Operations Exploration Using Mine Scale Structural Using Mine Scale Structural

Definition, Cobar NSW including a including a

CSA Mine Case Study““Rejuvenating historical and

producing operations”

Cobar Conference August 6, 2010

Jason Hosken

XstractGroup.com Xstract – Excellence from the outset

ENVIRONMENT | GEOLOGY | MINING | PROCESSING | VALUATION | RISK | TECHNOLOGIES

Introduction

Adding value using mine geology based on my experience inAdding value using mine geology based on my experience in Cobar, 2002 – 2006 (CSA Mine):

Process: h l f Overview historical information Visit nearby operations Detailed mine mapping Regional versus mine scale controls Geology constrained block models Exploration targetingp g g Seek $$$$$$ Drill ...... then drill some more

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Cobar Basin (David, 2006)

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Cobar Deposits – Overview

Formation during inversion of Cobar BasinFormation during inversion of Cobar Basin Typically sediment hosted St t ll t ll d R i l l f lt/ h fl id Structurally controlled: Regional scale fault/shear fluid 

channels (Peak to Endeavor)D til hi h t i t i ll i l f ld li b Ductile high strain zones typically on regional fold limbs

Deposits are elongate in the dominant stretching li tilineation Down plunge extent >400m to >1km N idth l 30 Narrow width, commonly <30m  Strike length, <300m

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Cobar Deposits – Overview contcont.,

f b d h i i l Geometry of orebody host structures is not simple Deposits locations shown within regional structures 

hosting mine ‘footprint’ – bedding, folding, shears, cleavage

Mine scale structures/controls not always shown in detail

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Peak Deposit Plan at 500L (Lawrie Hinman 1998) (Lawrie, Hinman, 1998)

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Endeavor Deposit

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Lawrie, Hinman 1998 (after Lawrie 1988, 1989)Nicholson, Mares, Smith 2006

New Occidental Deposit (Stegman Pocock 1996)(Stegman, Pocock, 1996)

After Mulholland and Rayner, 1961

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CSA Mine Geology Plan

M D tt S ith J ff 1996McDermott, Smith, Jefferey, 1996

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Mineralisation Footprint

f i Large foot print explained regionally

Further work required to understand mine 

l i li tiscale mineralisation controlsMi l ‘f t i t’ Mine scale ‘footprint’ required for mineral resource modelling andresource modelling and in mine exploration

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Mine Geologist Predicament

How to model dataHow to model data Inside regional footprint ‐ Join the 

dots? Short term mine future takes Short term mine future takes 

priority (no mine = no drilling) Looking for geological 

relationshipsrelationships Structures defining grade 

boundaries Structure intersections Structure intersections Mappable boundaries required 

for mineral resource definition and target generationand target generation

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(CSA Mine 2006)

CSA Copper Mine: In Mine Exploration Case Study Mine HistoryCase Study. Mine History

Discovered 1871 Large scale mechanised mining 

commenced in 1965 Mine closed in 1998 Glencore re‐open mine in 1999 (low 

tonnage, high grade focus) 1999‐2002: teething issues, focus on1999 2002: teething issues, focus on 

production and daily issues. Mapping not a focus

2002‐2003: Push to catch up mapping p pp gand understand controls

2003‐2004: develop structurally constrained block models 

2004‐2006: ramp up in mine exploration using targets defined by structural definition

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2006‐2010: increased production rates

CSA Footprint

Extensive documentation on Extensive documentation on CSA regional geology

Four mineralised ‘systems’ine 

005) Four mineralised  systems  

within CSA regional footprint Mapping trends over time 

ning

 CSA

 Mtockton, 20

with different theories Extensive underground 

kmalies d

efin

McQ

ueen, S

workings expose structures controlling mineralisation

nsoil an

om(M

unro, M

Cu+P

b+Zn

footprint 

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CSA: 9L to 11L Compilation 1993 9L to 11L Compilation, 1993

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Mapping and Exploration Strategy – QTS NorthStrategy – QTS North

Stage 1: Start with small lenses can see lens controlling Stage 1: Start with small lenses – can see lens controlling structures in a small area

Stage 2: Move to larger lenses Stage 2: Move to larger lenses Stage 3: Begin to define local mine scale footprint in 3D

St 4 D t i t t l ti i f h t t t Stage 4: Determine structural timing of host structures Stage 5: Use mine scale footprint to define exploration 

targetstargets

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Stage 1: Small Lode Scale MappingMapping

9185 R Lens 9185 R Lens  Begin building knowledge 

on quartz veining andon quartz veining and relationship to mineralisation

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Stage 2: Defining Structural ControlsControls

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9010L Map 9010L Model

Stage 3: 3D Understanding

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Stage 4: Structural Timing

N

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QTS North: Schematic Diagram of Mineralisation - Footprintof Mineralisation - Footprint

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CSA Deposits – Exploration ModelModel

Mapping provided:Mapping provided:1. Confidence for mineral resource interpretation2 Mine scale structural understanding (local pods mirror Ore2. Mine scale structural understanding (local pods mirror Ore 

System features)3 Tool for down plunge exploration3. Tool for down plunge exploration4. Can project mapping structures and interpret historic drilling 

datadata5. Opportunity to apply the same footprint to other locations 

within the mine and test

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QTS South Exploration

Apply QTS North Apply QTS North structural understanding tounderstanding to explore for repeat mineralisation at QTS er

ey, 1

996

mineralisation at QTS South

QTS South 700m Smith

, Jef

fe

QTS South 700m below surface, 500m down plunge and 

McD

erm

ott,

S

p gmined out

No down plunge 

M

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p gextension?

QTS South Exploration

Review historical QTS South mappingD fi i l t t Define regional structures

Understand mineralisation plungeT i l d li i b l Target potential duplication below old workings towards the south

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QTS South Repeat – Exploration CoreCore

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QTS South Repeat

9300 Level

N

9300 Level

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CSA TVM and Sampling (QTS North)North)

16000

18000

20000

8000

9000

10000

10000

12000

14000

VM 5000

6000

7000

e Po

ints

6000

8000

10000

TV

3000

4000

5000

Sam

ple

0

2000

4000

9010 8980 8950 8920 8890 8860 8830 8800 8770 8740 8710 8680 8650 8620 8590 8560 8530 8500 8470 84400

1000

2000

9010 8980 8950 8920 8890 8860 8830 8800 8770 8740 8710 8680 8650 8620 8590 8560 8530 8500 8470 8440

Level (RL)

tvm 2006 tvm 2005 tvm 2004 Samples 2006 Samples 2005 Samples 2004

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CSA Resource 2003-2006

Category Tonnes (Mt) Cu% Cu (kt) Tonnes (Mt) Cu% Cu (kt) Measured 0 8 7 0 53 1 1 6 3 70

Mineral Resource 2003 Mineral Resource 2006

Measured 0.8 7.0 53 1.1 6.3 70Indicated 1.1 7.0 76 3.1 7.2 223Inferred 2.4 8.4 205 5.3 6.5 348 Total 4.3 7.8 334 9.5 6.7 641

June 2010 Mineral Resource: 11.2 Mt at 6.2% Cu (701kt Cu) (to be assessed for JORC compliance) Production 2003 2010: approx 5 0 Mt at 6 0% Cu (300kt Cu) Production 2003 – 2010: approx 5.0 Mt at 6.0% Cu (300kt Cu)

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Operations Exploration Using Mine Scale Structural Definition: SummaryStructural Definition: Summary

Research (site visits papers)Research (site visits, papers) Mapping (structural interpretation, resource models) U d t d l f i li ti Understand scales of mineralisation

– Regional, mine, lens, potential duplicationh l d k l d Interpret historical data using new knowledge

Generate exploration targets

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Acknowledgements

Cobar Management Pty Limited – CSA MineCobar Management Pty Limited  CSA Mine Derek Webb ‐ Exploration Superintendent CSA Mine

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