Mining and Metallurgy

Although specializing in geology, many of the assignments carried out by Mackay & Schnellmann involve input from contiguous disciplines such as mining engineering and metallurgy. All the consultants that Mackay & Schnellmann associates in its assignments are senior well experienced members of their professions who observe the highest standards and are fully able to work in a multi-disciplinary environment.

Examples of recent assignments involving mining engineering, metallurgical and other associates are as follows:

QUEENSLAND 2012

In 2012, an Independent Geologist's Report was prepared for Paradise Phosphate Limited, a member of the Gutnick Network of companies, covering six phosphate projects in Queensland that ranged in status from well developed with reserves to exploration stage. All of the projects are located in the Georgina Basin and include Paradise North, Paradise South, D-Tree, Highland Plains, Lily & Sherrin Creeks, and Quita Creek. The Report reviewed the outcome of modern exploration and evaluation studies conducted over the project areas covering historically significant phosphate deposits identified from the 1960s. The technical team reviewing the Paradise South phosphate deposit where phosphate concentrate production is planned included due diligence reporting by Specialists in resource estimation, mining engineering and metallurgy.

MONGOLIA 2008

In the middle of 2008, due diligence was undertaken on the geological interpretation of an iron deposit in southwest Mongolia. The interpretation was to be used in the modelling of the deposit as a constraint on the JORC Code compliant resource estimation. The existing model was of a skarn deposit but the evidence did not support this: a sedimentary origin was considered to be more probable. The review was part of a multi-disciplinary appraisal of the proposed mining operation that included consideration of the mining engineering, mineral processing and marketing aspects.

WESTERN AUSTRALIA 2008

During much of 2008, advice was given to an exploration company on the technical aspects of an earlier resource estimate for a banded iron formation deposit. Mineral processing aspects were also covered. The details are confidential.

WESTERN AUSTRALIA 2007 to 2010

From October 2007 to May 2010, a large iron exploration programme was undertaken at the magnetite banded iron formation Cashmere Downs Deposit on behalf of the owners Cashmere Iron Limited. Major activities included geological mapping, 17000 metres of RC drilling, 1500 metres of core drilling, chemical analyses and Davis Tube testwork, comprehensive quality assurance procedures, down hole geophysics, density determinations, structural measurements on orientated core and mineral processing testwork. In mid 2010, an evaluation of the data was completed followed by deposit modelling and a JORC Code compliant magnetite resource was estimated of 823 million tonnes ahead of pre-feasibility studies. Apart from geology, the other discipline covered was mineral processing.

INDONESIA 2005 to 2007

From late 2005 to the start of 2007, services were provided to AKD Ltd (later renamed Indomines) on the exploration of magnetite iron sand deposits on the south coast of Java near Yogyakarta. Services involved due diligence and the design of and from March 2006 the on site implementation of an exploration programme intended to generate data for the estimation of a JORC Code compliant resource that was completed in late 2006. Responsibilities involved the supervision of two aircore drill rigs, three local geologists and up to 70 local employees along with specialist contractors in surveying, resource estimation and other disciplines. The magnetite resource was estimated as 298 million tonnes at 13.8% Fe. The assignment included mineral processing testwork on the sands using a 10 tonne bulk sample prepared on site and shipped to Australia.

WESTERN AUSTRALIA 2005

On behalf of a European potential investor in the exploitation of the deposit, a due diligence assignment was undertaken in the first half of 2005 on the Hope Downs iron project in Western Australia on which a feasibility study had been completed. Activities involved assessment of the geology, exploration techniques and deposit modelling and their impact on the resource estimate. Quality assurance issues were also evaluated in some depth. In addition, the resources and potential of a large number of other outlying properties were also considered. The assignment was undertaken jointly with mining engineering and mineral processing associates.

WESTERN AUSTRALIA 2004 to 2005

From late 2004 to early 2005, a JORC Code compliant resource estimate was prepared for a portion of the Cashmere Downs banded iron formation in the Murchison Mineral Field of Western Australia. Activities included supervision of drilling operations, field logging, preparation of database, interpretation of cross sections, estimation of resource and evaluation of mineral processing aspects. The magnetite Inferred Resource comprised 135 million tonnes. Subsequent to the resource estimation, advice was given on various aspects of iron deposit exploration including conceptual exploration programmes for the subsequent stages of work.

INDONESIA 2003

A mining engineering study was undertaken on behalf of Kelian Equatorial Mining in the second half of 2003. The assignment was completed on an alluvial gold deposit at Kelian in eastern Kalimantan as part of the rehabilitation of the area at the end of active mining. A detailed costing was prepared to assess the economics of the operation although it was intended that the material would be extracted whatever the financial evaluation as it had been decided to remove the detritals and establish a wetland area.

WESTERN AUSTRALIA 2002

On behalf of BankWest, due diligence and risk analysis were undertaken during late 2002 on the diamond mining operations of Kimberley Diamond Company NL at Ellendale in the Kimberley Region of Western Australia. The assignment encompassed consideration of the geological, mining engineering, mineral processing and product value aspects and involved a critical review of the resources and reserves including mine reconciliations. As a result of the evaluation, BankWest became financiers to Kimberley Diamond Company NL.

WESTERN AUSTRALIA 2002

In mid 2002, a risk analysis was undertaken on behalf of Birla, an Indian smelting company, on the Nifty copper deposit of Western Australia at that time owned by Straits Resources Limited. The assessment was concerned with the deep sulphide resource below the oxide material that was then the subject of copper production. Investigations covered the geological, mining engineering and metallurgical aspects of the sulphide deposit from the point of view of its potential to provide copper sulphide concentrates to the Indian smelter. Due diligence was carried out on the resources.

QUEENSLAND 2001

A due diligence assessment was carried out in late 2001 on behalf of Birla of the operations of Selwyn Mines, a copper gold producer in Queensland. The evaluation was carried out in conjunction with Ernst & Young and was directed towards the investigation of the risk elements that would impact materially on the value of the operations. The existing mine resources were evaluated and the exploration properties were appraised. Other aspects covered were the planned mining schedule, mineral processing plant and the financial situation of the company. The assignment was undertaken to provide input to the preparation of an offer to purchase an interest in the target company.