State of mineral exploration

in the NT

Ian Scrimgeour

Executive Director, Northern Territory

Geological Survey

Exploration in the NT in 2015

• Mineral exploration downturn is ongoing

• Gold exploration activity is a standout

• Copper and zinc exploration continues to bring strong results

• Most mineral exploration is focussed on known deposits

• The McArthur Basin emerging as a world-class shale gas basin

NT Government is investing

in the most significant

exploration initiative

undertaken in the NT

NTGS is committed to

working with industry to

unlock the Territory’s

resource potential

2014 –

$108.0M

2011 –

$228.4M

ABS Definiton of Brownfields (Existing Deposits): delineating or proving up an

existing deposit, including extensions and infill, which has been classified as an

Inferred Mineral Resource or higher

Where minerals exploration is happening

Mineral ELs on which significant on-

ground exploration was reported to DME in

2013

Green = geophysics

Red = drilling

Blue = geochemistry

Notes:

1. This reflects exploration reported by industry in

technical reports submitted in 2014. Exploration

may have taken place during 2013 or 2014, and

not all exploration undertaken in 2014 is included

2. Only includes exploration on ELs, not MLs

3. Excludes petroleum exploration

Mineral ELs on which significant on-

ground exploration was reported to DME in

2014

Green = geophysics

Red = drilling

Blue = geochemistry

Notes:

1. This reflects exploration reported by industry in

technical reports submitted in 2014. Exploration

may have taken place during 2013 or 2014, and

not all exploration undertaken in 2014 is included

2. Only includes exploration on ELs, not MLs

3. Excludes petroleum exploration

Where minerals exploration is happening

A 4 year (2014-18) $23.8M investment in growing the exploration sector

• 4 year program to assess shale gas and oil resources ($2.0M pa)

• Major new geoscience programs to lower exploration risk

• Strong focus on copper and zinc mineral systems, and opening up

undercover regions

• Programs to attract investment into NT resources projects

• Co-funding of industry greenfields drilling and geophysics

Creating Opportunities for Resource Exploration

(CORE)

Major new geophysical surveys

Magnetic and radiometric surveys

Gravity surveys

Geophysics and Drilling Collaborations

• Funding for 50% of diamond

drilling or geophysical

programs, capped at $100k

• Change to guidelines

– Smaller scale programs

using innovative techniques

– Consider deep holes under

existing shallow drilling

• 10 projects funded in 2015, 4

already completed

• Next call for applications in

February 2016, to close in April

2016

www.minerals.nt.gov.au/collaborations

• McArthur Basin is a major base

metals and oil and gas basin

• New seismic data shows correlatives

at surface & beneath cover between

McArthur and Birrindudu basins &

Tomkinson Province

• > 500 000 km2

• informal package nomenclature until

formal correlations are established

McArthur Basin Birrindudu

Basin

Tomkinson

Province

Wilton package Roper Group Tijunna

Group

Renner

Group

Favenc

package

Nathan/Mount

Rigg groups

Bullita/Wattie

groups

Glyde package McArthur/Bulma/

Hapgood groups

Limbunya

Group

Namerinni

Group

McArthur

Basin

Birrindudu

Basin

Tomkinson

Province

Revealing the ‘greater McArthur Basin’

Pangaea Resources

3 wells drilled in 2014, four

drilled in 2015; major

investment from US

Origin Energy-Sasol

Nine well, $165M exploration

and appraisal program

commencing with 3 wells in

2015

Inpex

Awarded application in early

2015

Santos

4 km deep well in 2014

intersected significant shale gas

McArthur Basin: shale gas activity

Teck Australia-Rox Resources

• 10 km west of McArthur River

2013 drilling:

• 26.4m @ 13.3% Zn+Pb, from 1060m

• 20.1m @ 15.0% Zn+Pb from 944m

including 12.5m @ 19.5% Zn+Pb

2014 drilling:

• 14.7m @ 13.3% Zn+Pb from 796m

• 4.9m @ 11.8% Zn + Pb from 653m

Mineralisation extends

over 1.9km x 0.8km

MMG also actively

exploring Batten Fault

Zone

NTGS co-funding application of new

geophysical techniques for targeting

(eg seismic, MT)

Pacifico Minerals – Coppermine

Creek

10m @ 1.3% Cu

McArthur Basin: minerals activity

Elliot 1

Shenandoah-1A

Burdo 1

Walton 2

Borrowdale 2

Tarlee S3

Broughton 1

Friendship 1

Alexander 1Sever 1

Daly Waters arch

• Completion of modern geophysical

coverage

• 3D geological model

• Rock property dataset

• Shale analytical data

• Regional geological correlations

• Hylogger analysis of drillcore

Depth to base of Roper Group

McArthur Basin: new geoscience

Ongoing release of updated datasets

throughout CORE

Pine Creek’s polymetallic potential

Iron Blow

JORC 2012 resource:

2.6 Mt @ 2.4 g/t Au, 130 g/t Ag, 4.8%

Zn, 0.9% Pb, 0.3% Cu

2014 drilling:

• 50.39m @ 10.12% Zn, 2.66 g/t Au,

283 g/t Ag, 0.57% Cu, 1.39% Pb

Mount Bonnie

2015 drilling:

• 8m @ 12.3% Zn, 2.41g/t Au, 321g/t

Ag, 0.5% Cu, 2.5% Pb

• 12m @ 8.4% Zn, 2.57g/t Au, 228g/t

Ag, 0.7% Cu, 2.0% Pb

Phoenix Copper – JV with Newmarket

Gold (formerly Crocodile Gold)

Central Tanami project

(Tanami Gold-Northern Star)

• 25.5 Mt @ 3.2 g/t Au

• Includes Groundrush deposit

(6.72 Mt @ 4.8 g/t Au)

• Northern Star Resources - major

JV with plan to bring Central

Tanami back to production by

2017

Callie mine (Newmont Australia)

• Expansion being considered

Buccaneer (ABM Resources)

19m @ 5.83 g/t Au

The Tanami ‘ Australia’s latest gold hotspot’

Old Pirate gold mine

The Territory’s newest mine: first gold poured in June quarter 2015

Tennant Creek’s resurgence

Emmerson Resources

• $25M exploration farm-in by Evolution Mining to

underpin aggressive exploration

• 28,000m drilling program underway

Blaze International-Meteoric Resources JV

• Bluebird prospect, 30 km east of Tennant Creek

• 20m at 8.17g/t Au, 0.61% Cu, 0.22% Bi from 157m

Metals X Ltd – Rover 1

• 20.9m @ 14.5 g/t Au,6.0% Cu, 0.22% Bi

Metals X Ltd – Curiosity

• 11.7m @ 4.86% Zn, 3.73% Pb, 1.02 g/t Au,

33 g/t Ag, 0.24% Cu

Curiosity

Discovery through NT Government co-

funded drilling under CORE

NTGS partnering with industry at

Tennant Creek

June 2015: NTGS partnering in 60 km

seismic traverse across Tennant Creek

field

July 2015: NTGS co-funded 1,279m

drillhole below Gecko

• Shallow copper discovery:

7m at 5.98% Cu from 123m including

3m at 10.4% Cu

• New zones of copper, pyrite and

bismuth intersected 400m below

Gecko

Information to be open filed 6 months

after project completion

Geological implications discussed at

AGES 2016

New geoscience at Tennant Creek

Copper – central Australia

KGL Resources Ltd – Jervois Cu-Ag-Pb-Zn-Au

• 30.5 Mt @ 1.07% Cu, 23.0 g/t Ag

• 327,000t contained Cu, 22.6 Moz Ag, 190,000t contained Pb-Zn

• 12 km long mineralised zone

• Notice of Intent submitted, PFS being finalised

• Mineralisation drilled to >800m from surface

Resource includes:

• Bellbird – 5.4 Mt @ 1.62% Cu

• Marshall-Reward 10.6 Mt @ 1.37% Cu

Rox Resources – Bonya Cu

• 2014 discovery of high-grade

vein-hosted copper, 20 km

west of Jervois

38m @ 4.4% Cu from 60m 13m

@ 5.4% Cu from 111m

8m @ 7.6% Cu from 97m

stratiform mineralisation

New geological framework

for Jervois area

New mineral deposit

studies on Jervois deposit

– hybrid VMS-Sedex

deposit

NTGS cofunding deep

conceptual hole at Jervois

New geoscience in Jervois area

• Fertile bimodal magmatism emplaced into basins regionally at 1.8 to 1.76 Ga

• VMS-SEDEX District associated actively/passively with magmatism in E Arunta

• Most other Australian Proterozoic metallogenic belts >120 my younger

VMS eg Utnalanama

Hybrid

eg Jervois

Alice Springs

Implications for copper potential in central Australia

Mount Peake progress

TNG Ltd – Mount Peake

• 160 Mt @ 0.28% V2O5 , 5.3% TiO2, 23% Fe

• Mafic-hosted vanadium magnetite

• Close to railway and gas pipeline

• Potential production of V2O5, Fe2O3 and TiO2 through

patented hydrometallurgical technique

Definitive Feasibility Study (DFS) released July 2015:

• pre-tax internal rate of return of 41%

• pre-production capital cost of A$970 million,

• estimated life-of-mine net cash flow of A$11.6B

• operating cash flows of A$13.6 billion

• initial 17-year project life

• 3 Mtpa ramping up to 6 Mtpa

• proposed Darwin location for refinery

NTGS undertaking geochronology on deposit

Rum Jungle Resources – Karinga Lakes

Upgraded resource: 8.4 Mt K2SO4 (19 Mt schoenite)

• Resources in brines in acquifers beneath salt lakes

(in lake sediments and Devonian siltstone)

• Scoping study released December 2014

Amadeus Basin – Potash and salt

Tellus Holdings – Chandler salt

• >200m flat lying salt unit within

Chandler Formation

• Measured Resource 309 Mt NaCl

• Total resource >4.5 Bt NaCl

• Average grade 88.6%, individual

layers of 98% NaCl

Summary

• The downturn in the resources

sector continues to impact on

greenfields exploration

• Significant activity and promising

results for gold, base metals and

shale gas

• NT Geological Survey is working

on major geoscience programs

and collaborating with industry to

stimulate exploration in the

Territory through the CORE

initiative

March 15-16, 2016,

Alice Springs Convention Centre

Annual Geoscience

Exploration Seminar (AGES)