Geological potential of Portugal

LNEG Board DirectorsMachado LeiteNovember 2016

Exploitable

MINERAL DEPOSITS - Concept of Ore BodyAbundance of Elements in the upper Crust

Minimum ExploitableMineral Grade

Ph

ysic

al Im

po

ssib

ility

Maximum Grade

Crust average Grade

Minimum of Exploitable Tons Non Exploitable

ElementsMaterials

CRUST

QuartzFeldsparLiChina CalyTalcClaysLimestoneRock SaltGraniteMarble

Principal

constituints

of ubiquous

geological

formations

with

predictable

geological

distribution

FeCuZnSnWO3Au…

5%0,005%0,003%0,0002%0,0001%0,0000002%

ORE BODIES

5x250x200x

1500x2000x5000x

25-20%1-1,5%

2-4%0,2-0,4%0,2-0,4%0,0005%

PegmatitesQuartz veinsResidual form.Alteration pro.SedimentarybasinsSpecificRock masses (n/ fractured)

Exceptionelformations, but

economicaly“poor”

Rar

e o

curr

en

ces

Systematic Geological MappingMineral Exploration – geophysics, geochemistry, boreholes

Geostatistics – Mine PlanningResources Appraisal – Mining Exlpoitation

MINERAL DEPOSITSDevelopment Chain of a Mineral Deposit

Raw Materials

2x35x20x200x200x100x

60-70%25-55%50-60%60-70%60-74%

-

MeetingSpecifications:- Size- Grade- Penalties- Color- Texture- Facture

MineralProducts

Metals

IndustrialMinerals

IndustrialRocks

Met

allu

rgy

ElementsMaterials

CRUST

QuartzFeldsparLiChina CalyTalcClaysLimestoneRock SaltGraniteMarble

Principal

constituents

of ubiquous

geological

formations

with

predictable

geological

distribution

FeCuZnSnWO3Au…

5%0,005%0,003%0,0002%0,0001%0,0000002%

ORE BODIES

5x250x200x

1500x2000x5000x

25-20%1-1,5%

2-4%0,2-0,4%0,2-0,4%0,0005%

PegmatitesQuartz veinsResidual form.Alteration pro.SedimentarybasinsSpecificRock masses (n/ fractured)

formations, however economicaly

“poor”

Rar

e o

curr

en

ces

MININGOre Body Exploitation

Tech

no

logi

calC

om

po

ne

nt

MINERAL PROCESSINGMineral Upgrading

MINERAL EXPLORATIONResources Appraisal

METALLURGYIndustrial Transformation

PORTUGUESE MINERAL RESOURCES POTENTIAL

This presentation should be considered an introduction to a LNEG publication under this title, which can be easily downloaded from LNEG web Portal

Geology of PORTUGAL

Recent Sedimentary Terrains - gravel, sand, red clays, …

Mezo-Cenozoic Terrains – limestone, cement rock, salt rock, gypsum, volcanic rocks … hydrocarbon occurrences

Older Rocks – igneous (granites and similar rocks, volcanic rocks) and metassediments(schists, flysh, quartzites and other upper crustal horizons) … hosting several metallic ore associations (W, Sn, Au, Ag, Cu, Pb, Zn, Fe, … )

Azores and Madeira Islands - volcanic rocks (basalts) … with evidence of submarine resources (complex sulphides, iron-manganese nodules, aggregates, …)

Plate Tectonics (sea floor spreading, mountains formation, active continental margins) have strongly influenced Portuguese Geology, which lead to a high diversity of geological resources:

• Several Sn, W, Au, Ag, Pb, Zn ore bodies (small/medium size)• 3 WORLD CLASS mineral deposits:

• Panasqueira (W, Sn, Cu) • Neves Corvo (Cu, Zn, Pb, Sn, Au, Ag)• Aljustrel ( Cu, Zn)

• Fe resources in Moncorvo ore body (medium/high size)• Raw materials for ceramics, glass, chemicals and cement• Ornamental Stones – marbles, limestone and granites• Mineral Waters – high variety and good quality standards,

for spas and bottling• Hydrocarbons – oil and gas – never exploited, but able to

attract significant investment for exploration

Geology of PORTUGAL … Mineral Resources Potential

PORTUGUESE MINING INDUSTRY … LAST 3 DECADES

Until 1990:

• ≈20 Metallic Mines in operation (great majority needing mechanization improvements)

• Public assets – 3 Mines 100% public (Uranium, Coal, Cu-Zn)Neves Corvo Mine (Cu-Sn-Zn) 51% public

After 1990 – decline of market quotations:Only survived a few Metallic Mines:

• Panasqueira (W-Sn-Cu)• Neves Corvo (Cu-Sn-Zn)• Aljustrel (Cu-Zn)

… as well as:• Ornamental Stones – profiting from technologic improvements• Ceramic raw materials and related industrial minerals• Aggregates and Cement

This the non-metallic sector profited from the “growing” of the Building Sector, still before the 2008 crisis !!!

20 Data Files

Depósito Mineral

Substância(s) principal(ais)

Produção Histórica Dimensão Reservas Potenciais Observações Situação

actual

1- Panasqueira

(Fundão)

Tungsténio, Produziu mais de 50.000t de W, ao longo de 100 anos

Grande

Reservas provadas e prováveis, juntamente com os recursos indicados totalizam 5.130.000 t com o teor de 0,26 % WO3 (total de 13.338 t WO3)

Concessão

C-18

2- Borralha (Montalegre

Tungsténio, 1904/1983 produziu 18. 505t de Volframite e scheelite

Grande

Tonelagem certa – 31000t contendo 40t de WO3.

Tonelagem não imediatamente disponível - 128.000tcom 160t de WO3

Reservas prováveis – 440.000t com 575t de WO3.

Pode produzir Mo nas brechas Venise e Sta Helena e em alguns dos filões de quartzo e algum Cu e Ag.

Livre

3- Vale das Gatas

(Sabrosa)

Tungsténio e estanho

1960/1986 produziu 1100t de concentra-dos com 781t de WO3.

Média

Reservas certas 210t de WO3, reservas prováveis de 260t de WO3 e reservas possíveis 340t de WO3. Pode produzir também Sn e alguma Ag

Livre

4- Fonte Santa

Lagoaça (Mogadouro)

Tungsténio scheelite

1955/1983 produziu 629 t de concentrados de scheelite.

Grande

Total de 60.000.000 de t possíveis com teor de 0.024% a 0.056% com 33 000t de WO3

Pode ser Explorada a céu aberto

Reconhecido com 18

sondagens

Livre

Tungsten (W)

MINERAL RESOURCESPOTENTIAL

Answering to the EC ChallengeRaw Materials InitiativeCritical Raw Materials … EC documents

Mineral Resources Monograph reviewed in 2010

2 energetic resources(U and Coal)

14 metallic ores (Au, Sb, Ti, Fe, Mn, Cu, Pb, Zn,

Sn W, Nb, Ta, Be, Li, TR)

11 industrial minerals (china clay, special

and common clays, quartz and feldspar, special sand, diatomite, salt rock, gypsum, talc, wollastonite)

Ornamental stones (marbles, limestone,

granite and black slate)

4 types of marine resources (aggregates,

polimetallic sulphides, Fe-Mn nodules, heavy minerals)

Energy Ores:

- Coal and U

- U not yet exploited

U

EuroGeoSource - EU Information

and Policy Support System for Sustainable Supply of Europe with

Energy and Mineral Resources(www.eurogeosource.eu)

Province

Sn, W

Portuguese Pyrite BeltCu, Zn

LiLi

Li

FeAu

Mineral Resources OccurrencesContinental Portugal:- Metallic Minerals- Energetic ores ( U and Coal )

BDSIORMINP

Mineral Resources Occurrences:Continental Portugal:- Non Metallic resources- Ornamental Stones

Industrial Minerals:

• China Clay (kaolin)

• Quartz and Feldspar

• Clay

• Gypsum

• Salt Rock

• Talc

• Diatomite

Ornamental Stones:

• Marble

• Limestone

• Granite

• Black Slate

POTENCIAL of all these “in situ” resources,evaluated according to present knowledge(scientific and technological) and market prices,

has an economic value equivalent to the Portuguese GDP≈ 135.000 M€ (2013)

(OIL and GAS not included)

MINERAL RESOURCES:PORTUGUESE POTENTIAL

Approach developed to support thePortuguese Strategy for Mineral Resources

It means that there is an interesting potential for the Extractive Industry

to grow up and to enhance significantly its contribution for the

GDP an to Wealth generation

Recursos de Minerais Energéticos Produção PotencialCarvão duro 6,6 Mt

Lenhite 33,0 Mt Baixo a Moderado

Urânio 7.558 t U3O8 Elevado

Recursos de Minerais Metálicos Produção PotencialOuro 64,5 t Au 5,7 t Au (FPI) ? Elevado - proj em curso

Prata 95,3 t Ag 5,3 t Ag (FPI) ? Elevado - proj em curso

Antimónio 23.139 t Sb Moderado

Titânio 145.700 t Ilmenite Moderado

Ferro 208,9 Mt Fe Elevado - proj em curso

Manganês 0,5 Mt Mn Baixo a Moderado

Bário 50 Mt Ba

Cobre 1,4 Mt Cu Actividade Elevado - proj em curso

Zinco 5,5 Mt Zn Actividade Elevado - proj em curso

Chumbo 1,3 Mt Pb Actividade Moderado

Índio ?? Expectável

Germânio ?? Expectável

Tunsténio 49.584 t WO3 Actividade Elevado - proj em curso

Estanho 51.096 t Sn Actividade Elevado - proj em curso

Nióbio 350 t Nb Baixo

Tântalo 340 t Ta Baixo

Berílio 1.100 t Be Moderado

Lítio 106.279 t Li Moderado

Elementos Terras Raras 11.160 t REE+Sc+Y Baixo a Moderado

Recursos de Minerais Não-Metálicos Produção PotencialCaulino 38,7 Mm3 Actividade Moderado

Argilas Especiais 2,9 Mm3 Actividade Baixo

Argilas Comuns 68,9 Mm3 Actividade Elevado

Diatomito 7,5 Mm3 Baixo

Areias Especiais 1025 Mm3 Actividade Elevado

Volastonite ???

Gesso Reservas elevadas de gesso cinzento Actividade Baixo

Salgema 1,8 Reservas elevadas >92% NaCl Actividade Elevado

Talco 0,4 Mm3 Baixo a Moderado

Quartzo, Feldspato 20,0 Mm3 Inclui areias feldspáticas Actividade Moderado a Elevado

Quartzo, Feldspato c/ Li 5,5 Mm3 Actividade Moderado a Elevado

Rochas Ornamentais e Rochas Industriais Produção PotencialMármores 500 Mm3 Actividade Elevado

Cálcários Ornamentais 182 Mm3 Actividade Elevado

Granitos Ornamentais 1.258 Mm3 Actividade Moderado a Elevado

Xistos 43 Mm3 Actividade Moderado

Rochas p/ Agregados 22 Mm3/ano Dados Produção 2007 Actividade Elevado

Calcários p/ Cimento 4,6 Mm3/ano Dados Produção 2007 Actividade Elevado

Recursos da Plataforma Continental e do Fundo MarinhoValor económico Potencial

Areais + Cascalhos 2.651 Mm3 901 Mm3 Elevado - proj em curso

Sulfuretos Maciços Polimetálicos- Cu, Zn e Fe Não avaliado Elevado

Crostas Fe-Mn Não avaliado Baixo

Minerais pesados Não avaliado Moderado

Mineral Resources Potential ... demand and supply

Preliminary study developed by the USGS (Daniel E. Sullivan, John L. Sznopek, and Lorie A. Wagner)20th century U.S. mineral prices decline

Points out that

“mineral raw materials declined over the last century, even though the need for mineral raw materials increased during the same period.

Technologies and reduced production costs have allowed mineral production to remain profitable”

Overall, the trend of inflation-adjusted prices declined throughout the 20th century

The use of mineral materials in the United States increased during this timeframe to meet the needs of the economy

Metal Price Index (at constant dollar) includes five metal commodities (copper, gold, iron ore, lead and zinc)

Those 5 metal commodities prices, are sensitive to economic cycles:• experienced a significant rise during

World War I• a drop during the Great Depression• steady prices during World War II• increase since then through the late

1970’s

It is evident a continuous decline during the 20th century

Gold prices tendency is slightly upward.However, since 1980, when gold was used as a hedge against inflation, the trend is downward

Mineral Resources Potential ... demand and supply

During the last 15 years, historical statistics point out: Prices were very constant until 2004 Sudden Prices rise in the beginning of the 2004 crisis Continuous decrease of metal prices since 2012-13

Mineral Resources Potential ... demand and supply

As metal prices have not increased, and high grade ore deposits were intensively exploited in the past, it means that the

Minimum_Exploitable_Reserves has increased significantly during the history of Mining in the 20th century

Exploitable

Minimum ExploitableMetal Content

Metal Content

Crust average Grade

Minimum Exploitable Reserves

Non Exploitable

Exploitability is driven by the amount of available mineral (ore reserves) and its quality (metal content – grade), meaning that an economic target is imposed

For a given Metal-Price, this target is attained if Ore_Reseves and Metal-Content varies according to a law as shown in the plot,and this implies the existence of :• a Minimum_Exploitable_Metal Content• a Minimum-Exploitable_Reserves

ORE DEPOSITS EXPLOITABILITY

OreReserves

xMetal

Contentx

MetalPrice

>Economic

Target

Exploitable

Minimum Exploitable

Crust average Grade

Minimum Exploitable Reserves Non Exploitable

European Mining IndustryCan it develop in a sustainable way?

- Adopting adequate tax policy from each Member State- Facilitating the access to venture capital- Funding R&D projects industry oriented – H2020

If Europe is really committed to reduce theRaw Material Supply Risk, investment in Mining Industry

would be a decisive political issue

Geology of PORTUGAL … Mineral Resources Potential

Coming back to the subject of this presentation:

LNEG as Data Provider - scientific, technological and mapping information about the geology and its potential to host mineral resources, is available at GeoPORTAL

In Portugal there are 2 strategic mining regions that have special potential to attract investor attention:

Portuguese part of the Iberian Pyrite Belt – a world class Base Metals belt that hosts 3 giant ore deposits, and has potential to new discoveries of hidden reserves – new investment in deep geophysics is very promising

Beira Schists – thick metassedimentary geological units where another W-Sn world class deposit (Panasqueira Mine) is located, which means that this region has potential to host non-outcropping similar deposits

Other mineral resources and also Ornamental Stones can enlarge their share of the GDP, playing an important role in the development of the inner regions

Thank you for your attention