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<strong>AIG</strong> News • No 123 • February 2016<br />

<strong>Up</strong> & <strong>Coming</strong> <strong>Geoscientists</strong><br />

- a <strong>sample</strong> <strong>of</strong> <strong>our</strong> <strong>AIG</strong> Hon<strong>our</strong>s<br />

<strong>Bursary</strong> <strong>Recipients</strong><br />

Inside this <strong>AIG</strong> News...<br />

From Y<strong>our</strong> President: Our land abounds in nature’s gifts • Institute News •Membership <strong>Up</strong>dates • Registered Pr<strong>of</strong>essional<br />

<strong>Geoscientists</strong> Applications • Geoscientist Employment in Australia Continues its Slide • Geologists in the age <strong>of</strong> commodity<br />

turmoil • <strong>Up</strong>coming Events • Sequence Stratigraphic Analysis <strong>of</strong> the Epsilon Formation, Merrimelia Ridge, Cooper Basin –<br />

South Australia • Origin <strong>of</strong> ladder dykes and associated rocks, Ravenswood: Implication <strong>of</strong> Magmatic Evolution •<br />

Fluid inclusion and trace element study <strong>of</strong> stockwork quartz at the Red Mountain porphyry copper deposit • 4: Seven<br />

Wonders <strong>of</strong> the Hydrogeological World - Iconic Blue Lake • Industry – Academic Research Projects: The Good, The Bad<br />

and The Ugly • VALMIN CODE 2015: What has changed and why? • Geologists Are Highly Biased—How to take Business<br />

Advantage <strong>of</strong> this Bias • Events Calendar • And much more...<br />

ISSN 0812-6089 · ISBN 1 876118 47 4


AMC Specialist Technical<br />

Workshops<br />

January – December 2016<br />

AMC Consultants (AMC) is a leading independent mining consultancy, providing services exclusively to the minerals sector. We are<br />

pleased to announce dates for <strong>our</strong> specialist technical career development workshops. Participants on all workshops will receive a<br />

bound, full-col<strong>our</strong> workshop manual. AMC can also run these workshops in-house and tailor them for y<strong>our</strong> specific needs.<br />

Discounts are available for participants who attend several workshops in the same week (March, June, August, November).<br />

JORC 2012—Complying with the Code in the<br />

Reporting Environment<br />

Brisbane: 2 March, 22 June, 24 August, 16 November<br />

Presenters: Peter Stoker and Mark Berry<br />

This half-day workshop will present the fundamental<br />

requirements <strong>of</strong> the JORC Code, including new and changed<br />

provisions adopted in 2012. Examples <strong>of</strong> compliant and<br />

non-compliant reports will be reviewed, including case studies.<br />

This workshop is designed for existing and intending<br />

Competent Persons and management staff at all levels.<br />

Lessons Learnt from Auditing Mineral<br />

Res<strong>our</strong>ce Estimates<br />

Brisbane: 3 March, 23 June, 25 August, 17 November<br />

Hong Kong: 4 April (in conjunction with Mines and Money)<br />

Presenters: Peter Stoker and Mark Berry<br />

This one-day workshop will present key learnings from AMC’s<br />

extensive international audits <strong>of</strong> mineral res<strong>our</strong>ce estimates. It<br />

is designed to provide new and senior geological staff with<br />

insights into best practice and common problems. Topics<br />

covered will include drill programme design and drilling,<br />

surveying, <strong>sample</strong> preparation and analytical techniques,<br />

logging and related processes, geological interpretation and<br />

domaining, geostatistics, estimation, classification, reporting,<br />

QA/QC processes, and data management.<br />

Preparing Appropriate Inputs for Robust<br />

Grade Estimation<br />

Brisbane: 29 February, 20 June, 22 August, 14 November<br />

Presenter: Alex Virisheff<br />

This one-day workshop will present fundamental considerations<br />

and understandings in preparing information as inputs for<br />

completing a mineral res<strong>our</strong>ce estimate. It is designed to provide<br />

guidance on addressing issues associated with data inputs to<br />

grade estimates and grade estimation tasks.<br />

Delivering High-quality Grade Estimates<br />

Brisbane: 1 March, 21 June, 23 August, 15 November<br />

Presenter: Alex Virisheff<br />

This one-day workshop will present fundamental<br />

considerations and understandings in carrying out grade<br />

estimation in completing a mineral res<strong>our</strong>ce estimate. It is<br />

designed to provide guidance on setting grade estimation<br />

parameters, selecting grade estimation methods, and<br />

completing validation <strong>of</strong> grade estimates.<br />

Assessment <strong>of</strong> Geological Uncertainty in<br />

Mining and Management <strong>of</strong> Risk<br />

Brisbane: 4 March, 24 June, 26 August, 18 November<br />

Presenter: Mark Berry<br />

This one-day workshop will identify and assess the s<strong>our</strong>ces<br />

<strong>of</strong> geological uncertainty that feed into mineral res<strong>our</strong>ce<br />

and ore reserve estimates, with implications from pit to<br />

port. Case studies and a range <strong>of</strong> risk management<br />

strategies will be presented. This workshop is designed for<br />

geologists, engineers, metallurgists, and management staff<br />

at all levels.<br />

Excellence in Mineral Res<strong>our</strong>ces Estimation<br />

Brisbane: 23–27 May, 17–21 October<br />

Presenters: Peter Stoker, Mark Berry, Alex Virisheff,<br />

Brian Hall, and other industry specialists<br />

This five-day workshop provides geologists with a<br />

comprehensive review <strong>of</strong> all inputs into res<strong>our</strong>ce estimation,<br />

from data collection to reporting. Case studies are used<br />

extensively to illustrate and reinforce concepts. The workshop<br />

is presented by AMC principal consultants, supplemented by<br />

guest presentations covering topics such as <strong>sample</strong><br />

preparation and analysis issues.<br />

Register online at www.amcconsultants.com/training<br />

For more information, contact: Alana Philips: (T) +61 7 3230 9000 (E) bristraining@amcconsultants.com<br />

www.amcconsultants.com<br />

AMC — the business <strong>of</strong> mining<br />

2 <strong>AIG</strong> NEWS Issue 123 · February 2016


Inside this <strong>AIG</strong> news...<br />

4 From Y<strong>our</strong> President: Our land abounds in nature’s gifts<br />

7 Institute News<br />

15<br />

Snippets<br />

NSW Branch Report<br />

Tasmania Branch Report<br />

Education News<br />

14 Membership <strong>Up</strong>dates<br />

30<br />

14 Registered Pr<strong>of</strong>essional <strong>Geoscientists</strong> Applications<br />

15 Geoscientist Employment in Australia Continues its Slide<br />

20 Geologists in the age <strong>of</strong> commodity turmoil<br />

Contents<br />

22 <strong>Up</strong>coming Events<br />

24 Student articles<br />

32<br />

Sequence Stratigraphic Analysis <strong>of</strong> the Epsilon Formation,<br />

Merrimelia Ridge, Cooper Basin – South Australia<br />

Origin <strong>of</strong> ladder dykes and associated rocks, Ravenswood:<br />

Implication <strong>of</strong> Magmatic Evolution<br />

Fluid inclusion and trace element study <strong>of</strong> stockwork quartz at the<br />

Red Mountain porphyry copper deposit<br />

30 4: Seven Wonders <strong>of</strong> the Hydrogeological World - Iconic Blue Lake<br />

32 Industry – Academic Research Projects: The Good, The Bad and The Ugly<br />

42<br />

Cover photo:<br />

Jordan Mill in Uluru, NT - a field trip with the<br />

Australian School <strong>of</strong> Petroleum (University <strong>of</strong><br />

Adelaide).<br />

38 VALMIN CODE 2015: What has changed and why?<br />

42 Geologists Are Highly Biased—How to take Business Advantage <strong>of</strong> this Bias<br />

49 Events Calendar<br />

50 <strong>AIG</strong> Council & <strong>AIG</strong> News<br />

<strong>AIG</strong> Secretariat<br />

Contact: Doug Wiles<br />

Ph: (02) 9431 8662<br />

Fax: (02) 9431 8677<br />

Email: aig@aig.org.au<br />

The Association Specialists (TAS)<br />

PO Box 576<br />

Crows Nest NSW 1585<br />

Australia<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 3


From Y<strong>our</strong> President<br />

Wayne Spilsbury<br />

President’s Report<br />

Our land abounds in nature’s gifts<br />

Just when you thought it couldn’t<br />

get worse – it has. <strong>AIG</strong>’s latest<br />

Employment Survey has shown a<br />

further increase in unemployment (18.7%)<br />

and further deterioration in underemployment<br />

Federal Government<br />

Exploration Development Incentive (EDI):<br />

a creative use <strong>of</strong> tax deductions where<br />

investors deduct a proportion <strong>of</strong> a company’s<br />

eligible exploration expenditure against<br />

<strong>of</strong> 800Mt at 0.8% copper and 0.3g/t gold).<br />

Pace 2020 follows on from the successful<br />

$30.9 million PACE initiative launched in 2004<br />

with a further $10.2 million funding.<br />

(23.4%) amongst geoscientists. It seems<br />

almost flippant to say but “Hang in there”;<br />

it will and must get better. The world’s<br />

population keeps increasing by 3% per year<br />

and each new generation wants more and<br />

better stuff than the last and all stuff has to be<br />

made from natural res<strong>our</strong>ces.<br />

For un(der)employed members this is an<br />

opportune time to upgrade skills and expand<br />

y<strong>our</strong> pr<strong>of</strong>essional network for the inevitable<br />

turnaround. All state Branches are <strong>of</strong>fering<br />

unemployed members discounted rates for<br />

Pr<strong>of</strong>essional Development events or you can<br />

take advantage <strong>of</strong> <strong>our</strong> group discount for<br />

Edumine c<strong>our</strong>ses.<br />

In the depth <strong>of</strong> this unprecedented<br />

downturn in the minerals industry it’s easy to<br />

get despondent and blame <strong>our</strong> governments,<br />

blame NGOs, blame China etc. But let’s focus<br />

on the good; as <strong>our</strong> anthem notes nature has<br />

blessed Australia with the gift <strong>of</strong> tremendous<br />

mineral wealth that contributes more than<br />

10 percent to <strong>our</strong> gross domestic product<br />

and employs more than 300,000 Australians.<br />

While we will continue to press the States and<br />

Federal government to expedite the long and<br />

non-productive process <strong>of</strong> securing access<br />

to land, we should also acknowledge the<br />

assistance they are providing:<br />

their personal taxable income. 84 mineral<br />

exploration companies qualified in the<br />

first year <strong>of</strong> operation <strong>of</strong> the programme.<br />

Their shareholders will be able to claim<br />

accumulated tax <strong>of</strong>fsets <strong>of</strong> $21 million when<br />

lodging their next returns. A further $35<br />

million and S40 million will be available in<br />

2015/16 and 2016/17 respectively.<br />

The Research and Development Incentive:<br />

The Research and Development Incentive:<br />

the current R&D Tax Incentive (capped at<br />

$100 million/yr) gives some innovative junior<br />

miners access to the 45 percent refundable<br />

R&D tax <strong>of</strong>fset. The line between eligible core<br />

R&D activities and exploration exclusions is a<br />

fine one and companies are advised to seek<br />

advice from one <strong>of</strong> the big f<strong>our</strong> accounting<br />

firms or a specialists tax advisor in preparing<br />

their application.<br />

South Australia<br />

Plan for Accelerating Exploration (PACE<br />

2020): SA was the first state to create a<br />

co-funded drilling programme where successful<br />

applicants received up to 50 % <strong>of</strong> the direct<br />

drilling costs, to a maximum <strong>of</strong> $100,000.<br />

Their biggest success was the Carrapateena<br />

discovery (Indicated and Inferred Res<strong>our</strong>ces<br />

The Geoscientist Assistance Program (GAP):<br />

is a collaboration between the Department<br />

<strong>of</strong> State Development, PACE and the South<br />

Australian Chamber <strong>of</strong> Mines and Energy. The<br />

GAP places skilled and graduate geoscientists<br />

into work placements through a salary<br />

subsidy scheme and contributes up to $1000<br />

towards site readiness training e.g. First Aid,<br />

4WD training etc.<br />

Western Australia<br />

Exploration Incentive Scheme (EIS):<br />

has co-funded mineral exploration drilling to<br />

the tune <strong>of</strong> $39.4 million for more than 590<br />

greenfields projects since it began in 2009.<br />

WA has committed a further $10 million per<br />

year to the scheme to June 2017. The Nova<br />

discovery (Mineral Res<strong>our</strong>ce 14.3Mt grading<br />

2.3% nickel, 0.9% copper and 0.08% cobalt)<br />

was in part facilitated by EIS funding.<br />

Mining Legislation Amendment Bill 2015:<br />

many low-impact exploration activities which<br />

present minimal environmental risk or impact,<br />

would soon become eligible for immediate<br />

approval in non-environmentally sensitive areas.<br />

4<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


Queensland<br />

Minister for Natural Res<strong>our</strong>ces and Mines<br />

has announced a 50% reduction over the<br />

next two years in the expenditure that an<br />

explorer is required to commit under their<br />

Northern Territory<br />

Creating Opportunities for Res<strong>our</strong>ce<br />

Exploration (CORE): a $3.95 million<br />

initiative which focusses on acquiring new<br />

precompetitive geoscience information as<br />

<strong>AIG</strong> has 6 members on the VALMIN<br />

Committee. They have worked hard to<br />

complete the VALMIN Code (2015 Edition)<br />

which became effective on 30 January 2016<br />

and becomes mandatory from 1 July 2016.<br />

President’s Report<br />

mineral exploration permit (excluding coal).<br />

well as industry collaborative grants for 50%<br />

To access the new Valmin Code go to<br />

Also a dedicated Res<strong>our</strong>ces Investment<br />

<strong>of</strong> costs (up to $100,000) for exploration in<br />

http://www.valmin.org/docs/VALMIN_<br />

Commissioner has been appointed to<br />

unexplored/greenfields areas.<br />

Code_2015_final.pdf<br />

assist mineral explorers compete for<br />

My final note, according to Wikipedia, 3 April<br />

investment capital.<br />

Tasmania<br />

is Geologists Day “… a pr<strong>of</strong>essional holiday<br />

Western Tasmanian Geoscience Initiative:<br />

<strong>of</strong> geologists, hydrogeologists, engineering<br />

New South Wales<br />

Mineral Res<strong>our</strong>ces Tasmania doesn’t have<br />

geologists, geophysicists and geochemists. It<br />

New Frontiers Cooperative Drilling:<br />

the funds to co-fund drilling but is continuing<br />

is traditionally celebrated on the first Sunday<br />

enc<strong>our</strong>ages exploration drilling in greenfields<br />

to collect precompetitive geoscientific<br />

<strong>of</strong> April. … established by decree <strong>of</strong> the<br />

areas that will test new geological ideas and<br />

information, in order to enhance the<br />

Presidium <strong>of</strong> the Supreme Soviet on March 31,<br />

models in regions covered by significant<br />

prospectivity <strong>of</strong> under-explored areas primarily<br />

1966 to commemorate the achievements <strong>of</strong><br />

cover. The program will fund 50% - 100% <strong>of</strong><br />

in Western Tasmania.<br />

Soviet geologists after discovery <strong>of</strong> the West<br />

drilling metre-rate costs, with a maximum<br />

“I’m from government and I’m here to help<br />

Siberian petroleum province.” Na zdorovie!<br />

<strong>of</strong> $200,000 awarded per project. The<br />

you” actually rings true for mineral explorers!<br />

total government allocation for Round 2 <strong>of</strong><br />

I recently queried the WA Department<br />

Cooperative Drilling will be $2 million in<br />

<strong>of</strong> Mines and Petroleum about Annual<br />

2016-2017.<br />

Operations Reports – expenditure on mining<br />

tenements (aka “Form 5”). I don’t know<br />

Wayne Spilsbury<br />

Victoria<br />

the reporting requirements in other States<br />

President<br />

TARGET Minerals Exploration Initiative:<br />

but here in WA anyone can author a Form<br />

provides $11.7 million (over f<strong>our</strong> years), to<br />

5 report. It seems to me that a report to<br />

companies for co-funded minerals exploration<br />

government detailing exploration activity<br />

programs. The TARGET Area for Round 1<br />

should be authored by a pr<strong>of</strong>essional<br />

(2016) is the Stavely Province for base metals<br />

geoscientist bound by an enforceable<br />

and/or gold.<br />

Code <strong>of</strong> Ethics (i.e. an <strong>AIG</strong> member). Such<br />

a requirement could provide consulting<br />

geoscientists with new clients amongst the<br />

junior explorers who lack pr<strong>of</strong>essional staff.<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 5


Res<strong>our</strong>ces advisory, consulting<br />

and training services group<br />

OPTIRO 2016 Pr<strong>of</strong>essional Development C<strong>our</strong>ses:<br />

using real-life data-sets<br />

The Optiro c<strong>our</strong>ses give you the knowledge, skills and tools to<br />

confidently and efficiently work on y<strong>our</strong> own.<br />

We believe that the best way for you to learn, is to take you step-by-step through the<br />

processes - using real-life data sets - to ensure you gain the practical experience you<br />

need to immediately put what you have learned into practice when back at work.<br />

Each training-day has an 8PD HOURS AusIMM rating.<br />

Essential Excel Skills for Geologists<br />

key tips, tricks, tools and templates to save you time and effort – and make y<strong>our</strong> work look great!<br />

Sampling Theory and Best Practice<br />

understanding the key issues - how to optimise the frequency, size and the nature <strong>of</strong> the <strong>sample</strong>, and quantifying the<br />

errors associated with the <strong>sample</strong>. Practice <strong>of</strong> how the <strong>sample</strong> is taken, delimited, reduced, transported and prepared;<br />

and the theory <strong>of</strong> how to measure the errors associated with <strong>our</strong> sampling protocols, and to optimise those protocols.<br />

Getting The Most Out <strong>of</strong> QAQC Data<br />

covers the QAQC life cycle: planning types and frequencies <strong>of</strong> QAQC data to be collected; mechanics <strong>of</strong> collecting,<br />

transporting and submitting <strong>sample</strong>s; analyses for systematic and trending errors; what is and<br />

what isn’t a failure; making changes in the res<strong>our</strong>ce database.<br />

Reconciliation - getting it right the first time<br />

all aspects <strong>of</strong> reconciliation process, including key data to be collected, importance <strong>of</strong> unbiased<br />

measurement <strong>of</strong> volumes, tonnages and grades (among other metrics). How to map out the production data flow<br />

and discuss the important measures <strong>of</strong> performance – using real-life data.<br />

16 May<br />

15 August<br />

7 November<br />

12 December<br />

17 May<br />

16 August<br />

8 November<br />

13 December<br />

18-19 May<br />

17-18 August<br />

9-10 November<br />

14-15 December<br />

20 May<br />

19 August<br />

11 November<br />

16 December<br />

PERTH<br />

PERTH<br />

PERTH<br />

PERTH<br />

Res<strong>our</strong>ce Estimation and Evaluation<br />

uses a real-life data set to cover the entire res<strong>our</strong>ce estimation and evaluation cycle and its requirements - from data<br />

collection and quality assurance through to classification. The 5th day <strong>of</strong> the c<strong>our</strong>se consolidates all that you have<br />

learned by taking you step-by-step through a check-list <strong>of</strong> the res<strong>our</strong>ce estimation and evaluation processes, and<br />

gives you the opportunity to bring y<strong>our</strong> own data along to discuss and get advice on.<br />

Recoverable Res<strong>our</strong>ces: getting to the High Grade<br />

demystifies and solves one <strong>of</strong> the great paradoxes <strong>of</strong> project evaluation – how to do more with less information. How<br />

to assess the recoverable res<strong>our</strong>ces for project valuation when the relative drill spacing does not provide sufficient<br />

coverage for the direct estimation into small blocks or selective mining units (SMU) required at the production stage.<br />

Report Writing for Geologists and Engineers<br />

how to plan y<strong>our</strong> document; write y<strong>our</strong> summaries and conclusions; the essential grammar rules; styles and<br />

formatting; key features and time-saving tips in Word; how to review y<strong>our</strong> document and review others’ documents;<br />

how to write the references, abbreviations, acronyms, glossaries and the appendixes; and how to achieve y<strong>our</strong><br />

objective <strong>of</strong> writing an accurate report that grabs y<strong>our</strong> readers’ attention!<br />

Mining & Geology Fundamentals for Non-Miners<br />

this c<strong>our</strong>se has been designed for non-miners working, investing, financing or associated with the mining industry –<br />

who need to understand the key fundamentals about the mine cycle, from exploration through to mine closure.<br />

Understanding Mineral Processing – metallurgy fundamentals for non-metallurgists<br />

this c<strong>our</strong>se has been designed for engineers, geologists, mineralogists, environmental scientists, plant operators,<br />

marketers, financial advisors and anyone who either deals with mineral processing or needs a better understanding<br />

<strong>of</strong> the principles <strong>of</strong> extractive metallurgy. It gives an overview <strong>of</strong> mineral processing – from how metal is geologically<br />

detected, extracted from rocks and minerals to the final metal product.<br />

Surpac Geology Fundamentals<br />

this c<strong>our</strong>se uses a real-life data-set to cover the basics <strong>of</strong> using Surpac as a geologist. You learn about the<br />

fundamental concepts <strong>of</strong> Surpac’s interface, graphics environment, geology database, string files, DTM surfaces,<br />

solids modelling (wireframing), block modelling and macros.<br />

Res<strong>our</strong>ce Estimation and Evaluation with Surpac<br />

this c<strong>our</strong>se uses a real-life data-set to cover the res<strong>our</strong>ce evaluation cycle and its requirements - from data collection<br />

and quality assurance through to classification, using Surpac. All attendees receive a free copy <strong>of</strong> Optiro’s OREpack<br />

Declus Optimiser, and FREE 30 day trial <strong>of</strong> one <strong>of</strong> these OREpack modules: Kriging Neighb<strong>our</strong>hood Analysis;<br />

Localised Uniform Conditioning; Drillhole Spacing Optimiser; or Estimation Manager. Bring y<strong>our</strong> data and Rowdy will<br />

set it up to ensure you’re able to use the modules by the end <strong>of</strong> the c<strong>our</strong>se.<br />

14-18 March<br />

30 May - 3 June<br />

5-9 September<br />

28 Nov - 2 Dec<br />

21-22 March<br />

6-7 June<br />

12-13 September<br />

23 March<br />

29 July<br />

14 September<br />

14 November<br />

5 December<br />

28 April<br />

16 June<br />

8 September<br />

3 November<br />

6 December<br />

29 April<br />

17 June<br />

9 September<br />

4 November<br />

7 December<br />

20 June<br />

21 November<br />

21-24 June<br />

22-25 November<br />

PERTH<br />

PERTH<br />

PERTH<br />

PERTH<br />

PERTH<br />

PERTH<br />

PERTH<br />

You can register online at:<br />

www.optiro.com/training-and-mentoring/<br />

ON-SITE TRAINING: All <strong>our</strong> c<strong>our</strong>ses are available as On-site training. Please<br />

contact Optiro’s Training Manager Diana Titren for further information or a quote<br />

TEL: +61 (0)8 9215 0000 | Email: dtitren@optiro.com or training@optiro.com<br />

www.optiro.com<br />

6 <strong>AIG</strong> NEWS Issue 123 · February 2016


3<br />

Institute News Snippets<br />

NORTHERN TERRITORY GEOLOGICAL SURVEY<br />

AGES2016<br />

ANNUAL GEOSCIENCE EXPLORATION SEMINAR<br />

15–16 March 2016, Alice Springs Convention Centre, Northern Territory<br />

The Territory’s premier<br />

exploration event<br />

Northern Territory<br />

Held over two days (15-16 March) in Alice<br />

The Territory continues to <strong>of</strong>fer outstanding opportunities for<br />

both minerals and petroleum explorers. Major investment in new<br />

geoscience data from the Northern Territory Geological Survey Springs, AGES has a mix <strong>of</strong> Government<br />

Geological Survey<br />

and its partners under the Creating Opportunities for Res<strong>our</strong>ce<br />

Exploration (CORE) initiative, is providing exciting insights and into industry presentations, and range <strong>of</strong><br />

the untapped potential <strong>of</strong> under-explored areas in the Territory.<br />

(NTGS)’s Annual networking events that are attended by most<br />

Join us in Alice Springs on 15–16th March 2016 for the 17th Annual<br />

Exploration Seminar (AGES), where a mix <strong>of</strong> NTGS and<br />

companies active in exploration in the NT. In<br />

industry presentations will showcase the rich minerals and petroleum<br />

Geoscience<br />

potential <strong>of</strong> the Northern Territory. AGES is a technical conference<br />

2016, there will be technical presentations<br />

that presents a unique opportunity for you to access the latest in fresh<br />

exploration ideas and geoscientific data from the Territory and to<br />

network with colleagues who share an interest in the discovery and on recent exploration highlights from<br />

Exploration<br />

development <strong>of</strong> the Territory’s minerals and oil and gas res<strong>our</strong>ces.<br />

Around 220 people attended the event in 2015.<br />

companies including Teck Australia, Santos,<br />

Newmont, Pangaea Res<strong>our</strong>ces, Independence<br />

Seminar AGES 2016<br />

Seminar highlights<br />

The Northern ALICE Territory SPRINGS Geological SEMINAR Survey<br />

(NTGS)’s Annual Geoscience Exploration<br />

Seminar (AGES) is a technical event targeted<br />

at geoscientists with an interest in the<br />

exploration industry in the Northern Territory.<br />

Group, Newmarket Gold, Origin Energy, KGL<br />

Res<strong>our</strong>ces and Emmerson Res<strong>our</strong>ces, as<br />

well as the release <strong>of</strong> new pre-competitive<br />

geoscience from NTGS under the CORE<br />

initiative, and presentations from GA, CSIRO<br />

and CODES. Whether you are already<br />

exploring in the Northern Territory, seeking<br />

new exploration opportunities, or looking<br />

to network and make contacts in the NT<br />

exploration sector, AGES is the only event<br />

where the NT’s minerals and petroleum<br />

explorers are all in one place. Cost <strong>of</strong><br />

registration for the two days is only $390. For<br />

more information visit www.ages.nt.gov.au.<br />

• first release <strong>of</strong> interpreted seismic data across the<br />

Tennant Creek mineral field<br />

• the latest information new geoscience and<br />

exploration success for shale gas in the Beetaloo<br />

<strong>AIG</strong>’s National Graduate<br />

Sub-basin<br />

• technical updates on successful exploration programs<br />

and<br />

Committee<br />

new discoveries from across<br />

Needs<br />

the Territory<br />

Y<strong>our</strong><br />

for<br />

Help VALMIN<br />

copper, zinc, gold, oil and gas and more<br />

• new <strong>AIG</strong>’s concepts National Graduate stratigraphy, Committee basin architecture is asking and members and<br />

For more<br />

mineral fertility <strong>of</strong> the Amadeus Basin<br />

friends to share their experiences gained when establishing<br />

• dedicated session on the McArthur Basin including information<br />

Code<br />

the their release careers <strong>of</strong> new and geoscience working as and an shale early geochemistry<br />

career geoscientist. Visit www.ages.nt.gov.au;<br />

datasets, discussion <strong>of</strong> geophysical techniques for<br />

phone (08) 8999 released<br />

5313<br />

exploration, A short and survey release has <strong>of</strong> been an expanded developed 3D which model aims that to collect or email ages@nt.gov.au<br />

includes the McArthur Group and equivalents<br />

information on:<br />

Hosted by the<br />

• results <strong>of</strong> recent mapping and copper mineral systems NT Geological (2015 Survey Edition)<br />

studies in the Arunta Region<br />

• what advice do you wish you were given during y<strong>our</strong> Department <strong>of</strong> Mines and Energy<br />

• practical information to assist you with issues such as Supported by<br />

land access, early titles career? and accessing geoscience data<br />

Department <strong>of</strong> Business After an extensive review process,<br />

• the AGES dinner – the premier networking and social<br />

event • for what the NT was exploration the best piece industry <strong>of</strong> advice you received?<br />

the VALMIN Committee announces the new VALMIN Code<br />

AGES also • what incorporates issues/traits the Mining do Services you believe Expo – are a showcase evident in recent<br />

(2015 Edition) has now been approved by AusIMM and <strong>AIG</strong>.<br />

<strong>of</strong> Northern Territory businesses and their capabilities to support y<strong>our</strong><br />

exploration students and mining and ventures. graduates that should be addressed?<br />

The 2015 Edition <strong>of</strong> the VALMIN Code is available at<br />

Preface<br />

VALMIN Code, 2015 Edition<br />

The Australasian Code for the Public Reporting <strong>of</strong> Technical Assessments and Valuations <strong>of</strong> Mineral Assets (VALMIN Code) has been<br />

prepared by the VALMIN Committee, a joint commi tee <strong>of</strong> The Australasian Institute <strong>of</strong> Mining and Meta lurgy (AusIMM) and the<br />

Australian Institute <strong>of</strong> <strong>Geoscientists</strong> (<strong>AIG</strong>), with the participation <strong>of</strong> the Minerals Council <strong>of</strong> Australia (MCA) and other key stakeholder<br />

representatives.<br />

There have been three previous versions <strong>of</strong> the VALMIN Code, the first applicable from 1 July, 1995, the second applicable from 1<br />

April, 1998 and the third applicable from 29 April 2005. The Minerals Industry Consultants Association (MICA) was a member <strong>of</strong> the<br />

joint committee and a major contributor to earlier Codes.<br />

The VALMIN Code provides a set <strong>of</strong> fundamental principles (Competence, Materiality and Transparency), mandatory requirements<br />

and supporting recommendations accepted as representing good pr<strong>of</strong>essional practice to assist in the preparation <strong>of</strong> relevant Public<br />

Reports on any Technical Assessment or Valuation <strong>of</strong> Mineral Assets. It is a companion to the Australasian Code for Reporting <strong>of</strong><br />

Exploration Results, Mineral Res<strong>our</strong>ces and Ore Reserves (JORC Code). The VALMIN Code provides guidance on ma ters that may<br />

be subjec to Australian regulations, other provisions <strong>of</strong> law and the published policies and guidance <strong>of</strong> the Australian Securities and<br />

Investments Commission (ASIC) and the Listing Rules <strong>of</strong> the Australian Securities Exchange (ASX) or <strong>of</strong> other relevant securities<br />

exchanges.<br />

The VALMIN Code is wri ten from a Minerals perspective and uses terminology consistent with the JORC Code.<br />

AUSTRALASIAN CODE FOR PUBLIC REPORTING<br />

OF TECHNICAL ASSESSMENTS AND VALUATIONS<br />

OF MINERAL ASSETS<br />

Terminology<br />

Definitions <strong>of</strong> introductory terms are listed at the end <strong>of</strong> the VALMIN Code. Definitions that are associated with the VALMIN Code’s<br />

fundamental principles and minimum requirements are incorporated in the text and are printed in bold text.<br />

The word ‘must’ denotes a VALMIN Code requirement that is mandatory.<br />

The words ‘should’ and ‘may’ indicate that discretion can be used depending on the particular circumstances <strong>of</strong> a Public Report and<br />

providing that the VALMIN Code’s fundamental principles are not transgressed.<br />

Defined terms are capitalised.<br />

Guidelines are in italics.<br />

The singular includes the plural and vice versa.<br />

THE VALMIN CODE<br />

Petroleum<br />

The VALMIN Code is suggested as a guide to good practice for Public Reporting <strong>of</strong> technical assessments and valuations <strong>of</strong><br />

Petroleum Assets. The reader is referred to Chapter 5 <strong>of</strong> the ASX Listing Rules fo requirements on reporting <strong>of</strong> Petroleum assets in<br />

Australia.<br />

Disclaimer<br />

2015 EDITION<br />

The VALMIN Code does not constitute legal advice and may not consider a l ma ters relevan to the preparation <strong>of</strong> a Public Report. It<br />

is the responsibility <strong>of</strong> Practitioners to determine their legal obligations in relation to the preparation <strong>of</strong> a Public Report and to seek<br />

legal advice when necessary.<br />

Note: Procedural and mandatory items are in normal typeface, with the word ‘must’ in bold;<br />

guideline items are in boxes and italics and those definitions incorporated in the text <strong>of</strong> the Code are in bold.<br />

Effective 30 January 2016<br />

Mandatory for AusIMM and <strong>AIG</strong> members from 1 July 2016<br />

Prepared by The VALMIN Committee, a joint committee <strong>of</strong> the Australasian<br />

Institute <strong>of</strong> Mining and Metallurgy and the Australian Institute <strong>of</strong> <strong>Geoscientists</strong><br />

Institute News<br />

• what do you look for when seeking to employ a graduate<br />

geoscientist?<br />

• what advice can you <strong>of</strong>fer to those wanting to survive<br />

the ‘busts’ and thrive in the ‘booms’?<br />

• what are some <strong>of</strong> the most useful things you learnt<br />

during y<strong>our</strong> time at university studying geoscience?<br />

• what have you loved most about y<strong>our</strong> career and what<br />

job during that j<strong>our</strong>ney has been the highlight and why?<br />

www.valmin.org/docs/VALMIN_Code_2015_final.pdf<br />

The VALMIN Code (2015 Edition) will be effective from 30 January<br />

2016 and becomes mandatory for AusIMM and <strong>AIG</strong> members from 1<br />

July 2016.<br />

During the transition period <strong>of</strong> 30 January to 30 June 2016,<br />

Public Reports are able to be published in accordance with either the<br />

2005 or new 2015 Edition <strong>of</strong> the VALMIN Code –all Public Reports<br />

published in this period should clearly state which version <strong>of</strong> the Code<br />

has been applied.<br />

Survey contributions will be used to shape the National Graduate<br />

Committee’s work and <strong>AIG</strong>’s mentoring programme. The survey<br />

is available at https://www.surveymonkey.com/r/R9BX77J<br />

To read more, please refer to the full article here<br />

www.aig.org.au/valmin-code-2015-edition-released<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 7


PACE<br />

Copper<br />

The time is right<br />

for South Australia<br />

to deliver a<br />

new precompetitive<br />

geoscientific initiative<br />

NEW<br />

DISCOVERIES<br />

4th ARGA Conference<br />

a great success<br />

Ken McQueen, IAE, University <strong>of</strong> Canberra<br />

The Australian Regolith<br />

<strong>Geoscientists</strong> Association<br />

recently held the 4th<br />

ARGA Conference at<br />

Thredbo in the Snowy<br />

Mountains from the<br />

7-11 February. ARGA<br />

was formed in 2009 as<br />

a legacy outcome <strong>of</strong> the<br />

Co-operative Research<br />

Centre for Landscape<br />

Environment and Mineral<br />

Exploration (CRC LEME).<br />

The Association holds<br />

$<br />

20<br />

MILLION<br />

INITIATIVE<br />

$<br />

400<br />

MILLION<br />

PRIVATE MINERAL<br />

EXPLORATION<br />

biennial conferences with themes related<br />

to regolith science (including geochemistry and mineral exploration),<br />

landscape evolution, soils, surficial geology and the environment.<br />

The 2016 conference attracted 28 participants from across Australia<br />

and was a very successful, boutique, user friendly scientific meeting.<br />

204744<br />

$<br />

20<br />

MILLION<br />

INVESTMENT<br />

20:1<br />

INVESTMENT<br />

RETURNS<br />

1000<br />

JOBS<br />

DIRECT &<br />

INDIRECT<br />

FUTURE<br />

and<br />

EMPLOYMENT<br />

COPPER<br />

RESOURCES<br />

WORLD’S LARGEST<br />

GEOPHYSICAL<br />

PROGRAM<br />

COLLABORATIVE<br />

DRILLING<br />

WORLD-CLASS DATA<br />

www.minerals.statedevelopment.sa.gov.au/geoscience/pace<br />

Activities included a 1 day pre-conference field trip to parts <strong>of</strong> the<br />

Monaro lava field led by Ian Roach and Jonathon Clarke. This trip<br />

examined volcanic features, weathering pr<strong>of</strong>iles, as well as gullying<br />

processes analogous to those discovered on Mars. There were two<br />

days <strong>of</strong> oral and poster presentations and the award <strong>of</strong> the Keith Scott<br />

Memorial Student Prize. A mid-conference field trip, led by Leah Moore<br />

highlighted glacial and peri-glacial features around the Kosciuszko<br />

track. Leah also led a one day post-conference field trip to Charlottes<br />

Pass and Blue Lake. The proceedings <strong>of</strong> the Conference can be<br />

downloaded from the ARGA website at http://regolith.org.au/<br />

Anyone with an interest in regolith-related science or landscape<br />

evolution is welcome to join ARGA. Membership fees are very<br />

reasonable at $1 and anyone who attends the biennial conference gets<br />

free membership! Contact secretary@regolith.org or check the<br />

ARGA website.<br />

For the latest news,<br />

updates & events<br />

aig.org.au<br />

8 <strong>AIG</strong> NEWS Issue 123 · February 2016


Making a Difference in<br />

Geoscience Education<br />

Earth Science Western Australia is making<br />

a difference to the teaching <strong>of</strong> Earth and<br />

Environmental Science in Western Australia.<br />

In 2015, 1957 educators, 442 schools, 7304<br />

students engaged with ESWA (this includes<br />

requested repeat visits).<br />

Visit http://tinyurl.com/zuh52cy to view<br />

ESWA’s latest newsletter featuring articles on:<br />

• Enthusiasm for Earth and Environmental<br />

Science!<br />

• Primary Australian Literacy Mathematics<br />

& Science Program<br />

• Woodside Australian Science Project<br />

• Reports from the Field – Bunbury<br />

Catholic College in Kalgoorlie and<br />

Rossmoyne SHS Heads to Fremantle<br />

Roy Woodall named AGC’s Inaugural<br />

National Geoscience Champion<br />

Australian Geoscience Council recognises Roy Woodall with inaugural National Geoscience<br />

Champion award.<br />

In recognition <strong>of</strong> his contribution to geoscience in Australia, Roy Woodall AO FAusIMM<br />

has been unanimously elected as the inaugural National Geoscience Champion by the<br />

Australian Geoscience Council (AGC).<br />

Roy Woodall’s scientific approach to exploration contributed to many significant ore<br />

discoveries in Australia. Discoveries include the Kambalda nickel field (1966), uranium at<br />

Yeelirrie (1971), the Olympic Dam copper-gold-uranium deposit (1975), the St Ives gold field<br />

(1980), the East Spar oil-condensate field (1993), plus contributions to many others.<br />

Roy set high scientific standards for the recording <strong>of</strong> scientific data, using the best<br />

equipment and analytical facilities available at the time, leaving a significant legacy <strong>of</strong><br />

scientific methodologies and successes. Roy’s standard <strong>of</strong> training and mentorship <strong>of</strong> other<br />

geoscientists has advanced the capabilities <strong>of</strong> Australia’s mining and exploration industries<br />

and the development <strong>of</strong> <strong>our</strong> nation.<br />

Recognition <strong>of</strong> Roy Woodall AO FAusIMM as a National Geoscience Champion is<br />

made by the AGC on behalf <strong>of</strong> its eight member organisations, representing over 8,000<br />

geoscientists in Australia. This prestigious hon<strong>our</strong> will be accorded to living geoscientists<br />

for contributions to the science, craft and art <strong>of</strong> geoscience by way <strong>of</strong> their technical,<br />

leadership, mentoring and collegial endeav<strong>our</strong>s.<br />

Institute News<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 9


NSW<br />

NSW Branch Report<br />

Verity Borthwick<br />

Institute News<br />

The NSW Branch <strong>of</strong> the <strong>AIG</strong> is active in<br />

organising events during the year. These<br />

include one day seminars, student information<br />

nights and the fabulous bi-annual Mines and<br />

Wines Conference, as well as joint events with<br />

other societies.<br />

The NSW Branch <strong>of</strong> the <strong>AIG</strong>, in collaboration<br />

with the local state branches <strong>of</strong> the GSA and<br />

the ASEG, is co-sponsoring a c<strong>our</strong>se entitled<br />

Geophysics for the Mineral Exploration<br />

Geoscientist, presented by UWA Pr<strong>of</strong>essor<br />

Mike Dentith. The c<strong>our</strong>se is based on the<br />

recently published award-winning textbook<br />

<strong>of</strong> the same name, written by Pr<strong>of</strong>essor<br />

Dentith and well known minerals consultant<br />

Roger Smyth-King and Kim Stanton-Cook<br />

Steve Mudge, and will be held at the Rugby<br />

Club in the Sydney CBD from 16 and<br />

17 February 2016. Fees are especially<br />

attractive for members who are unemployed/<br />

underemployed, postgraduate students and<br />

early career geoscientists.<br />

This short c<strong>our</strong>se provides a state-<strong>of</strong>-the art<br />

overview <strong>of</strong> geophysical exploration methods<br />

without rec<strong>our</strong>se to complex mathematical<br />

descriptions. It includes descriptions <strong>of</strong> all the<br />

main geophysical methods used in mineral<br />

exploration, including gravity, magnetic,<br />

electrical, electromagnetic methods. C<strong>our</strong>se<br />

participants are guided through the basic<br />

physical phenomena, the acquisition and<br />

processing <strong>of</strong> geophysical data, to the<br />

creation <strong>of</strong> subsurface models and their<br />

geological interpretation, with many local and<br />

international case studies.<br />

The NSW branch also has a number <strong>of</strong><br />

other workshops in the pipeline including<br />

career support for geoscientists looking for<br />

a job and a core logging c<strong>our</strong>se that will be<br />

held at the Londonderry Drillcore Library most<br />

probably in the 2nd quarter <strong>of</strong> 2016.<br />

We also take a leading role in organising<br />

Mines and Wines Conference every two years.<br />

The latest Mines and Wines conference was<br />

held in September last year, in Queanbeyan<br />

and was a fantastic event with the theme<br />

‘Uncorking the Tasmanides’. Planning for the<br />

next conference will begin this year, with the<br />

first committee meeting set for February.<br />

For those who couldn’t make it to the<br />

conference, the presentations are up on the<br />

SMEDG website (see below). So make sure to<br />

check them out!<br />

<strong>AIG</strong> NSW has a close association with<br />

SMEDG. SMEDG meetings are held on the<br />

last Thursday <strong>of</strong> the month at the Rugby Club.<br />

Gatherings are very informal with a free bar<br />

at the beginning, an interesting speaker and<br />

<strong>of</strong>ten dinner afterwards. For more details go<br />

to the SMEDG web site www.smedg.org.au<br />

and scroll down to “Join the SMEDG mailing<br />

list” to register for y<strong>our</strong> free membership.<br />

You will then receive an email once a month<br />

reminding you <strong>of</strong> the meeting and the topic.<br />

If you’re interested in giving a talk about<br />

mineral exploration please get in touch with<br />

the committee members (you can find their<br />

details on the SMEDG web site).<br />

SMEDG also hosts harb<strong>our</strong> cruises twice<br />

a year, which are always great events and<br />

an excellent opportunity to catch up with old<br />

10<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


“<br />

SMEDG meetings<br />

are held on the last<br />

Thursday <strong>of</strong> the month<br />

at the Rugby Club.”<br />

friends and network. The 2015 Christmas<br />

cruise held on the 18th <strong>of</strong> December was<br />

SMEDGers catching some sun out on the deck.” Rupert Osborn and Neil Rutherford<br />

Limited funding is available to provide<br />

NSW-based <strong>AIG</strong> members with opportunities<br />

i<br />

Institute News<br />

another great day out on the harb<strong>our</strong>, the<br />

weather was beautiful, the drinks were<br />

flowing, conversation was excellent and a<br />

good time was had by all.<br />

NSW <strong>AIG</strong> provides funding support for<br />

young and for unemployed geoscientists.<br />

to participate in pr<strong>of</strong>essionally organised<br />

geological field trips, conferences and c<strong>our</strong>ses<br />

(see the <strong>AIG</strong> web site under the Education tab,<br />

NSW <strong>AIG</strong> Support Fund).<br />

The branch committee continues<br />

to assist in the assessment <strong>of</strong><br />

applicants from NSW, seeking<br />

Registered Pr<strong>of</strong>essional Geoscientist<br />

status with the <strong>AIG</strong>.<br />

The NSW branch committee meets<br />

every two months in Sydney –<br />

visitors, guests, members and<br />

potential committee members<br />

are always welcome. If anyone is<br />

interested in joining the committee,<br />

or helping in any capacity they should<br />

contact any NSW branch committee<br />

member or email nsw@aig.org.au.<br />

In particular we are looking for young<br />

pr<strong>of</strong>essionals and graduates who<br />

might be interested in joining.<br />

Russell Meares and Dan Cronin<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 11


TAS<br />

Tasmania Branch Report<br />

Dr Alistair Reed<br />

Chairman<br />

Institute News<br />

Dear all,<br />

New Year’s Greetings from the <strong>AIG</strong>s newest<br />

branch.<br />

It was a busy final quarter to 2015. With<br />

the end <strong>of</strong> year fast approaching, an initial<br />

group <strong>of</strong> members met, subsequently formed<br />

a committee and over the next two months,<br />

outlined out what we hope will be the starting<br />

Dr Robert Findlay, Ben Jones, Shelley Greener, Dr Alistair Reed.<br />

point <strong>of</strong> a dynamic and productive state branch.<br />

The Tasmanian branch <strong>of</strong> the <strong>AIG</strong> aims to<br />

be a voice for members working or living in<br />

Tasmania. The committee are only too aware<br />

that residing in Tasmania is <strong>of</strong>ten seen as<br />

a hindrance by perspective employers. We<br />

will aim to try and reduce this view and to<br />

enc<strong>our</strong>age more companies and persons to<br />

look at Tasmania (and its geologists) to see<br />

the opportunities and benefits that they have.<br />

In line with this aim, one <strong>of</strong> the larger<br />

items <strong>of</strong> committee business has been the<br />

establishment <strong>of</strong> a timely and appropriate<br />

social calendar, suitable and reachable<br />

for <strong>our</strong> members. This would not only<br />

include a chance for members to catch up<br />

and network but also raise any issues. In<br />

time, the committee also plan to include<br />

Tasmanian hosted geoscience conferences<br />

and importantly, training and education<br />

opportunities for Tasmanian based geologists<br />

within the state, when and where the<br />

opportunities can be found.<br />

With this in mind and the 2016 year<br />

rapidly gaining pace, to kick-<strong>of</strong>f the social<br />

calendar the committee warmly invite all <strong>of</strong> its<br />

Tasmanian members (and anyone else who<br />

might be interested) to attend the first <strong>of</strong> <strong>our</strong><br />

events, the March ‘Geo Pub’ at the Shipwright<br />

Arms in Battery Point, Hobart on Thursday<br />

March 3rd from 5pm. Geo Pub is an informal<br />

atmosphere, where members can take a break,<br />

enjoy a beer and perhaps a spin a story or two.<br />

If you can’t make this one, Geo Pub will be<br />

held on the first Thursday <strong>of</strong> every month at<br />

the same time and venue. The committee are<br />

very keen to meet <strong>our</strong> members and importantly<br />

hear their views and gain their support.<br />

All events will be advertised on the <strong>AIG</strong><br />

state branch Tasmanian webpage and you<br />

can contact the committee by emailing<br />

tas@aig.org.au.<br />

Y<strong>our</strong>s faithfully<br />

Dr Alistair Reed - Chairman<br />

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12<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


EDU<br />

Education Report<br />

Kaylene Camuti<br />

Chair, <strong>AIG</strong> Education Committee<br />

This year’s <strong>AIG</strong> Student <strong>Bursary</strong> Program is underway and application<br />

forms will be distributed to students and universities in a few weeks.<br />

This year we will again be <strong>of</strong>fering bursaries to third year, hon<strong>our</strong>s and<br />

postgraduate geoscience students enrolled at Australian universities.<br />

A reminder that this year, as in previous years, the <strong>AIG</strong> is <strong>of</strong>fering<br />

bursaries to students working in all geoscience field, and is also<br />

<strong>of</strong>fering a number <strong>of</strong> sponsored bursaries to students working in<br />

specific fields <strong>of</strong> geoscience or geological terrains, or enrolled at<br />

specific universities. These bursaries on <strong>of</strong>fer include:<br />

• The <strong>AIG</strong> Third Year, Hon<strong>our</strong>s and Postgraduate Bursaries:<br />

<strong>of</strong>fered to geoscience students working in all fields <strong>of</strong> geoscience<br />

(sponsored by the <strong>AIG</strong> State Branches and Federal Council).<br />

• The Macquarie Arc Conference-GSNSW – <strong>AIG</strong> <strong>Bursary</strong>: <strong>of</strong>fered to<br />

geoscience students working on mapping-based hon<strong>our</strong>s projects<br />

in the Lachlan Orogen, in or around the Macquarie Arc.<br />

• The SMEDG – <strong>AIG</strong> Bursaries: <strong>of</strong>fered to NSW geoscience<br />

students working on projects related to mineral exploration.<br />

• The Davis – <strong>AIG</strong> Bursaries: <strong>of</strong>fered to geoscience students enrolled<br />

at JCU or UWA to assist with costs associated with field work.<br />

If you know any current geoscience students eligible for a bursary,<br />

please let them know about the <strong>AIG</strong> <strong>Bursary</strong> Program and enc<strong>our</strong>age<br />

them to apply for a 2016 bursary.<br />

<strong>AIG</strong> <strong>Bursary</strong> Sponsors –<br />

February 2016<br />

The <strong>AIG</strong> wishes to than the following individuals and<br />

organisations for their support <strong>of</strong> the<br />

Geoscience Student <strong>Bursary</strong> Program<br />

DIAMOND<br />

• CHRIS BONWICK<br />

Sponsoring the Bonwick-<strong>AIG</strong> Geoscience<br />

Student Bursaries<br />

• GEOFF DAVIS<br />

Sponsoring the Davis-<strong>AIG</strong> Geoscience Student Bursaries<br />

• MACQUARIE ARC CONFERENCE – GEOLOGICAL<br />

SURVEY NSW<br />

Sponsoring the Macquarie Arc Conference-<strong>AIG</strong><br />

Geoscience Student Bursaries<br />

• SYDNEY MINERAL EXPLORATION DISCUSSION GROUP<br />

Sponsoring the SMEDG-<strong>AIG</strong> Geoscience<br />

Student Bursaries<br />

PLATINUM<br />

• <strong>AIG</strong> STATE BRANCHES<br />

• ALEXANDER RESEARCH – JONATHAN BELL<br />

Sponsoring the Alexander Research-<strong>AIG</strong> Geoscience<br />

Student <strong>Bursary</strong><br />

• SA DEPARTMENT OF STATE DEVELOPMENT (DSD)<br />

Sponsoring the DSD-<strong>AIG</strong> Geoscience Student <strong>Bursary</strong><br />

GOLD<br />

• GNOMIC EXPLORATION SERVICES PTY LTD<br />

• TERRA SEARCH PTY LTD<br />

SILVER<br />

• CRYPTODOME PTY LTD<br />

Institute News<br />

BRONZE<br />

• DOUG YOUNG<br />

For more information on the Student <strong>Bursary</strong> Programme visit<br />

www.aig.org.au/education-training/student-bursary-programme<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 13


Membership <strong>Up</strong>date<br />

A warm welcome to <strong>AIG</strong>’s new members<br />

New/<strong>Up</strong>grades NOVEMBER 2015<br />

New/<strong>Up</strong>grades FEBRUARY 2016<br />

RPGeo Applications<br />

Membership <strong>Up</strong>dates<br />

Students<br />

Allan Rebecca Kate • Balis James • Cox Morgan •<br />

Cichosz Jacob Przemyslaw • Dempsey Dan •<br />

Dormer Ben • Elsley Matthew Stephen •<br />

Fitch Alex • Godfrey Jessica • Gray Kelly •<br />

Griffin Elliot • Kearney Lisa • Latta Marcus •<br />

Linkert Amy • Marosz Gabrielle • McWhirter Kirsten<br />

• Miller Michael • Morgan Zoe • Payten Bailey James<br />

• Potter Larissa Carmel • Potter Tamara •<br />

Pretorius Sion • Schmidt Olivia • Tobin Joanna •<br />

Vasconcelos Gomes Igor • Waddy Garricle •<br />

Whiting Timothy Michael<br />

Students<br />

Boateng Asamoah Obeng • Crepin Julia Ruby •<br />

Darvell Jade Alana • Fox Jack Thomas •<br />

Gregson Gail • Halloran Landon J.S. •<br />

Harmsworth Lewis • Hopkins Hayley-Jane •<br />

Jackson Jim • Lamsal Bijay • Madhoji Sunny •<br />

Mckelvey Sarah • Mclellan Brennan • Pereira Craig<br />

• Saxvik Alec Anthony<br />

GRADUATE<br />

Ageneau Mathieu Puthenpurayil • Beltan Mete •<br />

Garner Brendan • Greentree James •<br />

CANDIDATES APPROVED BY <strong>AIG</strong><br />

COUNCIL IN NOVEMBER, 2015<br />

Mr Ganzurkh Chuluunbaatar <strong>of</strong><br />

Ulaanbataar, Mongolia, in Coal.<br />

Mr Garry Straughton <strong>of</strong> St Leonards,<br />

NSW, in Hydrogeology.<br />

Mr Troy Crozier <strong>of</strong> Mt Colah, NSW, in<br />

Geotechnical and Engineering.<br />

Dr Mark Pirlo <strong>of</strong> Brisbane, Queensland,<br />

in Geochemistry.<br />

GRADUATE<br />

Harris Michael • Hetherington Michael •<br />

Jumeau Anthony • Klein Thomas Ian • Mackay-<br />

Mr Peter Caristo <strong>of</strong> The Gap, Queensland,<br />

in Mineral Exploration.<br />

Booth Jessica • Hill Richard Andrew •<br />

Scollay Ben • Oehlman Adam Alexander •<br />

Mr Scott McManus <strong>of</strong> Port Macquarie,<br />

McDonagh Genna Beth • Pugh Richard Tomos •<br />

Paul Matthew David • Primmer Matthew Wayne •<br />

NSW, in the further field <strong>of</strong> Mining.<br />

Thomas Matthew Charles • Wesby Tom Frederick<br />

Stokes Natalie Derek Reid • Tait Douglas Corinne<br />

MEMBERS<br />

MEMBER<br />

New Candidates Published<br />

for Peer Review by<br />

<strong>AIG</strong> Members<br />

Anderson Heath Clark • Azad Hemant • Bateman Jane<br />

Bax Danique • Begg Graham Selina Michelle •<br />

• Bilyarski Stoimen Dimitrov • Bramall Emma Louise •<br />

Du Jumin • Freeman David Francis • Garbuzov Ilya •<br />

Halford Derek Daniel • Harris Catherine Morag •<br />

Besir Deniz Cameron • Bremner Genevieve •<br />

Cairns Benjamin • Chapman Robert • Chubb Andrew<br />

• Davidson Mark • Diemar Glen • Doyle Christopher<br />

Ms Lauren Helm <strong>of</strong> Brisbane, Queensland,<br />

is seeking registration in the field <strong>of</strong><br />

Hydrogeology.<br />

Hope David Gregory • Jansen Nicholas Herbert •<br />

Johnson Benjamin Nigel • Littlewood Nathan Matthew<br />

• Lower Chantelle Suzanne • Mullan Darrena •<br />

Nigel • Durnev Pavel • Fraser Hamish Aaron •<br />

Froud Jason • Garrett Craig Andrew •<br />

Groves Lara Cheryl • Harvey Jane • Helm Lauren Cree<br />

Mr Kim Boundy <strong>of</strong> Narrabeen, New South<br />

Wales, is seeking registration in the field <strong>of</strong><br />

Mineral Exploration.<br />

Pariana Gina Ulpa • Park Julie Anna • Sinnott John<br />

• Huisman Danny • Ignacio Allan Maglaya •<br />

Mr Christopher Chamberlain <strong>of</strong> Mount<br />

Kenneth • Stannard David Linton • Thom James David<br />

• Toni David A • Walker Ricky Johnathan •<br />

Williams Jed • Wilton Dean Theodore • Yavi Robert M<br />

Jafarov Fizuli • Kabilo Pascal Lachlan •<br />

Latorre Alfonso • MacDonald Grant • Moore Leah<br />

Robert • Morgan Graeme • Mortimer Russell Neil •<br />

Cotton, Queensland, is seeking registration in<br />

the fields <strong>of</strong> Geotechnical and Engineering and<br />

Structural Geology.<br />

FELLOW<br />

Elliott Stanley Mark<br />

Morton Tracey Helen • Oonnunny John McRae •<br />

Paterson Andrew • Saganyuk Vladimir Bogdanovich •<br />

Sparrow Robert George • Stacpoole John •<br />

Uemoto Takeshi George • Usher Brent • Walker<br />

Mr John Stacpoole <strong>of</strong> Freshwater,<br />

Queensland, is seeking registration in the field<br />

<strong>of</strong> Geotechnical & Engineering.<br />

Robert McRae • West Simon • Winternitz Michael<br />

RETIRED<br />

Mutton Andrew • Turner Richard<br />

FELLOW<br />

Glacken Ian Martin<br />

14<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


Geoscientist Employment in<br />

Australia Continues its Slide<br />

Andrew Waltho<br />

<strong>AIG</strong> Councillor, Australian Institute <strong>of</strong> <strong>Geoscientists</strong><br />

Employment prospects for Australia’s<br />

pr<strong>of</strong>essional geoscientists declined<br />

further in the last quarter <strong>of</strong> 2015<br />

according to the results <strong>of</strong> the latest,<br />

quarterly survey by the Australian Institute <strong>of</strong><br />

<strong>Geoscientists</strong> (<strong>AIG</strong>). At 31 December 2015,<br />

the unemployment rate amongst Australian<br />

Latest Employment Survey<br />

geoscientists was 18.7% and the underemployment<br />

rate was 23.4%. The combined<br />

unemployment and under-employment rate <strong>of</strong><br />

42.1% was the highest recorded since the <strong>AIG</strong><br />

surveys commenced in mid-2009.<br />

Less than 50% <strong>of</strong> self-employed<br />

geoscientists were able to secure more than<br />

one quarter <strong>of</strong> their desired workload, pointing<br />

to a real unemployment rate <strong>of</strong> 31.1%, also<br />

the highest rate recorded by the <strong>AIG</strong> surveys<br />

to date and more than 10% higher than at the<br />

peak <strong>of</strong> the global financial crisis <strong>of</strong> 2009.<br />

Geoscientist employment declined in<br />

every state, except NSW where it remained<br />

static, and Victoria where unemployment<br />

actually fell but under-employment increased.<br />

The greatest increase in unemployment<br />

was observed in Queensland, where<br />

unemployment and underemployment rates<br />

were more than 15% higher than those<br />

observed in September 2015, followed by<br />

South Australia.<br />

© ingimage.com<br />

Geoscientist unemployment and<br />

under-employment in Australia<br />

June 2009 – December 2015<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 15


Latest Employment Survey<br />

Geoscientist unemployment and underemployment by State<br />

Changes in geoscientist employment since the previous survey in<br />

September 2015<br />

“<br />

Almost 70% were<br />

not confident <strong>of</strong> regaining<br />

employment within the<br />

next 12 months ... ”<br />

Well over 40% <strong>of</strong> unemployed and<br />

underemployed geoscientists have been out<br />

<strong>of</strong> work, or unable to secure their desired level<br />

<strong>of</strong> work for more than 12 months, pointing<br />

to a growing pool <strong>of</strong> long-term unemployed<br />

in Australian geoscience. Almost 70% were<br />

not confident <strong>of</strong> regaining employment within<br />

the next 12 months and more than one in 20<br />

indicated that they were turning their backs<br />

on their chosen pr<strong>of</strong>ession due to the dire<br />

situation that has surrounded geoscientist<br />

employment in Australia for more than two<br />

and a half years.<br />

Sentiment amongst geoscientists currently<br />

in employment varied. Some 36% expressed<br />

confidence in maintaining their employment<br />

for the next 12 months, but 17% were not<br />

confident <strong>of</strong> retaining employment beyond the<br />

first quarter <strong>of</strong> 2016.<br />

The survey questionnaire was changed<br />

for the most recent survey to collect<br />

information on employment conditions<br />

and how unemployed and under-employed<br />

geoscientists were coping with the extended<br />

downturn in employment opportunities facing<br />

their pr<strong>of</strong>ession.<br />

Specialist res<strong>our</strong>ces advisory<br />

and consulting services group<br />

Our expertise and fresh thinking ensures<br />

strong sustainable relationships with <strong>our</strong><br />

clients<br />

TALK WITH CONFIDENCE TO OPTIRO TODAY<br />

WE LOOK FORWARD TO TALKING WITH YOU<br />

Paul Blackney: pblackney@optiro.com<br />

Christine Standing: cstanding@optiro.com<br />

Level 1, 16 Ord St, West Perth 6005<br />

T: +61 8 9215 0000<br />

www.optiro.com<br />

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Warwick Nordin<br />

BSc (Hons), M<strong>AIG</strong><br />

Surpac, Vulcan, GEMS,<br />

MapInfo, Gridding,<br />

Micros<strong>of</strong>t Access.<br />

Data QAQC and compositing.<br />

warwick@geologist.com<br />

8 Romaine C<strong>our</strong>t, Mackay. Qld. 4740<br />

+61(0)7 49422905; 0475433550<br />

Linear Geostats<br />

Variography, block models.<br />

OK and ID 2 interpolation.<br />

Res<strong>our</strong>ce Categorisation.<br />

16<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


Latest Employment Survey<br />

Unemployed and under-employed<br />

geoscientists were asked how they were<br />

coping with their current situation.<br />

Responses in the “Other” category included:<br />

• establishing new businesses to take<br />

advantage <strong>of</strong> an eventual upturn in<br />

Australia’s res<strong>our</strong>ce industries;<br />

• becoming a stay at home parent while<br />

their spouse worked;<br />

• living on superannuation or other<br />

savings;<br />

• reluctantly accepting early retirement;<br />

• working for free to maintain<br />

qualifications and broaden their<br />

experience;<br />

• leaving Australia to pursue opportunities<br />

overseas; and,<br />

• drafting case studies and papers for<br />

publication based on their experience.<br />

The employment crisis has also had an<br />

impact on the fields in which Australian<br />

geoscientists are employed, with mineral<br />

exploration feeling the greatest impact.<br />

More than 87% <strong>of</strong> Australia’s geoscientists<br />

currently in employment work as full-time<br />

employees. Survey respondents were asked<br />

whether their conditions <strong>of</strong> employment, in<br />

terms <strong>of</strong> salary, associated benefits, h<strong>our</strong>s<br />

<strong>of</strong> work etc., had improved, remained the<br />

same or deteriorated since September 2014.<br />

Some 16% <strong>of</strong> respondents considered their<br />

employment conditions to have improved,<br />

59% thought their conditions had remained<br />

the same, while the remainder reported that<br />

their conditions had deteriorated. These<br />

results are considered enc<strong>our</strong>aging from the<br />

point <strong>of</strong> view that the majority <strong>of</strong> employers<br />

are not seeking to use the difficult conditions<br />

facing Australia’s res<strong>our</strong>ce industries to<br />

reduce working conditions for their staff.<br />

The survey received just over 800<br />

responses, considered to be an excellent<br />

result that both provides a statistically robust<br />

<strong>sample</strong> <strong>of</strong> employment conditions and<br />

highlights the commitment <strong>of</strong> geoscientists to<br />

supporting their peers and pr<strong>of</strong>ession.<br />

How Australia’s geoscientists are coping with unemployment and under-employment<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 17


Latest Employment Survey<br />

“<br />

It’s pr<strong>of</strong>oundly troubling to see<br />

so many highly qualified, experienced,<br />

committed pr<strong>of</strong>essionals unable to<br />

apply their skills to contributing to<br />

Australia’s economic security”<br />

<strong>AIG</strong> President, Wayne Spilsbury, expressed<br />

disappointment but no surprise in the latest<br />

survey results. “It’s pr<strong>of</strong>oundly troubling to<br />

see so many highly qualified, experienced,<br />

committed pr<strong>of</strong>essionals unable to apply their<br />

skills to contributing to Australia’s economic<br />

security” Mr Spilsbury said. “The situation<br />

in mineral and energy res<strong>our</strong>ce exploration<br />

is particularly troubling as the prolonged<br />

downturn in the sector is damaging Australia’s<br />

exploration project pipeline”. “The low levels<br />

<strong>of</strong> geoscientist employment reflect low levels<br />

<strong>of</strong> exploration activity, which means that<br />

we are not making discoveries to maintain<br />

Australia’s res<strong>our</strong>ce inventory which now has<br />

potential to create gaps in critical mineral<br />

supplies in coming years” Mr Spilsbury said.<br />

“Discoveries do not turn into mines<br />

overnight”. “We’re not exploring now and<br />

the industry cannot be switched back on<br />

overnight, so we’re facing a real prospect<br />

<strong>of</strong> reduced development <strong>of</strong> new projects to<br />

support Australia’s economy and standard <strong>of</strong><br />

living into the latter half <strong>of</strong> the next decade”.<br />

“Its also very concerning that both the<br />

Federal and State governments are failing to<br />

act on important issues to enhance Australia’s<br />

ability to attract investment in exploration;<br />

most notably the time and expense <strong>of</strong><br />

securing access to land for exploration” Mr<br />

Spilsbury said.<br />

18<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


Latest Employment Survey<br />

“There are a couple <strong>of</strong> cold, hard facts we<br />

Changes in fields <strong>of</strong> employment for Australian geoscientists 2014-2015<br />

need to recognise and deal with” Mr Spilsbury<br />

said. “When we talk about a geologist or<br />

geophysicist being unemployed in the<br />

exploration sector, we’re also talking about<br />

three or f<strong>our</strong> other Australians not having a<br />

job”. “We also cannot escape the fact that<br />

minerals are essential to <strong>our</strong> daily life, from<br />

generation <strong>of</strong> electricity by any means, to<br />

providing raw materials used to ensure <strong>our</strong><br />

future economic and social well-being”.<br />

“Australian geoscientists working in<br />

exploration and mining are demonstrably the<br />

best in the world when it comes to optimising<br />

res<strong>our</strong>ce utilisation and ensuring that<br />

production proceeds in an environmentally<br />

sustainable and responsible manner” M


Mining pr<strong>of</strong>essionals in today’s market<br />

Geologists in the age <strong>of</strong><br />

commodity turmoil<br />

Erik Ronald<br />

(Modified after originally published on LinkedIn on 19 Jan 16)<br />

Being a mining geologist, whether with<br />

a junior explorer, major producer, midtier<br />

or a private consultant, tends to<br />

be a challenge even when the global economy<br />

is firing on all cylinders. Unfortunately, the<br />

bad news keeps rolling in these days with the<br />

you stop and think about it, geologists should<br />

be one <strong>of</strong> the key roles kept in tight times as<br />

they have the unique skill set to truly add value<br />

to the company or operation. It’s the Mining<br />

Geologist’s role to help a business when<br />

prices plunge by optimising mining areas and<br />

pr<strong>of</strong>essional geologists at the executive level<br />

in mid- to major mining companies resulting<br />

in a de-emphasis <strong>of</strong> orebody knowledge<br />

in decision making and lack <strong>of</strong> mentoring<br />

opportunities for company geoscientists.<br />

On the first point, when browsing university<br />

recent article on Mining.com stating the U.S.<br />

is experiencing its worst year for mining since<br />

1986 (http://www.mining.com/2015-one<strong>of</strong>-the-worst-year-ever-for-us-mining-jobs/)<br />

and the AusIMM publishing their annual<br />

employment survey stating 20% <strong>of</strong> exploration<br />

geologists in Australia are currently<br />

unemployed (http://www.ausimm.com.au/<br />

Content/docs/policy/pep2015/emploment_<br />

survey_2015_full_report_20151007.pdf). So<br />

the facts are: jobs are scarce, commodities<br />

are in over-supply and investment is nonexistent.<br />

It’s certainly not a pretty picture for<br />

mining in 2016.<br />

Not to be too pessimistic, but geologists,<br />

especially exploration geologists, tend to be<br />

the first staff let go when times get tough. If<br />

grade to maximise NPV. It’s the Exploration<br />

Geologist’s role to ensure successful<br />

discovery and generate a robust project<br />

pipeline for future business development.<br />

It’s the Res<strong>our</strong>ce Geologist’s role to ensure<br />

grades, tonnages, and Mineral Res<strong>our</strong>ces are<br />

sound to allow for optimisation <strong>of</strong> the mine<br />

plan. So with that said, why are geologists the<br />

first to get the boot?<br />

There are likely some conspiracy theories<br />

out there (personally, I like The Brotherhood<br />

<strong>of</strong> Evil Mine Engineers theory) but the reality<br />

appears to come down to a few items: 1)<br />

Geologists are not trained to think in business<br />

terms, 2) they rarely have a true appreciation<br />

<strong>of</strong> how they contribute to the mining<br />

value-chain, and 3) there are not enough<br />

curriculum for a Bachelor’s or even Master’s<br />

in Geology, you’ll be hard-pressed to find an<br />

economics or management c<strong>our</strong>se. This is<br />

in stark contrast to most Mining Engineering<br />

programs let alone Business schools. Some<br />

may argue that Geology is a science therefore<br />

the c<strong>our</strong>ses need to be focused on the maths,<br />

chemistry, physics and upper-level geology<br />

c<strong>our</strong>ses, which is certainly true. Unfortunately<br />

as a result <strong>of</strong> the pure science requirements,<br />

there are a lot <strong>of</strong> very bright young geologists<br />

in industry who honestly don’t have a clue<br />

about business drivers, capital management,<br />

macro- and micro-economics nor a clear<br />

understanding <strong>of</strong> how a geologist directly<br />

impacts a company’s bottom line.<br />

To my second point, I find it the unfortunate<br />

exception when a mine geologist understands<br />

exactly how the geology <strong>of</strong> an ore deposit<br />

impacts saleable product and how it affects<br />

customers’ processes or end-products. This<br />

is true for coal, industrial minerals, iron ore<br />

and even in the base and precious metals<br />

world. Understanding and communicating<br />

the downstream impacts geology has on the<br />

value-chain can make or break a business<br />

when commodity prices fall and margins<br />

tighten. A base metals example would be<br />

the geologic understanding <strong>of</strong> a porphyry<br />

20<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


copper deposit in which small increases in<br />

anhydrite/gypsum or talc can have major<br />

detrimental effects on concentrate processing<br />

and flotation recoveries (added cost per unit).<br />

Additionally, the distribution <strong>of</strong> fluorine and<br />

arsenic in the orebody is critical in smelting as<br />

law and operations all hold equal voices in<br />

board-level discussions.<br />

In summary, I enc<strong>our</strong>age all the mining<br />

and exploration geologists out there to<br />

continue to excel in mineralogy, mapping,<br />

modelling, ore control and reporting, and<br />

appreciate this is y<strong>our</strong> expertise and why<br />

you were hired. But, without sound business<br />

understanding, market context and the ability<br />

to communicate the value you bring to y<strong>our</strong><br />

company, we’ll likely see a growing number <strong>of</strong><br />

geologists left on the sidelines until the next<br />

boom when the industry comes screaming<br />

for more discoveries. So go spend time at the<br />

mill with y<strong>our</strong> Mets, talk to the accountants,<br />

visit y<strong>our</strong> sales department, befriend y<strong>our</strong><br />

References cited:<br />

AusIMM, 2016, “The AusIMM Pr<strong>of</strong>essional<br />

Employment Survey Report 2015 – An Analysis<br />

<strong>of</strong> Pr<strong>of</strong>essional Employment in the Mineral<br />

Sector”, AusIMM, Oct., 2015.<br />

Mining pr<strong>of</strong>essionals in today’s market<br />

concentrations above a set threshold will yield<br />

business analyst, challenge management and<br />

Els, F., 2016, “The Worst year for mining in the<br />

incremental penalties (lost revenue) or product<br />

most importantly understand y<strong>our</strong> business.<br />

U.S. since 1986”, Mining.com, Jan. 2016<br />

rejection (more lost revenue and unhappy<br />

Hopefully we can help change this trend for<br />

Waltho, A. 2016, “Geoscientist Employment in<br />

customers). These deposit attributes can<br />

the better and come out the other side <strong>of</strong> this<br />

Australia Continues its Slide”, Australian Institute<br />

and should be clearly understood at the<br />

downturn a little wiser this time around.<br />

<strong>of</strong> <strong>Geoscientists</strong> (<strong>AIG</strong>) News, Feb. 2016.<br />

exploration and evaluation stage, not first<br />

realised after the ore enters the mill.<br />

Lastly, the lack <strong>of</strong> geoscientists at upper<br />

management levels across the industry is<br />

worrying to say the least. During the past<br />

boom, we witnessed numerous operational<br />

issues and acquisition errors that were likely<br />

understood by on-the-ground geologists but<br />

not effectively communicated to the ultimate<br />

decision-makers at the executive level. The<br />

lack <strong>of</strong> geological understanding at the<br />

executive and board-levels has resulted in the<br />

de-emphasis <strong>of</strong> geology in mining along with<br />

creation <strong>of</strong> a “chicken and the egg” scenario<br />

for future leaders. An increase in executivelevel<br />

mentors could assist junior or midcareer<br />

geologists navigate into management<br />

and potentially help balance the engineers<br />

and finance personnel which traditionally<br />

dominate leadership roles due to their better<br />

understanding <strong>of</strong> the business. I believe<br />

success in the mining game is achieved<br />

when a diverse set <strong>of</strong> experiences including<br />

geoscience, engineering, finance, corporate<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 21


<strong>Up</strong>coming events<br />

<strong>Up</strong>coming Events<br />

8-9 March 2016<br />

Adelaide, South Australia<br />

Project<br />

Evaluation<br />

2016<br />

Value From Exploration Geology<br />

Adelaide<br />

Wednesday 2 March, 12pm<br />

Historian Hotel, 18 Coromandel Pl<br />

ADELAIDE, SA<br />

Register Here<br />

Melb<strong>our</strong>ne<br />

Thursday 3 March, 12pm<br />

CQ Melb<strong>our</strong>ne, 113 Queen St<br />

MELBOURNE, VIC<br />

Register Here<br />

The AusIMM Geoscience Society and<br />

Special guest: Dr Julian Vearncombe<br />

<strong>AIG</strong> invite you to attend the Distinguished<br />

Adelaide Bendigo<br />

Wednesday 2 Thursday March, 312pm<br />

March, 7:00pm<br />

Historian Hotel, To 18 be confirmed Coromandel Pl<br />

BENDIGO, VIC<br />

ADELAIDE, SARegister Here<br />

Register Here<br />

Brisbane<br />

Monday 7 March, 4:15 for 4:30pm<br />

Melb<strong>our</strong>ne<br />

Royal on the Park, 152 Alice St<br />

Thursday 3 March, BRISBANE, 12pm QLD<br />

CQ Melb<strong>our</strong>ne, Register 113 Queen Here St<br />

MELBOURNE, VIC<br />

Townsville<br />

Register HereTuesday 8 March, 5:45 for 6pm<br />

Townsville Yacht Club, 1 Plume St<br />

TOWNSVILLE, QLD<br />

Bendigo<br />

Register Here<br />

Thursday 3 March, 7:00pm<br />

To be confirmed Cairns<br />

BENDIGO, VICThursday 10 March, 5:30pm<br />

Cairns Sheridan Hotel, 295 Sheridan St<br />

Register HereCAIRNS, QLD<br />

Brisbane<br />

Monday 7 March, 4:15 for 4:30pm<br />

Royal on the Park, 152 Alice St<br />

BRISBANE, QLD<br />

Register Here<br />

Lecture Series featuring guest speaker<br />

Dr Julian Vearncombe who will be<br />

Value from Exploration Geology<br />

Two things impact value, (1) the fundamentals <strong>of</strong> supply and demand, and (2)<br />

sentiment. Whilst messages given and received are not exactly the same as<br />

sentiment they feed <strong>of</strong>f each other. This thought provoking one-h<strong>our</strong> talk will<br />

examine some <strong>of</strong> the messages geologists send, and those that the exploration<br />

industry gives and receives. Discussion topics will include:<br />

presenting Value from Exploration Geology.<br />

The AusIMM’s Project Evaluation 2016 conference is presenting a<br />

• Brownfields gold cannot be Special distinguished guest: from green-fields Dr Julian gold. Vearncombe<br />

conference built around a theme <strong>of</strong> ‘Good Practice and Communication’.<br />

Two things impact value, • (1) Unrealistically the fundamentals large exploration targets <strong>of</strong> are supply doomed to and fail!<br />

This theme is intended to stimulate discussion around the importance <strong>of</strong><br />

demand, and (2) sentiment.<br />

• Value As<br />

Whilst<br />

an industry from messages<br />

we Exploration need to cease the<br />

given<br />

habit Geology<br />

<strong>of</strong><br />

and<br />

assessing<br />

received<br />

(gold) exploration as<br />

value-less.<br />

good practice for decision makers as either developers <strong>of</strong>, or investors in,<br />

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are not exactly the same • as Two We sentiment must things increase impact the they intellectual value, feed (1) effort the <strong>of</strong>f in fundamentals exploration each other. <strong>of</strong> supply and demand, a<br />

mineral projects.<br />

Orange<br />

sentiment. Whilst messages given and received are not exactly the sam<br />

Monday 14 March, 7:00pm for 7:30pm<br />

Parkview Hotel, This 281 Summer thought St provoking one sentiment - h<strong>our</strong> they talk feed will <strong>of</strong>f examine each other. some This thought <strong>of</strong> provoking one-h<strong>our</strong> tal<br />

ORANGE, NSW<br />

Dr Julian Vearncombe is the Principal Consultant at SJS Res<strong>our</strong>ce<br />

Register Here<br />

Management. examine Julian some has <strong>of</strong> athe record messages <strong>of</strong> highly successful geologists exploration send, for and base those and that the exp<br />

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the messages geologists precious send, metals, and with those emphasis that the on quality exploration<br />

management decisions, target<br />

Cobar<br />

industry gives and receives. Discussion topics will include:<br />

i<br />

Townsville Wednesday 16 March, 6:30 for 7:pm<br />

generation, field structural geology, res<strong>our</strong>ce to reserve conversion, mine<br />

Cobar Bowling and Golf Club, Bloxham St<br />

Tuesday 8 March, 5:45 industry for 6pm gives and receives. geology and training. Julian brings expertise in executive and strategic<br />

COBAR, NSW<br />

management, • Brownfields public listing gold experience, cannot be capital distinguished raising, the identification from green-fields <strong>of</strong> key gold.<br />

Townsville Yacht Register Club, Here 1 Plume St<br />

TOWNSVILLE, QLD<br />

projects, technically-focused mineral exploration and res<strong>our</strong>ce evaluation. Julian<br />

Tullah • Adelaide | Wednesday has world-leading 2 March, expertise 12pm<br />

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in the process and application <strong>of</strong> structural geology<br />

Monday 21 March<br />

• Unrealistically large exploration targets are doomed to fail!<br />

to mineral exploration. His experience encompasses all continents except<br />

TULLAH, TAS<br />

Cairns Registrations will open shortly. Historian Hotel, 18 Antarctica, Coromandel most commodity Pl types , ADELAIDE, and geological settings. SA<br />

Thursday 10 March, 5:30pm<br />

• As an industry we need to cease the habit <strong>of</strong> assessing (gold) explo<br />

Cairns Sheridan Hotel, 295 Sheridan St<br />

• Melb<strong>our</strong>ne | Thursday value-less. 3 March, 12pm<br />

CAIRNS, QLD<br />

Register Here<br />

CQ Melb<strong>our</strong>ne, 113 • Queen We must St, increase MELBOURNE, the intellectual VICeffort in exploration<br />

Orange<br />

Monday 14 March, 7:00pm for 7:30pm<br />

Proudly • supported Bendigo by: | Thursday 3 March, 7:00pm<br />

Parkview Hotel, 281 Summer St<br />

ORANGE, NSW<br />

Dr Julian Vearncombe is the Principal Consultant at SJS<br />

Register Here To be confirmed, BENDIGO, Management. VICJulian has a record <strong>of</strong> highly successful exploration for<br />

Silver Sponsor <strong>of</strong> the<br />

precious metals, with an emphasis on quality management decision<br />

Cobar<br />

• Brisbane | Monday generation, 7 March, field 4:30pm<br />

Wednesday 16 March, 6:30 for 7:pm<br />

structural geology, res<strong>our</strong>ce to reserve conversi<br />

<strong>AIG</strong> Education Endowment<br />

Cobar Bowling and Golf Club, Bloxham St<br />

geology and training. Julian brings expertise in executive and<br />

COBAR, NSW Royal on the Park, 152 management, Alice St, public BRISBANE, listing experience, QLD capital raising, the identificatio<br />

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Foundation<br />

projects, technically-focused mineral exploration and res<strong>our</strong>ce evaluatio<br />

• Townsville | Tuesday 8 March, 6pm<br />

Tullah<br />

has world-leading expertise in the process and application <strong>of</strong> structura<br />

Monday 21 March<br />

Townsville Yacht Club,<br />

to mineral<br />

1 Plume<br />

exploration.<br />

St, TOWNSVILLE,<br />

His experience<br />

QLD<br />

encompasses all continent<br />

TULLAH, TAS<br />

Registrations will open shortly.<br />

Antarctica, most commodity types and geological settings.<br />

• Cairns | Thursday 10 March, 5:30pm<br />

Cairns Sheridan Hotel, 295 Sheridan St, CAIRNS, QLD<br />

Proudly supported by:<br />

• Orange | Monday 14 March, 7:30pm<br />

Parkview Hotel, 281 Summer St, ORANGE, NSW<br />

• Cobar | Wednesday 16 March, 7pm<br />

Cobar Bowling and Golf Club, Bloxham St, COBAR, NSW<br />

• Tullah | Monday 21 March<br />

To be advised, TULLAH, TAS<br />

For more information or to book visit<br />

www.aig.org.au/events<br />

22<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


Keep up to date with <strong>AIG</strong> and other geoscientific events at www.aig.org.au/events<br />

ADAPTING FOR BETTER!<br />

PERFORMANCE!<br />

Careers, Discovery and Personal Transitions!<br />

Monday 14 th March 2016!<br />

CSIRO ARRC Auditorium, !<br />

26 Dick Perry Avenue,<br />

Kensington!<br />

IOCG and Other Mineral Systems in the<br />

World-Class Cloncurry District:<br />

New Advances in Exploration and<br />

Deposit Understanding<br />

March 16-18, 2016 | Cloncurry, Cloncurry QLD<br />

<strong>Up</strong>coming Events<br />

What will Mining and Res<strong>our</strong>ces in Australia look<br />

like towards 2025?<br />

What are the sector, company, and geoscientist – level strategies<br />

to success?<br />

For more information visit<br />

How do businesses and individuals anticipate and plan for change?<br />

www.aig.org.au/events/adapting-for-better-performance<br />

What are the educational and research priorities to sustain a pipeline <strong>of</strong><br />

adaptable people, innovative governance, and data and technology<br />

developments?<br />

This is a follow-up to the highly successful workshop “IOCG Deposits:<br />

The Cloncurry Experience” held in Cloncurry in March 2015.<br />

C<strong>our</strong>se Convenors: Assoc. Pr<strong>of</strong>. Zhaoshan Chang, Dr Richard Lilly<br />

For full details visit www.aig.org.au/events<br />

The Day!<br />

!<br />

Join us for a boutique event to hear and debate how geoscientists can proactively manage<br />

likely pr<strong>of</strong>essional transitions in cyclical downturns, while looking ahead to consider how<br />

we work, and how innovation in the sector will shape <strong>our</strong> changing job descriptions.<br />

A forward looking, one day workshop, motivated by the need for new discoveries and<br />

better ways <strong>of</strong> working will consist <strong>of</strong> three sessions, with time in-between for breakout<br />

group discussions. We will reconvene together at the end <strong>of</strong> the day for a group discussion,<br />

before retiring for sundowner drinks, lovingly provided by local brewers Gage Roads and<br />

winemakers Wine by Brad.!<br />

Keynote Speaker<br />

Register online:<br />

geosymposia.com.au<br />

This c<strong>our</strong>se may assist<br />

with CPD compliance<br />

for <strong>AIG</strong> Registered<br />

Members<br />

Pr<strong>of</strong>essor Lyn Beazley AO FTSE, West Australian <strong>of</strong> the year, 2015 & Former Chief<br />

Scientist <strong>of</strong> WA<br />

Looking Forward in WA<br />

We are delighted to have Pr<strong>of</strong>essor Lyn Beazley join us for the Keynote presentation. Lyn will present on<br />

looking forward in Western Australia, focusing on areas <strong>of</strong> Data & Technology, Deposits <strong>of</strong> the Future,<br />

Culture, Companies & Talent.<br />

Delegate Fees<br />

(Including GST)<br />

Student/Unemployed $40<br />

Grad <strong>AIG</strong> $50<br />

Member <strong>AIG</strong> $60<br />

Non <strong>AIG</strong> Member $70<br />

(Maximum attendance: 90)<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 23


Student report: Mill<br />

Sequence Stratigraphic<br />

Analysis <strong>of</strong> the Epsilon<br />

Formation,<br />

Merrimelia Ridge,<br />

Cooper Basin –<br />

South Australia<br />

Jordan Mill, University <strong>of</strong> Adelaide<br />

2015 DSD – <strong>AIG</strong> Hon<strong>our</strong>s <strong>Bursary</strong> Recipient<br />

The majority <strong>of</strong> successful gas<br />

fields within the Cooper Basin have<br />

historically been associated with f<strong>our</strong>way<br />

dip, intra-basin highs. This conventional<br />

model will have to be challenged in order for<br />

future exploration and field development to<br />

continue to be successful within the Cooper<br />

Basin.<br />

The mid-Permian fluvio-deltaic Epsilon<br />

Formation has complex geomorphologies<br />

and is largely considered to be transgressive.<br />

This study integrated a wide variety <strong>of</strong><br />

datasets including; seismic, wireline, core<br />

and image logs that identified two sequences<br />

(described as Tu95 and Tu35) within<br />

the Epsilon Formation. Their associated<br />

sequence boundaries and systems tracts<br />

were interpreted onto 26 wells covering 5<br />

traverses over the study area. Image logs<br />

and core confirmed typical lowstand and<br />

highstand lith<strong>of</strong>acies assemblages supporting<br />

the wireline sequence and electr<strong>of</strong>acies<br />

interpretations. Two paleogeographic maps<br />

that related to the two LST conditions <strong>of</strong> the<br />

Tu95 and Tu35 sequences were constructed.<br />

The dominant pale<strong>of</strong>low direction was<br />

approximately south-east. Previous empirical<br />

studies, analogue field calculations and<br />

measurements from Google Earth found<br />

channel belt widths <strong>of</strong> up to approximately<br />

2500m. These results highlighted the potential<br />

<strong>of</strong> LST sandstones as hydrocarbon reservoirs.<br />

Tu95 and Tu35 LST has the best chance <strong>of</strong><br />

lateral reservoir connectivity because <strong>of</strong> the<br />

increased sediment dispersion and limited<br />

accommodation space that allows fluvial<br />

sand sheets with high interconnectivity to be<br />

deposited.<br />

The Tu95 LST could be considered to be a<br />

forced regressive deposit (FRD) as it displayed<br />

an extremely sharp log signature at its base<br />

out <strong>of</strong> the HST. Intra-formational systems<br />

tract thickness variations over the study area,<br />

along with the absence <strong>of</strong> Roseneath Shale in<br />

the NW, could also be evidence <strong>of</strong> basin tilting<br />

towards the SE. A period <strong>of</strong> a renewed tectonic<br />

compression, just prior to the Daralingie uplift<br />

event, may have caused additional sub-aerial<br />

exposure and basin tilting. This would support<br />

the weakly positive gradient assumed to be<br />

leading into the Nappamerri Trough at the<br />

time <strong>of</strong> deposition, which could have resulted<br />

in a substantially faster lowstand lake level<br />

retreat and FRD’s. The Tu35 SB appears to<br />

vary in time according to local subsidence and<br />

uplift rates due to the diachronous nature <strong>of</strong><br />

systems tracts.<br />

24<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


Detailed seismic mapping <strong>of</strong> the Epsilon<br />

Formation identified eight ‘sub-horizons’<br />

that generally relate to separate onlapping<br />

transgression events. As a result it was<br />

RFT and production perforation data found<br />

that the Tc90 and Tc20 Epsilon Sands within<br />

the Swan Lake field area were potentially<br />

isolated, whereas the Tc90 sands in the<br />

determined that an onlap fairway, represented<br />

by the Epsi_00 sub-horizon, could hold<br />

potential for stratigraphic trapping. Seismic<br />

onlap versus truncation geometries also<br />

suggested a combination <strong>of</strong> non-deposition<br />

and post-depositional erosion is the likely<br />

reason for the lack <strong>of</strong> Epsilon Formation that<br />

is observed on the GMI structural lineaments<br />

Meranji field were possibly connected.<br />

Shoreface, mouthbar and distributary channel<br />

facies were found to have the highest φ and k.<br />

After considering all the factors <strong>of</strong><br />

the sequence stratigraphic architecture,<br />

paleogeography, reservoir connectivity and<br />

reservoir quality; the fluvial-deltaic LST sands<br />

associated with the Tu95 LST were identified<br />

Student report: Mill<br />

today.<br />

to be the most prospective and hold the<br />

greatest chance <strong>of</strong> technical success.<br />

Res<strong>our</strong>ce Industry Consultants<br />

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<strong>AIG</strong> NEWS Issue 123 · February 2016 25


Student report: Pang<br />

Origin <strong>of</strong> ladder dykes and associated<br />

rocks, Ravenswood: Implication <strong>of</strong><br />

Magmatic Evolution<br />

Cheng Pang, James Cook University<br />

2015 Davis – <strong>AIG</strong> Hon<strong>our</strong>s <strong>Bursary</strong> Recipient<br />

Many large granitic plutons<br />

preserve little evidence <strong>of</strong><br />

how the magmatic structures<br />

during construction <strong>of</strong> this mafic plutonic<br />

body. I use detail field mapping and field<br />

observations <strong>of</strong> metre-scale “ladder dykes”<br />

formed. In a few localities worldwide, granite<br />

pluton preserve magmatic layering features<br />

known as “ladder dykes”. The origin <strong>of</strong> these<br />

structures are seldom described however<br />

they may be fundamental to improving <strong>our</strong><br />

understanding <strong>of</strong> magma chamber dynamics.<br />

These structures could be related to magma<br />

flow structures developed during magma<br />

crystallization and magma emplacement.<br />

A gabbro unit exposed near the town<br />

<strong>of</strong> Ravenswood in North Queensland<br />

contains complex magmatic structures<br />

that can be considered to be ladder dykes.<br />

The structure may provide a wealth <strong>of</strong><br />

information <strong>of</strong> magma flow and evolution<br />

near Ravenswood, together with petrography<br />

studies and quantitative chemical analyses <strong>of</strong><br />

minerals to demonstrate that these features<br />

are developed from multiple pulses <strong>of</strong> crystal<br />

mush intrusion while the host rock was<br />

largely crystalized. The exposed outcrop in<br />

Ravenswood provide plan view and cross<br />

section view <strong>of</strong> these structures, which allows<br />

a three dimensional perspective view <strong>of</strong> how<br />

these dykes were formed. Ladder dykes from<br />

Ravenswood, contains multiple wispy, and<br />

curved to concentric or ellipsoid banding<br />

with leucocratic plagioclase rich bands and<br />

melanocratic ferromagnesian mineral rich<br />

bands.<br />

26<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


The host rock and ladder dyke have<br />

Quantitative chemical analyses <strong>of</strong> minerals<br />

Orthogonal brittle fractures and curved ductile<br />

a similar mineralogy comprised <strong>of</strong> 50%<br />

show plagioclase in the ladder dykes have<br />

deformation structures coexist at the same<br />

plagioclase, 30% pyroxene, and 20%<br />

reverse zoning from An27 to An85, with a<br />

outcrop suggest the host rock was probably<br />

amphibole. Petrographic studies show that<br />

distinct core with high albite component.<br />

largely crystallised. This caused sudden<br />

there are two main crystal orientations relative<br />

Ferromagnesian minerals (clinopyroxene,<br />

undercooling <strong>of</strong> this crystal free melt allowed<br />

to the banding <strong>of</strong> the dykes (1) elongation <strong>of</strong><br />

orthopyroxene, hornblende) have Mg#<br />

comb layering formation in the centimetres<br />

the plagioclase crystals parallel to the banding<br />

in the ladder dyke (2) comb layering - crystals<br />

growth perpendicular to the layering and the<br />

boundary <strong>of</strong> the dyke. Crystals in the ladder<br />

dykes are oriented parallel to the banding.<br />

Comb layering occurs at the contact between<br />

the ladder dyke and host rock as acicular<br />

plagioclase and clinopyroxene crystal growth<br />

perpendicular to the margin. This can be<br />

varies from Mg66 to Mg81. Reverse zoned<br />

plagioclase shows three separate population<br />

<strong>of</strong> crystal growth with no oscillatory zoning.<br />

Sodic core to calcic rim plagioclase in both<br />

host rock and ladder dykes suggest magma<br />

mixing occurred prior to the intrusion. The<br />

initial magma was felsic in composition then<br />

later intruded by more mafic magma.<br />

The formation <strong>of</strong> the ladder dyke is<br />

width dyke. A later crystal rich melt (mush)<br />

reactivated and fractured the comb layering<br />

structure dyke in the middle. This is evidenced<br />

by comb layering occurs on the margin <strong>of</strong><br />

the ladder dyke. This crystal rich melt is<br />

plagioclase rich and developed flow banding<br />

structure hence the ladder dyke.<br />

Student report: Pang<br />

explained by sudden undercooling which leads<br />

postulated to be an early crystal free melt<br />

to high crystal growth with low nucleation<br />

fractured the largely crystallised Ravenswood<br />

rates in the crystal free magma pulse.<br />

host rock gabbro in brittle-ductile fashion.<br />

SYDNEY MINERAL EXPLORATION<br />

DISCUSSION GROUP<br />

bringing<br />

geoscientists<br />

together<br />

SMEDG has been a part <strong>of</strong> the Mineral Exploration<br />

industry in NSW since 1972. Set up as a group <strong>of</strong><br />

enthusiastic geoscientists to discuss techniques and<br />

concepts <strong>of</strong> mineral exploration on an informal basis<br />

Come along to <strong>our</strong><br />

monthly meetings<br />

to enjoy great talks<br />

and network with<br />

like minded people<br />

UP-COMING EVENTS !<br />

Meetings<br />

Mid-year Cruise<br />

(last Thursday <strong>of</strong> month)<br />

Mines & Wines 2017<br />

(Friday 8th July)<br />

Christmas Cruise (to be advised)<br />

(to be advised)<br />

Stay in-touch at<br />

www.smedg.org.au for up-coming events<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 27


Fluid inclusion and trace element<br />

study <strong>of</strong> stockwork quartz at the Red<br />

Mountain porphyry copper deposit<br />

Student report: Philippa<br />

Elizabeth Philippa, Australian National University<br />

2015 <strong>AIG</strong> Hon<strong>our</strong>s <strong>Bursary</strong> Recipient<br />

Porphyry copper deposits (PCD) are<br />

complex hydrothermal-magmatic<br />

systems which provide a large s<strong>our</strong>ce<br />

<strong>of</strong> base and precious metals. Debate exists<br />

over the fluid responsible for mineralisation<br />

as a direct proxy for<br />

temperature in PCD.<br />

The stockwork quartz<br />

was deposited by a fluid<br />

with a strong magmatic<br />

and the mechanism for precipitation leading<br />

to the formation <strong>of</strong> PCD. This study presents<br />

new evidence for the formation <strong>of</strong> PCD and<br />

explores the possibility <strong>of</strong> a single-phase<br />

magmatic fluid as the ore-forming fluid.<br />

Temperatures found using the (Thomas<br />

et al., 2010) calibration <strong>of</strong> the Ti-in-quartz<br />

thermobarometer (TitaniQ) range between<br />

~417°C to ~850°C in the stockwork quartz.<br />

These temperatures correlate strongly with<br />

cathodoluminescence brightness and trace Ti<br />

content in the quartz.<br />

Veins hosting sulfides exhibit temperatures<br />

in the range ~420°C to ~660°C, suggesting<br />

sulfide precipitation may occur at<br />

temperatures greater than previously thought.<br />

The direct link found in this study between<br />

Ti content, CL brightness and temperature<br />

delivers the prospect <strong>of</strong> using CL brightness<br />

signature, as found<br />

through oxygen isotopes<br />

ranging between +8.9‰<br />

to +12.6‰. This range<br />

discounts the potential<br />

input <strong>of</strong> meteoric<br />

water, and its use as a<br />

mechanism for ore deposition.<br />

Fluid inclusions found in the stockwork<br />

show both immiscible fluids (vapors and<br />

brines) and single-phase supercritical fluids.<br />

LA-ICP-MS analysis <strong>of</strong> fluid inclusions reveal<br />

a potential mineralising intermediate-density<br />

fluid enriched in metals and semi-metals,<br />

similar to those found being released from<br />

current arc volcanoes.<br />

The findings in this study support recent<br />

porphyry copper deposit formation models<br />

proposed by Blundy et al., (2015) and<br />

Henley et al., (2015) in that a single-phase<br />

supercritical ‘gas’ is likely responsible for the<br />

deposition <strong>of</strong> ore in mineralised porphyry<br />

systems. The high temperatures found using<br />

TitaniQ, the magmatic isotopic composition<br />

<strong>of</strong> the stockwork quartz and the identification<br />

<strong>of</strong> an intermediate-density, enriched fluid<br />

contradict several facets <strong>of</strong> conventional PCD<br />

formation models, and provide support for<br />

alternatives.<br />

Kim Frankcombe<br />

Senior Consulting Geophysicist<br />

Phone +61 (0) 8 6201 7719<br />

E-mail kim@exploregeo.com.au<br />

GEOPHYSICAL CONSULTANTS TO EXPLORERS<br />

Riaan Mouton<br />

Consulting Geophysicist<br />

Phone +61 (0) 8 6201 0715<br />

E-mail riaan@exploregeo.com.au<br />

www.exploregeo.com.au<br />

PO Box 1191 Wangara WA 6947 Australia<br />

Unit 6, 10 O’Connor Way, Wangara WA 6065 Australia<br />

PETROLOGICAL (CONSULTING) SERVICES <br />

Roger G Taylor (PhD, DIC, M<strong>AIG</strong>) <br />

Descriptive and overview interpretation <strong>of</strong>:-­‐ <br />

• Ore Textures <br />

• Breccias <br />

• Alteration <br />

• Paragenetic sequencing <br />

• Gossans-­‐leached outcrops/supergene enrichment <br />

Porphyry copper, IOCG, Skarn, Carbonate replacement, Tin-­‐Tungsten <br />

Epithermal and Granite related gold systems <br />

roger-­‐taylor@bigpond.com <br />

Mobile 0417621273 Phone 0363265562 <br />

28<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


NORTHERN TERRITORY GEOLOGICAL SURVEY<br />

AGES2016<br />

ANNUAL GEOSCIENCE EXPLORATION SEMINAR<br />

ANNUAL GEOSCIENCE EXPLORATION SEMINAR<br />

15–16 March 2016, Alice Springs Convention Centre, Northern Territory<br />

ALICE SPRINGS SEMINAR<br />

The Territory’s premier<br />

exploration event<br />

The Territory continues to <strong>of</strong>fer outstanding opportunities for<br />

both minerals and petroleum explorers. Major investment in new<br />

geoscience data from the Northern Territory Geological Survey<br />

and its partners under the Creating Opportunities for Res<strong>our</strong>ce<br />

Exploration (CORE) initiative, is providing exciting insights into<br />

the untapped potential <strong>of</strong> under-explored areas in the Territory.<br />

Join us in Alice Springs on 15–16th March 2016 for the 17th Annual<br />

Geoscience Exploration Seminar (AGES), where a mix <strong>of</strong> NTGS and<br />

industry presentations will showcase the rich minerals and petroleum<br />

potential <strong>of</strong> the Northern Territory. AGES is a technical conference<br />

that presents a unique opportunity for you to access the latest in fresh<br />

exploration ideas and geoscientific data from the Territory and to<br />

network with colleagues who share an interest in the discovery and<br />

development <strong>of</strong> the Territory’s minerals and oil and gas res<strong>our</strong>ces.<br />

Around 220 people attended the event in 2015.<br />

Seminar highlights<br />

• first release <strong>of</strong> interpreted seismic data across the<br />

Tennant Creek mineral field<br />

• the latest information on new geoscience and<br />

exploration success for shale gas in the Beetaloo<br />

Sub-basin<br />

• technical updates on successful exploration programs<br />

and new discoveries from across the Territory for<br />

copper, zinc, gold, oil and gas and more<br />

• new concepts on stratigraphy, basin architecture and<br />

mineral fertility <strong>of</strong> the Amadeus Basin<br />

• dedicated session on the McArthur Basin including<br />

the release <strong>of</strong> new geoscience and shale geochemistry<br />

datasets, discussion <strong>of</strong> geophysical techniques for<br />

exploration, and release <strong>of</strong> an expanded 3D model that<br />

includes the McArthur Group and equivalents<br />

• results <strong>of</strong> recent mapping and copper mineral systems<br />

studies in the Arunta Region<br />

• practical information to assist you with issues such as<br />

land access, titles and accessing geoscience data<br />

• the AGES dinner – the premier networking and social<br />

event for the NT exploration industry<br />

For more<br />

information<br />

Visit www.ages.nt.gov.au;<br />

phone (08) 8999 5313<br />

or email ages@nt.gov.au<br />

Hosted by the<br />

NT Geological Survey<br />

Department <strong>of</strong> Mines and Energy<br />

Supported by<br />

Department <strong>of</strong> Business<br />

AGES also incorporates the Mining Services Expo – a showcase<br />

<strong>of</strong> Northern Territory businesses and their capabilities to support y<strong>our</strong><br />

exploration and mining ventures.<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016<br />

29


IAH Seven Wonders<br />

Seven Wonders <strong>of</strong><br />

the Hydrogeological<br />

World (in Australia)<br />

In an effort to raise the national pr<strong>of</strong>ile<br />

<strong>of</strong> hydrogeology, the Australian branch<br />

<strong>of</strong> the International Association <strong>of</strong><br />

Hydrogeologists (IAH Australia)<br />

launched a competition in 2010,<br />

challenging interested parties to<br />

nominate Seven Wonders <strong>of</strong> the<br />

Hydrogeological World (in Australia).<br />

4: Seven Wonders <strong>of</strong> the<br />

Hydrogeological World -<br />

Iconic Blue Lake<br />

Jeff Lawson<br />

SA Department <strong>of</strong> Water, Land and Biodiversity Conservation<br />

Reproduced with thanks to the International Association <strong>of</strong> Hydrogeologists,<br />

Australia National Chapter<br />

With a $1000 cash prize on <strong>of</strong>fer<br />

for the best submission, entries were<br />

impressive, varied and reflective <strong>of</strong> the<br />

diverse and abundant hydrogeological<br />

wonders Australia has to <strong>of</strong>fer.<br />

Submissions were assessed on the<br />

basis <strong>of</strong> scientifc merit, interest to<br />

scientific media, visual amenity, quality<br />

<strong>of</strong> submission and public interest. Of<br />

the wonders nominated, there were<br />

seven clear standouts.<br />

Over coming issues <strong>of</strong> the <strong>AIG</strong><br />

News, we will be featuring each<br />

<strong>of</strong> these wonders, continuing with<br />

number 4: The Blue Lake.<br />

The Blue Lake is located on the edge <strong>of</strong><br />

a city named after the local volcano<br />

and should be considered as one<br />

<strong>of</strong> Australia most unique hydrogeological<br />

wonders.<br />

Hydrogeological Wonder<br />

The hydrogeological wonder that is the Blue<br />

Lake has many unique features. It is a window<br />

into the unconfined aquifer <strong>of</strong> the region, has<br />

storage <strong>of</strong> about 30,000 megalitres and has<br />

the most brilliant unique col<strong>our</strong> change twice<br />

a year.<br />

Through the winter months the lake is a dull<br />

grey col<strong>our</strong>, but as soon as the weather starts<br />

to warm, it undergoes a spectacular change<br />

to vivid cobalt blue and holds this until the air<br />

temperature begins to cool again in April.<br />

While many Blue Lakes exist in the world,<br />

this lake stands out because <strong>of</strong> the unique<br />

col<strong>our</strong> change which for many years kept<br />

many people theorising as too what may be<br />

the cause. Some <strong>of</strong> these theories are quite<br />

humorous. Science has now explained the<br />

change mechanism; however the local t<strong>our</strong>ist<br />

bodies would rather explain how the col<strong>our</strong><br />

change is still a mystery.<br />

Legend also held that the lake was about<br />

200 metres deep after some original rope<br />

depthing in the late 1800’s.<br />

30<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


The Peoples Hydrogeological Wonder<br />

Geological Wonder<br />

Research Wonder<br />

The Blue Lake along with the volcanic crater<br />

As a geological wonder the Blue Lake:<br />

Studying the lake has provided gainful<br />

has had a human connection since its<br />

employment to at least two PhD students,<br />

formation, as it has been part <strong>of</strong> the local<br />

Buandig (also known as Boandik) Aboriginal<br />

dream time legend.<br />

This lake plays a wonderful part in<br />

thousands <strong>of</strong> people’s lives. Firstly for such<br />

a unique geological structure, it is on the<br />

doorstep <strong>of</strong> a city <strong>of</strong> about 30,000 people.<br />

Other Blue Lakes in the world, whilst very<br />

• Is one <strong>of</strong> Australia’s most recently<br />

formed volcanoes with an age <strong>of</strong> about<br />

28,000 years.<br />

• Formed during Australia’s last ice age<br />

and the lake was originally dry as the<br />

water levels were 100 to 150 metres<br />

lower than today.<br />

• Formed on a fault upon which the<br />

along with CSIRO and government<br />

researchers. But still it refuses to give up all its<br />

secrets<br />

Water Supply Wonder<br />

The Lake is the municipal water supply to<br />

the people <strong>of</strong> Mount Gambier. It provides on<br />

average about 3,700 million litres <strong>of</strong> water<br />

IAH Seven Wonders<br />

beautiful are quite <strong>of</strong>ten removed from<br />

volcanic pressure exited through.<br />

each years from a reservoir <strong>of</strong> about 30,000<br />

population centres and do not play unique<br />

• The lake has a maximum depth <strong>of</strong><br />

million litres. It recharges its volume from<br />

roles in peoples lives.<br />

72 metres, a circumference <strong>of</strong> 3.75<br />

groundwater storage about every 8 years.<br />

This lake has a walking path which sees<br />

kilometres and a water surface area <strong>of</strong><br />

hundreds <strong>of</strong> people walk or jog around it every<br />

about 60 hectares.<br />

day as part <strong>of</strong> fitness routines. Additionally it<br />

• It has a unique col<strong>our</strong> change related to<br />

has a strong social function with many <strong>of</strong> the<br />

temperature and water purity.<br />

morning walker’s stopping at the t<strong>our</strong>ist centre<br />

• It has different water qualities to the<br />

for a c<strong>of</strong>fee after the walk. These walks/ runs<br />

surrounding unconfined aquifer, <strong>of</strong> which<br />

are very relaxing as at so many parts around<br />

it is a part.<br />

the lake the beauty <strong>of</strong> the whole crater is<br />

• A little known fact is that it may have<br />

viewed.<br />

originally been a dual crater.<br />

T<strong>our</strong>ist Hydrogeological Wonder<br />

The lake is appreciated by so many people in<br />

Australia but it also receives many thousands<br />

<strong>of</strong> international visitors. As part <strong>of</strong> the<br />

Kanawinka Geopark it forms part <strong>of</strong> Australia’s<br />

first geopark and because it is a part <strong>of</strong> the<br />

global network, it is promoted internationally<br />

both in Europe and Asia. It has appeared on<br />

many television shows related to t<strong>our</strong>ism and<br />

children’s education.<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 31


Industry – Academic Research Projects<br />

Industry –<br />

Academic<br />

Research<br />

Projects: The<br />

Good, The Bad<br />

and The Ugly<br />

© ingimage.com<br />

Richard Lilly<br />

Mount Isa Mines Embedded Research Fellow, University <strong>of</strong> Adelaide<br />

Industry-Academic research projects should<br />

be a win-win; the company gets access to<br />

a knowledgeable specialist team who are<br />

able to dedicate valuable time and res<strong>our</strong>ces<br />

to a range <strong>of</strong> geological questions, and the<br />

academics get funding to generate new data<br />

and progress their research careers. As a<br />

bonus, any students involved get invaluable<br />

hands-on industry experience. What could go<br />

wrong? Why are there not more collaborative<br />

projects happening all the time? What can we<br />

do to make these projects work?<br />

Over the last 15 years I have been fortunate<br />

to have been involved in over 25 collaborative<br />

research projects with 6 different companies<br />

and 8 research institutions on projects all<br />

around the world including Australia, Sweden,<br />

Morocco, United Arab Emirates and Oman.<br />

Most have been good, some have been bad<br />

and a couple have been ugly. The following<br />

is a personal viewpoint from someone who<br />

is still very passionate about trying to use<br />

applied research to assist the full spectrum<br />

<strong>of</strong> economic geology from exploration to<br />

production.<br />

Getting past stereotypes<br />

Being an industry-academic research-fellow/<br />

liaison is certainly not an easy job; after years<br />

in exploration I don’t think I grasped how<br />

many h<strong>our</strong>s academics actually work. There<br />

is no clock-on and clock-<strong>of</strong>f; it’s certainly a<br />

lifestyle rather than a job. I also quickly found<br />

out that academics have completely different<br />

KPIs (Key Performance Indicators) and that<br />

the success <strong>of</strong> a research project is not<br />

measured in metres drilled, tonnes hoisted<br />

or targets tested (although it would be nice if<br />

that was the end-result <strong>of</strong> some research!).<br />

In fact, in the first few months <strong>of</strong> my current<br />

role, rather than feel like an industry-academic<br />

boundary-spanner, it was like I was slipping<br />

through the crack between both worlds. This<br />

made me wonder: is this why there are so<br />

few embedded researchers? Is the role itself<br />

doomed to sit in neither camp? Why is this?<br />

One <strong>of</strong> the most consistent barriers for<br />

effective industry-academic research projects<br />

is stereotyping. Ask just about anyone in the<br />

industry about academics and you will be<br />

treated to tales <strong>of</strong> b<strong>of</strong>fins and their projects<br />

that become ‘too academic to be useful’, and<br />

academics who are ’only thinking about where<br />

their next research grant is coming from’. Or<br />

(as happened to me last year) when at the end<br />

<strong>of</strong> a research project meeting the industry geo<br />

says: ‘Right, I’d better get on with some real<br />

work now’. This example clearly demonstrates<br />

the lack <strong>of</strong> value that industry <strong>of</strong>ten places on<br />

geological knowledge and understanding.<br />

However, stereotyping works both ways and<br />

I have heard frustrations from the academic<br />

side <strong>of</strong> the fence referring to their industry<br />

partners’ ‘short-term goals’ and the recipients<br />

<strong>of</strong> the research who ‘don’t understand the<br />

results’ and ‘probably won’t read it anyway’.<br />

The high turnover <strong>of</strong> staff during the boom<br />

years is also a hindrance; it is common for<br />

the company geo who initiated the research<br />

project to have moved on by the time the<br />

research has been completed. Likewise,<br />

industry priorities change with the market and<br />

a three year study may find itself high and dry<br />

32<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


© ingimage.com © ingimage.com<br />

MRGraphics, a team that KNOWS<br />

Geology, Exploration & Mining.<br />

We specialise in...<br />

Annual reports<br />

Powerpoint presentations<br />

Industry – Academic Research Projects<br />

Business material design<br />

(business cards, letterheads, etc..)<br />

if the topic and/or outcomes are not business<br />

relevant by the delivery date. Because <strong>of</strong><br />

this, it is important for all industry-academic<br />

research projects to try to retain flexibility<br />

where possible.<br />

Other speed bumps that can get in the way<br />

<strong>of</strong> collaborative research include industry<br />

pricing cashing in on the good years (‘let’s just<br />

add some more to the budget; the company<br />

can afford it’). Confidentiality agreements can<br />

be stifling (and <strong>of</strong>ten unnecessary) and hobble<br />

academics’ ability to publish their results.<br />

This alone would be enough to prevent many<br />

promising early career researchers from<br />

ever getting into collaborative economic<br />

geology studies because their career path is<br />

essentially publish-or-perish.<br />

Appropriate fieldwork is also a key hurdle;<br />

nothing can replace time spent in the field<br />

and face-time at the operation/camp. An old<br />

stereotype is where the academic has flown<br />

in, looked at one drill-hole, and solved all the<br />

problems in an afternoon <strong>of</strong> arm-waving and<br />

Print design & broking<br />

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mrgraphics.com.au<br />

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<strong>AIG</strong> NEWS Issue 123 · February 2016 33


Industry – Academic Research Projects<br />

then spends the next 6 months writing it<br />

up. This is fine until you go around the next<br />

corner, or drill the next hole and the model<br />

doesn’t fit and the project has now finished<br />

(or the academic is unwilling to change their<br />

mind!). This point also highlights the value<br />

<strong>of</strong> long-standing working relationships;<br />

companies are not so fond <strong>of</strong> fair-weather<br />

friends who arrive when times are good and<br />

are not to be seen when the research money<br />

starts to dry up (or the individual academics<br />

personal interest has been quenched). In<br />

some cases this may be unavoidable as<br />

academics can only take on limited projects,<br />

The Good, The Bad and The Ugly<br />

The Good collaborative project represents<br />

the majority, by far; most projects achieve<br />

their target and build geological knowledge.<br />

Outcomes from short- to mid-term (Hons,<br />

PhD and Post-Doctoral) projects can provide<br />

geological constraints for specific targets,<br />

prospects and systems and can assist<br />

companies to make business decisions<br />

based on sound geological understanding.<br />

Good projects lead directly to more projects,<br />

which can build knowledge quickly. This is<br />

especially true if they are coordinated by a<br />

‘research champion’ within the company;<br />

not necessarily a senior figure, but someone<br />

to get a job or go onto further study (PhD).<br />

As well as research outcomes, the Hon<strong>our</strong>s<br />

process also allows companies’ access<br />

to these potentially high-calibre future<br />

employees.<br />

The Bad isn’t that bad. Some projects do<br />

not achieve what was originally intended.<br />

Students can go <strong>of</strong>f the rails and research can<br />

go <strong>of</strong>f at a tangent. Often this comes down to<br />

how much mentoring the student had from<br />

supervisors and whether key deliverables have<br />

been requested. This kind <strong>of</strong> project should<br />

have a learning outcome for both industry and<br />

but it does support a ‘baby-steps’ approach. I<br />

with a keen drive to progress geological<br />

academic supervisors. In most cases though,<br />

like to think <strong>of</strong> projects as Lego bricks; maybe<br />

understanding. The students involved in<br />

the cost <strong>of</strong> the project was minimal and the<br />

individually each study is not breathtaking, but<br />

these projects are normally self-starters and<br />

data generated will be <strong>of</strong> use to aid geological<br />

once several are joined together you can start<br />

interested in geology. Many gain enough<br />

understanding.<br />

to build something substantial.<br />

industry experience through their project<br />

Terra Search Pty. Ltd.<br />

Mineral Exploration and Data Management Specialists<br />

www.terrasearch.com.au<br />

Current Major Collaborative Projects<br />

in 2014<br />

In addition to <strong>our</strong> standard array <strong>of</strong> exploration services, Terra Search has a strong history <strong>of</strong> collaboration with Government<br />

agencies to provide pre-competitive exploration data sets.<br />

PNG MINERAL RESOURCES AUTHORITY (MRA) PROJECT<br />

As part <strong>of</strong> the World Bank sponsored 2nd Mining Sector Institutional<br />

Strengthening Technical Assistance Project (MSISTAP) in PNG, Terra Search has<br />

commenced a 12 month contract designed to add sigificant further historical<br />

Geological and Geochemical Data to the over 450,000 data points already<br />

captured by Terra Search during the 1st MSISTAP in 2002-2005.<br />

With over 15 years <strong>of</strong> experience providing database services to government and<br />

industry, Terra Search is well placed to deliver the best possible outcome for the<br />

MRA.<br />

All data compiled and validated during this project will be made available<br />

globally to exploration companies through the MRA.<br />

INTRUSION-RELATED MINERALIZATION SYSTEMS IN NE QLD<br />

Terra Search and Klondike Exploration Services are undertaking a comprehensive<br />

study <strong>of</strong> the geology and metallogeny <strong>of</strong> gold-bearing magmatic hydrothermal<br />

systems incorporating:<br />

• A new metallogenic database <strong>of</strong> the Charters Towers Region, GIS data package<br />

and map<br />

• Metallogenic model documenting genetic types & spatial controls in Charters<br />

Towers region<br />

• Revision and update <strong>of</strong> the geology <strong>of</strong> the Charters Towers District<br />

• Templates <strong>of</strong> geophysical & geochemical signatures <strong>of</strong> deposit styles<br />

This study is a part <strong>of</strong> a North QLD research initiative in collaboration with local<br />

Industry, EGRU (James Cook University) and the Geological Survey <strong>of</strong> QLD, funded<br />

through the Queensland Government Future Res<strong>our</strong>ces Program.<br />

Terra Search Pty. Ltd.<br />

Specialists in Mineral Exploration,<br />

Geology, and Computing<br />

for over 25 years<br />

TOWNSVILLE<br />

Simon Beams, Travers Davies<br />

T: (07) 4728 6851<br />

E: admin@terrasearch.com.au<br />

PERTH<br />

Dave Jenkins<br />

T: (08) 9472 8546<br />

E: tswa@iinet.net.au<br />

BATHURST<br />

Richard Lesh<br />

T: (02) 6337 3133<br />

E: richard.lesh@bigpond.com<br />

34<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


© ingimage.com © ingimage.com<br />

Industry – Academic Research Projects<br />

THE GOOD COLLABORATIONS<br />

THE BAD COLLABORATIONS<br />

Case Study Examples<br />

• Student does a great project - gets directly <strong>of</strong>fered a job<br />

• Student does a great project - industry experience helps<br />

them get a job with another company<br />

• Student does a great project - continues research<br />

with PhD<br />

• Company get a detailed Hon<strong>our</strong>s project on a<br />

previously undescribed style <strong>of</strong> mineralisation.<br />

• Geological data allows company to avoid paying many<br />

millions to stay in joint venture project.<br />

• Another company spends many hundreds <strong>of</strong><br />

thousands on the project and concludes finding based<br />

on original (Hon<strong>our</strong>s) project was correct.<br />

• Data from project allows company to explore more<br />

effectively for buried mineralisation; discovery is made.<br />

• Newly described style <strong>of</strong> mineralisation allows more<br />

efficient exploration and leads to buy-in from other<br />

companies also interested in research.<br />

• Additional exploration benefits state economy.<br />

Recommendations<br />

• Build interrelated projects up like Lego blocks.<br />

Case Study Examples<br />

• Student goes <strong>of</strong>f the rails and Hon<strong>our</strong>s Project<br />

doesn’t get submitted<br />

• Data still relevant and supervisor writes up technical<br />

report and project still adds value<br />

• Research goes <strong>of</strong>f on a tangent and final project<br />

doesn’t address primary aim<br />

• May be due to lack <strong>of</strong> supervision from both<br />

academic and industry supervisors<br />

• Academic arrives on site in Hawaiian shirt and thongs<br />

with a hastily put-together presentation (which<br />

includes basic spelling errors).<br />

• Academics reputation doesn’t carry across to<br />

industry.<br />

Recommendations<br />

• Have at least one industry ‘research champion’ who<br />

has responsibility for project.<br />

• Mentor students and emphasise the need for<br />

appropriate behavi<strong>our</strong> while on-site.<br />

• Maintain a pr<strong>of</strong>essional approach: relaxed working<br />

relationships can be enjoyable and productive, but a<br />

careless attitude does not promote confidence in the<br />

project.<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 35


Industry – Academic Research Projects<br />

“<br />

Any failure <strong>of</strong> large-scale projects<br />

can damage the reputations <strong>of</strong> the<br />

institutions and can make companies<br />

think twice about where (and how much)<br />

research funding they make available.”<br />

The Ugly. Well, there have been a few cases<br />

over the years <strong>of</strong> large-scale (high budget),<br />

all-singing and all-dancing paradigm-changing<br />

projects that just fizzled out. Big words can<br />

be used in the proposal, big names can be<br />

THE UGLY COLLABORATIONS<br />

Case Study Example<br />

• Six-figure PA spend from company matched by ARC<br />

linkage.<br />

• Ambitious ‘industry leading’ project with ‘paradigm<br />

changing’ aims.<br />

• Poor communication from start, field visits quickly became<br />

fewer as project progressed.<br />

• Late delivery <strong>of</strong> reports with basic errors.<br />

• Break-down <strong>of</strong> trust. Project funding cancelled after 2<br />

years.<br />

Recommendations<br />

involved and big outcomes can be promised,<br />

only for the projects to underachieve. Any<br />

failure <strong>of</strong> large-scale projects can damage the<br />

reputations <strong>of</strong> the institutions and can make<br />

companies think twice about where (and how<br />

much) research funding they make available.<br />

There can, <strong>of</strong> c<strong>our</strong>se, be many reasons for<br />

this outcome, but key among them may be a<br />

lack <strong>of</strong> open and transparent communication:<br />

without mutual trust and respect there will be<br />

no ‘true’ collaboration and this is especially<br />

pertinent for projects with higher budgets and<br />

more participants.<br />

• Communicate: be open and transparent and, if things go<br />

wrong, don’t try to hide it.<br />

• Maintain a pr<strong>of</strong>essional approach: a collaborative research<br />

project is a contractual relationship with the expectation<br />

that key deliverables will be provided as specified and on<br />

time.<br />

• Regular field visits are essential to provide updates and<br />

communicate results to industry partners.<br />

• Try to maintain project flexibility to be able to adjust to<br />

business needs.<br />

36<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


Some Final Thoughts<br />

The topic <strong>of</strong> industry-academic research<br />

projects is a large one and there are some<br />

fundamental issues with the way the<br />

academic system is funded (e.g. the reliance<br />

on citations as a measure <strong>of</strong> an academics’<br />

worth). However, it would seem from recent<br />

activities by the current government there may<br />

be some changes on the horizon<br />

(and, as much as I welcome those changes, I<br />

won’t be holding my breath). I have some final<br />

personal tips on maximising the chances <strong>of</strong><br />

a collaborative industry-academic research<br />

project succeeding;<br />

• Maintain open and transparent<br />

communication; building trust and<br />

effective communication <strong>of</strong> results<br />

is vital.<br />

• For the academics: try to keep technical<br />

jargon to a minimum (nobody likes<br />

Finally: one <strong>of</strong> the most positive and<br />

undervalued outcomes <strong>of</strong> any research project<br />

is the training and experience that it gives<br />

the student(s). The bigger picture <strong>of</strong> applied<br />

research is that even if this project didn’t kick<br />

all the goals it aimed for, the next one might<br />

surprise us. Adding geological understanding<br />

and constraints to exploration campaigns<br />

and learning more about the ore body you<br />

are mining is fundamental to progressing the<br />

Australian minerals industry and tackling the<br />

UNCOVER challenge <strong>of</strong> finding the ore bodies<br />

<strong>of</strong> tomorrow.<br />

© ingimage.com<br />

Note about the Author<br />

Richard Lilly completed his PhD at Cardiff<br />

University in the UK on ophiolite geochemistry<br />

in collaboration with the British Geological<br />

Survey and a short structurally-focussed<br />

post-doc working with Chevron in Morocco. He<br />

then worked for 8 years for Mount Isa Mines<br />

based in Mount Isa, Queensland and was Senior<br />

Geologist for Cloncurry Projects, specialising<br />

in exploration geochemistry for IOCG and<br />

related targets in covered terrain. Richard has a<br />

passion for using applied research to improve<br />

<strong>our</strong> understanding <strong>of</strong> mineral systems to<br />

benefit exploration and is currently the Mount<br />

Isa Mines funded Embedded Research Fellow<br />

at the University <strong>of</strong> Adelaide conducting and<br />

coordinating a wide range <strong>of</strong> applied research<br />

projects.<br />

Industry – Academic Research Projects<br />

reading an overly wordy technical report<br />

when a couple <strong>of</strong> PowerPoint slides<br />

could suffice).<br />

• Establish key deliverables and to deliver<br />

them on time: if plans and timelines<br />

change, be open about it.<br />

• There are no substitutes for fieldwork<br />

and relationship building.<br />

• Maintain project flexibility where<br />

possible.<br />

Glenn Coianiz<br />

M<strong>AIG</strong> RPGeo<br />

M: 0412 409 760<br />

glenn@exploris.com.au<br />

www.exploris.com.au<br />

Need maps produced but don’t have time, skills<br />

or staff. ExplorIS can do that for you.<br />

1 h<strong>our</strong> minimum charge out.<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 37


Valmin Code Changes<br />

VALMIN CODE<br />

2015: What has<br />

changed and why?<br />

Jonathan Bell and Louis Rozman<br />

Disclaimer: The content <strong>of</strong> this article contains the personal views <strong>of</strong> two individuals and does not<br />

constitute advice nor represent the <strong>of</strong>ficial view <strong>of</strong> the VALMIN Committee. For details on specific<br />

issues refer to the VALMIN Code 2015 or contact the VALMIN Committee.<br />

Members <strong>of</strong> the Australian Institute<br />

<strong>of</strong> <strong>Geoscientists</strong> (<strong>AIG</strong>) and<br />

Australasian Institute <strong>of</strong> Mining<br />

and Metallurgy (AusIMM) are bound to three<br />

codes, namely the Code <strong>of</strong> Ethics, JORC Code<br />

and VALMIN Code. On 13 January 2016, the<br />

VALMIN Code (2015 Edition) was <strong>of</strong>ficially<br />

released and on 30 January 2016, it became<br />

effective. The VALMIN Code (2005 Edition)<br />

remains in effect until 30 June 2016, and<br />

until 30 June 2016 either the VALMIN Code<br />

(2005 Edition) or the VALMIN Code (2015<br />

Edition) can be used. From 1 July 2016 it will<br />

be mandatory to use the VALMIN Code (2015<br />

Edition). This article outlines the extensive<br />

review process and highlights key changes to<br />

the new VALMIN Code (2015 Edition).<br />

The VALMIN Code is a companion to<br />

the JORC Code which addresses both the<br />

technical assessment and valuation <strong>of</strong><br />

mineral assets. The VALMIN Code also<br />

provides guidance for assessment and<br />

valuation <strong>of</strong> petroleum assets. The VALMIN<br />

Code’s first incarnation was in July 1995, with<br />

updates released in April 1998, April 2005<br />

and now, January 2016. The most notable<br />

changes in the latest version <strong>of</strong> the Code are<br />

that:<br />

1 it no longer mandates the principle <strong>of</strong><br />

Independence. This brings the Code<br />

into alignment with the three principles<br />

<strong>of</strong> the JORC Code, namely Competence,<br />

Materiality and Transparency;<br />

2 the requirements <strong>of</strong> Technical<br />

Assessments are separated from the<br />

requirements <strong>of</strong> Valuation Reports; this<br />

allows for a more succinct document<br />

that reflects its dual purpose;<br />

3 the terms and definitions are in greater<br />

alignment to those <strong>of</strong> the JORC Code,<br />

Australian Securities and Investments<br />

Commission (ASIC) and the International<br />

Valuation Standards (IVS);<br />

4 it provides guidance on additional<br />

reporting requirements, such as the<br />

Peter Komyshan BSc (HonS), MAuSIMM, M<strong>AIG</strong><br />

Consultant GeoloG ist<br />

▲ Corporate Advice<br />

▲ Project and Target Generation<br />

▲ Project Management<br />

Omap Pty Ltd (ACN 154 607 977)<br />

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Mobile (+61) 414 918 515 ▲ Telephone (+61) 8 9447 1142<br />

Email: omap@iinet.net.au<br />

Corporations Act, ASIC’s regulatory<br />

guidelines, the Australian Securities<br />

Exchange (ASX) listing rules; and<br />

5 petroleum technical assessments and<br />

valuations can use the VALMIN Code as<br />

guidance, but it is not mandatory.<br />

38<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


“<br />

Arguably the biggest change to the VALMIN Code<br />

is the removal <strong>of</strong> the principle <strong>of</strong> Independence.”<br />

The changing Australian regulatory<br />

new committee member, with each working<br />

framework surrounding the VALMIN<br />

group focussed on a set section <strong>of</strong> the draft<br />

Code necessitated additional stakeholder code. The intent <strong>of</strong> this process was to share<br />

consultation and resulted in delays to the knowledge and provide fresh perspectives<br />

Valmin Code Changes<br />

© ingimage.com<br />

These changes are the result <strong>of</strong> a review<br />

process that began in 2010 with the VALMIN<br />

Committee undertaking an extensive<br />

stakeholder consultation process. Initially,<br />

this involved interviews with a cross-section<br />

<strong>of</strong> stakeholders to determine what were<br />

issues that needed to be addressed and<br />

improvements that could be made. Having<br />

gained an insight into stakeholder perceptions,<br />

seminars were run in Perth in October 2011<br />

and a second seminar held in Brisbane in<br />

April 2012. These seminars served to raise<br />

the awareness <strong>of</strong> the VALMIN Code’s review<br />

process and gain additional feedback. The<br />

VALMIN review process coincided with a<br />

period when a number <strong>of</strong> significant changes<br />

in regulatory reporting had also come into<br />

effect, such as:<br />

• ASIC Regulatory Guide 111 (Content<br />

<strong>of</strong> Expert Reports) and 112 RG112<br />

(Independence <strong>of</strong> Experts) which were<br />

released on 1 March 2011; and<br />

• Finalisation <strong>of</strong> the draft edition <strong>of</strong> the<br />

2012 edition <strong>of</strong> the JORC Code and<br />

the corresponding ASX Listing Rules<br />

(Chapter 5).<br />

process. The initial draft was circulated<br />

in November 2013 to key stakeholders<br />

comprising <strong>of</strong> <strong>AIG</strong>, AusIMM, MCA , ASX,<br />

ASIC, PESA and key industry practitioners.<br />

Extensive suggestions and comments on<br />

this draft were received by April 2014, but<br />

unfortunately it took until late 2014 to get the<br />

necessary feedback from all the stakeholders.<br />

Having incorporated the comments from<br />

the regulators, a public exposure draft was<br />

released for comment in April 2015.<br />

To assist in putting the proposed changes to<br />

the VALMIN Code into context and to collate<br />

further feedback, an exposure draft webinar<br />

was held in June 2015 prior to the closure<br />

<strong>of</strong> the public consultation process on<br />

17 July 2015.<br />

In recognition <strong>of</strong> the increasing workload<br />

due to the public submissions and subsequent<br />

marketing, the VALMIN Committee was<br />

expanded from seven to twelve members. In<br />

selecting the new members, an emphasis was<br />

placed on diversifying the skill and experience<br />

base <strong>of</strong> the committee. This expansion<br />

allowed the VALMIN Committee to benefit<br />

from insights from regulatory, legal, JORC<br />

Code and international perspectives.<br />

The public consultation submissions<br />

were allocated to small working groups<br />

comprised <strong>of</strong> at least one existing and one<br />

on the code. In December 2015 following<br />

engagement with the regulators on the<br />

penultimate draft, the <strong>AIG</strong> and AusIMM<br />

parent bodies <strong>of</strong> the VALMIN Code gave their<br />

approval and the finalised document was<br />

publicly released on 13 January 2016.<br />

A side-by-side comparison between the<br />

VALMIN Code (2005 Edition) and VALMIN<br />

Code (2015 Edition) is difficult due to the<br />

reorganisation <strong>of</strong> the document. The VALMIN<br />

Code now separates technical assessments<br />

and valuations into distinct sections. This<br />

structure makes the document more<br />

readable, easier to follow and more concise<br />

for practitioners only wanting to read the<br />

requirements <strong>of</strong> a technical assessment.<br />

Arguably the biggest change to the<br />

VALMIN Code is the removal <strong>of</strong> the principle<br />

<strong>of</strong> Independence. This former requirement<br />

resulted in the VALMIN Code becoming<br />

a code that was exclusively applied to<br />

consultants. The effect <strong>of</strong> removing the<br />

Independence principles is that it allows<br />

the author <strong>of</strong> a report to be an employee<br />

<strong>of</strong> the commissioning entity, as is the case<br />

with the JORC Code. The author(s) are still<br />

required to be reasonable and objective, and<br />

the Corporations Act, as discussed in ASIC<br />

RG111, outlines when there is a need to be<br />

independent.<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 39


A less obvious, but important change to<br />

accounting firm; in comparison, the VALMIN<br />

The divergence in terminology between<br />

the VALMIN Code was to the definitions. With<br />

Code (2005 Edition) definition <strong>of</strong> expert<br />

the JORC Code and the PRMS guidelines<br />

some pre-existing terms within the VALMIN<br />

largely refers to mining sector expertise. It is<br />

combined with the requirements <strong>of</strong> the ASX<br />

Code (2005 Edition) being inconsistent with<br />

common for a VALMIN Report to be part <strong>of</strong><br />

Listing Rules led to compromises for both<br />

definitions already defined by Australian<br />

an overarching document published by an<br />

sectors using VALMIN Code. Recognising the<br />

and International regulatory language. This<br />

AFSL holder, leading to a situation where all<br />

mineral-centric nature <strong>of</strong> the VALMIN Code,<br />

Valmin Code Changes<br />

included inconsistencies with the JORC<br />

Code and ASX listing rules, as well as other<br />

international terms. For example, the VALMIN<br />

2005 Code’s term Fair Market Value was<br />

changed to Market Value, the definition <strong>of</strong><br />

which is similar to that published in the IVS<br />

Glossary. The definition <strong>of</strong> Technical Value<br />

was aligned with the IVSC term Investment<br />

Value. Another area <strong>of</strong> misaligned terms<br />

authors were describing themselves as ‘the<br />

expert’ in a report that leads to a Valuation <strong>of</strong><br />

Securities. To provide clear guidance and to<br />

reduce any ambiguity or misinterpretation <strong>of</strong><br />

broader regulations, the VALMIN Code (2015<br />

Edition) adopted the term Specialist, a term<br />

which is consistent with what is described<br />

in the ASIC definitions. By updating the<br />

definitions and terms in this manner, VALMIN<br />

the wording around petroleum is changed<br />

from ‘mandatory’ to ‘guidance’. This change<br />

allows for the general concepts and good<br />

practice outlined in VALMIN (2015 Edition) to<br />

be applied in the Reporting and Valuation <strong>of</strong><br />

petroleum assets without running the risk <strong>of</strong><br />

incorrectly attributing a ‘must’ statement to<br />

a similar sounding, but significantly different<br />

petroleum term. Counterintuitively, this<br />

concerned ‘who is the expert?’. In the ASIC<br />

Code (2015) is clear and consistent, providing<br />

strengthens the VALMIN Code in relation to<br />

regulatory guides, the expert is typically the<br />

a better framework that interdisciplinary<br />

petroleum, as it gives disciplinary panels and<br />

entity that holds an Australian Financial<br />

teams can understand and with less risk <strong>of</strong><br />

regulators more latitude to make a case while<br />

Services Licence (AFSL), such as an<br />

misinterpretation.<br />

minimising the risk <strong>of</strong> a potential loophole<br />

being exploited.<br />

The VALMIN Code is part <strong>of</strong> a complex<br />

regulatory framework with a wide range<br />

<strong>of</strong> stakeholders within Australia and<br />

internationally. This framework includes<br />

government regulations, security exchange<br />

listing rules and financial standards relating to<br />

the mineral and petroleum industry. Changes<br />

to the regulatory environment occurring<br />

immediately before and during the VALMIN<br />

review process, necessitated a significant<br />

restructure and realignment <strong>of</strong> the Code.<br />

While containing many common elements,<br />

the VALMIN Code (2015 Edition) has a new<br />

structure and feel to its predecessor. The<br />

result is a new Code which is clear, concise<br />

and more effective in communicating<br />

international good practice in Public Reporting<br />

and Valuation in the mineral and petroleum<br />

Industries.<br />

40<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


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<strong>AIG</strong> NEWS Issue 123 · February 2016<br />

41


The Fold Experiment - Geologists Bias<br />

Geologists Are Highly Biased —<br />

How to take Business Advantage <strong>of</strong> this Bias<br />

Jun Cowan<br />

Recently I wrote a post about how a<br />

90% mineral res<strong>our</strong>ce downgrade<br />

could easily occur as a result <strong>of</strong> bias<br />

in the form <strong>of</strong> habitual behavi<strong>our</strong>. People<br />

<strong>of</strong>ten do not fully realise how extreme or<br />

entrenched human bias can be, nor the<br />

implications it has with regard to <strong>our</strong> scientific<br />

and business decisions. The purpose <strong>of</strong> this<br />

post is to illustrate a simple geological bias<br />

that can be demonstrated by anyone. As is<br />

the nature <strong>of</strong> any bias, this particular bias is<br />

virtually unknown in the geological pr<strong>of</strong>ession.<br />

We’ll examine the origin <strong>of</strong> this bias, and then I<br />

will share how I take advantage <strong>of</strong> widespread<br />

bias in my own business as a mining industry<br />

consultant.<br />

My epiphany<br />

Around 1990 when I was studying for my<br />

PhD at the University <strong>of</strong> Toronto, I learned<br />

something that was to change the way I<br />

viewed fellow geologists. It was nothing to<br />

do with my research, but a single sentence<br />

that I overheard at a student-faculty party that<br />

stopped me in my tracks and changed the<br />

way I thought. That sentence?<br />

“Did you know that most geologists will<br />

draw an antiform, as opposed to a synform, if<br />

you ask them to draw a fold?”<br />

The person who made the statement<br />

couldn’t tell me the s<strong>our</strong>ce <strong>of</strong> this claim, but<br />

it was the implication <strong>of</strong> this statement that<br />

really fascinated me. After all, if asked to draw<br />

a fold pr<strong>of</strong>ile, I would instinctively draw an<br />

antiform too.<br />

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42<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


“<br />

Could geologists be<br />

this biased?” I wondered.<br />

This claim bothered me for years, so I set<br />

up an experiment to test this hypothesis. I<br />

want to share the experiment with you in this<br />

post, as well as its outcome and implications,<br />

because the result <strong>of</strong> this simple experiment<br />

unexpectedly shaped my career direction<br />

in the mining industry. It might shift y<strong>our</strong><br />

perspective as well.<br />

Figure 1.<br />

Non-geologists who<br />

choose between<br />

synform or antiform<br />

produce results similar<br />

to the computer<br />

results (Figure 2).<br />

The Fold Experiment - Geologists Bias<br />

The Fold Experiment<br />

Eight years later I was in Perth working<br />

as a Postdoctoral Research Fellow at the<br />

University <strong>of</strong> Western Australia (UWA) and I<br />

decided to test this hypothesis. I devised a<br />

simple experiment, but first let me explain<br />

what I was testing.<br />

If you ask someone to choose between<br />

black or white, there’s a 0.5 probability for<br />

Figure 2.<br />

each <strong>of</strong> black or white to be selected. If you<br />

repeat this experiment many times by asking<br />

a population <strong>of</strong> people, approximately 50%<br />

will choose white, and the other 50%, black.<br />

This is a binary choice experiment, and the<br />

outcome is very predictable.<br />

With the fold experiment, instead <strong>of</strong> a<br />

choice between black or white, the choice<br />

is based on a geological choice, and the<br />

question is:<br />

“Imagine a single fold pr<strong>of</strong>ile. Do you see a<br />

synform or an antiform?”<br />

The choice between an antiform and a<br />

synform each has a 0.5 probability, so it’s<br />

identical to a choice between black or white.<br />

If you get a computer to randomly select<br />

between a synform and an antiform and do<br />

this experiment many times, the probability<br />

curve <strong>of</strong> the antiform bias would look like<br />

Figure 1. The peak <strong>of</strong> the bell curve sits right<br />

in between the synform and antiform options.<br />

The results in Figure 2 are based on a<br />

random survey <strong>of</strong> 32 people I conducted on<br />

UWA arts and commerce students who had<br />

no prior exposure to geology. I just walked<br />

up to a student at the UWA campus and my<br />

first screening question was “Do you know<br />

anything about geology?” If a student hadn’t<br />

studied geology or wasn’t exposed in any<br />

way to geology, then they became part <strong>of</strong> the<br />

control group.<br />

The students had to complete the activity<br />

sheet shown in Figure 3 and Figure 4 shows a<br />

completed example.<br />

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<strong>AIG</strong> NEWS Issue 123 · February 2016 43


The Fold Experiment - Geologists Bias<br />

Figure 3.<br />

Figure 4. A completed<br />

activity sheet. The<br />

question about the circle<br />

was to see if there<br />

was a relationship<br />

between the type <strong>of</strong><br />

fold drawn and the<br />

way people drew<br />

circles. There was no<br />

statistical relationship<br />

between the two.<br />

Geologists are not like computers<br />

So, given that I knew the control group <strong>of</strong> nongeologists<br />

acted pretty much like a random<br />

choice, it was time to find out how geologists<br />

responded to the same question.<br />

The result is illustrated in Figure 5. The<br />

pink bell curve shows a very strong antiform<br />

bias, and is the result <strong>of</strong> my 1998 experiment<br />

at UWA with 32 geology students and staff<br />

using the same activity shown in Figure 3.<br />

The statement I heard at that party almost a<br />

decade before was thus proven correct with<br />

this simple experiment.<br />

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44<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


“<br />

The bell curve<br />

indicates that 9 out <strong>of</strong> 10<br />

geologists, if asked the<br />

question <strong>of</strong> what fold they<br />

are imagining, will answer<br />

antiform in preference to<br />

synform.”<br />

In fact, the results between the geologists<br />

and non-geologists are so different they<br />

can be considered two completely different<br />

Figure 5.<br />

I haven’t had the opportunity to conduct a<br />

similarly large-scale control experiment using<br />

a large number <strong>of</strong> non-geologists.)<br />

What I have found from experience is that<br />

what ought to be a 0.5 probability outcome, is<br />

a 0.9 to 0.95 probability in fav<strong>our</strong> <strong>of</strong> antiforms<br />

The Fold Experiment - Geologists Bias<br />

populations.<br />

For the larger crowds I have not used the<br />

if you ask the fold question <strong>of</strong> a geologist.<br />

The overlap <strong>of</strong> the probability curves is<br />

worksheet from Figure 3, but instead have<br />

Several people have told me that they<br />

so minimal that we are likely to get a biased<br />

asked the participants to imagine a “pr<strong>of</strong>ile <strong>of</strong><br />

conducted their own experiments in their work<br />

result from geologists, no matter how many<br />

a fold.” I then asked them to raise their hand<br />

environments and, predictably, the results<br />

geologists we ask.<br />

if they imagined a synform, and followed with<br />

were the same as mine.<br />

The bell curve indicates that 9 out <strong>of</strong> 10<br />

asking for a show <strong>of</strong> hands if they imagined<br />

Try it now on an unsuspecting geologist<br />

geologists, if asked the question <strong>of</strong> what fold<br />

an antiform. Figure 6 shows a typical result in<br />

colleague who shares y<strong>our</strong> <strong>of</strong>fice, or phone a<br />

they are imagining, will answer antiform in<br />

a classroom setting Figure 6.<br />

geologist and ask the question. Repeat this<br />

preference to synform.<br />

During a 3D modelling c<strong>our</strong>se at University<br />

ten times and see whether you get the same<br />

<strong>of</strong> Tasmania, 21 MSc geology students<br />

9/10 result that I got every time.<br />

Testing on a larger population<br />

were asked to participate in the fold test.<br />

In his bestselling book The Signal and the<br />

These results were so striking that I wanted<br />

10 students did not vote, but out <strong>of</strong> the<br />

Noise, Nate Silver discusses how pr<strong>of</strong>essional<br />

to repeat this experiment at a much larger<br />

11 students that did vote, 11 imagined an<br />

gamblers take advantage <strong>of</strong> the very small<br />

gathering <strong>of</strong> geologists. I finally got around<br />

antiform. No one imagined a synform.<br />

percentages in their fav<strong>our</strong> to make a living<br />

to doing this at two large geoscience<br />

conferences more than a decade after<br />

my original experiment. The conferences<br />

were the 2011 AusIMM Mining Geology<br />

conference (Queenstown), and the 2012 <strong>AIG</strong><br />

Structural Geology and Res<strong>our</strong>ces conference<br />

(Kalgoorlie). At both conferences, about<br />

300 people were in each <strong>of</strong> the auditoriums<br />

when I asked the fold question. In each case<br />

about 15 people put up their hands in fav<strong>our</strong><br />

<strong>of</strong> synform, while the majority <strong>of</strong> the crowd<br />

fav<strong>our</strong>ed antiform, thus providing pro<strong>of</strong><br />

and confidence that the results <strong>of</strong> my 1998<br />

experiment can be scaled. (Unfortunately<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 45


from gambling. In the case <strong>of</strong> geologists<br />

The Fold Experiment - Geologists Bias<br />

and the question about synforms and<br />

antiforms, there’s a 9 out <strong>of</strong> 10 certainty<br />

that you can predict their answer—not 5 out<br />

<strong>of</strong> 10! This is a remarkable contrast and is<br />

probably unprecedented for such a simple<br />

binary choice experiment. View the pictures<br />

<strong>of</strong> the roulette wheel that represents how<br />

a computer sees this antiform (black) vs<br />

synform (red) draw (Figure 7), as opposed to<br />

how the geological community sees antiform<br />

vs synform (Figure 8), and you’ll realise the<br />

startling difference.<br />

But why this highly skewed result?<br />

The result <strong>of</strong> these fold experiments are quite<br />

remarkable.<br />

It’s a bit like discovering a group <strong>of</strong> people<br />

somewhere in the world who, when given<br />

a free choice between black and white,<br />

Figure 7:<br />

A computer’s<br />

antiform vs synform<br />

pick shown as a<br />

roulette wheel<br />

(50% red, 50% black).<br />

Figure 8: The<br />

geologists’ antiform<br />

(black) vs synform<br />

(red) pick shown as a<br />

roulette wheel.<br />

consistently pick one col<strong>our</strong> 9 out <strong>of</strong> 10 times.<br />

This is remarkable, <strong>of</strong> c<strong>our</strong>se, but what is truly<br />

remarkable is most geologists are completely<br />

unaware <strong>of</strong> this bias.<br />

While geologists are curious about this<br />

result, they are <strong>of</strong>ten not shocked by it.<br />

Astonishingly, most geologists think this result<br />

is natural and quite normal, and I have found<br />

that they’ve <strong>of</strong>ten come up with imaginative<br />

reasons why geologists behave this way.<br />

But there is nothing normal about this<br />

asymmetry and departure from what should<br />

be a coin-toss probability, so the next obvious<br />

question is: Why is the outcome so skewed?<br />

Well, I don’t exactly know why, and I will<br />

speculate here, but I did search for research<br />

papers on the psychology <strong>of</strong> geological<br />

interpretations. However, there’s very little and<br />

although I’ve not done an exhaustive search,<br />

I speculate that fewer than 20 papers have<br />

been written on the subject since the 1970s.<br />

I could only find one experimental study<br />

that was anything like my experiment and<br />

that was conducted by structural geologist<br />

Peter K. Chadwick who published his result<br />

in the j<strong>our</strong>nal Nature in 1975. The conclusion<br />

Chadwick reached was that humans were<br />

hardwired to see antiforms over synforms<br />

(Chadwick, 1975, 1982). This conclusion was<br />

based on eye tracking experiments performed<br />

on 20 geologists and 20 non-geologists. The<br />

eyes <strong>of</strong> both groups <strong>of</strong> people preferentially<br />

looked at antiformal closures.<br />

However, the results <strong>of</strong> my experiment are<br />

not consistent with Chadwick’s conclusion—<br />

my control group <strong>of</strong> 32 non-geologists<br />

showed a completely different result<br />

compared to 32 geologists. When I chose<br />

my test candidates from the UWA campus<br />

in 1998, I made sure that the students in<br />

the control <strong>sample</strong> did not have any prior<br />

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exposure to geology. I deliberately chose<br />

those who had no idea about geology, so if<br />

a student asked “What’s geology?” then they<br />

were the perfect candidate for my experiment.<br />

My guess is that the antiform bias seen in<br />

the results from the geological community<br />

is due to subliminal conditioning caused by<br />

the geological education process. The only<br />

difference between a non-geologist and a<br />

geologist is their education. If you think back<br />

46<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


The Fold Experiment - Geologists Bias<br />

Figure 9. Most geology text books show pictures <strong>of</strong> antiforms when they<br />

introduce the concept <strong>of</strong> folding.<br />

to y<strong>our</strong> undergraduate years, you may recall<br />

that when you were first introduced to folding,<br />

you were most likely shown a picture <strong>of</strong> an<br />

anticline, not a syncline. If you examine any<br />

number <strong>of</strong> geological text books, you will<br />

notice that this pattern <strong>of</strong> biased illustration <strong>of</strong><br />

antiforms over synforms is repeated (Figure 9).<br />

Implications <strong>of</strong> the ‘Fold test’<br />

I’m suggesting that the antiform bias that<br />

we geologists have is a consequence <strong>of</strong><br />

unintentional brainwashing, and a sure<br />

sign <strong>of</strong> brainwashing is that those who are<br />

brainwashed have no idea that they were<br />

brainwashed. Perhaps there is a bias in the way<br />

academic geologists preferentially illustrate<br />

antiforms in textbooks, as Chadwick (1975)<br />

had speculated, but I think this effect is further<br />

amplified by geology students who absorb<br />

and then repeat this pattern without thinking.<br />

If this extreme bias that we see in <strong>our</strong><br />

geological community is due to passive and<br />

unintended brainwashing, then consider the<br />

outcome if a message is pounded into us<br />

intentionally and repeatedly by an enthusiastic<br />

and charismatic academic or industry leader.<br />

These ideas could be mineralisation models<br />

(eg Shear-Zone Hosted Gold, SEDEX, VMS), or<br />

some geological theory (eg Plate Tectonics,<br />

Expanding Earth), or they may be a habitual<br />

analytical process, as I’ve addressed recently<br />

about mineral res<strong>our</strong>ce estimation downgrades.<br />

This brainwashing is no different to that<br />

used in product advertisements—after a while<br />

you become oblivious to what you are told<br />

repeatedly, and eventually it just becomes<br />

part <strong>of</strong> y<strong>our</strong> language and even thinking. You<br />

don’t question it, but simply accept it, and the<br />

ideas are interwoven with y<strong>our</strong> beliefs, without<br />

you ever realising that you were brainwashed<br />

in the first place. Any ideas that are counter<br />

to what you are told are rejected without any<br />

rigorous testing. Everyone else exposed to the<br />

same brainwashing messages is in the same<br />

boat and everyone agrees with each other.<br />

But what if the message you were told for<br />

decades was actually wrong? What if the<br />

exploration model that y<strong>our</strong> company uses<br />

is incorrect and cannot represent nature,<br />

yet everyone around you is brainwashed<br />

to believe it? This could be costing y<strong>our</strong><br />

company a lot <strong>of</strong> money, perhaps millions <strong>of</strong><br />

dollars every year.<br />

It would be a difficult job to turn y<strong>our</strong><br />

thinking around because you’ve been told the<br />

message over and over again. It just becomes<br />

part <strong>of</strong> you so you vigorously defend it, even if<br />

it was an idea invented by someone else. It’s<br />

been in y<strong>our</strong> system for so long that it simply<br />

becomes part <strong>of</strong> y<strong>our</strong> thinking. In fact, it<br />

becomes part <strong>of</strong> the community so when the<br />

bias is pointed out (such as the fold bias), you<br />

don’t quite grasp the extreme (9/10!) nature <strong>of</strong> it.<br />

With this sort <strong>of</strong> bias and entrenched<br />

thinking, it’s not surprising that major<br />

scientific breakthroughs don’t happen very<br />

<strong>of</strong>ten.<br />

This is the scary implication <strong>of</strong> the fold<br />

bias if extrapolated to other parts <strong>of</strong> <strong>our</strong><br />

pr<strong>of</strong>essional lives, but how can we learn and<br />

make practical use <strong>of</strong> the realisation that such<br />

biases exist?<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 47


The Fold Experiment - Geologists Bias<br />

I became a contrarian because <strong>of</strong> that<br />

simple statement I overheard at a party when<br />

I was a grad student nearly 30 years ago. A<br />

contrarian consciously determines what the<br />

majority are doing or thinking (this is not as<br />

easy as it sounds), and then thinks exactly the<br />

opposite to seek out untapped opportunities.<br />

Fifteen years ago, I came up with the<br />

Leapfrog s<strong>of</strong>tware concept, which is now<br />

regarded as mainstream mining/exploration<br />

s<strong>of</strong>tware, but back in 2001 I was completely<br />

alone in thinking that 3D interpolation could<br />

replace traditional sectional digitisation. In<br />

my mind, I could visualise this happening.<br />

However, most geologists, including many <strong>of</strong><br />

way herds behave. Herds rarely head <strong>of</strong>f in<br />

a direction unprompted, unless they see a<br />

substantial number <strong>of</strong> animals heading that<br />

way. Herds are not easily led by a delusional<br />

lone animal.<br />

But as a contrarian thinker, I soon realised<br />

that actively thinking the opposite can present<br />

untapped business opportunities because <strong>of</strong> the<br />

complete lack <strong>of</strong> competition. A lone sheep can<br />

come across vast green pastures where there<br />

are no other sheep to compete with.<br />

However, pr<strong>of</strong>ound changes that go against<br />

the herd mentality do not happen overnight—it<br />

took many years for the mining industry to see<br />

the value <strong>of</strong> Leapfrog s<strong>of</strong>tware, and even now,<br />

my experiment and ask an unsuspecting<br />

geologist the fold question:<br />

“Imagine a single fold pr<strong>of</strong>ile. Do you see a<br />

synform or an antiform?”<br />

This post (modified from the original The<br />

System), and many more like this, can be<br />

found on the Orefind website. Dr Jun Cowan<br />

is a structural geologist and a co-director <strong>of</strong><br />

Orefind along with fellow structural geologist<br />

Dr Brett Davis. Orefind’s mission is to make<br />

a material difference to mining operations,<br />

exploration companies and to investors.<br />

We achieve this through the investigation<br />

<strong>of</strong> structural geology at all scales and in the<br />

quickest possible time.<br />

my work colleagues, and, without exception,<br />

most geologists who use it don’t realise how<br />

all the mining s<strong>of</strong>tware companies I talked to,<br />

powerful it is.<br />

thought the idea was a bit loopy. The hardest<br />

There are many untapped business<br />

sell was to mining consulting companies, and<br />

opportunities in the mining industry that are<br />

in the early years I never achieved long-term<br />

the direct consequence <strong>of</strong> human bias (which<br />

sales to any <strong>of</strong> the consulting companies.<br />

I will cover in future posts), but before you can<br />

It is ironic to see consultants who rejected<br />

see these opportunities, you must become<br />

the s<strong>of</strong>tware back then are now singing the<br />

aware that geologists are highly biased. If<br />

praises <strong>of</strong> Leapfrog s<strong>of</strong>tware, but that is the<br />

you don’t believe me, I dare you to try out<br />

Acknowledgement<br />

Dr Stefan Revets for discussions and help with the statistics in the original 1998 UWA study.<br />

References<br />

Chadwick, P.K., 1975, A psychological analysis <strong>of</strong> observation in geology. Nature 256, p. 570-573.<br />

Chadwick, P.K., 1982, “Earth-boundness” in geological observation. Geology Teaching – J<strong>our</strong>nal <strong>of</strong> the Association <strong>of</strong> Teachers <strong>of</strong> Geology, 7(1), p. 16-22.<br />

Sliver, N., 2012, The Signal and the Noise: The Art and Science <strong>of</strong> Prediction. Penguin Books, London.<br />

48<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016


Events calendar<br />

Keep up to date with upcoming <strong>AIG</strong> and Geological events at www.aig.org.au/events<br />

March 2016<br />

May 2016<br />

17th Annual Geoscience Exploration Seminar<br />

Mineral Res<strong>our</strong>ce and Ore Reserve Review<br />

2015 VALMIN Code Roadshow: Sydney<br />

- AGES 2016<br />

Workshop<br />

May 3, 2016<br />

March 15-16, 2016<br />

March 30, 2016<br />

To be advised, Sydney NSW<br />

Alice Springs Convention Centre, Alice Springs NT<br />

SRK Consulting, West Perth WA<br />

IOCG and Other Mineral Systems in the<br />

World-Class Cloncurry District: New<br />

Advances in Exploration and Deposit<br />

Understanding<br />

March 16-18, 2016<br />

Cloncurry, Cloncurry QLD<br />

The Record <strong>of</strong> Past Climates in Tsunami<br />

Deposits<br />

March 30, 2016<br />

Woolnough Lecture Theatre, 1.07, Geography<br />

and Geology Building, University <strong>of</strong> Western<br />

Australia, Crawley WA<br />

UBC-SEG Student Chapter Mongolia Field Trip<br />

May 4-20, 2016<br />

National University <strong>of</strong> Mongolia, Ulaanbaatar<br />

Hyperspectral Analysis for Exploration and<br />

Mining - A silver bullet?<br />

May 9, 2016<br />

Events Calendar<br />

Value From Exploration Geology: Cobar<br />

April 2016<br />

CSIRO Australian Res<strong>our</strong>ces Research Centre,<br />

Kensington WA<br />

March 16, 2016<br />

Cobar Bowling and Golf Club, Cobar NSW<br />

2015 Valmin Roadshow: Perth<br />

2016 Contaminated Land Conference<br />

April 12, 2016<br />

May 31, 2016<br />

Legal Considerations <strong>of</strong> Contaminated Land<br />

To be advised, Perth WA<br />

Western Plains Zoo, Dubbo NSW<br />

Management<br />

March 17, 2016<br />

Recent Changes to WA Exploration and<br />

June 2016<br />

Ashurst, Brisbane QLD<br />

Mining Regulations<br />

April 15, 2016<br />

The Third AusIMM International<br />

Management <strong>of</strong> Petroleum Hydrocarbon<br />

Burswood on Swan Convention Centre,<br />

Geometallurgy Conference<br />

Groundwater Contamination<br />

Burswood WA<br />

June 15-17, 2016<br />

March 21, 2016<br />

Pan Pacific Hotel Perth, Perth WA<br />

King & Wood Malleson, Melb<strong>our</strong>ne VIC<br />

Integrated Spatial Analysis and Remote<br />

Sensing <strong>of</strong> Mineral Exploration Targets<br />

July 2016<br />

Value From Exploration Geology: Tullah<br />

April 18-29, 2016<br />

March 21, 2016<br />

James Cook University, Townsville QLD<br />

Brownfields Exploration: Deep and<br />

To be advised, Tullah TAS<br />

Meaningful<br />

2015 VALMIN Code Roadshow: Melb<strong>our</strong>ne<br />

July 30, 2016<br />

A.K. Denmead Memorial Lecture<br />

April 18, 2016<br />

WMC Conference Centre, Kalgoorlie WA<br />

March 22, 2016<br />

The Theodore Club, Brisbane QLD<br />

To be advised, Melb<strong>our</strong>ne VIC<br />

August 2016<br />

2015 VALMIN Code Roadshow: Brisbane<br />

Management <strong>of</strong> Petroleum Hydrocarbon<br />

April 26, 2016<br />

ASEG-PESA-<strong>AIG</strong> 2016: 25th International<br />

Groundwater Contamination<br />

To be advised, Brisbane QLD<br />

Geophysical Conference and Exhibition<br />

March 23, 2016<br />

August 21-24, 2016<br />

Maddocks, Sydney NSW<br />

Terroir <strong>of</strong> Heathcote Wine Region Study T<strong>our</strong><br />

Adelaide Convention Centre, Adelaide SA<br />

April 30, 2016<br />

Heathcote Wine Region, Heathcote VIC<br />

<strong>AIG</strong> NEWS Issue 123 · February 2016 49


<strong>AIG</strong> Council for 2015–2016<br />

EXECUTIVE<br />

President: Wayne Spilsbury<br />

0418 957 089, president@aig.org.au<br />

Vice President: Mike Erceg<br />

0458 051 400, vicepresident@aig.org.au<br />

Treasurer: Peter Lewis<br />

treasurer@aig.org.au<br />

Secretary: Adrian Diaz<br />

0427 986 919, secretary@aig.org.au<br />

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0400 323 067, exec@aig.org.au<br />

Councillors<br />

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