arms, while the alaucogen basin comprises
The Sullivan deposit is spatially associated - once again - with rift- the third "failed arm".
parallel extensional faults, and with basin-normal transform Such a circumstance seems to be represented by the Bhilwara
structures. The second-order basin at Sullivan measures about 5 x Supergroup in the Paleoproterozoic of India. The Bhilwara occurs
15 km, and defines both a distinct sedimentary depocentre and a as a series of narrow, lengthy, sharply-bounded clastic basins some
distinctive hydrothermal alteration centre. The orebody measures one to five km thick, developed on Archean crust, and filled with
2 km by 2 km. rift-stage conglomerates, picritic basalts, arenites, carbonaceous
The deposit is clearly associated with rupture and cross-strata flow pelites, and subsequent sag-phase dolomites.
by compaction-generated fluids. Similar to VMS deposits, The Bhilwara is host to the large Sedex deposits of Rampura
Sullivan has both a pronounced footwall tourmaline alteration Agucha (61 Mt @ 13% Zn) and Rajpura Dariba, and numerous
pipe, and a widespread sericite-pyrite-arsenopyrite alteration halo. other modest showings. Subsequent ocean closure created a fold
Sullivan teaches us that intersection points of basin axial and and thrust belt orogen known as the Aravalli and also resulted in
transverse faults, commonly reactivated in subsequent orogenic strike slip fault segmentation of the Bhilwara basins.
deformation as inverted thrust faults or strike-slip faults, are the To date, I am not aware of any other Sedex deposits that are hosted
most likely draw-down sites for seawater and upward-discharge in a "bona fide" alaucogen basin.
points for ore fluid. Identification of these structures and diligent Let's pause briefly to look at BHTs or Broken Hill-type deposits.
exploration around them is clearly a priority in any basin. Here we're talking about deposits like Broken Hill and Cannington
Syn-rift basin analogues of Sullivan are offered by the Anvil Range in Australia, the Aggeneys-Gamsberg camp in South Africa, and
district in Yukon, and Rosh Pinah and Skorpion in Namibia. Many the Bergslagen in Sweden. In some respects, the Bathurst VMS
Proterozoic intracratonic rift basins in Brazil and Africa also camp of New Brunswick is strikingly BHT-like. Do they constitute
would appear to have potential for syn-rift deposits similar to a separate class or model of zinc deposits, as those with Australian
Sullivan. While the sag-phase basins in the Mt. Isa region of passports might claim, or do they naturally fall into the Sedex field
Australia have been thoroughly explored, the rift-phase basins while still possessing some specialised attributes?
have been virtually ignored by explorationists. We'll also see The Broken Hill deposit, containing 75 Mt of Zn-Pb metal,
shortly that Broken Hill in Australia essentially occurs in a rift- represents a somewhat enigmatic part of the sediment-hosted
phase basin. model, due to the effects of granulite facies metamorphism and
In contrast with Sullivan, the Mt. Isa District presents evidence of penetrative deformation. Metamorphism, shortly after ore
Sedex mineralization within the shallow-water sag phase of rift formation, testifies to orogenic deformation of a long-lived rifted
development. The three mines of the Mt. Isa district - Isa, Hilton, basin.
and George Fisher - contain 40 Mt of zinc plus lead. Mt. Isa occurs But what was the nature of the basin? The stratigraphic
in the third of four very thick rift and sag cycles which developed architecture comprises significant amounts of bimodal volcanics
over a 200 million year period in the Paleoproterozoic. Numerous and granitic sills, within a lower assemblage of oxidised quartzite,
unconformities, carbonates, and thick quartzite units throughout pelite, and evaporitic sediments. Broken Hill deposits are unique
the stratigraphic section of this third rift-fill cycle suggest that Mt. in not being hosted by pyritic or graphitic reduced sediments.
Isa formed in an oscillating sag-phase basin, with some portions Rather, they demonstrate remarkable oxidised chemical exhalites
being uplifted while others were episodically subsiding. Older rift- comprising barite, magnetite, Mn oxides, and calc-silicates.
phase fill includes bimodal volcanics, perhaps the source of the Chemically anomalous potassium, fluorine, and tungsten,
leached metals and mixed clastics. The Isa deposits are contained combined with the presence of "A" type or anorogenic bimodal
within a tectonically deepened, restricted black shale basin, volcanics suggest that Broken Hill deposits are transitional to
developed on a 10-km-thick platformal sequence of hematitic VMS deposits - or hybrid VMS-Sedex with a large magmatic
sandstone, stromatolites, and evaporites. Wrench faulting due to component - and developed in oxidised stratigraphy and oxidised
far-field plate forces created a second-order basin some 25 km depositional basins.
long filled with 1 km of black dolomitic shale, host to all the Let's get a bit more specific about the evolution of the Willyama
orebodies of the Isa District. The Mt. Isa deposit itself records 25 Supergroup, host to Broken Hill and also its possible relation to
stacked orebodies over this 1 km thickness, testifying to a events in the Eastern and Western Mt. Isa successions. A plot of
tremendously sustained fluid-drive system. stratigraphic thickness versus SHRIMP ages of magmatic zircons
In a worldwide search for Sedex deposits, priority must certainly would give a crude subsidence time curve. It would be a straight
be given to any oxidised Proterozoic basin with sag-phase line suggesting a rift, rather than a rift-sag system.
quartzites, carbonates, black shales, and evidence of evaporites. The Willyama records uniform extension and subsidence over a
There are a lot of these to explore in Namibia and Brazil. Such period of approximately 80 Ma from at least 1720 to 1640 Ma with
Canadian basins as the Borden and Belt Basins also offer good an accumulation of more than 8 km of psammopelites. By
exploration opportunities. Cont. Overleaf
12 MINING & EXPLORATION AIG NEWS No 72, May 2003

Tectonic Settings of Sediment-hosted (or Sedex)

Massive Sulfide Deposits Cont. from Page 11

comparison, Sullivan and the Belt Basin in its rift and sag phases Convergent margins
records approximately 15 km of sediment accumulation over a Let's return to the other tectonic settings that host Sedex deposits.
period of approximately 100 Ma (1497 to approximately 1390). What is perhaps surprising about Sedex deposits is that they are
This Willyama event is crudely correlative with cover sequence III well represented in convergent tectonic settings, albeit in portions
in the Mt. Isa Supergroup. of back-arc basins with a significant component of back-arc
From this we may conclude that Broken Hill formed in a rifted extensional tectonics. Two particular basin classifications are
basin with continuous long-lived subsidence and a significant but noted:
not overwhelming bimodal magmatic component. The tectonic
• Back-arc basins
setting was probably not a truly intracratonic rift-sag basin but
rather a rifted outboard continental margin basin. Its outboard • Retro-arc foreland basins.
position rendered it susceptible to deep burial and metamorphism The tectonic setting of Sedex deposits in the extensional back-arc
during the first ensuing orogeny. The more inboard basins at Mt. basin classification commonly needs to be reconstructed, from
Isa and McArthur River were considerably more protected from regional-scale syntheses. The sedimentary prism is similar to that
this orogeny and escaped high grade metamorphism. I would deposited on passive margins, though it may contain considerable
conclude that Broken Hill and its sisters simply have special Sedex arc-related volcanic material in the lower fill sequence - a possibly
attributes consequent on ore fluids with a hybrid sedimentary significant source of leachable metals. The Rhenish Geosyncline
volcanic/sedimentary source being emplaced into an oxic, sulphur- of Germany provides an illustration of this.
deficient water column. In any other aspect, Broken Hill fits the
The deposits of Meggen and Rammelsberg together contain some
intracratonic rift model of Sedex deposits formed in an intraplate
14 Mt of Zn-Pb metal. They are located within a Devonian to
extensional environment.
Carboniferous passive-margin-type sequence developed on
As a quick comment, the other big BHTs occur in somewhat continental crust, behind marginal magmatic arcs, and above an
different tectonic settings. The approximately 1650-Ma Aggeneys- intermittently active subduction complex.
Gamsberg camp in South Africa seemingly formed on a very
During the lower Devonian, 2 km of coarse clastics and felsic
mature passive margin dominated by quartzites and aluminous
volcanics accumulated in a rift-controlled basin; this was followed
shales before this passive margin was subjected to extension. The
Bergslagen district in Sweden is clearly related to back-arc by 3 km of sag-phase black pelites, shales and carbonates which
extensions behind an active island arc subduction zone. are host to the orebodies. Major structural controls are basin-axial
extensional structures, and basin-normal transform structures
which controlled second-order and third-order basins. The vast
range of processes associated with subduction - the rate, the
obliquity, slab angle changes, degree of back-arc extension, and
inter-arc transform structures - can give rise to considerable
extension and transtension, and thus favour the fluid flow
conditions necessary for ore formation.
Other examples of Sedex deposits in back-arc basins include the
following:
• the Irish orefield (Navan, Lisheen, Galmoy) - Carboniferous,
and
• Aguilar, Argentina - Ordovician.
The recognition of significant deposits within passive-margin type
sequences developed in back-arc basins would appear to open up
a lot of new exploration frontiers. For example, Devonian back-arc
sedimentary basins west of, or inboard of, the Appalachian orogen
in Canada and the US, are exploration targets.
Now let's look at our last Sedex-hosting tectonic setting:
Retro-arc foreland basins form from marine sedimentation of
terrigenous material sourced from a developing orogen. These
basins are located on the continental sides of subduction-generated
collision zones. They are rare hosts to replacive Sedex deposits and
are more commonly hosts to MVT style mineralization. The
Century Sedex deposit is hosted in organic-rich microturbidites
derived from the developing D1 orogenic deformation event that
affected the Mt. Isa-Cloncurry area. It is a deep replacive rather
than a shallow exhalative Sedex type. These foreland marine basin
sediments were deposited over the older sag-phase basin, host to
the Isa type deposits. Latent ore fluids in this older basin were
AIG NEWS No 72, May 2003 MINING & EXPLORATION 13

Mineral Exploration
Action Agenda:
introduced, along older fault arrays, into gently domed, organic-
rich microturbidites of the Lawn Hill Formation. The site of ore Draft recommendations
deposition was effectively an oil and gas trap, and mineralization
is clearly strata-transgressive, diagenetic-replacive, and syn-oil. The Mineral Exploration Action Agenda was established by the
The key here is the hydrologic connectivity between an Minister for Industry, Tourism, and Resources, Ian Macfarlane, in
intracratonic rift basin and the younger overlying foreland basin. September 2002 to recommend to the Commonwealth
government ways of addressing the decline in mineral exploration.
One other candidate for a foreland basin-hosted Sedex deposit Eleven specific recommendations, set out in a 20-page document
with replacive character may be the Black Angel deposit in released on 1 April 2003, focused on access to four key elements:
Greenland. land, finance, pre-competitive geoscience information, and
I think I have demonstrated that a number of very diverse deposits intellectual capital.
exist under the label of sediment-hosted massive sulfide deposit,
and in a considerable range of tectonic settings. Extracting the Land access
essentials, there are five major favourability criteria: 1. Develop regional templates for native title and heritage
• extensional tectonics, as recorded by growth faults, agreements.
unconformities, and coarse clastic input 2. Promote the use of expedited procedures when granting
exploration tenements, especially when there is no objection
• thick and extensive aquifer systems of quartzite, arkose, and
from Native Title representatives.
volcanics undergoing diagenesis
3. Amend the Aboriginal Land Rights (NT) Act, to streamline
• abnormal heat flow, as recorded by some volcanic activity or granting of exploration licences in the NT.
by extension 4. Develop a coordinated approach to land access through
• a structural and hydrologic framework that results in removing the overlap between state/NT and federal
extensional or transtensional faults that will allow both fluid jurisdictions.
recharge and fluid discharge
Finance
• The presence, in most cases, of reduced pyritic black shales in
5. Introduce a flow through share scheme embodying a 150%
second-and third-order basins.
factor for exploration expenses, and setting the cost base of the
The most productive tectonic settings for Sedex deposits appear to shares at zero for capital gains tax purposes.
be passive margins, the sag sequences of intracratonic rifts, and
6. Allow a 125% tax deduction for greenfields exploration
back-arc basins with evidence of multi-cyclic sedimentary fill and
expenditure.
a significant component of transtensional deformation.
7. Make Native Title compliance costs fully tax deductible.
In conclusion, robust and well-constrained exploration models for
many other zinc deposits (such as VMS and MVT) have resulted Pre-competitive geoscience information
in thorough and deep exploration of their permissive belts, 8. Governments to complete national geoscience information
rendering any new discoveries both expensive and slow. coverage by 2014, at an estimated cost of $25 million per year.
I hope I've shown that Sedex models are much less constrained; 9. Develop a coordinated system of storing and accessing
that a diverse variety of sedimentary basins both have potential to geoscience data.
host Sedex deposits and remain under-explored; and lastly, that
worldwide discovery opportunities for more big sediment-hosted Intellectual capital
zinc deposits appear very good, possibly using fairly simple 10. Provide opportunities for fifty geoscience graduates and post-
exploration tools and concepts. ▲ ▲ graduate students to rotate between government research
Reference agencies and industry.
Ingersoll, RV and Busby, CJ, 1995, Tectonics of sedimentary basins, in CJ Busby and 11. Complete a program of exploration-oriented R&D by 2008, at
RV Ingersoll (eds.) Tectonics of Sedimentary Basins (Blackwell Science) pp 1-52. an estimated cost of $20 million per year.

HUGO HOOGVLIET
Bevan Dockery Geologist - MSc. - MAusIMM - MAIG

BD
"From Start to Finish"
Consulting Geophysicist
ABN 69 263 892 503 • Exploration
• Feasibility
• Mine Start-up
33 The Rise, Mindarie, WA 6030 • Full Production
Telephone/facsimile: 618 9407 8061 • Mine Closure
Email: [email protected] Tel (612) 9614 1076
[email protected]
14 MINING & EXPLORATION AIG NEWS No 72, May 2003

Proposed Changes to the JORC Code in 2003

• In conjunction with the European Federation of Geologists,
Dave Shatwell
which covers over 25 countries in Europe, the UK-based
Institute of Materials, Minerals, and Metallurgy and the
THE JOINT ORE RESERVES COMMITTEE (JORC) held a Geological Society of London, as well as the Institute of
presentation by two speakers, Norman Miskelly and Phil Geologists of Ireland, have developed a reporting code based on
Hellman, outlining proposed changes to the 1999 Code, in JORC and SAMREC.
Sydney on February 12, 2003. The presentation was under the
auspices of the AusIMM, the AIG and SMEDG. • The United Nations Economic Commission for Europe (UN-
ECE) has also in effect used the JORC definitions for mineral
It followed a talk by the AusIMM's CEO, Don Larkin, about new resources and reserves and their sub-classes in its Framework
objectives for that organisation - quite interesting in fact, but it left Classification. However, the Framework Classification is biased
time for only six questions from the audience following the JORC towards reporting to governments rather than to the investment
presentation. It might have been a better idea to devote the time to the and finance sectors, and some readers had difficulty in
JORC discussion, rather than, in effect, tack it on to an AusIMM understanding it. Hence the JORC-type codes were more
meeting. relevant for geoscientists whose work was associated with the
Norman Miskelly, the joint ASX/AusIMM representative on JORC, investment sector.
spoke first, and summarised the extent to which JORC has been The US remains the odd one out. There is the " SME Guide to
adopted overseas: Reporting Mineral Resources and Mineral Reserves", but it is not
• In South Africa, the SAMREC Code is modelled on JORC, with recognised by the Securities and Exchange Commission, and there is
local modifications, and since March 2000 must be followed by no US professional organisation through which Competent Persons
companies listed on the Johannesburg Stock Exchange (JSE). or their equivalent are recognised.
• In Canada, Instrument 43-101, "Standards of Disclosure", is also Some of the South American countries are inching towards a
based on JORC, with the addition that it also includes pro-forma reporting code, with Chile well on the way and Peru "expressing
requirements for technical reports and some prescription for interest".
exploration practices - a function that JORC leaves largely to Norman spoke a little about Recognised Overseas Professional
individual geologists. Estimates have to be made by "Qualified Organisations, known as ROPOs. These are not part of the JORC
Persons", equivalent to our "Competent Persons". Code, but fall within the sphere of the ASX, which has since

JORC recognises that drill intersections are subject to interpretation. (Courtesy of Norman Miskelly)
AIG NEWS No 72, May 2003 MINING & EXPLORATION 15

New Queensland
published a list on its web-site - www.asx.com.au
Geoscience Data
Phil Hellman, who is one of the AIG's representatives on JORC,
spoke about the inclusion in the JORC Code of aspects of exploration THREE NEW QUEENSLAND INFORMATION
results that were previously required by the ASX Listing Rules. The PACKAGES are available from the Geological Survey of
proposed 2003 code requires exploration results to be reported by a Queensland (GSQ), and the Queensland Department of
Competent Person, as for resources and reserves. Phil pointed out Natural Resources and Mines (NR&M).
that there is a contradiction in Clause 17 of the 1999 code, about
Aeromagnetic maps
whether tonnage and grade figures can be included in exploration
results. He said the 2003 code will aim to remove this uncertainty by The GSQ and NR&M, in collaboration with Geoscience
allowing ranges of tonnes and grade to be referred to in the context Australia, have produced an improved magnetic anomaly map
of exploration targets, potential mineralisation, etc, but not in the and grid data for Queensland, as part of the Geoscience
context of resources or reserves. Norman has since advised that, as Australia Minerals Program. The grid data are available on
this is a very important matter, wording of the Code's clauses and CD-ROM for $113.52, and a 1:2,500,000 scale map can be
guidelines relating to reporting exploration results, exploration bought for $41.47.
targets, and potential mineralisation still has to be finalised by JORC. Contact the department's Information centre on (07) 3237
Phil also mentioned how the 2003 code encourages practitioners to 1435 for sales, or David Searle on (07) 3362 9357 for more
quantify the degree of uncertainty associated with the different information.
categories of resources and reserves - possibly the most difficult
Mount Isa-Cloncurry mineral occurrence maps
aspect of the JORC Code.
Information on approximately 3100 active and abandoned
There were questions and comments from the audience about
mines, and summary exploration reports, in a 190,000 km2
reporting of industrial minerals and coal, and about the reciprocal
area in the Cloncurry-Mount Isa region, are now available on
acceptance of Australian Competent Persons overseas, this being
CD for $113.52. Hard-copy maps are also available for
linked to the ROPO initiative. There was a suggestion from a
$41.47.
Canadian (yes, that's right, the ones who brought us Bre-X) that
Australians are becoming too "anal" about reporting requirements. For more information, contact Paul Garrard on (07) 3362
9342, or Terry Denaro on (07) 3362 9337.
I was pleased to see that the 2003 Code continues with the principle
of relying on the individual expertise and experience of geologists to Northern Bowen Basin airborne survey
estimate resources and contribute to reserves estimation. Resource
The NR&M carried out an airborne geophysical survey (TMI,
estimates are only as good as the geological understanding of the
radiometric, and DTM) of 20,400 km2 in the northern part of
orebody. I believe those involved in logging the core and mapping the
the Bowen Basin in mid 2002. The new data have been
outcrop are the ones best able to draw the cross sections and define
merged with previous surveys by MIM Holdings Limited,
the litho-types and ore-types; they need to work closely with, and at
Anglo Coal, and BHP, and form part of a joint research project
times constrain, the geostatisticians and block modellers. (Not to
between the NR&M and the New Energy and Industrial
mention the geophysicists and mining engineers, if the illustration on
Technology Development Organisation (Japan). The airborne
the previous page is any indication).
data should enhance knowledge of the coal resources of the
Most exploration geologists are probably reasonably familiar with Bowen Basin, but may also indicate Permo-Carboniferous
the JORC code, but may rarely be involved in resource or reserve intrusives associated with possible gold or base metal
estimations. The inclusion of exploration reporting will mean that the mineralisation in the western part of the basin. Geophysical
code will receive more attention than previously. ▲ ▲ data are available from the NR&M Information Centre, (07)
Acknowledgement: 3247 1435; line and gridded data are available on two CDs for
Thanks to Norman Miskelly and Phil Hellman for reviewing and $227.04.
suggesting corrections to an original draft of this article. Contact John Draper, (07) 3362 9340.for further details.

GOLD RESOURCES OF THE ANDEAN REGION 2003

Colombia, Ecuador, Peru, Bolivia, Chile, Argentina
• Gold overview - by countries, deposit
Package available
Roger Marjoribanks PhD
types, deposit ages, and more.
as a CD for $165, or
• Geology, production, resources, economic & structural geology consultant
$110 to AIG members
location, mining and processing, cost
data, ownership, and history, for 70
- GST included. over 30 yrs experience
gold deposits in the Andean countries.
Inquiries to
• Summary deposit data also in [email protected]
spreadsheet form for easy sorting and or phone Dave [email protected]
filtering. Shatwell on tel: 08 9450 1612 fax: 08 9450 3319
• GIS-compatible georeferenced deposit (02) 9436 1726,
location map (AutoCAD drawing, DXF, fax (02) 9436 3263.
27A Axford Street, Como, WA, 6152
TIF, or PDF as required).
16 MINING & EXPLORATION AIG NEWS No 72, May 2003

Flow Through Shares Revisited

ABARE Looks at Tax Incentives for Junior Explorers
company does eventually develop a mine and offset these expenses
Dave Shatwell against income, its net present value is less than if the tax
deduction had been claimed when the expense was incurred.
A 64-PAGE REPORT by the Australian Bureau of Agricultural One way of redressing this loss would be to allow exploration
and Resource Economics (ABARE) "Tax Incentives for Junior costs to be deducted at 125 per cent (as in the case of R&D
Exploration Companies" landed, metaphorically speaking, expenditure, although the technology companies don't seem to
with a dull thud on the editorial desk on April 1, courtesy of think much of it). The Mineral Exploration Action Agenda (an
Messrs. A Waltho and G Corbett. Could this be some bizarre initiative of the Commonwealth Department of Industry, Tourism,
April Fool's Day joke? Unfortunately not, so donning green and Resources), which has just been released in draft form, has
eyeshade and sleeve garters, I set grimly to work. recommended a 125 per cent deduction for "greenfields"
exploration - see page 13.
I found this report quite hard going, but then I suppose an
economist might have the same problem with a dissertation on, Another way would be to carry exploration costs forward in real
say, strontium isotope systematics. The first half of the report terms - indexed, effectively. Both approaches assume that an
covers much of the ground traversed in ABARE's December 2002 income will be generated eventually, which may not necessarily
study, "Mineral Exploration in Australia - Trends, Economic happen.
Impacts, and Policy Issues", summarised in AIG News no 71, p In AIG News no 71 (page 23), a proposal was described for a
24-27. The latest report focuses on the plight of the 400 or so sliding scale of tax incentives for R&D expenditure, according to
junior explorers in Australia - starved of investment funds, the percentage of its sales income a company spends on research.
unprofitable therefore unable to utilise tax losses, ignored by Could this be applied to mining companies that have an income,
stockbrokers, burdened with native title costs, and so on. substituting "greenfields exploration expenditure" for "R&D"? It
might encourage majors to undertake more off-lease exploration,
The double bind of the junior explorer either themselves or perhaps using junior explorers as proxies
ABARE loves statistics, and here are a few that describe the through joint ventures, etc.
Australian mining/exploration industry today.
Three tax alternatives
• There are about 400 junior exploration companies in
Australia, including unlisted ones. Most have a market The problem remains, however, of how to compensate junior
capitalisation below $30 million, and most spend less than $2 explorers for their exploration expenditure regardless of whether
million a year on exploration. Very few make a profit. they eventually make a profit. Why reward failure? Because we all
know that a percentage of small-company exploration, albeit a
• Exploration expenditure by junior companies fell by 70 per small one, is successful, and more so than exploration by majors.
cent since 1996-97 - double the 35 per cent decrease for The juniors incurred 30 per cent of Australian exploration
medium and large companies. expenditure in the last eight years, and found 50 per cent of the
• The total value of new floats (which I must learn to call Initial gold and base metal deposits. There is a direct relationship
Public Offerings, or better still IPOs) in junior explorers was between exploration expenditure and discovery rate, which in turn
$115 million a year between 1993 and 1997. It was $12 underpins our economy (see AIG News no 71, p 24). So the
million between 1997 and 2001, (and $4 million in 1998-99, paradox is that, as a group, juniors are better at exploration than
including nothing at all for gold floats) but rose to $76 million majors, but are rewarded less.
in 2002. Tax incentives are the best way to redress this imbalance, by flow
• Only two per cent of private equity financing went to through shares, tax rebate schemes, or tradeable tax credits. The
exploration between 1994 and 2002. ABARE report looks at each of these three alternatives in terms of
Junior exploration companies are losing out on two counts. One, effectiveness and cost to governments.
because they can't recoup exploration expenditure as tax losses, • Tax rebate schemes, sometimes also referred to as "refundable
seeing they normally have no taxable income. Two, because they tax offsets", are simple: an exploration company claims 30 per
lack access to risk capital. ABARE's report looks at ways both cent of its expenditure in the year it is incurred, and receives a
these impediments might be removed or lessened. cheque for that amount. ABARE estimates that, based on
Junior explorers may eventually cash in on their exploration 1999-2000 levels of expenditure, the cost to the government
expenditure tax losses by, for example, selling partly-explored would be between $26 and $105 million, if the deduction is
tenements, being taken over, or even by finding an orebody. But applied to total expenditure, or between $12 and $48 million
this may take years, during which time the average tax deduction if applied only to exploration costs. Not a huge fortune, one
loses a quarter of its value, according to ABARE's estimate. Every would think, compared to the total mining tax revenue of $4.3
$100 spent on exploration represents a potential tax deduction of billion, and easy to administer.The tax rebates are paid back if
$30, at the current company tax rate. A quarter of $30 is $7.50, so the company makes a profit.
the average loss-making junior is effectively missing out on $7.50 • Tradeable share schemes allow companies to buy and sell tax
worth of tax deductions for each $100 spent on exploration. If the losses. ABARE points out that this does not fully address the
AIG NEWS No 72, May 2003 MINING & EXPLORATION 17

problem, because a junior would not normally get the full ABARE's earlier report as one of the triggers of the pre-1997 gold
value of the tax loss, whereas the cost to the government (in exploration boom. The Mineral Exploration Action Agenda
terms of lost revenue) would be the same as for a tax rebate recommends a modest annual expenditure of $25 million a year on
scheme. such projects.
• Flow through share schemes are only as effective as their …and IPOs
appeal to the investor, and this depends on the share price
premium (compared to the price of ordinary shares) and the Why do investors put money into new exploration floats (sorry,
capital gains tax rules that apply. Flow through share schemes IPOs)? Not because they are hoping the company will develop a
allow the company to give up its tax loss, at the company rate mine and pay dividends, I suspect. On past performance, the mine
of 30 cents in the dollar, to an investor, at up to the top will only return two per cent, so the money would be better left in
marginal tax rate of 47 cents. They are a mechanism for junior the bank. Investors hope the shares will come on the market at a
explorers to raise capital, because the shares have to be issued, premium, or they need a tax loss, or they are hoping for a takeover,
generally at a premium, in exchange for cash. The trade-off is or a "significant" drill intersection, or a spike in the gold price. And
the loss to the company of a possible future tax benefit. The yet it only takes a few good discoveries to fuel shareholder
loss in government revenue (because a possible future optimism, in a kind of positive feedback which lifts the level of
deduction of 30 per cent becomes an immediate deduction of exploration throughout the industry.
up to 47 per cent) is partly compensated by capital gains tax. How many ordinary investors read a prospectus? Probably not
This applies when the flow-through shares are eventually sold many. ABARE estimates an average float which raises $4 million
(and revert to ordinary shares at that point, something I hadn't costs $750,000 for the prospectus and land acquisition, and
realised). ABARE describes various permutations and another $500,000 a year on various compliance expenses, leaving
combinations, including different capital gains tax schedules. not very much for the actual exploration. This seems to be a real
The end result seems to be that, in Canada, they have been problem - how to reduce compliance costs and still maintain a high
quite effective in increasing the level of investment in standard of reporting.
exploration. I am surprised that tax rebate schemes haven't been pushed harder
The Mineral Exploration Action Agenda draft recommends that a by our industry - perhaps they have, but flow through shares seem
flow through share scheme should be adopted by the federal to get more mileage. Seeing that mining provides $4.3 billion a
government, and should incorporate a 150 per cent deduction for year in tax receipts, would $12-48 million, or even $26-105
exploration expenses - this would over-ride their recommendation million - the range of costs estimated for various tax rebates - be
for the general 125 per cent "greenfields" exploration deduction. so prohibitive? Wouldn't some or all of it be recouped in gains to
The draft proposes that the cost base of flow through shares should employment, GDP, and export income, through increased
be regarded as zero for capital gains tax purposes - in other words, discoveries?
investors selling flow through shares would pay capital gains tax Apparently federal Resources Minister Ian Mcfarlane is studying
on the full proceeds of the sale. ABARE's report, as the statistical basis for a debate on flow
through shares in the Parliament. That would at least be a start.
PDFs, IIFs, VCLPs… ▲▲
ABARE's report analyses other ways in which juniors might
attract investment funds. There are "ATO Product Rulings" which Reference
I gather are tax concessions similar to those available to investors Maritz, A, 2003, Tax Incentives for Junior Exploration Companies. ABARE Report
in the movie industry. They don't seem to have made much impact 03.4 for the Department of Industry, Tourism, and Resources, March 2003.
on the exploration industry so far - one application has been
approved, and another rejected. I found that PDFs are not only the
grainy proof copies of this newsletter on my computer screen, they
are also Pooled Development Funds. Then there are Innovative
Investment Funds, or IIFs, and Venture Capital Limited
Partnerships - VCLPs. None of them seem very effective, because
investment funds normally shy away from exploration as too risky. PROSPECTIVITY MAPPING SERVICES
My personal view is that governments should not become involved A.B.N. 78 956 215 312
8 Denic Rise LEEMING, WA 6149
in financing exploration and mining, but should leave that to the Telephone: (+61 8) 9310 9320
share market, although government funding may be appropriate Mobile: 0408 844 985
for a few innovative energy projects. Some of us are old enough to Email: [email protected]
Website: www.prospectivity.com.au
remember, with a shudder, the attempts of the late RFX Connor to
"buy back the farm" during the Whitlam years. Federal Lyle A. Burgess B.Sc Adv, FAusIMM, MAIG
government funding, I feel, should be directed at organisations 33 years geological & technical experience
such as Geoscience Australia and the CSIRO, (and cooperative
projects with state geological surveys) to provide affordable pre- • Specialising in exploration targeting with GIS
competitive geoscience data which benefits all exploration • Expertise in ArcInfo, ArcView, MapInfo and ER Mapper
• Prioritise targets for better planning & more efficient exploration
companies. The availability of new geoscience data was cited in
18 MINING & EXPLORATION AIG NEWS No 72, May 2003

Geoff Derrick's Century Zinc Mine Atlas

The Century Zinc Mine, Northwest The main part of this section is a detailed discussion of the 1998
Queensland, Australia model of GC Broadbent at al. (Econ. Geol. v 93, p1264-1294) for
the origin of the deposit. According to this model, a sulfate-rich
An Atlas of Regional Geology, Deposit brine which also contains CO2 transports metals along the Termite
Geology, and Mineralisation Range Fault at 1575 Ma. The brine encounters fine-grained
carbonaceous sediments deposited twenty million years earlier,
which become heated sufficiently to form hydrocarbons. These are
subsequently cracked to produce methane and pyrobitumen. The
BOOK REVIEW latter are re-deposited in the source rock, and, reacting with H2S,
by Dave Shatwell deposit lead and zinc sulfides from the brine by thermochemical
reduction of dissolved metal sulfates.
Section 3 introduces the concept of the "Barramundi Worm",
which is the product of some conceptual modelling - a form of
lineament analysis which for some reason reminded me of EST
GEOFF DERRICK IS AN ACKNOWLEDGED EXPERT on O'Driscoll's lineament tectonics ("the Tethyan Twist") of a decade
the Mount Isa Block and its stratiform deposits. Century is or so ago. Geoff Derrick seems unimpressed by the Worm. He
one of those deposits, and is the second largest zinc producer says, "perhaps the greatest single advantage of current modelling
in the world, after Teck Cominco's Red Dog mine in Alaska. concepts is that they may provide fruitful office-based
The Century Zinc Mine Atlas is a kind of literary-pictorial field employment for exploration staff while they struggle with the
trip of the Century deposit, a series of photo-essays interspersed vagaries of Native Title legislation to gain access to exploration
with technical discussion. It consists of 104 pages of text, over 130 land". Indeed.
illustrations, and ten tables. The fourth section, "Contributions to the Petrography of
Many works of geological scholarship are poorly written, and Century", presents petrographic work by Ian Pontifex. There are
some are almost unreadable, but the Atlas is not one of them. annotated photomicrographs of the ore, with detailed
Geoff has an elegant and at times sardonic turn of phrase, and no description and discussion. Of particular interest was the
time for bad science: example "Let me dissuade readers from distinction between porous and non-porous sphalerite,
accepting such nonsense!" associated respectively with liquid and gaseous hydrocarbon
The Atlas is in four parts. Section 1, "The Broad Brush" development, and a key to understanding the paragenesis of the
(mysteriously subheaded "Journeys in the Land of the Vekawi") deposit.
introduces the Century mine, and places it in its regional context. The Atlas concludes with a "Synthesis, Summary, and Postscript",
Due recognition is given here to the role played in its discovery by which pulls together Geoff Derrick's thoughts on the deposit. He
GSQ and BMR 1:100,000 geological mapping of the Mount Isa regards Century as "pushing the limits as to the nature and
Block before 1982, which laid the foundation for the basin longevity of diagenesis" - in other words, Century is the product of
modelling that exists today. I found this the most challenging diagenesis 15 or 20 million years after the host rocks were
section of the Atlas, not because it's badly written, but because I deposited at 1590 Ma. He is definite about one thing: Century is
know very little about the Proterozoic of Queensland - in this not a syn-sedimentary sea-floor exhalative deposit. Few would
regard, I am a foundation member of the Vekawi tribe. This argue with that, although some workers, including Teck Cominco's
section contains regional geologic maps, seismic sections, Dr Cam Allen, (whose presentation appears on page 9) would
aeromagnetic, gravity, and Landsat imagery, and more. place Century at one end of a spectrum which has VMS deposits
Section 2, "The Joy of Discovery", was easier. It takes us through at the other end, and Sedex deposits, including Mount Isa and
1987 concepts which prompted CRA to peg 100 sub-blocks in the "Broken Hill Type" somewhere in the middle.
Lawn Hill Mineral Field, leading speculators to speculate that Geoff Derrick's Atlas is not cheap at $700 a copy for the full
CRA was "onto something". It continues through early regional corporate rate, or $550 for the rest of us. I suspect it will be bought
geophysical and geochemical traversing which led to the by corporations, but that only the better-heeled individuals will be
discovery hole and CRA's press release on 17 September 1990 able to afford it. That is a pity, because anyone involved with
announcing the find. The section includes photographs of some of exploration for stratiform orebodies should have a copy - it's a
the mineralised outcrops on Discovery Hill - these sideritic rocks, book to be read and kept and read again. (My review copy was in
almost devoid of boxworks, looked definitely understated to me - a ring-binder - I thought a more permanent form of binding would
such deposits announce themselves in more subtle ways than their be a good idea). Perhaps a cheaper CD version might be
magmatic counterparts, evidently. considered for the future.
The third section, "Open Pit Development, Geology, and Origins" The Atlas is a fine piece of work, elegantly written and
deals with the current mining operation and the detailed geology of illustrated. I enjoyed reading it, and it was educational for me
the deposit. I thought the treatment of the mining operation was a especially in its treatment of the link between mineralisation and
little perfunctory, and that this might have been expanded into a hydrocarbons. It is a credit to Geoff Derrick, and a significant
separate section, but perhaps that is not what the book is about. There addition to the literature of Australian ore deposits. I hope he sells
are photos of pit exposures, hand specimens, and drill core here. many copies. ▲ ▲