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TERRAMIN AUSTRALIA LIMITED
TERRAMIN AUSTRALIA LIMITED ABN 67 062 576 238
ANGAS ZINC MINE
AUGUST 2013
16 angas zinc mine cOmmUniTY neWsLeTTeR aUgUsT 2013angas zinc mine cOmmUniTY neWsLeTTeR aUgUsT 2013
ANGAS ZINC MINE
Callington Road, Strathalbyn, SA 5255 PO Box 125, Strathalbyn, SA 5255
ANGAS ZINC MINE OFFICE
T: (08) 8536 5950
COMMUNITY COMMENTS (24 hours)T: (08) 8536 8010 E: [email protected]
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5 TeRRamin australia limited aUgUsT 2013
Plans announced for changes to mining operationsMilling work an option to continue, with community involvement
Terramin announced in July that the Company will cease production at the Angas Zinc Mine on 30 September 2013 and will place the mine site on care and maintenance pending the resumption of exploration at depth and near mine.
As foreshadowed in previous announcements, the mine will reach the end of its economic life at current metal prices at the end of September.
Regrettably, the completion of the mine means redundancies are inevitable. A total of 115 employees will be made redundant and will be assisted in the transition over the August to December 2013 period.
The Company is considering a number of options for the use of the mine site, the plant and associated equipment. As stated at the Company’s last AGM, the Board believes that the availability of mining infrastructure and treatment plant place the Company in a good position to take advantage of opportunities
Have your sayTerramin welcomes your feedback and there are many ways to contact us. The hotline is your way of reporting urgent matters or seeking an urgent response to a situation. The telephone number is (08) 8536 8010.
Matt Daniel is the company’s Environment and Community Superintendent and can be contacted on (08) 8536 5950 or [email protected].
Mike O’Reilly is our Community Engagement Consultant and can be contacted on 0414 882 505 or [email protected], or you can contact a member of the Strathalbyn Community Consultative Committee, which is the two-way conduit between the Community and Terramin.
Our support of community and economy…Through various initiatives over the last 5 years, the mine sponsors a range of community, educational, and sporting organisations including;
• CLASS,CommunityLiving and Support Services
• LocalandRegionalSchoolVisits
• StrathalbynSwimmingClub
• StrathalbynCricketClub
• StrathalbynTennisClub
• StrathalbynSoccerClub
• StrathalbynSeniorCitizen’sClub
• StrathalbynCFS
• StrathalbynPolo&RecreationClub
• SilentRipplesSuicide Bereavement Support
• MakeAWishAustralia
• StrathalbynBandFestival
• TAFEtrainingprograms Indigenous Entry to Mining
ADELAIDE OFFICE
TerraminAustraliaLimited Level3,70HindmarshSquare, Adelaide, South Australia 5000
T: (08) 8213 1415
F: (08) 8213 1416
W: www.terramin.com.au
Commitment to Community Terramin believe we have a social, environmental and economic responsibility to ensure that we can grow and operate our company safely and in a manner which will build long term, sustainable value for all our stakeholders.
This includes our employees, community, shareholders, contractors and partners. Terramin strives to build sustainable success through continuous improvement, risk management and stringent corporate governance processes.
Community:
Community Newsletter
that present themselves as a result of the current market conditions. The Company continues to identify, review and develop these opportunities.
Terramin recently completed a deep exploration program under the main ore body, which did not encounter significant mineralisation that could be mined commercially at current commodity prices. The Company plans to continue exploring under and in the proximity of the mine.
Terramin continues its discussions with the South Australian mine regulator to define the closure plan and mine rehabilitation and will continue to engage with the community during that process.
New CEO Martin Janes confirmed the company would respect constructive input from the Community and will ensure that any further operation at Angas will result in a positive contribution to the community through employment, commerce and civic projects.
InMarch2007,TerraminAustraliabeganmining at the Angas Zinc Mine, in the historic mining area of Strathalbyn, after a rigorous approval process.
The mine was financed and approved at a time ofrecordzincpricesof$4,000/tonneonaReserveof2.3Mtofsphaleriteore(zinc)andgalena ore (lead and silver). Angas was officiallyopenedon17September2008,theeveoftheGlobalFinancialCrisis(GFC).Angasfaced numerous setbacks and challenges over the life of the mine that were overcome through hard work and perseverance from management and workers.
Poor ground conditions initially delayed declinedevelopmentandzincpricesplummetedtonearUS$1000/tonne,causingthe cut-off grade to be increased to ensure profitability. Unforeseen additional ground water entering the mine was overcome with increased pumping capacity and while water storage became an issue with the community this was resolved with positive benefits for local agricultural groups.
At completion of mining, Angas Zinc Mine will have operated for 5 years, producing over 120,000tonnesofzinc,46,500tonnesofleadand 1,584,461 ounces of silver.
The mine has had minimal impact on the site’s visual amenity as it is based within a former limestone and sand quarry that had been operating for several decades.
During the mine site construction phase an averageof107workerswereonsiteforaperiodoftwoyears.Injustonemonth,February2008, a total of 3,000 tradies and heavy contractors’ workers attended at the site.
Since 2008 and over the life of the mine there have been 295 full time Angas employees – with a usual floating workforce of 115, plus many service and specialist contractors and crews who were sourced where possible from theHillsandFleurieuRegion.
Angas Zinc Mine employed 115 people and contributedover$273milliontothecommunitythrough local purchasing strategies and community endorsed sponsorships.
Community and Industry visit mineSix mine site tours for community and industry groups were undertaken in the second quarter of 2013:
•MountBarkerRotaryClubwithTaiwaneseexchangevisitors
•GreenTriangleActivityGrouptour
•ATATrainingGroup–on-sitepresentation andon-sitetour/BBQ
•AdelaideHillsChristianSchool–presentation and bus tour
•RedCreekCommunityvisitregardingseedcollectionand exploration activities
•AdelaideHillsHomeSchoolinggroup–presentation
General Manager’s personal commitment:AZM General Manager Joe Ranford says his priority with the shutting down of mining operations at AZM is for the safety and well-being of the Terramin workers in the final weeks of production.
“My first and absolute priority is for our workforce and ensuring that our redundancy process is as dignified as possible. The majority of our workforce live locally and redundancies will have a flow-on effect to families and the local community.
“The last thing I want is for people to be distracted at work and build upanyadditionalworryabouttheirfuture.Havinganunderstandingcommunity helps people in this transition,” Joe said.
Recycling is a focus A total of 46 tonnes of general waste and potential recyclables was gathered for proper disposal or recycling around the mine site this Quarter.Around16,850litresofwasteoil/watermixandgreasewassent to an EPA approved facility for recycling.
As a result of positive management, increased recycling measures and implementation of the revised waste management plan. Compared to Quarter1,generalwastehasdecreasedby7tonnesandtherateof recycling of recyclables and scrap metal increased by 26 tonnes.
Approximately16,000litresofoil/water mixture, 2,100 litres of coolant and 11,400 litres of waste oil was sent to an EPA approved facility for recycling. The company is fully committed to recycling programs within the site to ensure we are doing our part to reduce, re-use and recycle.
Appointment of new Chief Executive OfficerIn July, the Board of Terramin Australia Limitedappointedexperienced mining industry executive Martin Janes as Chief Executive Officer of the Company.
Mr Janes has more than 20 years of experience in the resources and finance industry.
(continued page 2)
Newly appointed CEO of Terramin Australia, Martin Janes, with Angas Zinc Mine Manager, Joe Ranford, at the mine.
(continued page 2)
We’re underground… but exactly where have we been mining?A very strict set of regulations in the company’s Mining Leasecontrolshowfarthecompanycanmine–andeven while we are underground, mining can only take place within that lease boundary – above and below ground level.
You can see from the coloured lines on this aerial photograph that any drives (mine tunnels) must stop at the lease boundary – even when the mining may be at 380 metres below the surface.
Hightechnologymanagementofminingoperationsallows us to work within the lease-defined area, no matter how deep we are working.
Communication is appreciated by PatI am just an ordinary old age pensioner living in a caravan on Hindmarsh Island and enjoying my retirement so I had time to sit down and read the print off of the May AZM newsletter and was most impressed by the whole tone of the letter, the professional quality of it and the obvious attempts to keep the community informed. It is good to see how much effort is being ploughed into the community. I remember that this was promised before the mine started but very often those types of promises evaporate into thin air. So as a resident of the Fleurieu I want to congratulate all concerned on what you are doing.
It is a far cry from my father’s childhood in Wales. He was taken out of school at the age of thirteen and sent into the coal mines to help support his family and he contracted both scarlet fever which permanently damaged his kidneys and tuberculosis. He ended up spending two years in a sanatorium and migrating to Australia to try to find a healthier life style. He died at the age of 51 as a result of the kidney damage.
I have been down on the Big Pit Coal Museum underground tours and have great admiration for miners. It is good to see the care that is being taken in regards to health and safety in the Strathalbyn mine because regrettably such consideration was markedly absent in the coal mines last century.
I wish you all well in your work.
PatDerham-HindmarshIslandCaravanPark
AZM Suppliers / Sub Contractors by Region
Region Count
Outer Country Total 14
AdelaideHillsTotal 269
Adelaide Metro Total 331
International Total 54
Interstate Total 307
Grand Total 975
The Angas Zinc Mine will be processing the last ore on 30 September 2013.
Proud of our training recordTerramin at Strathalbyn has invested heavily in upgrading the skills and training for over 50 workers in the past four years. This investment in people has brought value to the community and to individuals.
Employees have received up-skilling for the mining industry, using specialised programs delivered by the Australian Training Alliance (ATA) that provide high quality training and workforce development solutions that provide participants with skills, knowledge and practical experiences consistent with the expectations of the mining industry nationally.
Our people successfully graduated in the following certificates and diplomas:
Certificate III in Resource Processing – 8 people
Certificate III in Surface Extraction – 9 people
Certificate III in Underground – 22 people
CertificateIVinFrontlineManagement – 13 people
Diploma of Management – 2 people
There have been approximately 35 people who have undertaken Emergency Response Training and been a member of the emergency response team since the mine commenced. Of these, a number have completed all of the certificates required (eleven electives in total) to achieve Certificate III in Mine Emergency Response &Rescue.
Angas Zinc Mine – History & Facts
Joe Ranford and mine manager Andrew Harris examine a core sample from exploration drilling operations at the mine in July 2013.
FACT: The Angas Zinc Mine has never gone beyond the boundary set by the Mining Lease – and any miss-guided rumour that we have gone further underground is just that – a rumour.
AZM water management attracts national interest
– see page 4
Part of the Angas team gathers during a safety drill – while another shift is working underground.
32 TeRRamin australia limited aUgUsT 2013angas zinc mine cOmmUniTY neWsLeTTeR 4angas zinc mine cOmmUniTY neWsLeTTeR
Quarterly Environmental ReportEach quarter the mine must report back to the local SCCC representatives on compliance to the PEPR (Program for Environment Protection & Rehabilitation) and general site activities.
This report summarises results of the intensive monitoring program for the Angas Zinc Mine between April and June 2013.
Mine Closure ProcessTerramin is currently working through a risk assessment associated with mine closure with DMITRE, EPA and O’Kane Consultants (Engineered Soil Cover specialists). The technical issues identified in the risk assessment form the basis for detailed investigatory work being completed to update the closure plan for submission.
Native seed, collected from around site and in the local area, was direct seeded onto six hectares of land allocated as the Significant Environmental Benefit (SEB) offset area. The SEB biodiversity revegetation was identified as a requirement as exchange for the removal of six largeMelalucatreesin2007.Fencingistobeinstalled around the revegetated area to prevent animalgrazing.
A noise exceedance over the PEPR criteria was recorded at the eastern noise monitor (mill) on 20 June 2013. It is likely the noise was associated with the machinery regularly moving approved waste into underground stopes in preparation for care and maintenance.
The high volume dust sampler at the ‘old security gate site’ recorded a higher than usual reading onthe17March2013,at0.5ug/m3, but remains within National Environment Protection Measure (NEPM) criteria. The sample is being analysed to determine the source of dust.
Six community complaints were received throughout the quarter, four concerning noise, two regarding blasting practices. In order to minimise the noise from site, procedures have been implemented at the paste fill plant, to ensure noise is not amplified.
Terramin continue to focus on community engagement with six tours and site visits undertaken throughout the quarter. The Strathalbyn Community Consultation Committee (SCCC) meeting took place on the 16 May 2013 to update the community on environmental reporting,TSFwatermanagementandtheClosure Plan progress.
AZM in a ‘snapshot’ this quarterUnderground development has advanced to over 11,347metresintotal,withdevelopmentprogressing on the 380 metre depth level. Mining iscontinuingintheRankine,HangingwallandGarwood ore bodies. Production will cease at the Angas Zinc Mine on the 30 September 2013.
A total of 99,001 tonnes of ore were processed forthequarteryielding11,514tonnesofzincconcentrate and 4,442 tonnes of lead-copper concentrate for the reporting period.
PEPR reviewTerramin received feedback from DMITRE in regards to the revised PEPR submitted on 28 December 2012. The updated operational criteria and associated management strategies were deemed suitable in addressing the approved environmental outcomes.
Water ManagementThedecantpondoftheTailingsStorageFacility(TSF)remainedwithinthe15,000m2 surface area PEPR criteria throughout the quarter even with the high rainfall experienced in June. The surface areawas11,773m2 on the 3 July 2013, well below the 15,000m2 limit.
All analytical results for the surface water monitoring parameters were below both the leading indicators and PEPR criteria.
from the CEO... New challengesSafety, Environment and Community ReportA continued emphasis on safety at Angas brought about a reduction in all safety metrics and another quarter with no lost time injuries. A focus on hazard awareness, work place inspections and behaviour observations resulted in an improvement in lead indicators and reduction of hazards across site. A campaign on eye protection was undertaken to counter an increase in minor eye related incidents and a pre-shift warm up program was introduced to increase awareness regarding strains and lifting techniques.
No environmental incidents were recorded during the quarter with all environmental monitoring areas within compliance. Upgrades in site drainage were undertaken in preparation for the winter rains. The tailings dam facility remains within compliance parameters despite heavy rainfall.
OperationsOre tonnes mined for the quarter improved over the first quarter despite early delays in stoping (mining) from hangingwall failure and bridging (hangingwall is the upper roof of the orebody and bridging is when the explosive doesn’t work as planned, leaving some ore sitting at the top). Unplanned equipment failure under warranty further hampered production efforts with few options for change in the schedule during the final stages of the operations. The schedule was modified to maintain production with a slight improvement over grade in April. The later part of the quarter saw improvements in production tonnes, however overall grade dropped as a result of the change in stope schedule. Sample results from the underground diamond drilling program were modelled and the 380 level was designed, justified and approved. Development rates had slowed in early part of the quarter due to the reduced number of headings while the decline was on hold, rates increased after approval of the 380 level and reinstating the decline.
Milled tonnes were up on Q1 with improvements in plant performance stabilising. Milled grade was down as a result of ore grade from underground which affected concentrate production. An improvement in focus on the float circuit saw an enhancement in zinc recoveries during periods of high iron. The lead recovery was expected to fall with the lower grade ore however modifications in the lead circuit brought about a slight increase in recovery and a consistent concentrate grade.
Mine Completion and explorationAs announced on 5 July 2013, Terramin will cease production at the Angas Zinc Mine on 30 September 2013 and will place the mine site on care and maintenance pending the resumption of exploration at depth and near mine. The Company is considering a number of options for the use of the mine site, the plant and associated equipment, including its use in mining the Bird-In-Hand deposit.
Terramin recently completed a deep exploration programme under the main ore body which did not encounter significant mineralisation that could be mined commercially at current commodity prices. The Company plans to continue exploring under and in the proximity of the mine.
Martin Janes, Chief Executive Officer
Ongoing projects in the newsVegetation program is in full swingAround 60 Eucalyptus seedlings (Eucalyptus leucoxylon ) were relocated to the western paddock from the operational area, where earthworks are scheduled to occur.
Native seed collected by the company over the past 6 months from around site and the local area, was appropriately cleaned, treated and direct seeded onto six hectares of land in the eastern and western paddock in early July, an area allocated as the Significant Environmental Benefit (SEB) offset area.
The SEB was identified as a native regrowth improvement in theareainexchangefortheremovalofexistinggrowth.Fencing is to be installed around the revegetated area to prevent animal grazing.
Areas around the visitors viewing area and front entrance of approximately two hectares were also seeded with the remaining native seed.
In total approximately 20kg of diverse native seed was sowed over a 6ha area in a well-organised project planned by our Environment &CommunitySuperintendent,MattDaniel.
It is estimated that 20kg contains millions of seeds. Seeds included:
• Acaciacalamifolia• Acaciaparadoxa• Acaciapycnantha• Allocasuarinavesicaria• Eucalyptusincrassata• Eucalyptusodorata• Melaleucalanceolata
Direct seeder activities for sowing native seed in the allocated SEB area within the eastern paddock.
Mine Manager’s personal commitment: (continued from page 1)
“This is an open invitation to all people in our local community… If there are any specific issues that are of concern to anyone, then please call me”.
“On behalf of the management team, I am making this offer to all members of the public or their representatives: “I am available to discuss any issues that arise with the announcement of the shutting down of operations at Angas and going into care and maintenance”.
“If there are any specific issues that are of concern to anyone, then please call me...”
Joe Ranford said the mine was currently operating within its license conditions and the Company would continue to maintain the site in the same manner, no matter what the state of operations are.
An artificial wetland boundary has been established around the silt retention dam located inthesouthwestcorneroftheTSFandthiswasseeded in June with Bolboschoenus caldwellii, sourced locally from Tuckers lagoon.
NoiseA number of noise complaints were received during the quarter regarding noise at night. These were received around end of May to the beginning of June. Investigations found the noise appeared to originate from the vibrator fitted to the hopper of the paste fill plant. The vibrator was fitted to prevent sand blockages in the hopper, however, with wet sand from the rains sticking in the hopper, the vibrator was run while the hopper was low, resulting in amplified noise levels. A multilayered work place procedure has now been put in place so the vibrator is isolated and, if necessary, can only be used with supervisor permission when the hopper is full.
Weeds and PestsWeedsprayingwasimplementedontheeasternpaddock,westernpaddocksandtheTSFrehabilitation trial prior to native seed sowing. Spraying with a pre-emergent chemical was undertaken around the exploration house and sheds to prevent weed germination over the next six months.
Pest management continued throughout the last quarter, with rabbit warren fumigation undertaken in June. Baiting will not be undertaken until the summer months when conditions are favourable.
FaunaGround nesting birds were observed nesting ontheTSFsurfaceinJune.Theenvironmentaldepartment issued an environmental alert to all staff to ensure the nest is not disturbed.
Appointment of new Chief Executive Officer(continued from page 1)
MrJanesisaformerChiefFinancialOfficer of Terramin from 2005 to 2010 during which he undertook debt financing and capital raisings to finance the development of the Angas Zinc Mine.
Previously, Mr Janes was a senior corporate executive for Normandy MiningandBendigo&AdelaideBankLimited.Mostrecently,MrJaneswasGeneral Manager (Marketing and ProjectFinance)ofToroEnergyLimited.
Terramin Chairman Michael Kennedy said: “The Board is very pleased that MrJanesisrejoiningTerramin.HispasttenureasCFOofthecompanyisinvaluable to the Company in dealing with the Company’s current challenges including the completion of the Angas Zinc Mine but also to advance the prospects of the Company”.
Mr Janes said any future concepts for the Angas Mine at Strathalbyn would be discussed fully with the community.
“As always we respect constructive input from the Community and will ensure that any further operation at Angas will result in a positive contribution to the community through employment, commerce and civic projects”.
The media has recently reported on moves by Terramin Australia to acquire the historic gold mine deposit known as the ‘Bird-in-Hand’,intheeasternAdelaideHills.
Subsequent to the end of the quarter, Terramin announced that it has entered into a binding agreement to acquire 100% of the high grade Bird-in-HandGoldProjectanda portfolio of highly prospectiveAdelaideHills exploration tenements from MaximusResourcesLimited.
TheBird-in-HandGoldProjectislocatedapproximately 30 km north of Terramin’s existing mining and processing facilities at the Angas Zinc Mine. The project has a high grade Resource (JORC 2004 compliant) of 598,000 tonnes at 12.3 grams of gold per tonne,foratotalof237,000ouncesofgold,which is amenable to underground mining.
It is anticipated that, subject to the required regulatoryapprovals,theBird-in-Handorecould be processed utilising the facilities at Angas which can be modified to process gold ore. The existing tailings dam at Angas hasthecapacitytoholdalltheBird-in-Handtailings.
Terramin believes that processing of Bird-in-Hand’shighgradeoreutilisingtheexisting Angas facilities will create a low capital and low cost gold operation.
Closure planning process continues
As announced, Terramin has already commenced a scoping study and due to the advancedstatusoftheBird-in-HandGoldProject, the results of this study are expected to be released in the coming months.
Terramin CEO, Martin Janes, said: “Terramin is fully aware of its current lease conditions. Once we have more information in regard to our options we will be discussing those options with all key parties, the community, and the regulatory authorities, DMITRE and EPA”.
Mr Janes said the company would respect all input from the community and will ensure that any further operation at Angas will result in a positive contribution to the community through employment, commerce and civic projects.
“WehavenotmadeanyfirmdecisionsonBird-in-Hand–whateverwedowehavetogothroughproperprocess.Wewillincludethe community in the region in this process,” Mr Janes said.
Fleurieu regional exploration activities
Terramin is currently working through a formal risk assessment program relating to mine closure with regulating authorities DMITRE and EPA, with the involvement of an internationally respected environmental company O’Kane Consultants, which specialises in Engineered Soil Cover methods.
The technical issues identified in the risk assessment form the basis for detailed investigatory work being completed to update the closure plan for submission.
O’Kane Consultants is respected by our State Regulators and many industries around the world.
Joe Ranford said: “It wil be important to keep a positive and open mind when all parties in the community are trying to generate improved environmental outcomes and employment in these uncertain times”.
clipping from ‘The Advertiser’, 20 July 2013
Our water management attracts national interest Interstate mining companies and their environment managers are now visiting AZM to learn more about ‘real time’ water management programs following the successful management of underground watering issues by the Terramin team.
Terramin’s water management program has been intensively monitored and approved by SA mining and environment regulators over the past year.
“This is the sort of mining expertise that takes Terramin a step forward from companies that still struggle with water issues,” said Joe Ranford.
“Historicallythereareminesitesthatwereabandonedbecauseofwaterissues,which has meant that local communities have missed out on benefits that come with responsible mining and local business development”.
Visiting Victorian miners are shown features of the Angas facility. Ken McBride (left) and Rene van Oevelen (right) from Angas, with Nick Fammartino (Process Plant Superintendent) and Andrew Mattiske (Manager Sustainability) of mining company Mandalay Resources, of Heathcote, Victoria.
• Melaleucauncinata• Melaleucaacuminata• Calistamonrugussa• Pittosporumaugustifolium• EnchylaenaTomentosa• Atriplexsemibaccata• Sennaartemisiodes
ssp.petiolaris
(continued from page 1)
32 TeRRamin australia limited aUgUsT 2013angas zinc mine cOmmUniTY neWsLeTTeR 4angas zinc mine cOmmUniTY neWsLeTTeR
Quarterly Environmental ReportEach quarter the mine must report back to the local SCCC representatives on compliance to the PEPR (Program for Environment Protection & Rehabilitation) and general site activities.
This report summarises results of the intensive monitoring program for the Angas Zinc Mine between April and June 2013.
Mine Closure ProcessTerramin is currently working through a risk assessment associated with mine closure with DMITRE, EPA and O’Kane Consultants (Engineered Soil Cover specialists). The technical issues identified in the risk assessment form the basis for detailed investigatory work being completed to update the closure plan for submission.
Native seed, collected from around site and in the local area, was direct seeded onto six hectares of land allocated as the Significant Environmental Benefit (SEB) offset area. The SEB biodiversity revegetation was identified as a requirement as exchange for the removal of six largeMelalucatreesin2007.Fencingistobeinstalled around the revegetated area to prevent animalgrazing.
A noise exceedance over the PEPR criteria was recorded at the eastern noise monitor (mill) on 20 June 2013. It is likely the noise was associated with the machinery regularly moving approved waste into underground stopes in preparation for care and maintenance.
The high volume dust sampler at the ‘old security gate site’ recorded a higher than usual reading onthe17March2013,at0.5ug/m3, but remains within National Environment Protection Measure (NEPM) criteria. The sample is being analysed to determine the source of dust.
Six community complaints were received throughout the quarter, four concerning noise, two regarding blasting practices. In order to minimise the noise from site, procedures have been implemented at the paste fill plant, to ensure noise is not amplified.
Terramin continue to focus on community engagement with six tours and site visits undertaken throughout the quarter. The Strathalbyn Community Consultation Committee (SCCC) meeting took place on the 16 May 2013 to update the community on environmental reporting,TSFwatermanagementandtheClosure Plan progress.
AZM in a ‘snapshot’ this quarterUnderground development has advanced to over 11,347metresintotal,withdevelopmentprogressing on the 380 metre depth level. Mining iscontinuingintheRankine,HangingwallandGarwood ore bodies. Production will cease at the Angas Zinc Mine on the 30 September 2013.
A total of 99,001 tonnes of ore were processed forthequarteryielding11,514tonnesofzincconcentrate and 4,442 tonnes of lead-copper concentrate for the reporting period.
PEPR reviewTerramin received feedback from DMITRE in regards to the revised PEPR submitted on 28 December 2012. The updated operational criteria and associated management strategies were deemed suitable in addressing the approved environmental outcomes.
Water ManagementThedecantpondoftheTailingsStorageFacility(TSF)remainedwithinthe15,000m2 surface area PEPR criteria throughout the quarter even with the high rainfall experienced in June. The surface areawas11,773m2 on the 3 July 2013, well below the 15,000m2 limit.
All analytical results for the surface water monitoring parameters were below both the leading indicators and PEPR criteria.
from the CEO... New challengesSafety, Environment and Community ReportA continued emphasis on safety at Angas brought about a reduction in all safety metrics and another quarter with no lost time injuries. A focus on hazard awareness, work place inspections and behaviour observations resulted in an improvement in lead indicators and reduction of hazards across site. A campaign on eye protection was undertaken to counter an increase in minor eye related incidents and a pre-shift warm up program was introduced to increase awareness regarding strains and lifting techniques.
No environmental incidents were recorded during the quarter with all environmental monitoring areas within compliance. Upgrades in site drainage were undertaken in preparation for the winter rains. The tailings dam facility remains within compliance parameters despite heavy rainfall.
OperationsOre tonnes mined for the quarter improved over the first quarter despite early delays in stoping (mining) from hangingwall failure and bridging (hangingwall is the upper roof of the orebody and bridging is when the explosive doesn’t work as planned, leaving some ore sitting at the top). Unplanned equipment failure under warranty further hampered production efforts with few options for change in the schedule during the final stages of the operations. The schedule was modified to maintain production with a slight improvement over grade in April. The later part of the quarter saw improvements in production tonnes, however overall grade dropped as a result of the change in stope schedule. Sample results from the underground diamond drilling program were modelled and the 380 level was designed, justified and approved. Development rates had slowed in early part of the quarter due to the reduced number of headings while the decline was on hold, rates increased after approval of the 380 level and reinstating the decline.
Milled tonnes were up on Q1 with improvements in plant performance stabilising. Milled grade was down as a result of ore grade from underground which affected concentrate production. An improvement in focus on the float circuit saw an enhancement in zinc recoveries during periods of high iron. The lead recovery was expected to fall with the lower grade ore however modifications in the lead circuit brought about a slight increase in recovery and a consistent concentrate grade.
Mine Completion and explorationAs announced on 5 July 2013, Terramin will cease production at the Angas Zinc Mine on 30 September 2013 and will place the mine site on care and maintenance pending the resumption of exploration at depth and near mine. The Company is considering a number of options for the use of the mine site, the plant and associated equipment, including its use in mining the Bird-In-Hand deposit.
Terramin recently completed a deep exploration programme under the main ore body which did not encounter significant mineralisation that could be mined commercially at current commodity prices. The Company plans to continue exploring under and in the proximity of the mine.
Martin Janes, Chief Executive Officer
Ongoing projects in the newsVegetation program is in full swingAround 60 Eucalyptus seedlings (Eucalyptus leucoxylon ) were relocated to the western paddock from the operational area, where earthworks are scheduled to occur.
Native seed collected by the company over the past 6 months from around site and the local area, was appropriately cleaned, treated and direct seeded onto six hectares of land in the eastern and western paddock in early July, an area allocated as the Significant Environmental Benefit (SEB) offset area.
The SEB was identified as a native regrowth improvement in theareainexchangefortheremovalofexistinggrowth.Fencing is to be installed around the revegetated area to prevent animal grazing.
Areas around the visitors viewing area and front entrance of approximately two hectares were also seeded with the remaining native seed.
In total approximately 20kg of diverse native seed was sowed over a 6ha area in a well-organised project planned by our Environment &CommunitySuperintendent,MattDaniel.
It is estimated that 20kg contains millions of seeds. Seeds included:
• Acaciacalamifolia• Acaciaparadoxa• Acaciapycnantha• Allocasuarinavesicaria• Eucalyptusincrassata• Eucalyptusodorata• Melaleucalanceolata
Direct seeder activities for sowing native seed in the allocated SEB area within the eastern paddock.
Mine Manager’s personal commitment: (continued from page 1)
“This is an open invitation to all people in our local community… If there are any specific issues that are of concern to anyone, then please call me”.
“On behalf of the management team, I am making this offer to all members of the public or their representatives: “I am available to discuss any issues that arise with the announcement of the shutting down of operations at Angas and going into care and maintenance”.
“If there are any specific issues that are of concern to anyone, then please call me...”
Joe Ranford said the mine was currently operating within its license conditions and the Company would continue to maintain the site in the same manner, no matter what the state of operations are.
An artificial wetland boundary has been established around the silt retention dam located inthesouthwestcorneroftheTSFandthiswasseeded in June with Bolboschoenus caldwellii, sourced locally from Tuckers lagoon.
NoiseA number of noise complaints were received during the quarter regarding noise at night. These were received around end of May to the beginning of June. Investigations found the noise appeared to originate from the vibrator fitted to the hopper of the paste fill plant. The vibrator was fitted to prevent sand blockages in the hopper, however, with wet sand from the rains sticking in the hopper, the vibrator was run while the hopper was low, resulting in amplified noise levels. A multilayered work place procedure has now been put in place so the vibrator is isolated and, if necessary, can only be used with supervisor permission when the hopper is full.
Weeds and PestsWeedsprayingwasimplementedontheeasternpaddock,westernpaddocksandtheTSFrehabilitation trial prior to native seed sowing. Spraying with a pre-emergent chemical was undertaken around the exploration house and sheds to prevent weed germination over the next six months.
Pest management continued throughout the last quarter, with rabbit warren fumigation undertaken in June. Baiting will not be undertaken until the summer months when conditions are favourable.
FaunaGround nesting birds were observed nesting ontheTSFsurfaceinJune.Theenvironmentaldepartment issued an environmental alert to all staff to ensure the nest is not disturbed.
Appointment of new Chief Executive Officer(continued from page 1)
MrJanesisaformerChiefFinancialOfficer of Terramin from 2005 to 2010 during which he undertook debt financing and capital raisings to finance the development of the Angas Zinc Mine.
Previously, Mr Janes was a senior corporate executive for Normandy MiningandBendigo&AdelaideBankLimited.Mostrecently,MrJaneswasGeneral Manager (Marketing and ProjectFinance)ofToroEnergyLimited.
Terramin Chairman Michael Kennedy said: “The Board is very pleased that MrJanesisrejoiningTerramin.HispasttenureasCFOofthecompanyisinvaluable to the Company in dealing with the Company’s current challenges including the completion of the Angas Zinc Mine but also to advance the prospects of the Company”.
Mr Janes said any future concepts for the Angas Mine at Strathalbyn would be discussed fully with the community.
“As always we respect constructive input from the Community and will ensure that any further operation at Angas will result in a positive contribution to the community through employment, commerce and civic projects”.
The media has recently reported on moves by Terramin Australia to acquire the historic gold mine deposit known as the ‘Bird-in-Hand’,intheeasternAdelaideHills.
Subsequent to the end of the quarter, Terramin announced that it has entered into a binding agreement to acquire 100% of the high grade Bird-in-HandGoldProjectanda portfolio of highly prospectiveAdelaideHills exploration tenements from MaximusResourcesLimited.
TheBird-in-HandGoldProjectislocatedapproximately 30 km north of Terramin’s existing mining and processing facilities at the Angas Zinc Mine. The project has a high grade Resource (JORC 2004 compliant) of 598,000 tonnes at 12.3 grams of gold per tonne,foratotalof237,000ouncesofgold,which is amenable to underground mining.
It is anticipated that, subject to the required regulatoryapprovals,theBird-in-Handorecould be processed utilising the facilities at Angas which can be modified to process gold ore. The existing tailings dam at Angas hasthecapacitytoholdalltheBird-in-Handtailings.
Terramin believes that processing of Bird-in-Hand’shighgradeoreutilisingtheexisting Angas facilities will create a low capital and low cost gold operation.
Closure planning process continues
As announced, Terramin has already commenced a scoping study and due to the advancedstatusoftheBird-in-HandGoldProject, the results of this study are expected to be released in the coming months.
Terramin CEO, Martin Janes, said: “Terramin is fully aware of its current lease conditions. Once we have more information in regard to our options we will be discussing those options with all key parties, the community, and the regulatory authorities, DMITRE and EPA”.
Mr Janes said the company would respect all input from the community and will ensure that any further operation at Angas will result in a positive contribution to the community through employment, commerce and civic projects.
“WehavenotmadeanyfirmdecisionsonBird-in-Hand–whateverwedowehavetogothroughproperprocess.Wewillincludethe community in the region in this process,” Mr Janes said.
Fleurieu regional exploration activities
Terramin is currently working through a formal risk assessment program relating to mine closure with regulating authorities DMITRE and EPA, with the involvement of an internationally respected environmental company O’Kane Consultants, which specialises in Engineered Soil Cover methods.
The technical issues identified in the risk assessment form the basis for detailed investigatory work being completed to update the closure plan for submission.
O’Kane Consultants is respected by our State Regulators and many industries around the world.
Joe Ranford said: “It wil be important to keep a positive and open mind when all parties in the community are trying to generate improved environmental outcomes and employment in these uncertain times”.
clipping from ‘The Advertiser’, 20 July 2013
Our water management attracts national interest Interstate mining companies and their environment managers are now visiting AZM to learn more about ‘real time’ water management programs following the successful management of underground watering issues by the Terramin team.
Terramin’s water management program has been intensively monitored and approved by SA mining and environment regulators over the past year.
“This is the sort of mining expertise that takes Terramin a step forward from companies that still struggle with water issues,” said Joe Ranford.
“Historicallythereareminesitesthatwereabandonedbecauseofwaterissues,which has meant that local communities have missed out on benefits that come with responsible mining and local business development”.
Visiting Victorian miners are shown features of the Angas facility. Ken McBride (left) and Rene van Oevelen (right) from Angas, with Nick Fammartino (Process Plant Superintendent) and Andrew Mattiske (Manager Sustainability) of mining company Mandalay Resources, of Heathcote, Victoria.
• Melaleucauncinata• Melaleucaacuminata• Calistamonrugussa• Pittosporumaugustifolium• EnchylaenaTomentosa• Atriplexsemibaccata• Sennaartemisiodes
ssp.petiolaris
(continued from page 1)
32 TeRRamin australia limited aUgUsT 2013angas zinc mine cOmmUniTY neWsLeTTeR 4angas zinc mine cOmmUniTY neWsLeTTeR
Quarterly Environmental ReportEach quarter the mine must report back to the local SCCC representatives on compliance to the PEPR (Program for Environment Protection & Rehabilitation) and general site activities.
This report summarises results of the intensive monitoring program for the Angas Zinc Mine between April and June 2013.
Mine Closure ProcessTerramin is currently working through a risk assessment associated with mine closure with DMITRE, EPA and O’Kane Consultants (Engineered Soil Cover specialists). The technical issues identified in the risk assessment form the basis for detailed investigatory work being completed to update the closure plan for submission.
Native seed, collected from around site and in the local area, was direct seeded onto six hectares of land allocated as the Significant Environmental Benefit (SEB) offset area. The SEB biodiversity revegetation was identified as a requirement as exchange for the removal of six largeMelalucatreesin2007.Fencingistobeinstalled around the revegetated area to prevent animalgrazing.
A noise exceedance over the PEPR criteria was recorded at the eastern noise monitor (mill) on 20 June 2013. It is likely the noise was associated with the machinery regularly moving approved waste into underground stopes in preparation for care and maintenance.
The high volume dust sampler at the ‘old security gate site’ recorded a higher than usual reading onthe17March2013,at0.5ug/m3, but remains within National Environment Protection Measure (NEPM) criteria. The sample is being analysed to determine the source of dust.
Six community complaints were received throughout the quarter, four concerning noise, two regarding blasting practices. In order to minimise the noise from site, procedures have been implemented at the paste fill plant, to ensure noise is not amplified.
Terramin continue to focus on community engagement with six tours and site visits undertaken throughout the quarter. The Strathalbyn Community Consultation Committee (SCCC) meeting took place on the 16 May 2013 to update the community on environmental reporting,TSFwatermanagementandtheClosure Plan progress.
AZM in a ‘snapshot’ this quarterUnderground development has advanced to over 11,347metresintotal,withdevelopmentprogressing on the 380 metre depth level. Mining iscontinuingintheRankine,HangingwallandGarwood ore bodies. Production will cease at the Angas Zinc Mine on the 30 September 2013.
A total of 99,001 tonnes of ore were processed forthequarteryielding11,514tonnesofzincconcentrate and 4,442 tonnes of lead-copper concentrate for the reporting period.
PEPR reviewTerramin received feedback from DMITRE in regards to the revised PEPR submitted on 28 December 2012. The updated operational criteria and associated management strategies were deemed suitable in addressing the approved environmental outcomes.
Water ManagementThedecantpondoftheTailingsStorageFacility(TSF)remainedwithinthe15,000m2 surface area PEPR criteria throughout the quarter even with the high rainfall experienced in June. The surface areawas11,773m2 on the 3 July 2013, well below the 15,000m2 limit.
All analytical results for the surface water monitoring parameters were below both the leading indicators and PEPR criteria.
from the CEO... New challengesSafety, Environment and Community ReportA continued emphasis on safety at Angas brought about a reduction in all safety metrics and another quarter with no lost time injuries. A focus on hazard awareness, work place inspections and behaviour observations resulted in an improvement in lead indicators and reduction of hazards across site. A campaign on eye protection was undertaken to counter an increase in minor eye related incidents and a pre-shift warm up program was introduced to increase awareness regarding strains and lifting techniques.
No environmental incidents were recorded during the quarter with all environmental monitoring areas within compliance. Upgrades in site drainage were undertaken in preparation for the winter rains. The tailings dam facility remains within compliance parameters despite heavy rainfall.
OperationsOre tonnes mined for the quarter improved over the first quarter despite early delays in stoping (mining) from hangingwall failure and bridging (hangingwall is the upper roof of the orebody and bridging is when the explosive doesn’t work as planned, leaving some ore sitting at the top). Unplanned equipment failure under warranty further hampered production efforts with few options for change in the schedule during the final stages of the operations. The schedule was modified to maintain production with a slight improvement over grade in April. The later part of the quarter saw improvements in production tonnes, however overall grade dropped as a result of the change in stope schedule. Sample results from the underground diamond drilling program were modelled and the 380 level was designed, justified and approved. Development rates had slowed in early part of the quarter due to the reduced number of headings while the decline was on hold, rates increased after approval of the 380 level and reinstating the decline.
Milled tonnes were up on Q1 with improvements in plant performance stabilising. Milled grade was down as a result of ore grade from underground which affected concentrate production. An improvement in focus on the float circuit saw an enhancement in zinc recoveries during periods of high iron. The lead recovery was expected to fall with the lower grade ore however modifications in the lead circuit brought about a slight increase in recovery and a consistent concentrate grade.
Mine Completion and explorationAs announced on 5 July 2013, Terramin will cease production at the Angas Zinc Mine on 30 September 2013 and will place the mine site on care and maintenance pending the resumption of exploration at depth and near mine. The Company is considering a number of options for the use of the mine site, the plant and associated equipment, including its use in mining the Bird-In-Hand deposit.
Terramin recently completed a deep exploration programme under the main ore body which did not encounter significant mineralisation that could be mined commercially at current commodity prices. The Company plans to continue exploring under and in the proximity of the mine.
Martin Janes, Chief Executive Officer
Ongoing projects in the newsVegetation program is in full swingAround 60 Eucalyptus seedlings (Eucalyptus leucoxylon ) were relocated to the western paddock from the operational area, where earthworks are scheduled to occur.
Native seed collected by the company over the past 6 months from around site and the local area, was appropriately cleaned, treated and direct seeded onto six hectares of land in the eastern and western paddock in early July, an area allocated as the Significant Environmental Benefit (SEB) offset area.
The SEB was identified as a native regrowth improvement in theareainexchangefortheremovalofexistinggrowth.Fencing is to be installed around the revegetated area to prevent animal grazing.
Areas around the visitors viewing area and front entrance of approximately two hectares were also seeded with the remaining native seed.
In total approximately 20kg of diverse native seed was sowed over a 6ha area in a well-organised project planned by our Environment &CommunitySuperintendent,MattDaniel.
It is estimated that 20kg contains millions of seeds. Seeds included:
• Acaciacalamifolia• Acaciaparadoxa• Acaciapycnantha• Allocasuarinavesicaria• Eucalyptusincrassata• Eucalyptusodorata• Melaleucalanceolata
Direct seeder activities for sowing native seed in the allocated SEB area within the eastern paddock.
Mine Manager’s personal commitment: (continued from page 1)
“This is an open invitation to all people in our local community… If there are any specific issues that are of concern to anyone, then please call me”.
“On behalf of the management team, I am making this offer to all members of the public or their representatives: “I am available to discuss any issues that arise with the announcement of the shutting down of operations at Angas and going into care and maintenance”.
“If there are any specific issues that are of concern to anyone, then please call me...”
Joe Ranford said the mine was currently operating within its license conditions and the Company would continue to maintain the site in the same manner, no matter what the state of operations are.
An artificial wetland boundary has been established around the silt retention dam located inthesouthwestcorneroftheTSFandthiswasseeded in June with Bolboschoenus caldwellii, sourced locally from Tuckers lagoon.
NoiseA number of noise complaints were received during the quarter regarding noise at night. These were received around end of May to the beginning of June. Investigations found the noise appeared to originate from the vibrator fitted to the hopper of the paste fill plant. The vibrator was fitted to prevent sand blockages in the hopper, however, with wet sand from the rains sticking in the hopper, the vibrator was run while the hopper was low, resulting in amplified noise levels. A multilayered work place procedure has now been put in place so the vibrator is isolated and, if necessary, can only be used with supervisor permission when the hopper is full.
Weeds and PestsWeedsprayingwasimplementedontheeasternpaddock,westernpaddocksandtheTSFrehabilitation trial prior to native seed sowing. Spraying with a pre-emergent chemical was undertaken around the exploration house and sheds to prevent weed germination over the next six months.
Pest management continued throughout the last quarter, with rabbit warren fumigation undertaken in June. Baiting will not be undertaken until the summer months when conditions are favourable.
FaunaGround nesting birds were observed nesting ontheTSFsurfaceinJune.Theenvironmentaldepartment issued an environmental alert to all staff to ensure the nest is not disturbed.
Appointment of new Chief Executive Officer(continued from page 1)
MrJanesisaformerChiefFinancialOfficer of Terramin from 2005 to 2010 during which he undertook debt financing and capital raisings to finance the development of the Angas Zinc Mine.
Previously, Mr Janes was a senior corporate executive for Normandy MiningandBendigo&AdelaideBankLimited.Mostrecently,MrJaneswasGeneral Manager (Marketing and ProjectFinance)ofToroEnergyLimited.
Terramin Chairman Michael Kennedy said: “The Board is very pleased that MrJanesisrejoiningTerramin.HispasttenureasCFOofthecompanyisinvaluable to the Company in dealing with the Company’s current challenges including the completion of the Angas Zinc Mine but also to advance the prospects of the Company”.
Mr Janes said any future concepts for the Angas Mine at Strathalbyn would be discussed fully with the community.
“As always we respect constructive input from the Community and will ensure that any further operation at Angas will result in a positive contribution to the community through employment, commerce and civic projects”.
The media has recently reported on moves by Terramin Australia to acquire the historic gold mine deposit known as the ‘Bird-in-Hand’,intheeasternAdelaideHills.
Subsequent to the end of the quarter, Terramin announced that it has entered into a binding agreement to acquire 100% of the high grade Bird-in-HandGoldProjectanda portfolio of highly prospectiveAdelaideHills exploration tenements from MaximusResourcesLimited.
TheBird-in-HandGoldProjectislocatedapproximately 30 km north of Terramin’s existing mining and processing facilities at the Angas Zinc Mine. The project has a high grade Resource (JORC 2004 compliant) of 598,000 tonnes at 12.3 grams of gold per tonne,foratotalof237,000ouncesofgold,which is amenable to underground mining.
It is anticipated that, subject to the required regulatoryapprovals,theBird-in-Handorecould be processed utilising the facilities at Angas which can be modified to process gold ore. The existing tailings dam at Angas hasthecapacitytoholdalltheBird-in-Handtailings.
Terramin believes that processing of Bird-in-Hand’shighgradeoreutilisingtheexisting Angas facilities will create a low capital and low cost gold operation.
Closure planning process continues
As announced, Terramin has already commenced a scoping study and due to the advancedstatusoftheBird-in-HandGoldProject, the results of this study are expected to be released in the coming months.
Terramin CEO, Martin Janes, said: “Terramin is fully aware of its current lease conditions. Once we have more information in regard to our options we will be discussing those options with all key parties, the community, and the regulatory authorities, DMITRE and EPA”.
Mr Janes said the company would respect all input from the community and will ensure that any further operation at Angas will result in a positive contribution to the community through employment, commerce and civic projects.
“WehavenotmadeanyfirmdecisionsonBird-in-Hand–whateverwedowehavetogothroughproperprocess.Wewillincludethe community in the region in this process,” Mr Janes said.
Fleurieu regional exploration activities
Terramin is currently working through a formal risk assessment program relating to mine closure with regulating authorities DMITRE and EPA, with the involvement of an internationally respected environmental company O’Kane Consultants, which specialises in Engineered Soil Cover methods.
The technical issues identified in the risk assessment form the basis for detailed investigatory work being completed to update the closure plan for submission.
O’Kane Consultants is respected by our State Regulators and many industries around the world.
Joe Ranford said: “It wil be important to keep a positive and open mind when all parties in the community are trying to generate improved environmental outcomes and employment in these uncertain times”.
clipping from ‘The Advertiser’, 20 July 2013
Our water management attracts national interest Interstate mining companies and their environment managers are now visiting AZM to learn more about ‘real time’ water management programs following the successful management of underground watering issues by the Terramin team.
Terramin’s water management program has been intensively monitored and approved by SA mining and environment regulators over the past year.
“This is the sort of mining expertise that takes Terramin a step forward from companies that still struggle with water issues,” said Joe Ranford.
“Historicallythereareminesitesthatwereabandonedbecauseofwaterissues,which has meant that local communities have missed out on benefits that come with responsible mining and local business development”.
Visiting Victorian miners are shown features of the Angas facility. Ken McBride (left) and Rene van Oevelen (right) from Angas, with Nick Fammartino (Process Plant Superintendent) and Andrew Mattiske (Manager Sustainability) of mining company Mandalay Resources, of Heathcote, Victoria.
• Melaleucauncinata• Melaleucaacuminata• Calistamonrugussa• Pittosporumaugustifolium• EnchylaenaTomentosa• Atriplexsemibaccata• Sennaartemisiodes
ssp.petiolaris
(continued from page 1)
TERRAMIN AUSTRALIA LIMITED
TERRAMIN AUSTRALIA LIMITED ABN 67 062 576 238
ANGAS ZINC MINE
AUGUST 2013
16 angas zinc mine cOmmUniTY neWsLeTTeR aUgUsT 2013angas zinc mine cOmmUniTY neWsLeTTeR aUgUsT 2013
ANGAS ZINC MINE
Callington Road, Strathalbyn, SA 5255 PO Box 125, Strathalbyn, SA 5255
ANGAS ZINC MINE OFFICE
T: (08) 8536 5950
COMMUNITY COMMENTS (24 hours)T: (08) 8536 8010 E: [email protected]
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5 TeRRamin australia limited aUgUsT 2013
Plans announced for changes to mining operationsMilling work an option to continue, with community involvement
Terramin announced in July that the Company will cease production at the Angas Zinc Mine on 30 September 2013 and will place the mine site on care and maintenance pending the resumption of exploration at depth and near mine.
As foreshadowed in previous announcements, the mine will reach the end of its economic life at current metal prices at the end of September.
Regrettably, the completion of the mine means redundancies are inevitable. A total of 115 employees will be made redundant and will be assisted in the transition over the August to December 2013 period.
The Company is considering a number of options for the use of the mine site, the plant and associated equipment. As stated at the Company’s last AGM, the Board believes that the availability of mining infrastructure and treatment plant place the Company in a good position to take advantage of opportunities
Have your sayTerramin welcomes your feedback and there are many ways to contact us. The hotline is your way of reporting urgent matters or seeking an urgent response to a situation. The telephone number is (08) 8536 8010.
Matt Daniel is the company’s Environment and Community Superintendent and can be contacted on (08) 8536 5950 or [email protected].
Mike O’Reilly is our Community Engagement Consultant and can be contacted on 0414 882 505 or [email protected], or you can contact a member of the Strathalbyn Community Consultative Committee, which is the two-way conduit between the Community and Terramin.
Our support of community and economy…Through various initiatives over the last 5 years, the mine sponsors a range of community, educational, and sporting organisations including;
• CLASS,CommunityLiving and Support Services
• LocalandRegionalSchoolVisits
• StrathalbynSwimmingClub
• StrathalbynCricketClub
• StrathalbynTennisClub
• StrathalbynSoccerClub
• StrathalbynSeniorCitizen’sClub
• StrathalbynCFS
• StrathalbynPolo&RecreationClub
• SilentRipplesSuicide Bereavement Support
• MakeAWishAustralia
• StrathalbynBandFestival
• TAFEtrainingprograms Indigenous Entry to Mining
ADELAIDE OFFICE
TerraminAustraliaLimited Level3,70HindmarshSquare, Adelaide, South Australia 5000
T: (08) 8213 1415
F: (08) 8213 1416
W: www.terramin.com.au
Commitment to Community Terramin believe we have a social, environmental and economic responsibility to ensure that we can grow and operate our company safely and in a manner which will build long term, sustainable value for all our stakeholders.
This includes our employees, community, shareholders, contractors and partners. Terramin strives to build sustainable success through continuous improvement, risk management and stringent corporate governance processes.
Community:
Community Newsletter
that present themselves as a result of the current market conditions. The Company continues to identify, review and develop these opportunities.
Terramin recently completed a deep exploration program under the main ore body, which did not encounter significant mineralisation that could be mined commercially at current commodity prices. The Company plans to continue exploring under and in the proximity of the mine.
Terramin continues its discussions with the South Australian mine regulator to define the closure plan and mine rehabilitation and will continue to engage with the community during that process.
New CEO Martin Janes confirmed the company would respect constructive input from the Community and will ensure that any further operation at Angas will result in a positive contribution to the community through employment, commerce and civic projects.
InMarch2007,TerraminAustraliabeganmining at the Angas Zinc Mine, in the historic mining area of Strathalbyn, after a rigorous approval process.
The mine was financed and approved at a time ofrecordzincpricesof$4,000/tonneonaReserveof2.3Mtofsphaleriteore(zinc)andgalena ore (lead and silver). Angas was officiallyopenedon17September2008,theeveoftheGlobalFinancialCrisis(GFC).Angasfaced numerous setbacks and challenges over the life of the mine that were overcome through hard work and perseverance from management and workers.
Poor ground conditions initially delayed declinedevelopmentandzincpricesplummetedtonearUS$1000/tonne,causingthe cut-off grade to be increased to ensure profitability. Unforeseen additional ground water entering the mine was overcome with increased pumping capacity and while water storage became an issue with the community this was resolved with positive benefits for local agricultural groups.
At completion of mining, Angas Zinc Mine will have operated for 5 years, producing over 120,000tonnesofzinc,46,500tonnesofleadand 1,584,461 ounces of silver.
The mine has had minimal impact on the site’s visual amenity as it is based within a former limestone and sand quarry that had been operating for several decades.
During the mine site construction phase an averageof107workerswereonsiteforaperiodoftwoyears.Injustonemonth,February2008, a total of 3,000 tradies and heavy contractors’ workers attended at the site.
Since 2008 and over the life of the mine there have been 295 full time Angas employees – with a usual floating workforce of 115, plus many service and specialist contractors and crews who were sourced where possible from theHillsandFleurieuRegion.
Angas Zinc Mine employed 115 people and contributedover$273milliontothecommunitythrough local purchasing strategies and community endorsed sponsorships.
Community and Industry visit mineSix mine site tours for community and industry groups were undertaken in the second quarter of 2013:
•MountBarkerRotaryClubwithTaiwaneseexchangevisitors
•GreenTriangleActivityGrouptour
•ATATrainingGroup–on-sitepresentation andon-sitetour/BBQ
•AdelaideHillsChristianSchool–presentation and bus tour
•RedCreekCommunityvisitregardingseedcollectionand exploration activities
•AdelaideHillsHomeSchoolinggroup–presentation
General Manager’s personal commitment:AZM General Manager Joe Ranford says his priority with the shutting down of mining operations at AZM is for the safety and well-being of the Terramin workers in the final weeks of production.
“My first and absolute priority is for our workforce and ensuring that our redundancy process is as dignified as possible. The majority of our workforce live locally and redundancies will have a flow-on effect to families and the local community.
“The last thing I want is for people to be distracted at work and build upanyadditionalworryabouttheirfuture.Havinganunderstandingcommunity helps people in this transition,” Joe said.
Recycling is a focus A total of 46 tonnes of general waste and potential recyclables was gathered for proper disposal or recycling around the mine site this Quarter.Around16,850litresofwasteoil/watermixandgreasewassent to an EPA approved facility for recycling.
As a result of positive management, increased recycling measures and implementation of the revised waste management plan. Compared to Quarter1,generalwastehasdecreasedby7tonnesandtherateof recycling of recyclables and scrap metal increased by 26 tonnes.
Approximately16,000litresofoil/water mixture, 2,100 litres of coolant and 11,400 litres of waste oil was sent to an EPA approved facility for recycling. The company is fully committed to recycling programs within the site to ensure we are doing our part to reduce, re-use and recycle.
Appointment of new Chief Executive OfficerIn July, the Board of Terramin Australia Limitedappointedexperienced mining industry executive Martin Janes as Chief Executive Officer of the Company.
Mr Janes has more than 20 years of experience in the resources and finance industry.
(continued page 2)
Newly appointed CEO of Terramin Australia, Martin Janes, with Angas Zinc Mine Manager, Joe Ranford, at the mine.
(continued page 2)
We’re underground… but exactly where have we been mining?A very strict set of regulations in the company’s Mining Leasecontrolshowfarthecompanycanmine–andeven while we are underground, mining can only take place within that lease boundary – above and below ground level.
You can see from the coloured lines on this aerial photograph that any drives (mine tunnels) must stop at the lease boundary – even when the mining may be at 380 metres below the surface.
Hightechnologymanagementofminingoperationsallows us to work within the lease-defined area, no matter how deep we are working.
Communication is appreciated by PatI am just an ordinary old age pensioner living in a caravan on Hindmarsh Island and enjoying my retirement so I had time to sit down and read the print off of the May AZM newsletter and was most impressed by the whole tone of the letter, the professional quality of it and the obvious attempts to keep the community informed. It is good to see how much effort is being ploughed into the community. I remember that this was promised before the mine started but very often those types of promises evaporate into thin air. So as a resident of the Fleurieu I want to congratulate all concerned on what you are doing.
It is a far cry from my father’s childhood in Wales. He was taken out of school at the age of thirteen and sent into the coal mines to help support his family and he contracted both scarlet fever which permanently damaged his kidneys and tuberculosis. He ended up spending two years in a sanatorium and migrating to Australia to try to find a healthier life style. He died at the age of 51 as a result of the kidney damage.
I have been down on the Big Pit Coal Museum underground tours and have great admiration for miners. It is good to see the care that is being taken in regards to health and safety in the Strathalbyn mine because regrettably such consideration was markedly absent in the coal mines last century.
I wish you all well in your work.
PatDerham-HindmarshIslandCaravanPark
AZM Suppliers / Sub Contractors by Region
Region Count
Outer Country Total 14
AdelaideHillsTotal 269
Adelaide Metro Total 331
International Total 54
Interstate Total 307
Grand Total 975
The Angas Zinc Mine will be processing the last ore on 30 September 2013.
Proud of our training recordTerramin at Strathalbyn has invested heavily in upgrading the skills and training for over 50 workers in the past four years. This investment in people has brought value to the community and to individuals.
Employees have received up-skilling for the mining industry, using specialised programs delivered by the Australian Training Alliance (ATA) that provide high quality training and workforce development solutions that provide participants with skills, knowledge and practical experiences consistent with the expectations of the mining industry nationally.
Our people successfully graduated in the following certificates and diplomas:
Certificate III in Resource Processing – 8 people
Certificate III in Surface Extraction – 9 people
Certificate III in Underground – 22 people
CertificateIVinFrontlineManagement – 13 people
Diploma of Management – 2 people
There have been approximately 35 people who have undertaken Emergency Response Training and been a member of the emergency response team since the mine commenced. Of these, a number have completed all of the certificates required (eleven electives in total) to achieve Certificate III in Mine Emergency Response &Rescue.
Angas Zinc Mine – History & Facts
Joe Ranford and mine manager Andrew Harris examine a core sample from exploration drilling operations at the mine in July 2013.
FACT: The Angas Zinc Mine has never gone beyond the boundary set by the Mining Lease – and any miss-guided rumour that we have gone further underground is just that – a rumour.
AZM water management attracts national interest
– see page 4
Part of the Angas team gathers during a safety drill – while another shift is working underground.
TERRAMIN AUSTRALIA LIMITED
TERRAMIN AUSTRALIA LIMITED ABN 67 062 576 238
ANGAS ZINC MINE
AUGUST 2013
16 angas zinc mine cOmmUniTY neWsLeTTeR aUgUsT 2013angas zinc mine cOmmUniTY neWsLeTTeR aUgUsT 2013
ANGAS ZINC MINE
Callington Road, Strathalbyn, SA 5255 PO Box 125, Strathalbyn, SA 5255
ANGAS ZINC MINE OFFICE
T: (08) 8536 5950
COMMUNITY COMMENTS (24 hours)T: (08) 8536 8010 E: [email protected]
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5 TeRRamin australia limited aUgUsT 2013
Plans announced for changes to mining operationsMilling work an option to continue, with community involvement
Terramin announced in July that the Company will cease production at the Angas Zinc Mine on 30 September 2013 and will place the mine site on care and maintenance pending the resumption of exploration at depth and near mine.
As foreshadowed in previous announcements, the mine will reach the end of its economic life at current metal prices at the end of September.
Regrettably, the completion of the mine means redundancies are inevitable. A total of 115 employees will be made redundant and will be assisted in the transition over the August to December 2013 period.
The Company is considering a number of options for the use of the mine site, the plant and associated equipment. As stated at the Company’s last AGM, the Board believes that the availability of mining infrastructure and treatment plant place the Company in a good position to take advantage of opportunities
Have your sayTerramin welcomes your feedback and there are many ways to contact us. The hotline is your way of reporting urgent matters or seeking an urgent response to a situation. The telephone number is (08) 8536 8010.
Matt Daniel is the company’s Environment and Community Superintendent and can be contacted on (08) 8536 5950 or [email protected].
Mike O’Reilly is our Community Engagement Consultant and can be contacted on 0414 882 505 or [email protected], or you can contact a member of the Strathalbyn Community Consultative Committee, which is the two-way conduit between the Community and Terramin.
Our support of community and economy…Through various initiatives over the last 5 years, the mine sponsors a range of community, educational, and sporting organisations including;
• CLASS,CommunityLiving and Support Services
• LocalandRegionalSchoolVisits
• StrathalbynSwimmingClub
• StrathalbynCricketClub
• StrathalbynTennisClub
• StrathalbynSoccerClub
• StrathalbynSeniorCitizen’sClub
• StrathalbynCFS
• StrathalbynPolo&RecreationClub
• SilentRipplesSuicide Bereavement Support
• MakeAWishAustralia
• StrathalbynBandFestival
• TAFEtrainingprograms Indigenous Entry to Mining
ADELAIDE OFFICE
TerraminAustraliaLimited Level3,70HindmarshSquare, Adelaide, South Australia 5000
T: (08) 8213 1415
F: (08) 8213 1416
W: www.terramin.com.au
Commitment to Community Terramin believe we have a social, environmental and economic responsibility to ensure that we can grow and operate our company safely and in a manner which will build long term, sustainable value for all our stakeholders.
This includes our employees, community, shareholders, contractors and partners. Terramin strives to build sustainable success through continuous improvement, risk management and stringent corporate governance processes.
Community:
Community Newsletter
that present themselves as a result of the current market conditions. The Company continues to identify, review and develop these opportunities.
Terramin recently completed a deep exploration program under the main ore body, which did not encounter significant mineralisation that could be mined commercially at current commodity prices. The Company plans to continue exploring under and in the proximity of the mine.
Terramin continues its discussions with the South Australian mine regulator to define the closure plan and mine rehabilitation and will continue to engage with the community during that process.
New CEO Martin Janes confirmed the company would respect constructive input from the Community and will ensure that any further operation at Angas will result in a positive contribution to the community through employment, commerce and civic projects.
InMarch2007,TerraminAustraliabeganmining at the Angas Zinc Mine, in the historic mining area of Strathalbyn, after a rigorous approval process.
The mine was financed and approved at a time ofrecordzincpricesof$4,000/tonneonaReserveof2.3Mtofsphaleriteore(zinc)andgalena ore (lead and silver). Angas was officiallyopenedon17September2008,theeveoftheGlobalFinancialCrisis(GFC).Angasfaced numerous setbacks and challenges over the life of the mine that were overcome through hard work and perseverance from management and workers.
Poor ground conditions initially delayed declinedevelopmentandzincpricesplummetedtonearUS$1000/tonne,causingthe cut-off grade to be increased to ensure profitability. Unforeseen additional ground water entering the mine was overcome with increased pumping capacity and while water storage became an issue with the community this was resolved with positive benefits for local agricultural groups.
At completion of mining, Angas Zinc Mine will have operated for 5 years, producing over 120,000tonnesofzinc,46,500tonnesofleadand 1,584,461 ounces of silver.
The mine has had minimal impact on the site’s visual amenity as it is based within a former limestone and sand quarry that had been operating for several decades.
During the mine site construction phase an averageof107workerswereonsiteforaperiodoftwoyears.Injustonemonth,February2008, a total of 3,000 tradies and heavy contractors’ workers attended at the site.
Since 2008 and over the life of the mine there have been 295 full time Angas employees – with a usual floating workforce of 115, plus many service and specialist contractors and crews who were sourced where possible from theHillsandFleurieuRegion.
Angas Zinc Mine employed 115 people and contributedover$273milliontothecommunitythrough local purchasing strategies and community endorsed sponsorships.
Community and Industry visit mineSix mine site tours for community and industry groups were undertaken in the second quarter of 2013:
•MountBarkerRotaryClubwithTaiwaneseexchangevisitors
•GreenTriangleActivityGrouptour
•ATATrainingGroup–on-sitepresentation andon-sitetour/BBQ
•AdelaideHillsChristianSchool–presentation and bus tour
•RedCreekCommunityvisitregardingseedcollectionand exploration activities
•AdelaideHillsHomeSchoolinggroup–presentation
General Manager’s personal commitment:AZM General Manager Joe Ranford says his priority with the shutting down of mining operations at AZM is for the safety and well-being of the Terramin workers in the final weeks of production.
“My first and absolute priority is for our workforce and ensuring that our redundancy process is as dignified as possible. The majority of our workforce live locally and redundancies will have a flow-on effect to families and the local community.
“The last thing I want is for people to be distracted at work and build upanyadditionalworryabouttheirfuture.Havinganunderstandingcommunity helps people in this transition,” Joe said.
Recycling is a focus A total of 46 tonnes of general waste and potential recyclables was gathered for proper disposal or recycling around the mine site this Quarter.Around16,850litresofwasteoil/watermixandgreasewassent to an EPA approved facility for recycling.
As a result of positive management, increased recycling measures and implementation of the revised waste management plan. Compared to Quarter1,generalwastehasdecreasedby7tonnesandtherateof recycling of recyclables and scrap metal increased by 26 tonnes.
Approximately16,000litresofoil/water mixture, 2,100 litres of coolant and 11,400 litres of waste oil was sent to an EPA approved facility for recycling. The company is fully committed to recycling programs within the site to ensure we are doing our part to reduce, re-use and recycle.
Appointment of new Chief Executive OfficerIn July, the Board of Terramin Australia Limitedappointedexperienced mining industry executive Martin Janes as Chief Executive Officer of the Company.
Mr Janes has more than 20 years of experience in the resources and finance industry.
(continued page 2)
Newly appointed CEO of Terramin Australia, Martin Janes, with Angas Zinc Mine Manager, Joe Ranford, at the mine.
(continued page 2)
We’re underground… but exactly where have we been mining?A very strict set of regulations in the company’s Mining Leasecontrolshowfarthecompanycanmine–andeven while we are underground, mining can only take place within that lease boundary – above and below ground level.
You can see from the coloured lines on this aerial photograph that any drives (mine tunnels) must stop at the lease boundary – even when the mining may be at 380 metres below the surface.
Hightechnologymanagementofminingoperationsallows us to work within the lease-defined area, no matter how deep we are working.
Communication is appreciated by PatI am just an ordinary old age pensioner living in a caravan on Hindmarsh Island and enjoying my retirement so I had time to sit down and read the print off of the May AZM newsletter and was most impressed by the whole tone of the letter, the professional quality of it and the obvious attempts to keep the community informed. It is good to see how much effort is being ploughed into the community. I remember that this was promised before the mine started but very often those types of promises evaporate into thin air. So as a resident of the Fleurieu I want to congratulate all concerned on what you are doing.
It is a far cry from my father’s childhood in Wales. He was taken out of school at the age of thirteen and sent into the coal mines to help support his family and he contracted both scarlet fever which permanently damaged his kidneys and tuberculosis. He ended up spending two years in a sanatorium and migrating to Australia to try to find a healthier life style. He died at the age of 51 as a result of the kidney damage.
I have been down on the Big Pit Coal Museum underground tours and have great admiration for miners. It is good to see the care that is being taken in regards to health and safety in the Strathalbyn mine because regrettably such consideration was markedly absent in the coal mines last century.
I wish you all well in your work.
PatDerham-HindmarshIslandCaravanPark
AZM Suppliers / Sub Contractors by Region
Region Count
Outer Country Total 14
AdelaideHillsTotal 269
Adelaide Metro Total 331
International Total 54
Interstate Total 307
Grand Total 975
The Angas Zinc Mine will be processing the last ore on 30 September 2013.
Proud of our training recordTerramin at Strathalbyn has invested heavily in upgrading the skills and training for over 50 workers in the past four years. This investment in people has brought value to the community and to individuals.
Employees have received up-skilling for the mining industry, using specialised programs delivered by the Australian Training Alliance (ATA) that provide high quality training and workforce development solutions that provide participants with skills, knowledge and practical experiences consistent with the expectations of the mining industry nationally.
Our people successfully graduated in the following certificates and diplomas:
Certificate III in Resource Processing – 8 people
Certificate III in Surface Extraction – 9 people
Certificate III in Underground – 22 people
CertificateIVinFrontlineManagement – 13 people
Diploma of Management – 2 people
There have been approximately 35 people who have undertaken Emergency Response Training and been a member of the emergency response team since the mine commenced. Of these, a number have completed all of the certificates required (eleven electives in total) to achieve Certificate III in Mine Emergency Response &Rescue.
Angas Zinc Mine – History & Facts
Joe Ranford and mine manager Andrew Harris examine a core sample from exploration drilling operations at the mine in July 2013.
FACT: The Angas Zinc Mine has never gone beyond the boundary set by the Mining Lease – and any miss-guided rumour that we have gone further underground is just that – a rumour.
AZM water management attracts national interest
– see page 4
Part of the Angas team gathers during a safety drill – while another shift is working underground.
![Major Lawrence Lee Bazley Angas - Slump Ahead in Bonds [1937]](https://img.pdfslide.net/doc/110x75/552cec454a795915608b457c/major-lawrence-lee-bazley-angas-slump-ahead-in-bonds-1937.jpg)
