SA Mines and Energy Journal : Dec09-Jan10
9 INDUSTRY DEVELOPMENTS DECEMBER 2009/JANUARY 2010 SA MINES & ENERGY JOURNAL FLINDERS MINES MI MINE NES S no stone unturned resolute exploration for diamonds and phosphate in South Australia and successful exploration for iron ore in the Hamersley Ranges, Western Australia For further information contact Kevin Wills telephone (08) 8132 7950 62 Beulah Road Norwood South Australia 5067 email firstname.lastname@example.org www.flindersmines.com Marathon faces strict conditions Marathon Resources must agree to stringent new conditions to continue exploring at its northern Flinders Ranges tenement. Minister for Mineral Resources Development Paul Holloway said although the company had been suspended from activity on the tenement, a subsequent licence had been offered to Marathon subsidiary Bonanza Gold for an initial term of one year with additional conditions. "These conditions include the requirement for both the Director of Mines and the Chief Executive of the Department of Environment and Heritage to jointly approve all exploration activities, " he said. "Early consultation with Arkaroola Management has also been formalised in the new conditions. " Mr Holloway said a balance had to be struck between the need to preserve environmentally sensitive areas and unique landscapes with the desire to fully explore the state's resources potential. "A comprehensive Environmental Management Framework for the Northern Flinders Ranges is now being developed to achieve this strict oversight of exploration and potential resource development, " he said. Mr Holloway said Marathon's activities in 2007 involving unauthorised disposal of waste also brought to light deficiencies in compliance and enforcement provisions of the Mining Act. Despite the breaches, Bonanza Gold and Marathon are now complying with the Mining Act and conditions of their licence. "A number of changes to the legislation being drafted will strengthen the compliance and enforcement provisions of the Mining Act and the ability of PIRSA to better regulate activities on mineral tenements, including exploration licences, "Mr Holloway said. Flinders management zones: Page 39 Pot of valuable minerals Adelaide-based mineral explorer Mithril Resources has discovered significant quantities of copper, cobalt and silver at its new Basil prospect in the Northern Territory. The major findings are from five drill holes completed on the Rotten Hill portion of the previously unexplored Basil prospect. Basil is situated on the company's extensive Huckitta Project, about 120km north-east of Alice Springs. Mithril Resources Managing Director Graham Ascough said the drilling results, which occur over a strike length of 700m, were particularly promising given shallow drilling depths of less than 100m. "To discover significant intersections of copper, cobalt and silver mineralisation at such shallow depths is very exciting, " Mr Ascough said. "While our Basil exploration program is still in its early stages, these intersections are extremely encouraging given the scale of the prospect. " The results from the five drill holes at Rotten Hill back up similar findings of copper, cobalt and silver in rock chips from surface samples initially undertaken in August, 2009. There is no evidence of any previous exploration work on this prospect. Drilling will now continue at greater depths and to the north-west and south-east of the Basil prospect, which extends over 10km on Mithril's 100 per cent-owned Leaky Bore tenement within its Huckitta Project. "A considerable amount of drilling is planned in the months ahead to further test the Basil prospect, so we have now mobilised a second drill rig to site to fast-track the program, " Mr Ascough said.