Minerals Update September 2019

Otcotber 2019

In this edition:

Southeast Lachlan Crustal Transect
Otway Basin Airborne Gravity Survey released
Earth Resources at the Elmore Field Days
All Victorians to Benefit from Gold Production
A Forgotten Gold-Rush Hub is Producing More Than it Has in a Century
Reminder of the Conditions of Land Use Activity Agreements
Upcoming Events
Industry News

Southeast Lachlan Crustal Transect

The Geological Survey of Victoria, Geological Survey of New South Wales, Geoscience Australia and AuScope Limited have collaborated to acquire new geophysical data across the Southeast Lachlan Crustal Transect in southeast Australia.

Deep crustal seismic reflection data were acquired in 2018, and detailed ground gravity traverses in 2019 and magnetotelluric surveying is being planned for 2020 (see map below).

The project partners have collaborated to complete a preliminary interpretation of the processed deep crustal seismic reflection data, which were unveiled by the project partners at ‘Discoveries in the Tasmanides 2019’ conference in September.

These new seismic data demonstrate that the rocks and structures mapped at the surface can be traced through the whole thickness of the crust under the Australian Alps (Figure 1).

The processed deep crustal seismic reflection data are available from Geoscience Australia as L208 Southeast Lachlan Seismic Survey 2018.

A report describing the results of the preliminary interpretation is currently being finalised and will be available from www.earthresources.vic.gov.au and www.resourcesandgeoscience.nsw.gov.au

Visit the project page for updates and take a look at a short film documenting the seismic survey and interpretation.

Figure 1 A: Line 1 2D PreSTM 20sec. B: Line 1 with interpretation.

Otway Basin Airborne Gravity Survey released

The Otway Basin Airborne Gravity Survey is a key component of the Victorian Gas Program. The survey onlaps the Palaeozoic bedrock of southwest Victoria including the southern portions of the Glenelg and Grampians-Stavely zones, including rocks of the Stavely Arc.

The survey comprises 32,000 line kilometres of Full Spectrum Falcon® gravity gradiometry and magnetic data. The survey was flown by CGG Avian (Australia) Pty Ltd at 500 m line spacing and 150-300 m terrain clearance between August 2018 and January 2019. It is the largest airborne gravity survey in Victoria.

The final processed survey data and report is available here.

Earth Resources at the Elmore Field Days

The Earth Resources Branch, within the Department of Jobs, Precincts and Regions, attended the Elmore Agricultural Field Days on 1-3 October 2019.

The Department's site attracted considerable interest with more than 500 visitors dropping by over the three days.

Staff from Minerals Development Victoria (MDV) and the Geological Survey of Victoria were on hand to speak with landholders and community members to introduce the North Central Victorian Goldfields Ground Release and to answer questions such as ‘what lies beneath our soil’ and ‘how do explorers determine where to look’.

The diamond core samples were of particular interest as were the geology maps. This was an important opportunity for the Department to engage with local landholders and the broader community, in advance of the Goldfields Ground release which will be tendered later this year.

The ground release area contains demonstrated gold mineralisation under cover and is covered by applied geoscience research undertaken by the Geological Survey of Victoria as part of the Gold Undercover initiative.

All Victorians to Benefit from Gold Production

Gold holds a special place in Victoria’s history and the economic development of the state. Now, with the Australian gold price at an all-time high, advances in mining technology and more ground being released in the state for minerals exploration, there’s renewed interest in one of our oldest industries.

Under current regulations, gold is exempt from royalties. This places Victoria as the only major gold producing jurisdiction in the world that does not collect a return on gold production. As a result, the benefits from gold production haven’t been shared fairly amongst all Victorians.

In the 2019-20 Victorian State Budget, the government announced it would remove the exemption, and a royalty of 2.75 per cent would apply to gold produced under a mining licence from 1 January 2020.

Importantly, to reduce the burden on small producers, the royalty will not apply to the first 2,500 ounces of gold produced under a licence each year.

The gold royalty is unlikely to impact gold production in Victoria because, based on gold price forecasts and information about production costs, the mines that will pay the royalty are expected to remain profitable.

Revenue from gold royalty payments will benefit all Victorians by supporting the delivery of public infrastructure and services, both of which will increase economic activity throughout the state.

The gold sector in Victoria remains strong, with minerals exploration expenditure growth in the state outpacing national growth for the fourth consecutive year.

The government is introducing the gold royalty by amending the Mineral Industries Regulations.

This process requires that a regulatory impact statement is prepared and made available for public consultation. Between 23 September and 21 October 2019, you can provide a submission on the Engage Victoria website engage.vic.gov.au/goldroyalty.

A Forgotten Gold-Rush Hub Is Producing More Than It Has In A Century

A recent Bloomberg article explores the new technology which has gold production in southern Australia booming:

https://www.bloomberg.com/news/features/2019-09-10/high-gold-prices-new-technology-boost-australian-production

Reminder of the Conditions of Land Use Activity Agreements

Explorers and miners who have agreed to Schedule 4 conditions of the Land Use Activity Agreement between the State of Victoria and the Dja Dja Wurrung Clans Aboriginal Corporation (DDWCAC) are reminded to comply with the terms of this agreement.

Non-compliance with the conditions of the agreement constitutes a breach of an operator's licence conditions and may result in enforcement action.

If you have any questions regarding the DDWCAC Agreement or other Native Title issues, contact Earth Resources Regulation.

Upcoming Events

International Mining and Resources Conference

The International Mining and Resources Conference (IMARC) is where global mining leaders connect with technology, finance and the future. Now in its 6th year, it is Australia’s largest mining event bringing together over 7,000 decision makers, mining leaders, policy makers, investors, commodity buyers, technical experts, innovators and educators from over 100 countries to Melbourne for four days of learning, deal-making and unparalleled networking.

A new exploration stream, including a core farm display from Australian explorers and keynote presentations from Doug Kirwin and Richard Goldfarb, is planned. The Geological Survey of Victoria will be providing updates on pre-competitive geoscience.

Find out more and register

Victorian Minerals Round Up 2019

The Geological Survey of Victoria will be presenting and exhibiting at this year's Minerals Round Up. The event provides a forum for current explorers and miners to showcase and provide technical updates for their projects.

This year’s Mineral’s Round Up will also examine opportunities for further exploration and development and applied research opportunities.

On the day prior to the conference a one day workshop called “Vectoring within Central Victorian Gold Alteration Haloes Using Geochemical & Mineralogical Data” will be presented by Dr Dennis Arne.

Find out more and register