The Ethics Column: “I want to make a complaint"

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AIG NEWS

Quarterly Newsletter • No 118 • November 2014

The Ethics Column:

“I want to make a complaint"

INSIDE THIS AIG NEWS:

Andrew Waltho, Chair, Complaints Committee

Few would not have seen the comedy sketch below, where a customer seeks to complain to a shopkeeper regarding a dead, but in the shopkeeper’s eyes, still “beautiful” parrot. the sketch highlights conduct that doesn’t reflect well on the shopkeeper and would influence the parrot owner’s future decisions about whether to shop there again.

I want to complain - lead article

Presidents Report

Grade Expectations

Swarming - New Satellite

Geomagnetic Data

Trust Me - I’m Competent

AIG National Graduate Group

Letter to Editor

Take Home Messages -

Gold’14@Kalgoorlie Symposium

Suzy Urbaniak wins

WIMWA 2014 Award

Education Report

Branch News:

NSW

27

32

WA 34

VIC 35

RPGEO Approvals and Applications 38

New Members 39

30

31

11

13

20

25

1

3

6

After almost 45 years this remains one of the world’s most famous complaints. Monty Python's Flying Circus

Season 1 - Episode 8, Recorded 25-Nov-1969

This may seem unrelated to the issue of professional ethics but this is arguably not the case.

Ethical conduct is essential if there is to be confidence and trust in information provided by professionals and their actions in delivering services to employers, clients and the broader community.

Standards of professional conduct expected of AIG members are set out in the Institute’s

Articles of Association and Code of Ethics. Instances of non-compliance with these standards are managed through a complaints process overseen by AIG’s Complaints and Ethics and

Standards Committees.

AIG’s Code of Ethics and Complaints Process

AIG is able to perform its role as a professional institute by having a strong and enforceable

Code of Ethics, which you, as an AIG member, agree to comply with as a condition of being admitted to membership the Institute. Members’ commitment to upholding the Institute’s

Code of Ethics is confirmed through renewal of your membership annually. Compliance with

AIG’s Code of Ethics is a requirement of all members irrespective of membership grade. This requirement extends to Graduates in the same manner as it does to Members and Fellows.

The Code of Ethics has changed little since it was written at the time the Institute was formed more than 30 years ago.

Cont. Overleaf

AIG Secretariat

Contact: Ron Adams

Ph: (08) 9427 0820

Fax: (08) 9427 0821

Email: aig@aig.org.au

c/- Centre for Association Management

36 Brisbane Street, Perth WA 6000

PO Box 8463, Perth Business Centre,

Perth WA 6849

2 lead article

The Ethics Column: “I want to make a complaint”

AIG NEWS No 118, November 2014

Cont. from Page 1

What has changed is the manner in which it is enforced. Complaints for many years were managed by the Ethics and Standards Committee which:

• Received complaints regarding the conduct of members;

• Decided whether the complaint warranted investigation, which, if necessary, it then carried out;

• Imposed penalties on members who were found by the committee to have acted contrary to the Code of Ethics.

The Ethics and Standards Committee effectively acted as both the prosecutor and adjudicator – a process that became to be considered inherently unfair, despite members who were subject to adverse findings by the Ethics and Standards Committee having the right to appeal against any ruling to the Institute’s Council.

A two stage process was introduced in 2007 to address this shortcoming by the formation of a Complaints Committee which was assigned the role of investigating complaints referred to it by the

Ethics and Standards Committee if there were grounds for doing so.

The Complaints Committee has the option of deciding that a complaint is for a matter of a minor nature, which would result in the member being sent a letter detailing the Institute’s concerns, or deciding that a complaint was frivolous and dismissing it. More serious complaints are investigated and the findings are submitted to the Ethics and Standards Committee for adjudication. The Complaints and Ethics and Standards Committees are independent, with no cross-membership. This change removed any responsibility for prosecution of complaints from the Ethics and Standards Committee, putting it in a position to impartially consider complaints and evidence in defence of members alleged to have breached the Code of Ethics.

The concern underlying this change was one of ensuring procedural fairness which includes:

• an absence of bias;

• an inquiry into matters in dispute;

• the opportunity to be heard; and

• presentation of evidence to support a decision

The complaints process is illustrated in the following diagram

(Figure 1, page 4) which is also available on the AIG website.

Why Have a Complaints Process?

The complaints process is central to ensuring that AIG’s Code of

Ethics is enforceable in a way that is both effective and fair to members. Having a strong and enforceable Code of Ethics enables

AIG to discharge its responsibilities in relation to the JORC Code, and is a requirement of overseas financial equities markets to which

AIG members are able to submit reports where reciprocal arrangements exist. The ability of AIG members to act as Qualified

Persons in compliance with Canada’s National Instrument NI

Cont. on Page 4

AIG NEWS No 118, November 2014

From Your President — Wayne Spilsbury

From your president

If you are a book collector, take note – this will be the last hard copy edition of AIG News. This marks the culmination of a move to have all AIG publications and communications in electronic form, led by our Communications Committee Chair, Andrew

Waltho. This edition is also Louis Hissink’s last as our Editor after seven years of service. I personally wish to thank Louis for his unceasing efforts to source external material as well as collating and sometimes cajoling submissions from members

I attended the Gold14@Kalgoorlie Symposium on 8-10 October, sponsored by AIG. I thought the event was a great success, thanks, mainly to the Organizing Committee Chairman, Julian Vearncombe of Geoscientists Symposia. In all there were 45 presentations and posters. The abstracts are posted on our website www.aig.org.au.

The Symposium was attended by 177 delegates, as well as speakers, exhibitors and poster presenters (financially assisted by

AIG). I was particularly encouraged to see high-vis shirted young geoscientists in the audience from Kalgoorlie’s numerous mining operations. The first speaker, Ed Eshuys, using examples of great discoveries at Sons of Gwalia, Bass Strait and his involvement in the Plutonic, Bronzewing and Jundee mines showed how lateral thinking was responsible for generating new wealth for the country. Neil Phillips gave the final talk in which he highlighted Australia’s unmatched success rate, discovering 16,500 tonnes of gold at a cost of $40 per ounce since 1979.

Geoscience Australia has calculated that our

Economic Demonstrated Resource (EDR,

Geoscience Australia, 2012) for gold at the end of

2012, was about 9,909 t, sufficient for the next 30 years of mining at the current production rate (about

250 t Au). Another presentation by Simon Jowitt gave the preliminary results of a world-wide

take note – this will be the last

compilation of dominantly CIRISCO (i.e. JORC,

NI43-101, SAMREC) compliant gold resources and concluded that at a minimum these resources could support 63.5 years production! But before you put your rock hammer in storage and start applying for a job with Uber, Simon did point out that these figures are for all categories of resources, the majority of which will likely never be mined due to low-grade, as well as social and environmental issues. We are a long way from “Peak Gold” and there will always be room for new high quality gold discoveries.

“Social Licence” is not just an HR phrase but a reality that will increasingly affect some of our member’s employment prospects.

Two recent initiatives by Australian National University (ANU) and the Anglican Church illustrate my point. ANU, following the lead of Stanford University became the first university in Australia to announce divestment from investments in fossil fuel producing companies citing their perceived contribution to global warming.

In the ensuing uproar, as a compromise step, the university council contracted an independent research company to assess the environmental, social, ethical and governance performance of 45

Australian companies in which it invested. Based on its advice, the university decided to divest itself of the seven lowest-ranked stocks: which included an ASX 50 gold producer and an oil and gas company, several medium-sized mineral producers and an aspiring junior explorer. Separately, the chairwoman of the

Anglican Church’s Public Affairs

Commission, also urged its 23 dioceses across Australia to review their investment portfolios, and said it can make good economic sense to divest fossil fuel shares.

So if you are employed by an oil, gas or coal company or a mining company, religious and educational institutions are questioning your company’s social licence to operate. These are not fringe eco-activists. Is this the beginning of a cultural shift to ethical-based investing that will affect your employers’ ability to raise capital?

Speaking of raising capital, legislation has been drafted to implement the Government’s Exploration Development Incentive. The EDI is designed to level the playing field for junior explores, who have no cash-flow, to pass on un-used exploration tax credits to their shareholders. The EDI tax credit is only available for greenfields expenditures which should encourage a higher risk and higher reward approach to exploration by junior explorers to the ultimate benefit of all Australians. Unfortunately

If you are a book collector, hard copy edition of AIG News.

"

the Government has decided to start small with no guarantee of it continuing beyond the 2016/17 tax year. The $100 million maximum tax credit over the next three years only represents approximately $350 million in eligible exploration expenditure. A recent study (MinEx Consulting 2014) has shown that the global average exploration spend to discover a single economic gold or base metal deposits is US$150M and US$180M respectively. Research by the Centre for Exploration Targeting at UWA (Guj, 2012) also shows it takes on average 7 years for an economic discovery to be developed into a mine in Australia.

Under these scenarios in 3 years’ time the junior explorers who have participated in the EDI might make 2 economic discoveries but still be years off seeing them turned into mines. So, a good start but our politicians don’t seem to appreciate the high risk nature of mineral exploration and the long time frame.

I recently agreed to join the Board of Earth Science Western

Australia (ESWA), a primarily industry funded NFP organisation that supports the teaching of earth science in schools in WA by developing teaching and learning resources, providing professional development for teachers, presenting at schools and assisting with field experiences for students. Volunteering is what makes AIG tick. Our Administrative Assistant, Lynn Vigar is our only contracted, part-time, employee. Servicing the needs of over 3200

AIG members falls to a small group of dedicated volunteers on

Council and State Branches. Currently we are seeking a member to fill a vacancy on Council, preferably located in Victoria. As well all our State Branch are always looking for “new blood”. If you have an interest in volunteering for AIG, please contact Lynn Vigar at exec@aig.org.au

By the time this edition hits your mailbox, the stores will be festooned with Christmas decorations, so I will join the choir with a wish that you have a relaxing holiday season and a hope for an upturn in the metal cycle in 2015.

3

4 lead article

The Ethics Column: “I want to make a complaint”

AIG NEWS No 118, November 2014

Cont. from Page 2

43-101, for example, is conditional on both AIG being able to discipline members for breaches of the Institute’s Code of Ethics, which require compliance with the

JORC Code and comparable public reporting standards, and a commitment by AIG that members who are found to have breached

NI 43-101 requirements will be dealt with according to an appropriate complaints procedure irrespective of where an alleged breach occurred.

In short, an AIG member who breaches Canada NI 43-101 requirements for work undertaken in Canada or any other country will be dealt with in the same manner, and by the same process, that would apply for a breach of reporting requirements in compliance with the JORC Code in Australia.

AIG’s ability to enforce its Code of Ethics also ensures that the

Institute may act, as required, against members who breach the code, and by doing so, potentially undermine public confidence in geoscience professions and practitioners. The Code of Ethics also sets standards of conduct for geoscientists with peers and other professionals that, again, help to maintain professional standards and relationships with other professionals.

More than JORC

The Code of Ethics sets out a number of requirements of members including:

• avoiding and discouraging unwarranted statements;

• ensuring professional opinions are provided in an impartial manner;

• distinguishing between facts and opinions in any public comment, in either verbal or written form;

Figure 1. AIG's Complaint Process

• not doing anything, either intentionally or negligently, to injure the reputation, business or prospects of another member;

• not accepting fees for referring a client or employer to a third party;

• ensuring that subordinates are afforded opportunities for advancing their knowledge and experience;

• giving credit to others where they have contributed to work; and,

• preserving the confidentiality of information to which a member has access.

This list is not complete, but serves to highlight the breadth of the Code of Ethics with respect to the professional conduct of AIG members.

AIG members are prevented from describing themselves, or permitting them to be described, as consultants unless they occupy a

Ross logan and associates

aIG, Gsa, seG

Geological Consultants

ABN 87 082254457

• Hands-on project management and evaluation from grass roots to feasibility

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Email: rsquared@bigpond.com

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AIG NEWS No 118, November 2014 lead article 5 position of independence and are able to act as an unbiased and independent adviser.

Acceptance of favours by members from a person or organisation who might deal with their employer or client is not permitted under the Code of Ethics. Corporate law in many countries may consider actions of this nature as bribery, exposing members to legal sanctions.

Obligation to Report Unethical Conduct by

Members

All AIG members are required to report perceived unethical conduct by other members. Not doing so constitutes a breach of the Code or

Ethics.

Making a Complaint

Complaints must be lodged with the Complaints Committee. Only written complaints are accepted which may be submitted by mail to the AIG Secretariat office or by email (complaints@aig.org.au). Any member or member of the public may submit a complaint.

The Ethics and Standards Committee may also initiate complaints against members.

All complaints are dealt with in strict confidence although adverse findings against a member may be made public if this is considered to be appropriate by the Ethics and Standards Committee. This would not occur before the member concerned has had an opportunity to appeal an adverse finding by the committee.

Seeking Advice in Relation to Complaints

Members are able to seek advice from the Complaints Committee as to whether matters they are aware of could represent unethical conduct. Enquiries may be made in writing, by email or verbally.

Conclusions

AIG’s complaints process is an important means by which the

Institute seeks to maintain both professional standards and public perception of the geoscience professions in Australia. This constitutes

“core business” for any professional body. The maintenance of appropriate professional standards is an area where all members contribute every day in the course of their work.

The Premier Exploration Geophysical

Conference in the Southern Hemisphere

You are invited to attend the 24th International Geophysical Conference and Exhibition in Perth, Western

Australia, to be held from 15 to 18 February 2015. We are promoting a programme with a strong focus on case histories, best practice, and the new methods and technologies that underpin the exploration effort.

We will celebrate the diversity and commonalities between minerals, petroleum, geothermal, geotechnical, and environmental geophysics.

Abstract submission NOW OPEN, deadline 31 August

All details available at

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Early Bird registration now open until 21 September 2014

8/6/2014 12:57:37 PM

"Geophysical signatures of mineral systems; more than bumps"

Registration is required to be done on-line but the workshop can be attended without being registered for the rest of the conference.

The workshop cost is: Standard $180, Student* $80. Registration includes morning and afternoon tea as well as lunch.

Please visit http://www.conference.aseg.org.aulworkshops.html

for additional details and a link to the on-line registration site.

6 geology

Grade Expectations

Australian Gold Mines defy the ‘Grade is King’ Cost Hypothesis

AIG NEWS No 118, November 2014

Matthew D. Kanakis - CET

Publicly released cost information from 53 operating gold mines in

Australia (50 mines) and New Zealand (3 mines) reveals a number of insights into 2013 production costs – pointing in particular to geological factors, rather than the commonly expected grade effect as of greater relevance to costs.

The anticipated inverse relationship of costs to grade of mineralisation (lower costs with higher grade) is notably absent in the data examined – indeed, higher grade is actually weakly associated with higher cost of production in the available figures.

Style of mineralisation, however, emerges as relevant to mine costs

– with deposits classified as 'disseminated vein style' having lower overall costs than those defined as ‘vein/reef type’. The rock type hosting a gold deposit also appears to have a significant relationship to costs. For deposits extracted from igneous lithologies, intrusivehosted bodies display lower costs on average than volcanic-hosted.

Although preliminary, these results argue that the 'grade is king' mantra often prevalent amongst industry participants and resource sector investors appears over-rated. Similarly, the prevailing view that mineralisation style and predominant host rock have no material impact on cost is challenged when assessed against factual cost data, as partitioning of the mine-cost dataset based on these factors reveals statistically significant differences. Such observations demonstrate a capacity to better inform the market on mineral deposit 'quality' in gold through challenging such widely held industry assumptions. Certainly, the simple view that quality and deposit grade are close to synonymous appears just that – overly simplistic.

Introduction: Grade is king.

These three simple syllables – backed by seemingly compelling logic (how could better gold grades not mean higher profitability?) – represent a mantra pervading the gold sector and beyond, rolling with metronomic regularity off the tongue of miners and analysts alike.

Put simply, high-grade gold mines are expected to have lower production costs than lower grade mines, with the dollar value per tonne of ore (i.e. grade) consequently taken as the principal differentiator between deposits. Under this assumption, other quality factors – including geological attributes – are implicitly considered less relevant. However, recent empirical study by Joao De Assuncao (2013) has questioned this Gordon Gecko-esque “grade is good” mantra in the context of Australian gold mines.

The implications of this challenge are potentially profound - If the high grade to low cost relationship is not as straightforward as has been assumed, are there other recognizable characteristics that may be associated with a low cost gold deposit? Surprisingly, there has been no formal empirical research published about this seemingly fundamental problem.

This searching question is tackled here through consideration of cost, geological, and production data from 53 gold operations throughout Australia and New Zealand. Of these, 34 reported cash costs and All in Sustaining Costs (AISC), 11 reported only cash costs, and 8 operations reported no costs for gold production. Comparative analysis was undertaken through analysis of gold cost curve composition broken down by geological attribute, with the formal significance of observations examined by statistical methods. Preliminary results are presented here exploring cost relationships to grade (Fig. 1), mineralisation style (Fig. 2) and host rock type (Fig. 3). Further work is ongoing to expand consideration to total deposit size and geometry.

Figure 1. (A) The conventional view of the relationship between grade and operating costs, where a negative trend is anticipated between costs and operating grade (i.e. lower costs correlate with higher grade). (B) Relationship between grade and cost found in this study for 2013 fourth quarter

All In Sustaining Costs (AISC), which generally show a weakly positive relationship between costs and operating grade (higher costs correlate with higher grade).

The relationship was similar for other datasets (cash costs).

Cont. Overleaf

AIG NEWS No 118, November 2014 proFessional development 7

EDUCATION COURSES

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INTRODUCTION TO

GEOSTATISTICS

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27 Nov 2014

LOCATION

Perth

Using the reconciliation process to increase profit margins.... and make you look good!

This 1-day masterclass will show you how the key to increasing profit margins can be found through your reconciliation processes.

This masterclass will provide you with the knowledge and skills to:

• Develop your own Reconciliation Code of

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• Unlock value from your reconciliation results

– identifying what is a problem and what’s not

This course has been specifically developed for mining personnel interested or involved in the reconciliation process, including mine geologists, mining engineers, surveyors, metallurgists and management.

DATE

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LOCATION

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An introduction to the concepts and tools used in statistical and spatial analysis

This 1-day course uses simple, clear practical activities to demystify complex concepts and applications of geostatistics in mining. You will be given training in statistical analysis, spatial analysis/variography and an understanding of estimation techniques.

This course will give you:

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• Knowledge about the importance of assumptions, data integrity and geology

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8 geology AIG NEWS No 118, November 2014

Grade Expectations: Australian Gold Mines defy the ‘Grade is King’ Cost Hypothesis

Cont. from Page 6

Figure 2. Cost curve comparing disseminated (red) and vein/reef style (green) mineralisation. The conventional view would predict a randomly distributed cost curve where mineralisation style has no systematic relationship to costs.

However, the 2013 mine cost dataset examined here shows disseminated mineralisation plotting predominantly in the lower half of the cost curve.

Figure 3. Cost curve comparing intrusive hosted (red) and volcanic hosted

(green) deposits. The white blocks are deposits that are hosted in either sedimentary or metasedimentary lithologies. The conventional view would predict a randomly distributed cost curve where host rock has no clear relationship to costs. However, the data shows examined here show a strong apparent sorting effect, with intrusive hosted deposits plotting predominantly in the lower half of the cost curve.

Beyond Grade: Classification of Mineralisation Styles

Because most deposits are classified as having two or more types of mineralisation hosting gold, the dominant mineralisation style of each deposit needs to be defined as the basis for further analysis. This was determined here primarily through analyses presented in peer-reviewed journal articles, or from the operating company’s website when scientific literature was unavailable. 10 different mineralisation styles were outlined, grouped as either disseminated or vein/reef style. Vein/reef mineralisation styles include quartz lodes, quartz reefs, laminated veins, ladder veins, quartz lenses and undefined veins. Disseminated mineralisation styles include stockwork veins, brecciahosted gold, disseminated sulphides, sulphide rich lenses and oxidation/ alteration zone mineralisation. This classification scheme is summarised visually in Figure 4.

The Heir to the Throne?

After the mineralisation style of each deposit was determined, cost curves were created for fourth quarter (October-

December) 2013 and financial half-year

(July to December) 2013 cash costs and

AISC. The significance of nominal differences in mean costs between curves was assessed through statistical

Figure 4. Stylised classification of different mineralisation styles of deposits included in this study. It is assumed that the mineralising fluid is homogenous and there is no nugget effect. The mineralisation types to the left of the red line are classified as vein/reef style and mineralisation types to the right are classified as disseminated.

AIG NEWS No 118, November 2014 geology 9

Time Period and cost measured

T test result 1* T test result 2§ F test result Interpretation of results

Q4 cash costs

YTD cash costs

T stat within 5% significance

T stat within 5% significance

T stat within 5% significance

T stat within 5% significance

F stat not significant

F stat not significant

Operations with disseminated mineralisation have costs statistically lower than operations with vein/reef style mineralisation at the 95% confidence level.

Operations with disseminated mineralisation have costs statistically lower than operations with vein/reef style mineralisation at the 95% confidence level.

Q4 AISC

YTD AISC

T stat within

20% significance

T stat within 5% significance

T stat not significant

T stat within

20% significance

F stat within 0.6% significance

F stat within 0.2% significance

Operations with disseminated mineralisation have costs that are not statistically lower than operations with vein/reef style mineralisation at a significant confidence level.

Operations with disseminated mineralisation have costs statistically lower than operations with vein/reef style mineralisation at the 80% confidence level.

NOTES: * Assuming equal variance, § With unequal variance

Table 1: Summary of the statistical tests undertaken for comparison between disseminated and vein/reef mineralisation. T-statistic tests determine whether two populations have a different mean, assuming that the populations are normally distributed and are independent of each other. F-statistic tests determine whether two populations have a different variance, with the same underlying assumptions as the T-statistic test. This was used to determine which T-statistic to use, as they differ depending whether the variances are equal or not. If the T-stat (F-stat) is within the 5% significance region, 95% confidence can be attributed to the conclusion that the means (variances) of the populations differ. Relevant information is shaded in green.

T-tests, with F-statistic tests used to determine differences in variance of costs in order to decide which T-statistic to use (Table 1).

These tests demonstrate a significant difference between mean production cost of deposits with vein/reef style mineralisation and those with disseminated mineralisation, with the former mineralisation style substantially more expensive. This result is seen in both the Q4 and half-year cash cost datasets.

The difference in mean cost was less evident when looking at the

AISC datasets, with the differences in fourth quarter mean not found to be significant. However, half-year AISC results showed a repeat of the cash cost findings, with production costs again significantly higher for vein/reef style mineralisation.

These results may be skewed by higher than average costs for this period for the Carosue Dam operation (gold mineralisation occurring in disseminated sulphides) due to completion of pre-strip open pit development. AISC costs for this deposit were 88% higher than Cash

Costs for the 4th Quarter, compared to the average premium of 25% for other operations with both cash costs and AISC reported.

COMPARATIVE ADVANTAGE OF MINERALISATION STYLES

Disseminated Mineralisation

Gives the ability to bulk mine.

More widespread mineralisation reduces the Bond Work Index.

Lower stripping ratio if bulk mining is used.

Similar bias may be introduced into the figures by the relatively highcost Henty operation. The gold endowment is here predominately hosted in breccias, and classified for the purposes of this analysis as disseminated mineralisation. Henty reports cash costs $500/oz. higher than the next most expensive operations working with ‘disseminated’ mineralisation in Q4, and $200/oz. higher than others for the half-year.

Absent these outliers, differentiation of costs between these deposit type groups would have been even more significant.

Understanding the Mineralisation Style Effect

The apparent relationship between mineralisation style and costs is interpreted to reflect the combined influence of purely geological factors (vein style) and engineering attributes (scale) upon production costs. The lower costs of disseminated mineralisation in this context arise from three areas of comparative advantage (Table 2).

Perhaps dominant among these is the ability to bulk mine and operate at correspondingly larger scales of production. As demonstrated by

De Assuncao (2013), clear economies of scale exist in gold mining

– so other factors being equal, a larger scale mine should be expected to display a lower cost per ounce of gold produced.

Vein/Reef Style Mineralisation

Doesn’t give the ability to bulk mine.

Higher cost methods must be employed.

Less widespread mineralisation leaves

Bond Work Index relatively high.

Stripping Ratio is higher unless the vein/ reef is on a scale comparable to the opening of the mine shaft/pit.

Table 2. Summary of the comparative advantages and disadvantages of vein/reef and disseminated style gold mineralisation. Mineralisation style with favourable cost advantages highlighted in yellow in each case.

Disseminated mineralisation is more efficient to bulk mine than vein/reef style, as there is less waste rock and mining block size can be increased accordingly. Vein/ reef style deposits are commonly extracted using smaller scale selective mining methods that, on average, are more costly. Further multivariate statistical analysis may allow us to better tease apart the combined influences of scale and style.

At a subsidiary level, wider-spread hydrothermal mineralisation, rather than narrowly focused veins, could also produce a lower Bond Work Index. The Bond Work

Index is a measure of how much power is needed to crush a tonne of material, and will also indirectly relate

Cont. Overleaf

10 geology AIG NEWS No 118, November 2014

Grade Expectations: Australian Gold Mines defy the ‘Grade is King’ Cost Hypothesis

Cont. from Page 9 to blasting characteristics. If the Bond Work Index of ore material is relatively low, it will require less power to crush (and less blasting to liberate), and the operation will consequently record lower mining and processing costs, all other factors being equal.

Quartz and carbonates, the dominant minerals in hydrothermal mineralisation (which is commonly disseminated), have significantly lower Bond Work Indices than dolerite and basalt (the two dominant mafic host rocks). This factor would have less relevance for more felsic host rocks, as granite has a lower Bond Work Index than quartz.

Lastly, more disseminated mineralisation decreases the stripping ratio where bulk mining is employed – giving a higher ore-to-waste ratio in comparison to vein/reef style endowment. This results in a corresponding cost advantage for operations with more disseminated mineralisation.

As mining costs generally account for the majority of costs associated with gold production (Rudenno, 2010), it follows that any influence of such mineralisation style and characteristics on this cost will have a substantial effect on the cash cost and AISC.

Conclusions

While analysis remains to be completed, it is clear that mine grade is not the undisputed ‘monarch’ in regards to gold production costs. It is true that if all else is equal, lower costs should arise directly and explicitly from higher grades. ‘All else’ in gold mining, however, is far from trivial, with other factors – notably deposit style and attendant variations in rock properties and mine development intensity – dominating the cash cost equation, and relegating grade to a subsidiary role.

Acknowledgements

I would like to thank my supervisors Allan Trench and Steffen

Hagemann for their support and guidance, particularly Allan for leading me into an area in which I was very inexperienced. I would also like to express my gratitude to fellow CET research student John

Sykes for the help and guidance he has provided for me this year, especially with my research proposal and seminar – and finally but not least to Geoff Batt, CET Newsletter editor, for his considered oversight and editorial contributions to this article.

Further Information

For further information on this research, or a list of cited references, contact Matt via info-cet@uwa.edu.au, or phone +61 6488 2636.

For the latest in Geoscientist news, views, codes, events, employment and education visit the AIG website:

www.aig.org.au

AIG NEWS No 118, November 2014

Swarming – New Geomagnetic Field Satellite

Observations and Maps

euRope's swaRm space mIssIon has started to map the earth's magnetic filed by the use of three independent satellites equipped with a variety of instruments including very sensitive magnetometers. the satellites were launched last november and are oriented to allow a 3d measurement of the geomagnetic field.

Initial data just released shows how the geomagnetic field is generated in the planet's liquid outer core and which varies in strength over a few month's. Early interpretation of the data is that the geomagnetic field is weakening and many experts believe this weakening is heralding a flip in the geomagnetic poles, though it might take thousands of years to complete.

Figure 2 represents a snapshot of the geomagnetic field in June, where reds are strong and blues weak, with most of the field caused by the core contribution.

Changes in the field during the period January to June are shown in

Figure 3, with reds representing strengthening and blues weakening of the field.

The belief is that the weakening of the geomagnetic field will cause the poles to flip, and a recent paper published in Geophysical Journal

International, “Extremely rapid directional change during Matuyama-

Brunhes geomagnetic polarity reversal” by Sagnotti et al, suggests that the flip might occur during the time interval of an average human life, paper summary following:

We report a palaeomagnetic investigation of the last full geomagnetic field reversal, the Matuyama-Brunhes (M-B) transition, as preserved in a continuous sequence of exposed lacustrine sediments in the

Apennines of Central Italy. The palaeomagnetic record provides the most direct evidence for the tempo of transitional field behaviour yet obtained for the M-B transition. 40Ar/39Ar dating of tephra layers bracketing the M-B transition provides high-accuracy age constraints and indicates a mean sediment accumulation rate of about 0.2 mm yr–1 during the transition. Two relative palaeointensity (RPI) minima are present in the M-B transition. During the terminus of the upper RPI minimum, a directional change of about 180 ° occurred at an extremely fast rate, estimated to be less than 2 ° per year, with no intermediate virtual geomagnetic poles (VGPs) documented during the transit from the southern to northern hemisphere. Thus, the entry into the Brunhes Normal Chron as represented by the palaeomagnetic directions and VGPs developed in a time interval comparable to the duration of an average human life, which is an order of magnitude more rapid than suggested by current models. The reported

Figure 1.

Figure 2.

geophysics 11 investigation therefore provides high-resolution integrated palaeomagnetic and radioisotopic data that document the fine details of the anatomy and tempo of the M-B transition in Central

Italy that in turn are crucial for a better understanding of Earth's magnetic field, and for the development of more sophisticated models that are able to describe its global structure and behaviour.

Source http://gji.oxfordjournals.org/content/199/2/1110

The general fear is that if and when the geomagnetic reversal occurs, that the magnetic shield of the earth will weaken to such an extent that it might allow a signficant increase in cosmic and solar radiation, and hence affect life.

Figure 3.

AIG NEWS No 118, November 2014 12 proFessional development

 

 

AMC

 

Specialist

 

Technical

 

Workshops

 

January

 

 

December

 

2015

AMC   Consultants   Pty   Ltd   (AMC)   is   a   leading   independent   mining   consultancy,   providing   services   exclusively   to   the   minerals   sector.

 

We   are   pleased   to   announce   dates   for   our   specialist   technical   career   development   workshops.

  Participants   on   all   workshops   will   receive   a   bound,   full ‐ colour   workshop   manual.

  AMC   can   also   run   these   workshops   in ‐ house   and   tailor   them   for   your   specific   needs.

Discounts   are   available   for   participants   who   attend   several   workshops   in   the   same   week   (March,   June,   August,   November).

 

 

JORC

 

2012—Complying

 

with

 

the

 

Code

 

in

 

the

 

Reporting

 

Environment  

 

Brisbane:   4   March,   24   June,   26   August,   18   November  

Presenters:   Peter   Stoker   and   Mark   Berry  

This   half ‐ day   workshop   will   present   the   fundamental requirements   of   the   JORC   Code,   including   new   and   changed provisions   adopted   in   2012.

  Examples   of   compliant   and   non ‐ compliant   reports   will   be   reviewed,   including   case   studies.

  This workshop   is   designed   for   existing   and   intending   Competent

Persons   and   management   staff   at   all   levels.

 

Delivering

 

High

quality

 

Grade

 

Estimates

 

Brisbane:   3   March,   23   June,   25   August,   17   November  

Presenter:   Alex   Virisheff  

This   one ‐ day   workshop   will   present   fundamental   considerations   and   understandings   in   carrying   out   grade   estimation   in   completing   a   mineral   resource   estimate.

  It   is   designed   to   provide   guidance   on   setting   grade   estimation   parameters,   selecting   grade   estimation   methods,   and   completing   validation   of   grade   estimates.

 

Lessons

 

Learnt

 

from

 

Auditing

 

Mineral

 

Resource

 

Estimates

 

 

 

Brisbane:   5   March,   25   June,   27   August,   19   November  

Hong   Kong:   21   March   (in   conjunction   with   PACRIM   2015)  

Presenters:   Peter   Stoker   and   Mark   Berry  

This   one ‐ day   workshop   will   present   key   learnings   from   AMC’s extensive   international   audits   of   mineral   resource   estimates.

  It is   designed   to   provide   new   and   senior   geological   staff   with insights   into   best   practice   and   common   problems.

  Topics covered   will   include   drill   programme   design   and   drilling, surveying,   sample   preparation   and   analytical   techniques, logging   and   related   processes,   geological   interpretation   and domaining,   geostatistics,   estimation,   classification,   reporting,

QA/QC   processes,   and   data   management.

 

Assessment

 

of

 

Geological

 

Uncertainty

 

in

 

Mining

 

and

 

Management

 

of

 

Risk

 

Brisbane:   6   March,   26

Presenter:   Mark   Berry  

  June,   28   August,   20   November  

This   one ‐ day   workshop   will   identify   and   assess   the   sources   of   geological   uncertainty   that   feed   into   mineral   resource   and   ore   reserve   estimates,   with   implications   from   pit   to   port.

  Case   studies   and   a   range   of   risk   management   strategies   will   be   presented.

  This   workshop   is   designed   for   geologists,   engineers,   metallurgists,   and   management   staff   at   all   levels.

 

Preparing

 

Appropriate

 

Inputs

 

for

 

Robust

 

Grade

 

Estimation

 

Brisbane:   2   March,   22   June,   24   August,   16   November  

Presenter:   Alex   Virisheff  

This   one ‐ day   workshop   will   present   fundamental   considerations and   understandings   in   preparing   information   as   inputs   for completing   a   mineral   resource   estimate.

  It   is   designed   to   provide guidance   on   addressing   issues   associated   with   data   inputs   to grade   estimates   and   grade   estimation   tasks.

   

Excellence

 

in

 

Mineral

 

Resources   Estimation  

 

Brisbane:   4–8   May,   12–16   October  

Presenters:   Peter   Stoker,   Mark   Berry,   Alex   Virisheff,   Brian  

Hall,   and   other   industry   specialists  

This   five ‐ day   workshop   provides   geologists   with   a   comprehensive   review   of   all   inputs   into   resource   estimation,   from   data   collection   to   reporting.

  Case   studies   are   used   extensively   to   illustrate   and   reinforce   concepts.

  The   workshop   is   presented   by   AMC   principal   consultants,   supplemented   by   guest   presentations   covering   topics   such   as   sample   preparation   and   analysis   issues.

 

Register

 

online

 

at

 

www.amcconsultants.com/training  

For

 

more

 

information,

 

contact:

  Alana   Philips:   (T)   +61   7   3230   9000   (E)   bristraining@amcconsultants.com

 

www.amcconsultants.com

  AMC  ‐  the   business   of   mining

 

AIG NEWS No 118, November 2014 proFessional ethics 13

“Trust me – I’m a Competent Person”

A transparent approach to demonstrate competency for JORC Reporting

Justin Legg, Principal Geologist IMC Mining

The 2012 Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves (the ‘JORC Code’ or ‘the

Code’), and corresponding changes to chapter five of the Australian

Securities Exchange (ASX) has an increased emphasis on Materiality and Transparency and ‘If not, why not’ reporting than compared to previous versions of the JORC Code.

Subsequently, mining professionals acting as a Competent Person (in accordance with the JORC Code) may need to review their reporting practices of Exploration Results, Mineral or Coal Resources, and

Ore or Coal Reserves.

To demonstrate a commitment to the founding principles of the JORC

Code, it is proposed that Competent Persons wishing to report

Exploration Results, Mineral or Coal Resources, and Ore or Coal

Reserves in accordance with the JORC Code include a relevant experience matrix in the public announcement.

This paper uses the author’s experience as a geologist as an example of the proposed relevant experience matrix.

Introduction

The 2012 Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves (the ‘JORC Code’ or ‘the

Code’), and corresponding changes to chapter five of the Australian

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Securities Exchange (ASX) listing rules were implemented in late

2012 and became mandatory on the 1st December 2013. The new

JORC Code has an increased emphasis on Materiality and

Transparency and ‘If not, why not’ reporting compared to previous versions of the JORC Code (JORC, 2012, Hunt 2012).

Consequently, mining professionals acting as a Competent Person (as defined in Clause 11 of the 2012 JORC Code) may need to review their reporting practices of Exploration Results, Mineral or Coal

Resources, and Ore or Coal Reserves (JORC, 2012; ASX, 2014).

Entities wishing to report Exploration Results, Mineral or Coal

Resources and Ore or Coal Reserves for the first time, or where aforementioned results have materially changed since previous reporting; will be obliged to do so under the new Code (JORC, 2012;

ASX, 2014).

In addition to these changes, there has been a significant downturn in the Australian mining industry with the unemployment rate amongst

Australia’s geoscientists estimated at 15.5% in July 2014 (AIG,

2014).

The consequences of the implementation of the new Code in conjunction with the recent downturn mean that:

• Mining professionals that may have acted as the Competent

Person for a particular entity in the past, may now be unavailable, having changed positions or been made redundant. Equally, underutilised or unemployed mining professionals seeking potential employment (on both a short and longer term basis) may be entering the services sphere as independent consultants, and thus may be unknown to a particular entity.

• Entities wishing to report information in accordance with the

JORC Code, may be faced with a potential dilemma of choosing an appropriately qualified and cost effective professional to act as a Competent Person

This paper proposes that mining professionals wishing to act as

Competent Person within the JORC guidelines should prepare a relevant experience matrix for public reporting purposes. This information could be included as an appendix to any public reporting statement and would provide the reader with a clear and transparent description of the Competent Person’s level of relevant experience and background.

Brief overview of the JORC Code

Most readers will be familiar with the JORC Code, so a detailed description of what the Code is, (and its limitations) is not warranted here. Suffice to say, the 2012 JORC Code sets out the minimum standards for public reporting in Australia and New Zealand of

Exploration Results, Mineral Resources and Ore Reserves estimates.

It supersedes the previous 1989, 1992, 1996, 1999, and 2004 editions

(JORC, 2012).

The JORC Code provides a mandatory classification system for grade (quality and tonnage reporting according to geological confidence and technical /economic considerations, as well as defining the minimum requirements of a Competent Person.

Additionally, the JORC Code outlines the issues that should be considered and addressed when reporting Exploration Results,

Mineral Resources and Ore Reserves estimates.

Cont. Overleaf

14 proFessional ethics

Trust Me, I'm a Competent Person

AIG NEWS No 118, November 2014

Cont. from Page 13

A detailed description of the JORC Code is available on the JORC web page (http://www.jorc.org).

JORC Principles and the Competent Person

The JORC Code is founded on the principles of Transparency,

Materiality and Competence. Essentially, a reader of a public report should be provided with sufficient clear and unambiguous information to understand the report and not be misled by this information or by omission of information (transparency). It also states that all the relevant information that investors would reasonably require, and reasonably expect to find in the report, for the purpose of making a reasoned and balanced judgement (materiality). Finally, the Code states that the preparation of the public report is the responsibility of suitably qualified and experienced persons who are subject to an enforceable professional code of ethics (competence) (JORC, 2012).

In addition to the principles of Transparency, Materiality and

Competence, the JORC Code states that all aspects of the “checklist of assessment and reporting criteria” in the JORC Code be addressed on an “if not, why not” basis.

Notably, the concept of the Competent Person has been a core concept since JORC's first publication in 1972 (JORC, 2014).

The JORC definition of a Competent Person is:

“A ‘Competent Person’ is a minerals industry professional who is a

Member or Fellow of The Australasian Institute of Mining and

Metallurgy, or of the Australian Institute of Geoscientists, or of a

‘Recognised Professional Organisation’ (RPO), as included in a list available on the JORC and ASX websites. These organisations have enforceable disciplinary processes including the powers to suspend or expel a member.

Activity Description of typical tasks, work programs etc

Cultural & Environment

Geological Activities

Drilling

QA/QC

Data Management

Geological Interpretation

Geo-statistics

• Traditional owners and cultural heritage issues;

• Land access negotiations and requirements;

• Tenement management;

• Agreements, partnerships, royalties, joint ventures, etc;

• Environmental settings and considerations.

• Mapping (field, pit, underground);

• Field program management;

• Managing or conducting field surveys (geophysics, soil /stream sediment sampling) site inspections / visits.

Drilling activities including:

• Managing field work relating to drilling;

• Design and execution of drilling programs;

• Logging (geological, geotechnical, etc);

• Sampling and sub sampling (including field QAQC sampling).

Activities to implement, reconcile and /or manage quality assurance and quality control issues such as:

• Laboratory audits;

• Development or review of sampling procedures;

• Sample size analysis (including Gy’s theory reviews);

• Assay methodology and techniques.

Data analysis and management involving:

• Descriptive statistics;

• Weighting averaging techniques;

• Data manipulation;

• Database management.

As well as activities to check, correct and validate data such as:

• Ground truthing observations;

• Re-logging & assaying of drilling;

• Field sample QAQC sample data analysis;

• Descriptive statistics of data;

• Development /review of data validation procedures.

Activities to compile integrate and reconcile data and geological observations in both 2D and 3D. Includes:

• Drafting geological maps and sections

• Wire framing / structure modelling

• Geophysical modelling

Statistical analysis of data with a spatial component. Includes:

• Reconciling assay data to geological domains

• Variography

• Drill spacing analysis

Relevant Section (S) and criteria in the

“checklist of assessment and reporting criteria”

(2012 JORC Code)

S2: Mineral tenement and land tenure status

S4 Social

S3 Environmental factors or assumptions

S3 Site visits

S2 Relationship between mineralisation widths and intercept lengths

S2 Sub-sampling techniques and sample preparation

S1 Sample security

S2 Verification of sampling and assaying

S2 Quality of assay data and laboratory tests

S2 Sub-sampling techniques and sample preparation

S2 Data aggregation methods

S3 Database integrity

S2 Relationship between mineralisation widths and intercept lengths

S2 Geology

S2 Estimation and modelling techniques

S2 Dimensions

S3 Cut-off parameters

AIG NEWS No 118, November 2014 proFessional ethics 15

A Competent Person must have a minimum of five years relevant experience in the style of mineralisation or type of deposit under consideration and in the activity which that person is undertaking.

If the Competent Person is preparing documentation on Exploration

Results, the relevant experience must be in exploration. If the

Competent Person is estimating, or supervising the estimation of

Mineral Resources, the relevant experience must be in the estimation, assessment and evaluation of Mineral Resources. If the Competent

Person is estimating, or supervising the estimation of Ore Reserves, the relevant experience must be in the estimation, assessment, evaluation and economic extraction of Ore Reserves.”

The JORC Code then goes on to provide explanatory notes that indicate that it would be impractical to be completely prescriptive with respect to experience and that “relevant” is the keyword - and that a degree of common sense should be applied.

Activity

The inclusion of a Competent Person’s relevant work history or curriculum vitae as an appendix to a public report provides the reader with a description of the experience level and expertise of the

Competent Person. However, this information is generally not presented, and where it is, it is not in a standardised format, so the reader has to interpret and /or deduce from the Competent Person’s relevant work history what was relevant to the public report.

Based on this rationale, this author suggests that the inclusion of

Competent Person’s relevant work history as an experience matrix

(presented as a single table) addressing the areas relevant to the

JORC Code would provide the reader of a public report with sufficient, clear and unambiguous information regarding the

Competent Person’s level and type of professional experience, as well as any peripheral information that may be material to report in terms of the Competent Person’s experience. Cont. Overleaf

Description of typical tasks, work programs etc

Relevant Section (S) and criteria in the

“checklist of assessment and reporting criteria”

(2012 JORC Code)

Resource Estimation

Mine Planning

Metallurgy

Financial Modelling

Documentation,

Reporting

Conducting estimation routines and activities such as:

• Evaluating statistics for resource estimation

• Data manipulation (declustering, kriging neighbourhood analysis, etc)

• Use of estimation routines or generation of quality grids

• Validation (descriptive statistics, swath plots, etc)

• Grade / tonnage reporting

• Classification of resources

Mine planning and design activities including:

• Pit optimisation and designs

• Underground designs

• Mine scheduling

• Haulage simulations

• Dump and tailings design

• Infrastructure appraisal or design

• Reconciliation of mining results to the primary data and subsequent resource estimate

Activities relating to metallurgy and recoveries including:

• Mineralogical investigations

• Reconciliation of mine to mill

• Bulk testing

• Communition and grinding studies

• Recovery analysis

• Bi-product analysis and management

Activities

• Cost modelling (including royalties, exchange rates, etc)

• Analysis of commodity price

• Transportation costs

• Treatment and refining charges including penalties for deleterious elements

• Revenue Factors

• Price and volume forecasts

• Net present value (NPV) analysis

• Experience with due diligence studies, audits and /or reviews

• Literature reviews

• Preparation of statutory reporting

• Preparation of public reports including stock market release

S3 Estimation and modelling techniques

S3 Cut-off parameters

S3 Discussion of relative accuracy /confidence

S4 Mining factors or assumptions

S4 Cut-off parameters

S3 Discussion of relative accuracy /confidence

S3 Metallurgical factors or assumptions

S4 Metallurgical factors or assumptions

S3 Environmental factors or assumptions

S4 Costs

S4 Revenue Factors

S4 Market Assessment

S4 Economic

S3 Audits or reviews

S3 Discussion of relative accuracy/ confidence

S2 Further work

Table 1 Reconciliation of relevant work experience, to the “checklist of assessment and reporting criteria” outlined in the 2012 JORC Code.

16 proFessional ethics

Trust Me, I'm a Competent Person

AIG NEWS No 118, November 2014

Cont. from Page 15

The author notes that there is no formal requirement in the JORC

Code for a Competent Person’s relevant work history to be included as part of a public report, and any inclusion (e.g. as an appendix) would be done on a completely voluntary basis by the entity on behalf of the Competent Person.

Relevant Experience Matrix

The use of experience or skill matrices in the human resources sector is an effective way of standardising the variability encountered between prospective candidates’ curriculum vitaes. For public reporting purposes, this matrix is modified such that the columns represent areas of relevance to reporting in accordance with the

JORC Code. These fields are based on criteria outlined in the “Table

1 checklist of assessment and reporting criteria” of the JORC Code, with some degree of overlap being assumed.

Table 1 shows an example of a generic work experience matrix that has been created to illustrate relevant work experience for public reporting of Mineral or Coal Resources, cross referenced to relevant sections of the JORC Code checklist.

When preparing a work experience matrix for a specific engagement, the rows of the matrix specify the professional experience relevant to these considerations by nominating the company worked for, the commodity in question, the style of deposit and the duration of the engagement. An example based on the author’s experience is presented in Table 2.

The matrix is populated by time spent in each activity with the sum totalling the duration of the employment or project. This approach is intended to be indicative and a common sense guestimate is acceptable, as calculating any professional activities to the nth degree would be impossible. Where the person has acted as a consultant, the time spent on different projects could be used rather than the overall time of the employment.

Table 2 shows the author’s total work experience and for many staff

Table 2. Summary of the author's total professional work experience

AIG NEWS No 118, November 2014 proFessional ethics 17 taking Competent Person responsibility, their experience will be diverse and not all of it will be relevant to a specific public reporting engagement. The author does not propose that Competent Person’s provide a total work experience matrix such as that shown in Table 2 as part of a public announcement, because such a table will not transparently provide readers with a description of the Competent

Person’s relevant experience.

Making sense of the wood from the trees

As noted in Clause 11 of the JORC Code, a Competent Person must

“have a minimum of five years relevant experience in the style of mineralisation or type of deposit under consideration and in the activity which that person is undertaking.” The Code’s explanatory notes specify that the experience must be relevant to the information being reported.

Using the general overall experience matrix shown in Table 2, consider the author’s experience to act as a Competent Person for estimating Mineral Resources for a structurally controlled base metals deposit (such as a Broken Hill style) or a volcanogenic massive sulphide deposit. Table 3 presents a subset of the author’s total work experience showing the author’s relevant work experience and justification to be considered a Competent Person for public reporting of Mineral Resource estimates for these deposits.

Table 3 indicates that whilst the author has less than five years direct

Broken Hill style experience, and no metallurgical experience with such deposits, the relevant experience matrix in Table 2 does indicate that the author has:

• almost 1.5 years’ direct experience in the metallurgical space;

• over 0.5 years’ experience interpreting and analysing structural data (from acoustic televiewer logs) that was used for geological interpretation and mine planning purposes;

• 1.4 years direct experience utilising geo-statistics in different commodities; and,

• over 4 years’ experience in different base metal deposits (sediment hosted copper as well as Cu-Au porphyry).

As mentioned previously, the explanatory notes in the JORC Code state:

“Determination of what constitutes relevant experience can be a difficult area and common sense has to be exercised.”

Hence the inclusion of experience in the relevant experience matrix

(as shown in Table 3) may require additional information to justify its inclusion or relevance. The author suggests that where experience is to be included, a direct and transparent link back to the “checklist of assessment and reporting criteria” in the JORC Code with respect to the activity being publicly reported is included. This could be done via:

• additional comments in the relevant experience matrix;

• part of a relevant work history curriculum vitae; or,

• made available if required by the reader.

For example, the author’s inclusion of interpreting and analysing structural data (from acoustic televiewer logs) are considered justified as:

• The orientation of data in relation to geological structures is one of the criteria to be addressed in Section 2 of the “checklist of assessment and reporting criteria” in the JORC Code;

Cont. Overleaf

Glenn Coianiz

MAIG, RPGeo

M: 0412 409 760 glenn@exploris.com.au

For all exploration data and 2D/3D mapping requirements

Micromine

3D sections plans wireframes

MapInfo

2D presentation graphics

DataShed existing databases

18 proFessional ethics

Trust Me, I'm a Competent Person

AIG NEWS No 118, November 2014

Cont. from Page 17

• the interpretations were used to refine the structural interpretation and subsequent geological interpretation of the deposit, that assisted with mine planning and reconciliation in an active mine;

• the numerous QA/QC checks of the down hole survey data to ensure that sample locations were confirmed – especially important in a lode gold deposit;

• multiple data sets were integrated as part of the interpretation

(geological logs, down hole geophysics, assay results, geotechnical logs, etc), thus improving the confidence of the geological interpretation that was later used for resource estimate updates, as well as acting a QA/QC cross check of the various data sets.

When this direct and peripheral information is taken into consideration, the reader is able to better assess the author’s experience as well as consider their competence with respect to reporting in accordance with the JORC Code.

Chartered Professional – More than just a rubber stamp

In addition to the inclusion of a relevant experience matrix, the author also advocates that a professional acting as a Competent

Person for public reporting purposes in accordance with the JORC

Code be a Registered Professional Geologist (R.P.Geo) or Chartered

Professional (CP) as per the rules of the Australian Institute of

Geoscientists or Australasian Institute of Mining and Metallurgy

(AusIMM) respectively.

Whilst there is no requirement for the Competent Person to be a

R.P.Geo or CP for the reporting of public results as per the JORC

Code, this voluntary undertaking to become one ensures that a professional acting as a Competent Person has had their general experience peer reviewed.

Membership as an R.P.Geo or CP also requires an undertaking to remain current (in a technical sense) by completing a minimum of 50 hours of professional development per annum.

Table 3. Experience relevant to reporting Mineral Resources for Broken Hill style or volcanogenic massive sulphides in accordance with the JORC Code.

AIG NEWS No 118, November 2014 proFessional ethics 19

Conclusion

The 2012 JORC Code is founded on the principles of Transparency,

Materiality and Competence with an emphasis on “if not, why not” in public reporting documentation. The responsibility incumbent upon a Competent Person is therefore not insignificant and hence the choice of one should be taken with considerable care.

The opportunity to employ different strategies to illustrate a mining professional’s skill and background (and thereby competence) such as those presented here would complement the

JORC Code’s tenets of Transparency, Materiality and Competence, as well as addresses the sentiment of the “if not, why not” contained within the Code.

In other words, it would remove the potential for “Trust me, I’m a

Competent Person” (Hunt, 2012).

Acknowledgements

The author would like to thank IMC Mining for their support and review of this paper.

The Author wishes to acknowledge and thank Francois Bazin and

Nick Ryan (IMC Mining), Peter Stoker (AMC Consultants), Rod

Dawney (Ausmec Geoscience), Fergus O’Brien (Department

Natural Resources and Mines), Jason Hosken (CSA Glencore) and

Kerrie Owen (NSW Dept. of Education) for their input and review of this paper.

Particular thanks are expressed to former Qld Branch AIG Chairman

Mark Berry (AMC Consultants) for his unfailing support, constructive criticism and editorial review of this paper.

Bibliography

AIG. (2014). “Latest Australian Geoscientist Employment Survey Reveals Little

Good News. Retrieved from http://www.aig.org.au/2014/07/page/2/

ASX. 2014. ASX listing Rules – Chapter 5. Additional reporting on mining and oil and gas production and exploration activities. (2014). Retrieved from http://www.asx.com.au/regulation/rules/asx-listing-rules.htm

Hunt, S. 2012. 2012 The JORC Code 2012 Exposure Draft - Sydney 23rd October

2012. Retrieved from https://www.ausimm.com.au/content/docs/branch/ sydney_2012_10_23_presentation.pdf

JORC. 2012. Australasian Code for reporting of Exploration Results, Mineral

Resources and Ore Reserves : (the JORC Code 2012 edition). Prepared by the

Joint Committee of the Australasian Institute of Mining and Metallurgy,

Australian Institute of Geoscientists and Minerals Council of Australia

JORC. 2014. Development of the JORC Code, 2012 Edition. Retrieved from http://www.jorc.org/development.asp

Silver Sponsor of the

AIG Education Endowment

Foundation

20 proFessional development AIG NEWS No 118, November 2014

AIG’s newly formed National Graduate Group – Redefining the value of professional membership to geoscience graduates

By Heather Carey

the natIonal GRaduate GRoup (nGG) is a new initiative by the australian Institute of Geoscientists (aIG) and was founded at the 2014 'Face 2 Face' meeting of the aIG

Federal council. the idea arose from the need for the aIG to better communicate with its graduate and student members.

Graduate members of AIG were nominated by each state, who now sit on the National Graduate Committee and are responsible for generating and implementing NGG initiatives to improve communication and engagement with and between members of this professional society.

The NGG aims to support developing geoscientists by:

• Increasing student and graduate membership and assist in the transition to professional membership;

• Promoting interaction between all members;

• Providing progressive communication to student and graduate members; and

• Encouraging continued education and training.

the nGG’s motto is supporting our next Generation of

Geoscientists! and the key issues we are investigating are communication, membership, engagement of members, continued education and training, and mentor opportunities.

In 2014/2015 the National Graduate Committee aims to:

• Create a strong online presence through our NGG website portal and new facebook page for student and graduate members, as well as non-members;

• Increase online content via AIG’s YouTube channel– general geoscience, interviews, documentaries, etc.;

• Create a “register your interest” link on website and autogenerated email reply with “welcome pack’ containing forms, brochures, and general info on AIG;

• Gain clarification on bursary/grant opportunities at both the federal and state levels;

• Compile a baseline of current participation / engagement by student and graduate members at both AIG and other industry events, in order to target future state and federal events through the NGG where required;

• Publish articles for AIG NEWS; and

• Test run a Mentor Program in SA the national Graduate Group (nGG) will be rolled out to members in november 2014 at events in each state.

We would also like to take this opportunity to introduce the National

Graduate Committee representatives to all AIG members:

Joshua Leigh (QLD, NGC Chairman)

Ivana David (NSW, NGC Treasurer)

Mike Curtis (WA, NGC Media Coordinator)

Rob Blytheman (SA, NGC Social and Event Coordinator)

Jentien Krijnen (VIC, NGC Membership Coordinator)

James Ferguson (QLD)

Yvonne Ormesher (VIC)

Fraser Perry (NSW)

Joshua Trestrail (SA)

Heather Carey (WA, NGC Federal Council liaison)

Doug Young (QLD, NGC liaison)

Joshua Leigh (QLD, NGC Chairman)

Josh graduated from the University of New

England in 2011 with a Bachelor of Geoscience, major in Mineral Deposits and researched aspects of Barambah low sulphidation epithermal Project in southeast Queensland to complete his Honours in 2013. Josh began his professional career as a junior geologist in 2010 in greenfield exploration for copper, gold and tungsten in the New England region of New South Wales, followed by coal throughout the Bowen Basin, Queensland and is now in greenfield exploration for copper, gold and silver as a project exploration geologist in the Esk Basin/Trough, southeast QLD.

P

eter

K

omyshan

BS c

(H onS

), MA uS

IMM, MAIG

C o n s u l t a n t G e o l o G i s t

▲ Corporate Advice

▲ Project and Target Generation

▲ Project Management

Omap Pty Ltd (ACN 154 607 977)

Perth Western Australia

Mobile (+61) 414 918 515

Telephone (+61) 8 9447 1142

Email: omap@iinet.net.au

AIG NEWS No 118, November 2014 proFessional development 21

Josh was the President and cofounder of the Geoscience Society of

UNE in 2010 and is still an active member. He has recently joined the AIG Queensland Branch Committee, and is both a Queensland representative and the Federal Chairman on the National Graduate

Committee.

Ivana David (NSW, NGC Treasurer)

Ivana David graduated from the University of

Sydney in 2013 with a Bachelor of Science in

Geology and Environmental Science followed with Honours in Geology with a thesis on the

Alteration of the Great Cobar deposit, central west NSW. During her undergraduate study she completed vacation work with BHP Billiton in Newman, WA and with Peak Gold Mines in Cobar, NSW. She worked closely with

Peak Gold Mines for her Honours project in 2013.

Ivana will begin her professional career as a graduate development geologist with Shell early next year. She is excited for this wonderful opportunity and eagerly awaits challenges ahead.

She joined the NSW branch of the AIG as a Student Member in 2011 and has been involved as a liaison with the AIG and students through the University of Sydney Geoscience Society during her study there.

Ivana was elected to the National Graduate Committee in early 2014 and is the NSW representative and the NGC Treasurer.

Mike Curtis

(WA, NGC Media Coordinator)

After completing his Master’s degree in Geology at the University of Bristol, UK in 2010, Michael

Curtis immediately made his way to Western

Australia. He very quickly found himself working as a junior geologist, contracted though Terra

Search, at Ravensthorpe Nickel Operation. After spending several months learning the ropes in the cold and wet, he was offered a graduate position with Encounter Resources. Mike spent the exploration season working at their ‘Yaneena’ sediment-hosted copper project, in the Little Sandy Desert, southwest of Telfer gold mine. Following a trip home to the UK for Christmas, he moved to

Potash West & Tungsten Mining as an Exploration Geologist. He assisted Potash West with work on their greensands project in WA’s

Wheatbelt, and was a key player in the early development of the

‘Kilba’ tungsten skarn deposit.

Mike joined the AIG WA Branch Committee in September 2013, and was nominated WA representative on the NGC in early 2014. In this, his main goals are a focus on education, promotion of the Earth

Sciences, and the improvement in financial accessibility of AIG events & conferences to recent graduates and unemployed geoscientists. Mike is also the Media Coordinator on the National

Cont. Overleaf

Terra Search Pty. Ltd.

Mineral Exploration and Data Management Specialists

www.terrasearch.com.au

Current Major Collaborative Projects in 2014

In addition to our standard array of exploration services, Terra Search has a strong history of collaboration with Government agencies to provide pre-competitive exploration data sets.

PNG MINERAL RESOURCES AUTHORITY (MRA) PROJECT INTRUSION-RELATED MINERALIZATION SYSTEMS IN NE QLD

As part of the World Bank sponsored 2nd Mining Sector Institutional

Strengthening Technical Assistance Project (MSISTAP) in PNG, Terra Search has commenced a 12 month contract designed to add sigificant further historical

Geological and Geochemical Data to the over 450,000 data points already captured by Terra Search during the 1st MSISTAP in 2002-2005.

With over 15 years of experience providing database services to government and industry, Terra Search is well placed to deliver the best possible outcome for the

MRA.

All data compiled and validated during this project will be made available globally to exploration companies through the MRA.

Terra Search and Klondike Exploration Services are undertaking a comprehensive study of the geology and metallogeny of gold-bearing magmatic hydrothermal systems incorporating:

• A new metallogenic database of the Charters Towers Region, GIS data package and map

• Metallogenic model documenting genetic types & spatial controls in Charters

Towers region

• Revision and update of the geology of the Charters Towers District

• Templates of geophysical & geochemical signatures of deposit styles

This study is a part of a North QLD research initiative in collaboration with local

Industry, EGRU (James Cook University) and the Geological Survey of QLD, funded through the Queensland Government Future Resources Program.

Terra Search Pty. Ltd.

Specialists in Mineral Exploration,

Geology, and Computing for over 25 years

TOWNSVILLE

Simon Beams, Travers Davies

T: (07) 4728 6851

E: admin@terrasearch.com.au

PERTH

Dave Jenkins

T: (08) 9472 8546

E: tswa@iinet.net.au

BATHURST

Richard Lesh

T: (02) 6337 3133

E: richard.lesh@bigpond.com

22 proFessional development AIG NEWS No 118, November 2014

AIG’s newly formed National Graduate Group – Redefining the value of professional membership to geoscience graduates

Cont. from Page 21

Graduate Committee and has been successful in encouraging each state to record AIG technical talks for inclusion on the AIG YouTube channel and website.

Rob Blytheman

(SA, NGC Social and Event Coordinator)

Rob Blythman Graduated from the University of

Adelaide in 2008 with a Bachelor of Science,

Majoring in Geology and Spatial Information.

After gaining industry experience as a field assistant in his final year of study, he went on to work as a graduate exploration geologist with Marathon Resources in the Northern Flinders Ranges, Western Musgrave Ranges and

Gawler Craton. After returning from a year in India, Rob began work as a geologist with Crocodile Gold in 2010 working on various resource definition projects, including the now producing

Cosmo Deeps gold deposit. Rob has also been involved in

Crocodile Gold’s exploration work across the Pine Creek Orogen primarily exploring for gold as well as assessing the potential for other commodities. He is currently assisting Crocodile Gold’s

Stawell Geology team.

Rob is currently undertaking his Master in Project Management part time and is excited to be a part of the Australian Institute of

Geoscientists National Graduate Committee (NGC) as the Social and

Event Coordinator and SA representative.

Jentien krijnen

(VIC, NGC Membership Coordinator)

Jentien Krijnen completed a Bachelor of Science at Monash University majoring in microbiology and molecular biology. Following this she completed a Master of Science (by coursework) in Geology at James Cook University, graduating in early 2014.

Jentien has worked as a vacation student in western Tasmania gaining experience in both mine and exploration geology. Since the completion of her degree she has worked in central Victoria on a volunteer basis with intermittent paid work and has also worked in northeast Victoria in regional exploration. Jentien is currently working as Project Geologist for Nagambie Mining, in central

Victoria. She is the Membership Coordinator on the AIG National

Graduate Committee and is one of the VIC/TAS representatives.

Fraser Perry (NSW)

Fraser Perry currently studies a combined Mining

Engineering and Geology degree at the University of New South Wales, where he has developed a strong interest in mine geology. Fraser works part time with Sydney based consultancy Centric

Minerals Management. In December 2015, Fraser will join Independence Group as a vacation geologist at their Jaguar

The South Australian branches of AIG, ASEG, AusIMM, GSA and SACOME and principal supporter Department of State Development

11t h and major supporters SACOME and Paydirt invite you to the

SA Exploration and Mining Conference

21 PRESENTATIONS

Exploration projects

Feasibility studies/development projects

Near mine exploration

Mining operations

OPENING ADDRESS

Hon Tom Koutsantonis

Minister for Mineral Resources and Energy

KEYNOTE ADDRESSES

Steve Hill Department of State Development

Kathy Ehrig BHP Billiton

SUMMARY

Questions and panel discussion chaired by Dominic Piper Editor, Paydirt

St Barbara’s Day – Friday 5 December 2014

ADELAIDE CONVENTION CENTRE, NORTH TERRACE, ADELAIDE

Sessions in Halls B and C; Catering breaks and displays in Halls A, D and E

Registration 8.00 am to 8.30 am; Conference 8.30 am to 5.00 pm with drinks to follow

REGISTRATION FEE – $175

Students – $15 (GST incl.)

Includes coffee breaks, lunch and closing drinks

Principal supporter Organised by

Major supporters

Registration available via website:

www.saexplorers.com.au

AIG NEWS No 118, November 2014 proFessional development 23

Cu-Zn-Ag mine in Western Australia.

Fraser Perry joined the AIG New South Wales branch and the

National Graduate Committee in 2014 and has actively promoted the institute amongst students through his role as Vice-President of the

UNSW Geoscience Society. Fraser is also involved with AusIMM acting as Secretary of the Sydney Branch.

Joshua Trestrail (SA)

Joshua Trestrail graduated from the University of

Adelaide in 2010 with a BSc (Hons), Majoring in

Geology, Geophysics and Environmental

Geoscience. In early 2011 Joshua began his career working for IMX Resources at Cairn hill mine (IOCG), with a focus on the drilling and

QAQC of the Phase 2 mineralization. Over the next 3 years Joshua, working as part of a small exploration team, contributed to the targeting and drilling of multiple targets, including magnetite and haematite in South Australia, Cu-Au porphyry in New South Wales, and base metals in North West Tasmania. As of 2014 Joshua has been working for a civil construction company as a Project Manager, with a focus on assessing and updating safety and environmental procedures to meet or exceed both legislative and client requirements.

An active member of the AIG since 2013, Joshua has recently joined the National Graduate Committee in September 2014 as a SA representative and is looking forward to contributing to its success.

Heather Carey

(WA, NGC Federal Council liaison)

Heather Carey is an Exploration Geologist in the resource and energy industry. Heather graduated from the University of Victoria, Canada in 2006 with a Bachelor of Science in Geology. She began her career as an Exploration Geologist working on gold, diamond, and base metal exploration projects in the Canadian Arctic and Cordillera. In 2008, Heather relocated to

Australia and has worked in a wide variety of tectonic environments across Africa and Australia interpreting geophysical data to produce lithostratigraphic and basin architecture maps for petroleum, mineral, and environmental clients. She is currently focused on broadband seismic project generation and data library sales for

CGG Multi Client and New Ventures in APAC.

Heather has been a member of the AIG WA Branch Committee since 2011 and was elected to Federal Council in May 2013 where she contributes to the National Graduate Committee and the

Publicity / Promotions Committee. Heather is very passionate about education outreach and encouraging high school students to consider a career in geoscience. Heather is also an Active Member and the WA Treasurer of the Australian Society of Exploration

Geophysicists (ASEG).

Cont. Overleaf

Project Management

• Compliance, planning, reporti ng and complete management soluti ons

• Greenfi eld and brownfi eld mapping

• Drill programmes

• Lithology and structure logging

• Geochemical sampling

• Prioriti sed target generati on

Field- and Minesite-Ready

• Independently audited safety procedures

• Senior First Aid

• 4WD certi fi ed and experienced

• MARCSTA

• Drug and alcohol screen

Resource and Data Geology

• QA/QC

• Project evaluati on

• Linking resource grade patt erns and geology

• 3D visualisati on of geology

• Wireframing

• ArcGIS, Micromine, Leapfrog and SpaDIS soft ware info@sjsresource.com.au www.sjsresource.com.au +61 8 9364 7098

24 proFessional development AIG NEWS No 118, November 2014

AIG’s newly formed National Graduate Group – Redefining the value of professional membership to geoscience graduates

Cont. from Page 23

Doug Young (QLD, NGC liaison)

Doug Young has 40 years’ experience in exploration for gold, base metals, coal and some industrial minerals. He graduated from Adelaide

University with BSc (Hons) in 1973 and completed an MSc at James Cook University in

1992. Since graduation Doug’s career has focused on mineral exploration, information geoscience, coal exploration and industrial minerals. From graduation to 1986 Doug held senior staff roles with North Broken Hill and Haoma North West as exploration geologist and in senior/supervising geologist roles. From 1986 to

2006 Doug operated as a Brisbane based consulting geologist with a variety of clients from major mining companies to small exploration companies. This work covered all aspects of base and precious metal exploration, coal exploration, industrial mineral identification including building the first computer model of the underground workings in the Bendigo goldfield. During this time he was instrumental in the identification and acquisition of Nolans Gold

Deposit (North Queensland) and developed concepts and interpretation which led to discovery of Isaac Plains, Isaac Plains

South and Belvedere coal developments.

In 2006 Doug was the driving force behind the formation and ASX listing of ActivEX Limited, a gold and copper focused junior explorer and he was Managing Director of the company from inception to 2014. During that period, the company, an active explorer principally in the Cloncurry district and in south-east

Queensland, has identified three new gold and copper-gold resources.

Doug has been a Councillor of the Australian Institute of Geoscientists from 2000 to 2014, and is a current committee member of the

Queensland Branch of the AIG since 1993 and a former state branch chairman. He is a member of the Education and National Graduate sub-committees. Doug is a Fellow of the Australian Institute of

Geoscientists and a Registered Professional Geoscientist (RPGeo).

As a final note, we actively encourage all current and potential AIG members to participate in this initiative via comments and discussions in either of our media outlets. Come visit our new webpages for information regarding social events, mentoring opportunities, technical talks, and other interesting and relevant material. The AIG

Council looks forward to see how things develop and encourage the

National Graduate Committee on their initiatives going forward.

https://www.facebook.com/AIGNationalGraduateGroup/ timeline?ref=page_internal http://www.aig.org.au/education-training/graduate-student-portal/

If any members or non-members are interested in participating or providing ideas or feedback to the NGG please contact either myself or Joshua Leigh at NGC@aig.org.au.

For expertise and services from project generation through to mine production,

CSA Global cover all stages of the exploration and mining cycle.

Our broad experience and integrated approach results in high quality solutions for our clients in areas such as:

EXPLORATION - RESOURCES - MINING - DATA - CORPORATE

Perth • Brisbane • Darwin • Adelaide • Horsham • Jakarta • Johannesburg • Vancouver • Moscow

Head Office

Level 2, 3 Ord Street, West Perth

Western Australia 6005

T +61 8 9355 1677

E csaaus@csaglobal.com

AIG NEWS No 118, November 2014

More Water Dowsing!

letter to the editor 25 dear editor

The admission by a geoscientist of his ‘ability’ to divine for water (AIG News November 2013, p.2) prompts a reminder that divining was first documented in connection with finding minerals, not water, and who amongst the AIG membership would admit to using a forked stick to find ore deposits? The earliest mention of the dodgy practice seems to have been by

Martin Luther in 1518 who listed dowsing for metals as an act that broke the first commandment

(Wikipedia). Georgius Agricola describes the practice of using a forked stick to prospect for ore in Germany in his 1556 treatise on mining

(De Re Metallica) and dismisses it, saying the twig is used only by unsophisticated common miners (see page 38-41 of the Hoover

English translation - available online). Agricola mentions that the material for the twig was selected for different minerals, for instance ash being used for copper. What is not certain is whether the practice arose to conceal and mystify the skill of the prospectors, or was used by charlatans to deliberately deceive investors.

The first mention of divining applied to water was apparently in

1568 to locate a well for a convent in Spain (from a Life of St

Theresa, in Barrett, W.F, Psychical Research, p.71, 1911), and in the following century the practice seems to have taken off with the boom in mineral water, and establishment of spas as health resorts. As groundwater is ubiquitous in northern Europe, it is not surprising a high success rate was obtained, yet the practice is unknown in drier regions where finding groundwater is more critical.

Arthur J Ellis of the USGS comprehensively reviewed the subject (Water Supply Paper 416,

1916), and needless to say, USGS has not employed divining as a prospecting technique.

There have been many studies trying to prove the efficacy of divining, but all obtain statistically random results, and Dick Smith’s

$10 000 prize is still going begging.

The concept of underground water flowing in streams, which diviners seem to rely on, is rarely valid. While belief in divining still persists in some rural areas, most people would be well aware that a bore can be successfully sited anywhere over extensive sand aquifers; and divining in hard rock areas meets with little success. The occurrence of groundwater in a geological context is now taught in schools through various programs, and should hopefully lead to a more scientifically educated populace.

Philip Commander FAIG RPGeo (Hydrogeology)

23-24 June 2015

Crown Perth, Western Australia www.amecconvention.com.au

Exploring the future of mining

The AMEC Convention is organised by the Association of Mining and Exploration

Companies (AMEC), Australia’s peak industry body for the mining and exploration industry.

In 2014 there were over 640 registered delegates and 55 exhibition booths.

Attendees included:

• mining and exploration companies

• service providers

• investors,

• government,

• media.

Exhibition booths now available!

Top five reasons to exhibit at the AMEC Convention:

1. Increase brand and product awareness

2. Generate investment opportunities in your projects

3. Launch new products, projects or services

4. Generate sales leads

5. Meet existing and potential customers, suppliers and networks

Email: events@amec.org.au | Phone: 1300 738 184

26 proFessional development AIG NEWS No 118, November 2014

UPCOMING EVENTS

geosymposia.com.au

The Australian Institute of Geoscientists with Geoscientists Symposia present

SYMPOSIA AND SHORT COURSES 2014/15

FREE EVENT

SYMPOSIUM

Our Real Earth, Geology and Environment

(Free Event for Teachers, Parents and Students)

ON-LINE REGISTRATION AVAILABLE www.geosymposia.com.au

Date:

Saturday, 15th November 2014

Location:

ARRC CSIRO, 26 Dick Perry Ave, Kensington, WA

Presenters:

Phil Playford, Simon Johnson, Ian Plimer and

Rick Rogerson

This event aims to present earth processes to school-teachers, explaining what these processes mean for the economy, sustainability and environment.

Teachers will be provided with materials and resources to assist future teaching activity.

Big Data, Inspiring Information and

Strategic Knowledge

ON-LINE REGISTRATION AVAILABLE www.geosymposia.com.au

Date:

Monday, 23rd March 2015

Location:

Tawarri, Esplanade, Dalkeith WA 6009

Presenters:

Twelve Invited Speakers

This event aims to overview data management and data conversion to knowledge delivering growth in the exploration and mining sector.

COLLOQUIUM

Yilgarn Retrospective

ON-LINE REGISTRATION AVAILABLE www.geosymposia.com.au

Date:

Monday & Tuesday, 30th to 31st March 2015

Location:

Tawarri, Esplanade, Dalkeith WA 6009

Presenters:

Twenty One Invited Speakers

This two-day colloquium will look at what we have learned from the past, with implications to the challenges of the future.

For further information, contact: training@geosymposia.com.au

AIG NEWS No 118, November 2014 gold'14@kalgoorlie

Gold’14@Kalgoorlie International Symposium Take Home Messages

27

The following messages are impressions of some of the presenters and participants of the recently successful gold symposium held at

Kalgoorlie from the 8th to 10th October, 2014.

Bob Foster, Stratex International PLC, London

Despite the subdued nature of the gold mining industry, the Gold14 meeting delivered the right prescription – a timely reminder that the fundamental demand for gold remains strong and is likely to strengthen as the uncertainties around the US economy and the possible “triple dip” being touted for Europe are resolved and the burgeoning Asian economies resurrect their desire for the precious metal. The apparent decreasing success rates in finding major new

“Tier 1” gold deposits in recent years, coupled with the rocketing costs of exploration and dollars-per-discovered ounce, is already seeing mergers and acquisitions increasing in an effort to rationalise efficiencies and costs - but this alone will not deliver the substantial replenishment of new resources that require science- and visiondriven grassroots exploration. The majors are likely to prioritise lower-risk brownfields exploration within sight of headframes for the foreseeable future but will also seek to JV-fund the more successful junior companies that have the capabilities and track record to put boots firmly on the right prospective ground and have the hunger to succeed.

The Kalgoorlie meeting addressed all these issues and more.

Excellent examples of successful brownfields exploration were highlighted, where Australian geologists had disregarded the concept of “mature gold camps” as being devoid of further potential and got back into the field, reconsidered structural data in particular, often underpinned by re-evaluation of historical geochemical and drill data, and delivered significant new discoveries. The application of leading-edge science to gold exploration at all scales from cratonwide to regolith to sub-microscopic was addressed by researchers from a number of key research centres in Australia and was a testament to the importance that the national research agencies place on funding research that underpins the future of the exploration and mining industry – it is essential that this is maintained during the industry down-times to ensure the sector is positioned to bounce back strongly in tune with a recovering gold price!

David I Groves, Orebusters Pty Ltd, WA

On a global scale, most analysts indicate that gold discovery rate is falling and that the cost per discovery is rising in the western world.

Australia, the second largest global gold producer, is doing better than most. However, this is largely due to brownfields exploration near to existing gold mines and mills. In the long run, Australia will need greenfield discoveries in order to replenish resources and maintain gold production. This will only happen when mid-size and junior exploration companies can raise sufficient funds to carry out this higher-risk exploration which, in the past, has seen discoveries such as Olympic Dam, arguably the world’s most economic metal deposit.

Greenfields exploration requires better understanding of the regionalscale potential of the ground considered for exploration. Too many companies are exploring in terranes that have low potential from a tectonic viewpoint. There is a strong need to rank potential exploration ground at the regional scale prior to exploring at the district to camp scale. A poor decision at the large scale will bring poor results even if the exploration methodology is high-class at the smaller scale. In other words, we need to see the gold-rich woods before drilling the gold-bearing trees. This requires consideration of large-scale structures, such as craton margins, other lithospheric boundaries, or sutures in initial ground selection. As Dick Sillitoe indicated, “big cracks in the Earth attract big gold deposits”. The recent world-class discoveries at Tropicana (gold) and Nova (nickel) in Western Australia on the southern margin of the Yilgarn Craton bear testimony to this fact. Judging from the Gold’14 conference, we are fortunate in this regard in Western Australia in that the Geological

Survey of WA are providing large-scale geophysical and geochemical datasets that can really improve the area selection process. We now need a re-emphasis on science-driven greenfields exploration to take advantage of these data sets and maintain Australia’s leadership in exploration and mining into the future.

Nick Franey, NJF Consulting, Perth, WA

Clearly, there is still much exploration potential in the Eastern

Goldfields of the Yilgarn, as proven by the relatively recent discoveries by Northern Star (Pegasus) and Goldfields (Invincible).

In contrast to the generally accepted opinion of old, lightening does indeed strike twice (and more) in the same place – indeed, it appears to be a prerequisite for the largest high grade orogenic gold deposits, which all appear to be characterised by multiple (and prolonged?) episodes of mineralisation. But structure continues to rule with regard to exploration criteria.

Richard Sillitoe, Consultant, London

‘The conference provided me with an excellent update of current thinking and exploration strategies for gold in the Eastern Goldfields of WA as well as elsewhere in the world. The work being conducted on gold mobility in the regolith in WA and its exploration significance were particularly valuable. The results will be a prerequisite for future gold exploration under cover, which will doubtless make important contributions to future discovery. Nonetheless, I still maintain that the prospectivity of wholly or partially exposed terrains, both in WA and elsewhere, is greater than generally accepted and that exploration strategies need to dovetail the search for outcropping and concealed mineralization. A general acceptance that any exposed mineralization has already been found appears to be the main impediment to organising the necessary fieldwork, although health and safety restrictions and a creeping office mentality also play their part’.

28 gold'14@kalgoorlie AIG NEWS No 118, November 2014

Gold’14@Kalgoorlie International Symposium Take Home Messages

Cont. from Page 27

Ross Large, University of Tasmania, Hobart, TAS

The new geological interpretations and recent discoveries on the WA

Goldfields talked about at the Conference suggest to me that there are still plenty of deposits to be found. We need more refreshing ideas in order to generate new exploration models. It’s no good following the old models as that will lead to the same blank result. New technology, new ideas and the courage to try something different will lead to new discoveries.

James Potter, La Mancha Resources Australia, Pty

Ltd, Western Australia

Thank you to Julien and his team for the organisation of the recent

Gold14@ Kalgoorlie international symposium. La Mancha Resources

Australia is a relatively small local operator so having a high quality, technically focused symposium on our doorstep is a bonus and one we will continue to encourage and support.

The symposium was a real mixed bag of gold focused presentations ranging from deposit scale case studies, state of the industry, country reviews, deposit models, geological frameworks and exploration tools both emerging technologies and tried and true old techniques.

While there were several healthy discussions which often continued outside of the lecture theatre the underlying apparent failure of recent exploration was a common conclusion. Recent discoveries like the

Invincible Deposit in the St Ives group south of Kambalda are highly encouraging but they are few and far between.

Subtle changes beginning to occur within the research space with increasing research collaboration, however, in order to maximise the benefit this needs to work better. The historical approach to research has been disjointed due to conflicting interests between academics and industry. While neither approach is fundamentally flawed better collaboration will benefit all. Without a doubt this is already happening with collaborative groups and it appears to gaining more traction but the next big hurdle to face the industry is organisational collaboration. Geology doesn’t stop at a lease boundary and combining knowledge will lead to further discoveries and keep the bean counters happy with reduced costs through efficiency improvements and data sharing.

Julian R Vearncombe, SJS Resource Management

Pty Ltd, Western Australia

The exploration industry is delivering a mixed and confused message: to some there is a failure of recent exploration as shown by the paucity new green-fields discoveries, but others note Australian exploration since 1979 discovered 16,500 tonnes Au in 34 years. It did this at less than $40 per ounce (2013 AUD). The pace of addition has actually increased over the last nine years and the discovery cost per ounce decreased. The extra hundreds of millions of ounces added

AIG NEWS No 118, November 2014 by brown-field exploration do not register as a “new” discovery, yet are crucial when judging success of the local gold industry. With nearly 10,000 tonnes Au EDR (Economic Demonstrated Resources),

Australia’s urgency is not for a green-field discovery to sustain its industry. What it does need from exploration are better quality gold ounces, higher grade, easier to extract or better located, or all three.

Also, we need lower mining costs (CAPEX and OPEX), and improved mine geology can help here.

Access to capital is the biggest challenge for the gold industry: we need to end the mixed messages by promoting our successes and ability to find gold at low cost and in brown- and green-fields. The largest exploration budget mentioned at Gold14@Kalgoorlie was

$24 million, and most geologists and companies will be jealous, but at an industry average discovery cost of $40 per ounce this budget may be expected to yield 600,000 ounces EDR. With extremely tight budgets there is no prospect to triumph finding the big one.

Perhaps the scariest comment came one coffee break: a young exploration geologist commented to me that less than 20% of time was spent on geology, so prescriptive were company meetings, management procedures and rules. Providing young exploration geologists with the opportunity to find a new deposit is a significant management challenge.

Suzy Urbaniak, Chair, AIG – WA Branch; Secondary

School Educator, kent Street High School, kensington, WA

Adding value back into Western Australian’s gold industry can only be achieved if investment in greenfields exploration becomes a focal point. Currently, blue chip and mid-tier companies are increasing their production ounces through acquisition and successful brown fields exploration. However, to remain competitive the industry needs to support the juniors in their endeavor to find the large, new deposits and provinces. Recent brown fields discoveries demonstrate that there are still a lot of ounces to be found in mature prospects such as the Eastern Goldfields. Contrary to what some in the industry wants us to believe, this demonstrates that we have not reached ‘Peak Gold ’. Our juniors are busy working at delineating prospective areas. They are run by passionate, maverick geologists who enlist exploration protocols, aligning their field data with contemporary, evolving models. Our industry is at an ‘Inflection Point’ and ‘people change business’ are two strong messages that Ed Eshuys and Jonathon Law, respectively advocated in the opening session of Gold14@Kalgoorlie. The junior companies need the financial backing and incentive from the government and/ or majors to ensure that new discoveries can support our nation’s future competitiveness and prosperity. This inflection point and corresponding ‘down turn’ is viewed by many of the speakers as a perfect opportunity to collect, consolidate and analyse data, reflect and identify new greenfields prospects.. In short, Australia can no longer afford to sit on its laurels, exploration is the best way to create value and we need to focus on new techniques and strategies to delineate those ounces sitting undercover. gold'14@kalgoorlie 29

sponsors of the aig geoscience Bursaries

The AIG wishes to thank the following individuals and organisations for their support of the

GeoscIence student

BuRsaRy pRoGRam

diamond sponsors chris Bonwick

sponsoring the

Bonwick–aig geoscience student Bursaries geoFF davis

sponsoring the

davis–aig geoscience student Bursaries macQuarie arc conFerence

– geological survey nsw

sponsoring the

macquarie arc conference-aig geoscience student Bursaries platinum plus sponsors sydney mineral eXploration discussion group

sponsoring the

smedg-aig geoscience student Bursaries platinum sponsors aig state Branches aleXander research – Jonathan Bell

sponsoring the

alexander research-aig geoscience student Bursary sa department oF state development (dsd)

sponsoring the

dsd-aig geoscience student Bursary terra search pty ltd

sponsoring the

terra search-aig geoscience student Bursary gold sponsors gnomic eXploration services pty ltd silver sponsors cryptodome pty ltd

Bronze sponsors doug young

30 women in mining AIG NEWS No 118, November 2014

2014 WIMWA Award for Outstanding Initiative in Promoting and

Supporting Women in Mining.

awaRded on FRIday 12th oF septemBeR, during the wImwa annual seminar at the hyatt hotel perth to suzy urbaniak of Kent street senior high school, and chair of wa

Branch, aIG.

Formerly a geologist, Suzy is a science teacher at Kent St SHS since

2004, specialising in the earth sciences. She has an outstanding reputation for fostering a shared understanding of STEM principles and works passionately to develop every student’s capacity, embedding these principles into her curriculum delivery.

Suzy’s enthusiasm and passion for the earth sciences has clearly rubbed off on many of her students. Kent St SHS has a long history of students going on to study earth sciences at university and working in the resources industry.

One of the many initiatives that Suzy has been launched, with industry support, is the bi-annual Kent St Women in Mining Day.

This involves girls at the school networking with women working in the industry and engaging in hands on activities to provide them with an insight to the range of occupations available in the mining sector.

Suzy hosts a Curtin University Mining Challenge at Kent St SHS designed to introduce primary school students to the range of careers available in the mining industry. In 2014, six participating schools attended the challenge day with trained year 9 Kent Street students mentoring them.

Arranges bi-annual overseas excursions for students to sites of geological interest including Hawaii, New Zealand and the next adventure is to Iceland and Norway in 2015.

People close to Suzy regularly refer to the fact that she goes beyond the call of duty in all that she does. Among other achievements, Suzy:

– served on the Curriculum Advisory Council of the School

Curriculum Standards Authority to create the new Earth and

Environmental Sciences senior schooling curriculum;

– runs the Powering Careers in Energy program – a Chevron initiative endorsed by the Schools Curriculum Standards Authority;

– has a long history of success with students representing Kent

Street in the WA Petroleum Club state grand finals and the

Australian Science and Engineering Challenge;

– arranged for her students to participate in an international Aqua

Republic Challenge this year. Kent St SHS students did exceptionally well, ranking 1st, 2nd and 3rd nationally, and all seven participating team ranked in the top ten internationally;

Top: Suzy Urbaniak receiving her award. Above: Suzy with students on stage.

– works hard to develop a collegiate network to link Kent St SHS alumni with current students. This year, 3 former Kent St students who are currently studying earth sciences at a tertiary level will accompany Suzy and her students on the field trip to Iceland;

– gives of her own time to foster the passion and skillset in colleagues to ensure the integrity of the earth science curriculum delivery by running hands on workshops for teachers and lab technicians based in schools;

– is the driving force behind the ongoing effort to achieve approved specialist program status in geo-science, mining and energy. This requires the school to source all their own funding for this program, and Suzy has been working closely with industry contacts to achieve this.

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Stephen T. Mudge

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• Magnetics, gravity, radiometrics, EM, resistivity, IP

• Survey design, project management, data interpretation

• Geophysical data processing for exploration targeting

TargetMap

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Web: www.vecresearch.com.au

Phone/Fax: +61 (0)8 9386 8894

Email: smudge@vecresearch.com.au

GEOPHYSICAL CONSULTANTS TO EXPLORERS

Kim Frankcombe

Senior Consulting Geophysicist

Phone +61 (0) 8 6201 7719

E-mail

kim@exploregeo.com.au

Riaan Mouton

Consulting Geophysicist

Phone +61 (0) 8 6201 0715

E-mail

riaan@exploregeo.com.au

Ian James

Consulting Geophysicist

Phone +61 (0) 8 6201 2810

E-mail

ian@exploregeo.com.au

www.exploregeo.com.au

PO Box 1191 Wangara WA 6947 Australia

Unit 6, 10 O’Connor Way, Wangara WA 6065 Australia

AIG NEWS No 118, November 2014

Education Report

education 31

Kaylene Camuti (Chair, AIG Education Committee)

AIG Bursary Awards

The response to the 2014 AIG bursary program was very positive, with

38 bursary applications received from students in 14 Australian universities. This year the Education Committee again had the pleasure of reviewing applications from students who have a wide range of geoscience interests and are working in a diversity of geoscience research areas. After considerable discussion the AIG awarded 15 bursaries this year and we congratulate the following students: melanie lee , who is completing a Masters Degree at UQ on

"Exhumation of Thomson Orogen rocks in Central Queensland". craig Ballington from QUT, who is completing a Masters Degree on “The effect of brittle faulting on microstructure, mechanical and transport properties of clastic sedimentary rocks”. scott moller from UWA, who was awarded an AIG Honours

Bursary for his project “Assessing controls on Permian Reservoir quality in the Merlinleigh sub-basin, Southern Carnarvon Basin, for conventional and unconventional gas.” michael Fuss from JCU, who was awarded a Terra Search – AIG

Honours Bursary for his Honours project on “Strontium and stable carbon and oxygen isotopic composition of carbonates in the

Ernest Henry deposit, Queensland: implications for genesis and exploration”.

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martin mackinlay , Honours student at QUT, who was awarded an

AIG Honours Bursary for his project “The effect of host rock properties on the geometrical distribution of fault structures”.

shane Frischkorn from QUT, who was awarded an AIG Honours

Bursary for his project “A study of the physical controls on the formation of deformation bands and their effect on fluid flow through granular rocks near Castlepoint, New Zealand.” sarah mcGill from QUT, who was awarded an AIG Honours

Bursary for her project “Stratigraphic and sedimentological investigation of the Early Miocene Whakataki Formation, North

Island, New Zealand”.

vera Korasidis , Honours student at Melbourne University, who was awarded an AIG Honours Bursary for her project “Improving the

Early Cretaceous Spore-Pollen Biostratigraphy for Victoria: the

Elusive Youngest beds of the Otway Coast”.

natalie debenham from Adelaide University, who was awarded an

AIG Honours Bursary for her project “Organic carbon preservation and the role of diagenesis in the cold-climate source rocks of the

Arckaringa Basin.” adam carmichael , Honours student at ANU, who was awarded a

Macquarie Arc Conference GSNSW - AIG Honours Bursary for his project “Characterization of the Murrumbidgee Shear Zone,

Lachlan Fold Belt”.

chad Burton from Monash University, who was awarded an AIG

Third Year Bursary.

emily dinnen Inglis from Adelaide University, who was awarded an AIG Third Year Bursary.

Jordan mill from Curtin University, who was awarded an Alexander

Research – AIG Third Year Bursary.

Bryce teo from UWA, who was awarded a Bonwick – AIG Third

Year Bursary.

philemon poon from UNSW, who was awarded a SMEDG – AIG

Third Year Bursary.

The Education Committee sincerely thanks all bursary applicants for their contribution to the Bursary Program. A sincere thank you, also, to members of the AIG Education Committee for their continuing commitment to the Bursary Program, and for the time and effort they give to reviewing the bursary applications:

Martin Robinson (AIG Councillor, SA)

Graham Teale (AIG Councillor, SA)

Chris Torrey (AIG NSW)

Doug Young (AIG Councillor, Qld)

Thank you to our bursary sponsors. Their generous support has ensured the AIG Bursary Program continues to provide financial assistance to Australian geoscience students, and continues to promote student involvement in AIG events.

If you’re interested in sponsoring the Bursary Program, or donating to the AIG tax deductable Education Foundation, we’d be very happy to hear from you. Please contact the AIG secretariat in Perth (contact details on the back page of this issue), or send me an email at education@aig.org.au.

To all those AIG members who have donated to the AIG Education

Foundation when renewing their membership – thank you. Your generosity not only provides financial support for students, but also gives encouragement to all involved in the AIG’s education activities.

Wishing you a very happy holiday season.

32 Branch news - nsw AIG NEWS No 118, November 2014 the nsw BRanch oF the aIG is active in organising events during the year. these include one day seminars, student information nights and the fabulous bi-annual mines and wines conference, as well as joint events with other societies.

The NSW AIG Branch Seminar entitled “Practical Applications of

GIS to Exploration and Mining” on August 8th was very successful, with 40 people registered, including 11 speakers and 9 students.

AIG NSW has a close association with SMEDG. SMEDG meetings are held every month, generally on the last Thursday of the month at the Rugby Club. SMEDG is an acronym for Sydney Minerals

Exploration Discussion Group and discussion is exactly what happens at the meetings. Any geo or minerals person passing through

Sydney is volunteered to give a talk. Gatherings are very informal with a free bar at the beginning. For more details go to the SMEDG web site www.smedg.org.au and scroll down to “Join the SMEDG mailing list” to register for your free membership. You will then receive an email once a month reminding you of the meeting and the topic. SMEDG also hosts their legendary harbour cruises in July and

December each year, offering a unique Sydney experience and an opportunity to catch up with friends and colleagues. The 2014

Christmas Cruise is coming up on the 12th December.

The NSW branch committee meets every two months in Sydney – visitors, guests, members and potential committee members are always welcome.

The branch organises ‘careers nights’ at each of the universities in

Sydney, Newcastle and Wollongong every year where students can hear about the careers of some of our geoscientists, generally from a diverse range of fields such as hydrogeology, environmental geoscience, mineral exploration, geotech and engineering and more. The short presentations are followed by a robust question time where the students really test the AIG representatives on all kinds of topics. AIG then provides drinks and snacks during informal discussion. The NSW AIG committee hosted four successful careers nights this year, with many new student members signing up. Three committee members spoke at a careers night at

UNSW, on the 19th August, with lots of attendees and a very active question time. On the 1st of September, by request of Macquarie

University, AIG hosted a ‘Women in Geoscience’ Careers night with female speakers from a variety of different fields; Minerals exploration, Hydrogeology, Academia and Environmental

Geoscience. Sydney University held their careers night on the 4th

September attended by two committee members, and Greg Corbett who gave a wonderful talk. Finally a careers night was held at

Wollongong University on the 16th September. Doug Menzies and

Garry Baglin were kind enough to lend their time to give entertaining talks about the minerals industry. A native rat even decided to pop in through the window and listen to them! Or maybe it was for the pizza… o

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Endowment profiling

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AIG NEWS No 118, November 2014

We take a leading role in organising Mines and Wines every two years along with SMEDG and NSW

Geological Survey. Advanced preparation for Mines and Wines 2015 ‘Uncorking the Tasmanides’ is underway, with venues booked and a great speakers list taking shape. It will be held in Queanbeyan from 2nd till

4th September. For more information, go to www.

minesandwines.com.au.

NSW AIG provides funding support for young and for unemployed geoscientists. Limited funding is available to provide NSW-based AIG members with opportunities to participate in professionally organised geological field trips, conferences and courses (see the AIG web site under the Education tab, NSW AIG Support Fund).

The branch committee continues to assist in the assessment of applicants from NSW seeking Registered Professional Geoscientist status with the AIG.

Top: NSW AIG branch seminar on the practical applications of GIS to exploration and mining

Right: Attendees mingling at the GIS

NSW AIG branch seminar

Branch news – nsw 33

34 Branch news – wa AIG NEWS No 118, November 2014 wa BRanch held two semInaRs, the mineral systems seminar (perfectly organised and delivered by michele, matthew and Jocelyn) and the Gold14 - 3 day International symposium in

Kalgoorlie, the highlights of the last quarter. these two successful meetings had the same message: ‘to sustain our industry and investment, financial, geological and technical resources need to be re-directed towards greenfield exploration.

Recent brownfield discoveries such as Northern Star’s Pegasus de-posit and Goldfield’s Invincible deposit show that with a

‘maverick’ approach using a rethink of the geological models and their terrains, application of fundamental geological strategies and most importantly a review of available data, can lead to new discoveries. Paradoxically this downturn, or ‘point of inflection’ as

Ed Eshuys coined it, is the time to consolidate and to get geological teams working on reviewing the geology of their tenements, mapping and having the confidence to drill new ideas. A detailed compilation of delegates ‘take home message from Gold14’ will be published in the next issue, (some preliminary views are published in this AIG

News - ed). In the interim, some of what happened at the symposium can be viewed on #Gold14Kalgoorlie website, (Both the Mineral

Systems and Gold 14 abstract volumes are on the website).

Our committee has been hoping to showcase the collaborative

MEGWA sessions with GSA WA and it finally happened in October with the guest speaker Nickolai Gorayachev delivering a talk on NE

Russian Tectonics and Metallogeny. What a gold province, the surface has only been scratched and as well what a power packed talk!

Nickolai presented 81 slides in 1 hour keeping us all engaged with the geology and extent of Au mineralisation in this under explored and under developed province. In fact, all our MEGWA’s have been successful and varied and we are finishing 2014 with a talk sponsored by SGC based on new geophysical techniques. The younger members of our committee, Curtin University geology students Jordan and Sam have been working hard at recording the

MEGWA talks and after 2 unsuccessful attempts they conquered the technological problems and Robbie Rowe’s Uncover talk is now available on the AIG YouTube channel.

Right: Suzy Urbaniak, Wayne Spilsbury,

Steve Sugden and Heidi Pass

Below: WA Committee having dinner with Nickolai,

Sandy Moyle, AIG member from Iluka, Heidi Pass,

Nickolai & Mike Curtis

In November, in conjunction with Geosymposia, WA Branch will be hosting the original “Real Earth” seminar. This concept, an outreach to the community and, more specifically, teachers and secondary school students, is aimed at quashing the array of geological misconceptions which are prevalent in the education system. This inaugural event is based on a goal to develop better social license through Resources & Geoscience Literacy and is an approach which is aligned to and geared at supporting the sustainability of our industry. It is envisaged, that the anticipated success will become a recurring annual event.

Moving towards 2015, the first quarter will showcase two seminars which our committee members have been working on in collaboration with Geosymposia and at which two unique concepts will be presented March, the innovative “Big Data” seminar closely followed by the two day 'Yilgarn Retrospective'. The Yilgarn

Retrospective seminar has secured Roy Woodall who will deliver the

Key-note Address “What really mattered: 1950 to 2000 and What really matters Now!” and will set the platform by summarising the collaborative skills and strategies learned from the past and their possible application and adaption to those that may be useful in leading exploration into the future.

We have had a successful year and are looking forward to the challenges of 2015. On the grape-vine, rigs are moving again in

Kalgoorlie albeit slowly - very slowly, while some of our young unemployed members have secured contract work and some geological contracting businesses are now busy. Collectively, a good sign, maybe! One day seminar ideas for the second half of 2015 have been floated and we are looking at original and different titles, so stay tuned and our MEGWA calendar up to May 2015 is already filled, so it looks 2015 will start with an optimistic note.

On a social note, we are all looking forward to our annual Christmas

Cruise on December 5th and hope many of you can make it.

In closing, a very special thank you to all our committee members who have dedicated their time to the success of our branch and all the very best for the festive season and a prosperous 2015!

Below: Wayne Spilsbury, Suzy Urbaniak & Julian

Vearnecombe in front of AIG Stall at Gold 2014.

AIG NEWS No 118, November 2014 Branch news - vic

AIG Victorian Branch Visit to the Australian Synchrotron

35

Geoff Hodgson AIG Victoria Branch

we weRe a happy team of geos that ventured beyond the mcG on the monday after the aFl Grand Final in september to visit the australian synchrotron, which is about the size of the mcG!

Earlier this year Kaylene Camuti met the Synchrotron’s Dr Tamsyn

Ross, who suggested that a group from the AIG should visit the facility. Consequently, a party of 17 from the Victorian branch made the trip to the Melbourne suburb of Clayton, near Monash

University. We were greeted by Tamsyn and her colleagues, Dr

Helen Brand, Dr Kathryn Spiers and Dr David Cookson, each of whom gave us a talk, and then guided our group around this most impressive facility.

It was a terrific visit. The Synchrotron is potentially a very powerful tool. We left the facility rather like a character in the Arthur C Clarke/

Stanley Kubrick book/movie, 2001- A Space Odyssey – we’ve got ourselves this tool, but we’re not too sure where it’s going to lead us!

But we are exploration geos so we’ve got to give it a go. David

Cookson, who is Head of Beamline Science and Operations, was particularly keen to encourage smaller enterprises to use the

Synchrotron, and emphasised that they would try to accommodate any testing that geologists might wish to do—at a modest rate. Note that for geos in New South Wales there is already a state-funded support scheme in place (see section on NSW Industry Synchrotron

OREAS

Certified Reference Materials for Mining and Exploration

Raising Standards Since 1988 www ore com au

Figure 1.

Access Scheme, below). It is also possible for geologists working in academia to apply for access through the merit system.

A synchrotron is a machine that produces intense light, which can be used to investigate the details of matter from the atomic- to the nano-scale. It can be used for many different applications including, for example, determining mineral phases, characterising pore structures, or mapping mineral traces in sectioned rocks. The

AS is currently used by scientists from a diverse range of disciplines including agriculture, pharmaceuticals, forensics, advanced materials – geologists and metallurgists already use it to study rocks and minerals, and there are many possibilities for professionals working in these fields.

In basic terms the Synchrotron comprises a centrally-located electron gun, an accelerator, an inner booster ring, and an outer storage ring.

Electrons are generated by the electron gun and accelerated to near the speed of light before being transferred to the storage ring where they are manipulated to give off light. The electrons circulating the storage ring are kept at a constant energy, apparently completing 1.4 million laps of the storage ring every second for about three days, all the while being used to produce beams of intense synchrotron light. Radiating tangentially from the storage ring are nine ‘beamlines’ – where the light generated in the storage ring is conditioned (filtered and focussed) as it propagates.

The Australian Synchrotron

1. electron Gun: Electrons are generated inside an electron gun by heating a barium compound cathode to ~ 1000°C. Bunches of electrons are accelerated away from the cathode surface and out of the gun using 90,000 volts.

2. linear accelerator (linac): In the Linac, the electrons are accelerated to 99.9987% of the speed of light. They exit the linear accelerator with 100MeV of energy. The energy used to accelerate

Cont. Overleaf

36 Branch news - vic

AIG Victorian Branch Visit to the Australian Synchrotron

AIG NEWS No 118, November 2014

Cont. from Page 31 the electrons comes from a radio frequency (RF) current of

3GHz. Radio frequencies are part of the electromagnetic spectrum, just like infrared light, but they have lower energy levels and therefore longer wavelengths. The spacing of the electron bunches matches the wavelength of the RF current, thus ensuring that the electrons receive a ‘push’ through the regions where the RF current is applied.

3. Booster Ring (synchrotron): The electrons are transferred from the Linac to the Booster Ring, where their energy is boosted to

3GeV using more RF energy. In the Booster Ring, dipole electromagnets force the electrons to adopt an almost circular path. The electrons complete approximately 1 million laps in half a second, before passing into the Storage Ring.

4. storage Ring: In the Storage Ring, electrons circulate at a constant energy for many hours, and continuously generate intense synchrotron light. To ensure the number of electrons circulating remains nearly constant, they can be topped up by injecting more into the ring approximately every few minutes.

An electron will complete around 1.4 million laps of the Storage

Ring every second.

5. Beamlines: The synchrotron light – created by bending the path of the electrons through magnetic fields – is then channelled from the

Storage Ring down long pipelines, called beamlines, so that scientists can utilise it for research. Each beam line includes

Figure 2. A rendered example of one of the Synchrotron’s beamlines being used for crystallography. Image courtesy of the Australian Synchrotron different types of filters, mirrors and other optical components that prepare the light for use in a range of different scientific experiments.

6. end station: At the end of each beamline is an End Station – a laboratory where the synchrotron light interacts with a sample.

Detectors positioned around the sample measure how the light is transmitted, emitted, scattered or diffracted (depending on the experiment) by the sample. Researchers use this information to determine the composition or atomic structure of the sample, or to create a map-like image of the sample.

AIG NEWS No 118, November 2014 Branch news - vic 37

For scientists visiting the Synchrotron the fun begins at the end of each beamline where the end-station and user cabin are located.

Scientists mount samples in the end-station and control the experiment while sitting in the cabin. It is in the end-station that a geologist could present a sample to be zapped by the very narrow, very intense beam of light (at X-ray or infrared frequencies). Depending on the technique, a variety of detectors will measure how the light is transmitted, emitted, scattered or diffracted by the sample. On the

XFM beamline a geologist could, for example, create an elemental map of the surface of a rock or mineral sample – but each of the nine beamlines has a unique function with a wealth of possibilities.

The primary capabilities and basic applications of each of the

Synchrotron’s beamlines is given in the table below. Uses of any given beamline may extend beyond what is given here, and interested parties are encouraged to enquire at the Synchrotron about any ideas they might have.

Tamsyn Ross and her colleagues are preparing a technical article for AIG NEWS (Ross, T., et al, (in prep): working title is

‘Geological and metallurgical uses for the Australian Synchrotron’).

Australian Synchrotron Beamlines

IMBL (Imaging and Medical Beamline)

A beamline utilising higher energy X-rays that can be used for

3D X-ray imaging with micron resolution – can be used to visualise the internal structure of samples non-destructively

IR Microscope (Infrared Microscope)

An FTIR (Fourier transform infrared) system which mixes midinfrared spectroscopy with fine resolution to give spatial mapping of organic compounds

Far-IR/THz (Far-Infrared/Terahertz Beamline)

An FTIR system which uses far-infrared spectroscopy to study molecular structure – often in gas phases

MX (Macromolecular Crystallography)

A powerful facility for determining the arrangement of atoms and molecules in single crystals, providing detailed information on of molecules ten to tens of thousands of atoms in size

PD (Powder Diffraction)

A facility for investigating the bulk properties of crystalline samples at high resolution – particularly useful for identifying and quantifying crystalline phases, as well as monitoring the behaviour of crystalline materials in non-ambient and dynamic environments

Figure 3. Synchrotron image showing distribution of titanium (blue), niobium

(green) and thorium (red) in ilmenite. Ilmenite sample courtesy of Peter Kappen,

La Trope University; image from XFM beamline and CSIRO collaborators Chris

Ryan, Robin Kirkham and Gareth Moorehead (no scale provided).

SAXS/WAXS (Small Angle X-ray Scattering/Wide Angle X-ray

Scattering)

A flexible beamline used for investigating features ranging in size from 1 to 100 nanometres in bulk solid or liquid samples – useful for determining particle and pore sizes in natural and manmade materials

Soft X-ray

A beamline most suited to non-destructively characterising surfaces and near-surface interfacial layers

XAS (X-ray Absorption Spectroscopy)

A beamline used particularly for investigating the oxidation state and coordination environment of atoms in solid and liquid samples

XFM (X-ray Fluorescence Microscopy)

A powerful beamline regularly used for high-resolution elemental mapping of solid samples containing heavy elements

The Australian Synchrotron website also has a little information on each of the beamlines as PDF fact sheets which are available from the synchrotron website.

As mentioned above, for researchers working in industry in New

South Wales there is a state-funded support scheme is already in place:

NSW Industry Synchrotron Access Scheme

The NSW Industry Synchrotron Access Scheme is a program that is currently being run by the NSW government which allows bodies conducting commercially-relevant research within NSW to apply for fully-funded beamtime on any of the beamlines at the Australian

Synchrotron. The advantages of applying for beamtime through the

Cont. Overleaf

38 Branch news - vic

AIG Victorian Branch Visit to the

Australian Synchrotron

Cont. from Page 33

NSW Industry Synchrotron Access Scheme are that there is no need to publish the work (as would be necessary through the standard merit access program), little is required in the way of preparing a proposal for the work (with assistance from the applicant, the Synchrotron handles most of the paperwork) and access to the Synchrotron through this scheme is typically more rapid than through the merit access program (access to some beamlines may still be possible in late 2014).

A further important point is that the applicant retains their IP on work.

The Beamline Industry Group is a group of scientists dedicated to supporting commercial research taking place at the Synchrotron, in particular that of applicants to the NSW Industry Synchrotron Access

Scheme. They offer obligation-free exploratory talks about potential projects, assistance with experimental design and expert support during beamtime – other services available include data analysis and reporting.

Beamline Industry Group Homepage: industry.synchrotron.org.au

NSW Industry Access Page: industry.synchrotron.org.au/industry-access/nsw

For the latest in Geoscientist news, views, codes, events, employment and education visit the AIG website: www.aig.org.au

AIG NEWS No 118, November 2014

Registered Professional Geoscientist

Approvals and Applications

CANDIDATES APPROVED BY AIG COUNCIL IN

SEPTEMBER 2014

dr andrew scogings of East Perth, WA, in Industrial Minerals mr dean harris of West Chatswood, NSW, in Geotechnical &

Engineering mr daniel Jones of Fairlight, NSW, in Geotechnical & Engineering

AIG MEMBERSHIP BENEFITS

Snowden offer 10% discount off professional development courses for Australian Institute of

Geoscientists members

To encourage new membership and in recognition of the services offered by the associations and societies that uphold the professionalism within our global mining industry – Snowden will be offering the individual members of these associations a

10% discount off our public training course registration fees during 2014.

AIG NEWS No 118, November 2014 memBership news 39

Membership Update

We welcome all new members to the AIG.

New Members and Upgrades at the September Council Meeting 2014

FELLOWS

Campbell Michael David

Twomey Glenn

Withnall Ian William

MEMBERS

Aagelle Gilbert

Douglas Alasdair

Tanya

Sieboore

Allan

Badenhorst

Bartie Stephanie Joanna

Carswell Erin Amy

Crozier de Little

Dillon

Dutch

Troy

John

Mathew

Vernon

Regan John

Rian Alexander

Haines

Hulme

David

Karen Angela

Hurst Darren Michael

Jackson-Hicks Caroline Rose

Jewson Robert Andrew

Johnson Michael Vaughan

Jordan

Kanthasamy

Kerr

Daniel Pieter

Nagaraj

Stuart Timothy

Kuznetsov

Leeming

Alexander

Prudence Mary

Marshall Simon Alan

Merton Ray Neil

Metzger Guy Richard

Musk Mark Christian

Pearson

Pittard

Power

Joanna

Karen

Daniel

Mary

Jennifer

Michael

Pratama Bosta

Stewart Mark Lindsay

Sweetapple

Taylor

Marcus Todd

Andrew James

Thomas Brett

Thomas Trevor Hughes

Voulgaris

Wade

Peter

Alan

Weedon Paul Gregory

Zhu Martyn Zhen

RETIRED

Harris Marcus Field

Overton Rodney

GRADUATES

Buys Janrich

Carr Patrick

Cave Ben James de Bree Selene

De Carli

Eden

Gianfriddo

Elyssa

Daniel

Charles

Robin

Graham

Greene

Monty

Joshua

George

Greene

Hamilton Rebecca Jenner

Heesh Nicole Diana

Hesford Christopher

Lowczak Jessica Natalia

Mandaran Kristian Joseph

Staubmann Markus

STUDENTS

Carmichael

Levett

Adam

Adam

Jake

Edward

Jackman Adrian Charles

Cooper Ashby

McWhirter Brenton

Teo Bryce Tian

Burton

Pang

Chad

Cheng

Alan

Tong

Dinnen Inglis

Farrell

Emily Catriona

Jessica Anne

Tidboald Jonathan Paul

Bischoff Karl

Lee Kathleen Tessay

Giddings Mark

Mackinlay Martin

Dello-Iacovo Michael

Wenderlich Michal

Davitt Miles Walker

Chapman Nicholas Wollens

Holt Peter

Kovach Stephanie

Korasidis Vera

Registered Professional Geoscientist Approvals and Applications

NEW CANDIDATES PUBLISHED FOR PEER REVIEW

BY THE MEMBERS OF THE AIG

mr tim chalke of Chapel Hill, WA, is seeking registration in Mineral

Exploration, Mining and Geophysics.

mr shu Zhan of Waterford, Queensland, is seeking registration in

Mineral Exploration.

mr Justin legg (RPGeo in Mineral Exploration) of Brisbane, WA, is seeking further registration in Mining.

mr scott mcmanus (RPGeo in Information Geoscience) of Port

Macquarie, Victoria, is seeking further registration in Mining.

mr michael sawyer of Narrawong, Victoria, is seeking registration in

Mineral Exploration.

dr michael hartley of Narre Warren North, Queensland, is seeking registration in Mineral Exploration and Other Specialist Geoscience

(Geochronology & Tectonics).

mr darryl west of Bardon, Victoria, is seeking registration in

Hydrogeology, Environmental Geoscience and Information Geoscience.

mr lynton Bourne of Bentleigh East, Victoria, is seeking registration in

Environmental Geoscience.

mr cameron cairns of Brunswick East, WA, is seeking registration in

Mineral Exploration and Regional Geology.

mr martin haylett of Subiaco, WA, is seeking registration in Mining.

mr daniel card of Mt Lawley, WA, is seeking registration in Mineral

Exploration and Geophysics.

mr huw smith of Old Toongabbie, NSW, is seeking registration in

Geotechnical & Engineering.

prof huang shaofeng of Beijing, China, is seeking registration in

Mineral Exploration.

McKenzie

Mining &

Exploration

PTY LTD

Roderick McKenzie

Consultant Geologist

MAusIMM, GSA

ABN 55 003 562 365

• Due Diligence Studies

• Geological Modelling & Orebody Evaluation

• Target Generation

• Vulcan, MapInfo & acQuire Experience

• Specialising in Iron Ore & Gold

M: 0403 435 377 • E: rrmckenzie@bigpond.com

12 Wellesley Road, Ringwood North, VIC 3134

SPECIALISING IN RECRUITING PROFESSIONALS & EXECUTIVES

FOR THE MINING INDUSTRY

Suite 2, 47 Ord Street

West Perth WA 6005

Rowley Pennock

David Pennock

Phone: (08) 9226 1022

Fax: (08) 9226 1040 rowley@pennock.com.au

david@pennock.com.au

We welcome all new members to the AIG.

40 aig AIG NEWS No 118, November 2014

aig council For 2014–15

EXECUTIVE

president: vice president: treasurer: secretary: executive officer:

COUNCIllORS

RPGeo REGISTRATION

mike erceg wayne spilsbury

Kaylene camuti steve sugden

Ron adams lynn vigar adrian diaz andrew waltho anne tomlinson

Grace cumming

Graham teale heather carey

Ian neuss

Jonathan Bell

Katarina david martin Robinson mike erceg

0418 957 089 president@aig.org.au

(07) 4772 5296 education@aig.org.au

0419 490 527 treasurer@aig.org.au

(08) 9427 0820 aig@aig.org.au

exec@aig.org.au

0427 986 919 geoadriandiaz@hotmail.com

0412 426 764 aawaltho@tpg.com.au

0400 183 679 anne@sgc.com.au

0417 143 369 grace.cumming@gmail.com

(08) 8269 7188 geologists@tealeassociates.com.au

0477 988 810 carey.heather@bigpond.com

(02) 9660 5849 ian.neuss@bigpond.com

0427 621 322 jbell@alexanderresearch.com.au

0412 080 360 katarinadavid@hotmail.com

(03) 9248 3365 mctcrobinson@bigpond.com

0458 051 400 michael.erceg1@bigpond.com

0458 051 400 RpGeo@aig.org.au

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