Category: Features

All images: Dacian Gold. BY CAMERON DRUMMOND THERE’S a lot to like about the rapid development of Dacian Gold’s Mt Morgans gold project. The miner has set a vigorous pace on the road to production, already coming in under its initial project cost by $23 million. Production from Dacian Gold’s flagship $197 million Mt Morgans project near Laverton, WA is expected to start this month, less than three years after the Dacian board approved its development. The fast-tracked gold project has been Dacian’s sole focus since its $20m initial public offering (IPO) onto the ASX in 2012. At that time, Mt Morgans had a resource base of 840,000 ounces (oz) of gold. In the years that followed, exploration work uncovered…

MMG’s Dugald River zinc mine near Cloncurry, QLD. Image: MMG. BY CAMERON DRUMMOND INITIATIVES by the Queensland Government to boost exploration and support employment diversification aim to attract investment and protect employment in the region from the cyclical nature of the resources sector. However some feel that addressing high energy prices as a priority may do more to lift North West QLD’s economy. Covering 10 local government areas, the 375,000sqkm North West Minerals Province (NWMP) contains major copper, lead, zinc, silver and phosphate deposits and well defined rare earths potential. The NWMP is home to about 34,500 residents, mostly based in Mt Isa, with 60 per cent of jobs that directly or indirectly support the mining industry. The significance of the…

BY CAMERON DRUMMOND WITH discounts for lower quality iron ore increasing, Carpentaria Resources’ Hawsons project – the highest grade undeveloped iron ore project in the world – is ready to capitalise on growing demand from Chinese steelmakers for high grade product. We spoke with Carpentaria managing director Quentin Hill about the project’s Supergrade® product and his outlook on the future of the iron ore market. Q: How is Carpentaria’s Hawsons iron ore project progressing? We drilled the first hole in 2009, and released Hawsons first resource in 2010. It is a $US1.4 billion development cost over an 18-month period, and will produce an initial 10 million tonnes per annum (mtpa) of 70 per cent Fe Supergrade ore for  projected annual revenue of…

All Images: Northern Minerals. BY CAMERON DRUMMOND NORTHERN Minerals’ Browns Range heavy rare earth (HRE) project is underway, with a Stage 1 pilot plant near completion amidst big plans to meet the growing demand for dysprosium. 160KM south east of Halls Creek in northern WA, Browns Range represents an opportunity for Australia to become a leading producer of dysprosium outside China. The little-read-about element is crucial to the manufacture of permanent magnets and a fundamental ingredient in high-torque motors used in wind turbines as well as electric vehicles, which use about 100 grams of the HRE. Dysprosium makes magnets last longer and retain efficiency at extremely high temperatures. It also makes up part of the control rods used in nuclear…

Image: UNSW. BY CAMERON DRUMMOND SINCE its initial use in military applications, drone technology has evolved into a cost-saving and efficient tool for many industries, including mining. Mining majors such as BHP already recognise the advantages of drone technology for a range of applications. BMA mining production head Frans Knox said the use of drones at mine sites has made operations safer and more productive. “At some of our coal mines in QLD, they’re used to ensure areas are clear before a blast takes place and to track fumes post-blast,” Mr Knox said. “They’re also used to improve road safety on sites, by monitoring traffic, road conditions and hazards. “At our Olympic Dam mine in South Australia, the maintenance team…

All images: Western Areas. THE nickel market is in the midst of major disruption as two distinct commodity segments appear – nickel sulphate for the fast growing EV market, and the traditional stainless steel market, dominated by lower grade ferronickel. In Australia, Western Areas is very well placed to seize the advantage as high grade nickel demand continues to grow. BY REUBEN ADAMS It’s been more than a decade since nickel prices went into free fall from a peak of $51,600 per tonne (t). Now – despite continued price volatility and large supply inventories – market fundamentals are looking healthier than they have in years, with a burgeoning electric vehicle (EV) sector looks set to put a rocket under the…

Southern Nights discovery. Image: Peel Mining.  BY ELIZABETH FABRI IN the outback town of Cobar rising commodity prices are restoring confidence at existing operations, as fresh exploration signals a break away from the region’s reliance on base metals towards a gold-focused future. It’s been boom-and-bust for Cobar since first copper was discovered in the region in 1869. The town has witnessed great successes (at peak sporting a population of 10,000) followed by incredible lows when commodity cycles took a dive. Just two years ago this was the case when one of the town’s major employers, CBH Resources’ Endeavor mine, made almost half of its workforce (116 people) redundant as a result of the declining zinc and lead prices. It was…

All images: Gold Fields Australia. BY REUBEN ADAMS CONSTRUCTION work is ramping up at the $532 million Gruyere gold project, 200km east of Laverton in WA. For South African-based Gold Fields, which holds a 50 per cent stake in the project with Gold Road Resources, Gruyere represents the newest chapter in a long, influential – but relatively low profile – history in the WA gold sector. A January update has underscored the massive scope of this 270,000 ounce per annum (ozpa) project, which remains on budget and on track to pour first gold in early 2019. In the December quarter, the Gruyere JV awarded a key five-year, $400 million mining services contract to Downer EDI Mining, which will begin construction…

All images: WPG Resources. BY ELIZABETH FABRI THE trials are far from over for WPG Resources, but with development finally moving ahead at Challenger Deeps, a planned mill expansion nearing completion, and on site contract issues easing, 2018 is set to be a turnaround year for the company. The 2017 year was tough for WPG Resources— perhaps its most disappointing to date. After acquiring full ownership of the Challenger Gold Operations in August 2016, all signs were pointing towards 2017 as a year of profit. But come 30 June 2017, the company’s balance sheet was in trouble. “Although we reported an EBITDA of a positive $0.8 million, our statutory loss of $9.1 million and total production of 50,882 ounces of…

All images: New Hope Group. BY REUBEN ADAMS THE QLD coal sector is enjoying strong revenues, employment growth, and new investment. Now – as QLD Labor secures another term in office – it’s time to examine how red tape, drawn out development approvals, and political risk are having a real and tangible impact on greenfields and brownfields mine development. Coal has officially re-emerged from some of the most difficult industry conditions in years. Even taking into account the substantial impacts of Cyclone Debbie in April, strong prices have put a spring into the step of the QLD’s major producers. In FY17, New Hope Group’s revenue from its QLD and NSW operations jumped 59 per cent to $844.1 million. Whitehaven Coal…

Image: Tianqi Lithium Australia. BY ELIZABETH FABRI WA spodumene producers are moving downstream to cash-in on sky-high lithium hydroxide prices. But is the capital spend on processing infrastructure worth the risk? 2017 was a game-changer for the WA lithium industry. In 2016 there was just a few producing mines in the State; in 2018 this number looks set to explode as investors pour capital into the swarm of lithium mines now at various stages of development. The Neometals and Mineral Resources Mt Marion JV entered production in late 2016, followed shortly by Galaxy Resources’ Mt Cattlin project which exported its first shipment of lithium concentrate in January 2017. Next cabs off the rank are Pilbara Minerals’ and Altura Mining’s identically…