The spectrum of uranium-bearing mineral systems in South Australia and global exploration implications.

Transcription

1 The spectrum of uranium-bearing mineral systems in South Australia and global exploration implications. Martin Fairclough Chief Geoscientist, Geological Survey of South Australia

2 Overview Overview of South Australia and PACE Update of Existing Uranium Mining Operations Exploration Projects to Watch Exploration Overview Mineral Potential Modelling (IOCG U) Implications and summary

3 South Australia s Major Mines : 5 Major Mines

4 Target: 11 mines in mines in 2010

5 Mineral Exploration Licence Coverage January 2004 January 2008 November 2009

6 PACE Building on the first 5 years Partnerships Continuing commitment to Research Centres Substantial seed funding for a new CRC Deep Exploration Targetting New Adelaide-based Centre and CEO South Australian case studies Partnership with Saskatchewan Ministry of Mines

7 PACE Drill Intersections Highlights Dominion Mining Barton Area Dominion Mining Challenger Project Goldstream Mining Mount Woods Inlier Havilah Resources Curnamona Copper-Gold Hillgrove Resources Kanmantoo Copper-Gold Exploration Minotaur Exploration Mount Woods Inlier Petratherm Callabonna Geothermal RMG Services Carrapateena Stellar Resources Coolybring Magnetite Project Tasman Resources Marathon South Tasman Resources Parkinson Dam Vintage Exploration and Mining Kiki Ultramafic Project Lynch Mining Archaean Copper Zinc Iluka Resources Gulliver s HMS Prospect Quasar / Alliance 4 Mile Uranium

8 South Australian Exploration Expenditure South Australia s Advantage: 39% - national share of uranium exploration 35% - national share of copper exploration MINERAL EXPLORATION BY COMMODITY 2008/09 $14m 7% $73m 36% $2m 1% $42m 20% $62m 29% $3m 1% $1, 0% $14m 6% Copper Silver, Lead, Zinc Nickel, Cobalt other Base Metals Gold Iron Ore Mineral Sands Uranium

9 Uranium exploration expenditure in Australia South Australia continued to lead the nation as the primary state to explore for uranium in Expenditure for uranium exploration in 2008 was $94 million accounting for 43% of Australia s total uranium exploration expenditure. Hosts two of Australia s three uranium mines, Olympic Dam & Beverley, with a third under construction at Honeymoon. Recent discoveries include: Four Mile (Quasar & Alliance Resources) Hillside (Rex Minerals) Mullaquana (Uranium SA) $94m 43% $35m 16% $58m 26% $34m 15% SA NT Qld Other

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11 TYPES OF URANIUM DEPOSITS (known and potential) Marla Coober Pedy Oodnadatta Moomba Breccia complex e.g. OD Sandstone(roll-front) e.g. Beverley, Honeymoon, Warrior U/C redox related? Vein style e.g. Crocker Well, Radium Hill Calcrete-hosted? Vein Roll front Breccia WARRIOR Ceduna Andamooka OLYMPIC DAM MT PAINTER Tarcoola BEVERLEY YARRANNA HONEYMOON Port Augusta RADIUM HILL Moonta Moonta Renmark Port Lincoln Adelaide Kingscote Unconformity Robe Mt Gambier

12 Solid Geology of the Gawler Craton

13 Olympic Dam Copper-Gold-Uranium-Silver BHP Billiton Ltd Olympic Dam Largest uranium deposit, fourth largest remaining copper deposit and fifth largest gold deposit in the world. Also contains significant quantities of silver. Total Resource Mt at 0.87% Cu, 0.027% U 3 O 8, 0.32 g/t Au and 1.5 g/t Ag Gold only (non-sulfide) resource 151 Mt at 1.0 g/t Au. Reserve (ore) 473 Mt at 1.86% Cu, 0.06% U 3 O 8, 0.76 g/t Au and 3.95 g/t Ag Production 2008/ t Cu, 4007 t U 3 O 8, oz Au, oz Ag

14 IOCG Deposits - Size & Au Grade Comparison with Global Cu-Au Mines Prominent Hill Ernest Henry (modified after Corriveau, 2005)

15 Olympic Dam Copper-Gold-Uranium-Silver BHP Billiton Ltd Olympic Dam Current activities: Environmental Impact Statement closed in August Government decision in 2010 New 60 Mtpa Olympic Dam will have an approximate annual production of: t Cu, t U 3 O oz Au, oz Ag incl. 2 Million tonnes concentrate to China

16 Olympic Dam Olympic Dam Expansion Copper-Gold-Uranium-Silver BHP Billiton Ltd BHP Billiton Olympic Dam

17 Beverley Mine Uranium Heathgate Resources Ltd Beverley Largest in-situ leach operation in the world. Total Resource 7.7 Mt at 0.27% U 3 O 8 for a contained commodity of t U 3 O 8. Production 2007/ t U 3 O 8. Expansion of the Beverley Uranium Mine approved August CURRENT ACTIVITIES: Mining of Beverley 4 Mile arrpoved New Pepagoona discovery

18 Honeymoon Uranium Uranium One Inc Mitsui & Co. Ltd Honeymoon Construction commenced, production to commence in Indicated Resource 1.2 Mt at 0.24% containing 2900 t (6.5 Mlb) U 3 O 8. Estimated annual production of 400 t U 3 O 8. Deposit occurs as five discrete mineralised sand packages in the Yarramba Palaeochannel. Structural influence to mineralisation.

19 Four Mile Uranium Quasar Resources Alliance Resources Ltd Four Mile Tertiary sandstone-hosted mineralisation in two distinct zones: Four Mile West and Four Mile East. Inferred resource of 3.9 Mt at 0.37% U 3 O 8 containing t U 3 O 8. Mining Lease Application submitted in May First Stage mining proposed for early Production estimated between tpa U 3 O 8. Mining approved awaiting joint venture resolution

20 Crocker Well Mt Victoria Uranium PepinNini Minerals Ltd Sinosteel Crocker Well Inferred JORC compliant resource 12.5 Mt at 0.5 kg/t (0.05%) U 3 O 8 (cut off grade 300 ppm). Production scheduled to commenced in Mineral lease application submitted to investigate production of ~ 600 t of U 3 O 8 for at least 10 years.

21 Uranium Projects to Watch Yarranna 1: 8m at 626ppm U 3 O 8. Goulds Dam: Indicated resource 1.7 Mt at 0.12% containing 2000 t U 3 O 8. Other Deposits Projects to watch Major Mine Prominent Hill Four Mile Beverley Olympic Dam Wirrda WellMt GeeMt Painter Acropolis Oak Dam Cane Grass Goulds Dam Oban Yarranna 1 Crocker Well Honeymoon Mullaquana Hillside Radium Hill Adelaide Oban: Drillhole CEY376 intersected >5m (above 100ppm eu 3 O 8 ) grade thickness of 0.28m% eu 3 O 8. Mt Gee: Inferred 51 Mt at 615ppm for t U 3 O 8. Hillside: 297ppm U 3 O 8, 887ppm U 3 O 8. Mullaquana: Pirie Basin, Eyre Peninsula. Inferred resource estimate 12 Mt at 0.02% eu 3 O 8 for 2700 t U 3 O 8.

22 Undiscovered Resources Where to from here? how to from here? Mineral Deposit Models and/or Mineral Systems modelling?

23 Uranium Deposit Classification - IAEA 1. UNCONFORMITY-RELATED 2. SANDSTONE 3. QUARTZ-PEBBLE CONGLOMERATE 4. VEIN 5. BRECCIA COMPLEX 6. INTRUSIVE 7. PHOSPHORITE 8. COLLAPSE BRECCIA PIPE 9. VOLCANIC 10. SURFICIAL 11. METASOMATITE 12. METAMORPHIC 13. LIGNITE 14. BLACK SHALE 15. OTHERS

24 Uranium Deposit Classification - IAEA 1. UNCONFORMITY-RELATED 2. SANDSTONE 3. QUARTZ-PEBBLE CONGLOMERATE 4. VEIN 5. BRECCIA COMPLEX 6. INTRUSIVE 7. PHOSPHORITE 8. COLLAPSE BRECCIA PIPE 9. VOLCANIC 10. SURFICIAL 11. METASOMATITE 12. METAMORPHIC 13. LIGNITE 14. BLACK SHALE 15. OTHERS

25 Mineral Systems Based upon understanding all the geological ingredients which comprise the mineral system, and how they vary and relate to each other... PROCESSES! One side effect of utilising the Mineral Systems approach and concentrating on processes is that we are forced to consider related deposit types through time and space Case study - Regional IOCG U potential, particularly using geophysics in areas of limited outcrop (which should work in outcropping areas)

26 URANIUM MINERAL SYSTEMS and FLUIDS (a better process-driven classification) MAGMATIC- RELATED U SYSTEMS (7) Volcanic (8) Intrusive (9) Vein Magmatichydrothermal fluids Meteoric, seawater (7) Volcanic mixing (10,12,13,14) (4) Calcrete U Groundwaters (1) Shallow U-bearing hematite IOCG HYBRID U SYSTEMS (1,5,9,10,11) Deep (mgt) IOCG (3) Sandstone U Formation waters / connate waters (5) Metasomatic (9) Vein (2) Unconformity U (PGE, Au) Diagenetic fluids BASIN- and SURFACE- RELATED U SYSTEMS METAMORPHIC - RELATED U SYSTEMS (6) Metamorphic fluids (incl. metamorphic rock-buffered) (#) represent deposit types from IAEA Red Book & Dahlkamp (1990). Skirrow et al, 2009, Geoscience Australia Courtesy Geoscience Australia

27 Mineral Systems Based upon understanding all the geological ingredients which comprise the mineral system, and how they vary and relate to each other... PROCESSES! One side effect of utilising the Mineral Systems approach and concentrating on processes is that we are forced to consider related deposit types through time and space. We can then delineate the consequences of these processes as mappable criteria In SA we can map criteria for sandstone-hosted, unconformity related and IOCG U potential, particularly using geophysics in areas of limited outcrop (which should work in outcropping areas)

28 Mineral Systems Mappable criteria

29 Uranium Occurrences Map Known uranium occurrences and significant geological parameters for each deposit type have been collated and represented spatially as key ingredients maps. First step in predictive modelling for different uranium deposit types: IOCG U Groundwater gradients, chemistry and distance from source. Basement controlling structures. Pandurra Formation 3D Model. Fairclough, M.C., McAvaney, S.O. and Wilson, T.C. (compilers) South Australian Uranium Occurrences Updated second edition. 1: scale. Department of Primary Industries and Resources SA.

30 Mineral Systems In detail for hard rock systems...

31 Iron Oxide - Copper - Gold Uranium Hiltaba Intrusions Prominent Hill Gawler Range Volcanics sq km Olympic Dam Carrapateena 200 km Moonta - Wallaroo Hillside ADELAIDE

32 Mineral Systems In detail for soft rock systems...

33 Eromanga Basin Eucla Basin Warrior Prominent Hill Mt Gee Olympic Dam Beverley Carrapateena Oban Narlaby Yaninee Crockers Well Honeymoon Rollfront/ Palaeochannel Uranium Moonta - Wallaroo Murray Basin ADELAIDE ~ 55 to 2 Ma

34 Reactive Transport Modelling oxidised granite elevated U Palaeochannel oxidised basin fill 12 km reduced layers oxidised layers pyrite out REDOX front hematite in REDOX front

35 Mineral Systems In detail for hard/soft rock systems...

36 Cariewerloo Basin (top and bottom of Pandurra Formation View from draped SEon geology)

37 Pandurra Formation unconformity related U (key ingredients) Basement highs Pandurra Formation Restricted Sub-basins U-rich Hiltaba Suite Basement +/- basin faulting Older Reducing sediments

38 Mineral Systems In detail for IOCG systems...

39 Deposit Style Important characteristics for this class include Age, Tectonic Setting, Association with Igneous Activity, Structural Control, Morphology Three of the most important are alteration, mineralogy and structure - Host rocks are intensely altered (sodic potassic, potassic or hydrolytic alteration) - Abundance of Fe-oxide (not iron sulphides) and a suite of metals that may include U, Cu, Au, Ag, Mo, Co, As, Zn and minor REE s - Strong potential field characteristics easily mappable!

40 Reduced Oxidized Ernest Henry Magnetite K-feldspathization Cpy Breccia-hosted Minor shearing Sue Dianne Olympic Dam Hematite Hematite K-feldspathization Sericitization Cpy-Bnt Cpy-Bnt-Cct Breccia-hosted Breccia-hosted High T Deep (5-6 km) Low T Shallow (<2 km) Courtesy BHP Billton And Geordie Mark

41 Olympic Dam Geology and structure

42 Contributors to the formation of Olympic Dam Roxby Downs structure Granite Co-eval felsic volcanism surficial fluids hydrothermal fluids magmatic fluids Olympic Dam Courtesy BHP Billiton

43 Contributors to the formation of Olympic Dam Roxby Downs Granite Olympic Dam

44 As an aside...hot GRANITES South Australian heat flow anomaly Pacific Hydro Geodynamics Eden Scopenergy Eden Petratherm Petratherm Perilya/Green Rock Eden Geothermal Proactive Resources Havilah Eden Electricity supply Scopenergy

45 Heat Flow Profile HOT GRANITES across the Olympic Dam Deposit Courtesy Chris Matthews

46 POTENTIAL FIELD - MAGNETICS Geophysics Total Magnetic Intensity00)

47 POTENTIAL FIELD - GRAVITY

48 offset of anomaly peaks POTENTIAL FIELD - COMBINED

49 S OD N Major?Archaean/Proterozoic boundary beneath Olympic Dam and acoustically bland zone (fluid alteration?) V=H 50 km Courtesy Geoscience Australia

50 Heinson, Direen and Gill, 2006 Graphite after CO2 degassing?

51 POTENTIAL-FIELD INVERSION N 1.5% magnetite Includes all susceptible minerals as their magnetite equivalent 0.5% hematite Includes hematite, sulfides, other dense minerals, and remanent magnetisation 25 km Courtesy Geoscience Australia

52 POTENTIAL-FIELD INVERSION structural control on magnetite haematite 10 km Courtesy Geoscience Australia

53 Targeting of zones of (dilatant) high fluid flow eastern Gawler Craton Courtesy Pmd*CRC And Monax Mining

54 Mineral Potential Modelling IOCG U Potential Method Area selection.

55 Mineral Potential Modelling IOCG U Potential Method Area selection. Residual gravity and residual RTP TMI.

56 Mineral Potential Modelling IOCG U Potential Method Area selection. Residual gravity and residual RTP TMI. Contouring.

57 Mineral Potential Modelling IOCG U Potential Method Area selection. Residual gravity and residual RTP TMI. Contouring. Selection of anomalies.

58 Mineral Potential Modelling IOCG U Potential Method Area selection. Residual gravity and residual RTP TMI. Contouring. Selection of anomalies. Determine geophysical highs - gravity.

59 Mineral Potential Modelling IOCG U Potential Method Area selection. Residual gravity and residual RTP TMI. Contouring. Selection of anomalies. Determine geophysical highs - gravity. Determine geophysical highs - magnetics.

60 Mineral Potential Modelling IOCG U Potential Result The result, coincident gravity and magnetic anomalies offset by no more than metres.

61 Mineral Potential Modelling IOCG U Potential Uses Preliminary exploration site selection. Key Ingredients Mapping: Coincident anomalies. Hiltaba Granites. Gawler Range Volcanics. Faults. Depth to basement.

62 Mineral Potential Modelling IOCG U Potential Uses Preliminary exploration site selection. Key Ingredients Mapping. Mineral Potential Models: Weights of evidence. Neural network. Expert system.

63 Mineral Potential Modelling IOCG U Potential Uses Preliminary exploration site selection. Key Ingredients Mapping. Mineral Potential Models: Weights of evidence. Neural network. Expert system.

64 Mineral Potential Modelling IOCG U Potential Uses Preliminary exploration site selection. Key Ingredients Mapping. Mineral Potential Models. 3D visualisation. Olympic Dam Carapateena

65 Mineral Potential Modelling IOCG U Potential Uses - Complexity of geoprocessing

66 Mineral Potential Modelling IOCG U Potential Further Work Shape recognition properties: Elongation Compactness

67 Mineral Potential Modelling IOCG U Potential Uses - Extrapolating to other areas

68 Mineral Potential Modelling structural density

69 Mineral Potential Modelling peak anomalies

70 Mineral Potential Modelling - overlapping U

71 Summary South Australia has 40% of known resources in Uranium. Underlying Hiltaba event has generated the largest single uranium deposit in the world and subsequently... Overlying sedimentary successions provide excellent trap sites for world class projects ( eg. Four Mile). The Mineral Systems approach is a powerful predictive tool for undiscovered resources Acknowledgments: Laz Katona, Tania Wilson, Goeoge Gouthas, Tania Dhu, Steve Petrie, Phil Heath (PIRSA), Geoscience Australia, pmd*crc (CSIRO), Monax Mining