Smart Mining - Future Prosperity Program

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Smart Mining - Future Prosperity Program

About the program

The $29.08 million Smart Mining - Future Prosperity program included three funding initiatives aimed at stimulating exploration investment in Queensland. Funds totalling $7.28 million were made available to assist mineral and energy explorers under Rounds 1 to 4 of the Collaborative Drilling Initiative (CDI), the Cluster Formation Initiative (CFI) and the Industry Network Initiative (INI).

For this program, 52 projects from 37 companies were completed with over $3.47 million paid. There were 27 technical successes related to mineralisation and geology.

The projects under Rounds 1 to 4 of the CDI, the CFI and INI are now complete.

The new Greenfields 2020 - Collaborative Drilling Initiative (CDI) was announced on 1 July 2010.

Collaborative Drilling Initiative

The CDI brings government and industry together to accelerate testing, by drilling, of geological targets in under-explored parts of Queensland. New concepts in brownfield areas of Queensland are also supported.

Funding will be provided to mineral and energy explorers. For more information view the guidelines, supporting documentation, and FAQs.

The following are successful proposals from round 2 that are a useful reference guide for the next round of submissions.

Round 4 results

Successful applicants from Round 4 of the CDI

  • BR Senior & Associates Pty Ltd
  • De Grey Mining Limited
  • Geodynamics Limited
  • Gradient Energy Limited
  • Gulf Minerals Limited
  • Liontown Resources Limited
  • Mineral & Coal Investments Pty Ltd
  • Red Metal Limited
  • Superior Resources Limited

Technical successes (intersection of mineralisation)

  • Liontown Resources Limited completed a drill hole at Mosquito Hill, located about 45 km south-west of Charters Towers, intersected zones of anomalous geochemistry. A zone of low level Ag, As, Au, Cu, Pb, Sb and Te +/- Cu and Zn anomalism associated with a sulphidic shale at the end of the hole was identified. The zone is also significantly Na depletion. Na depletion is associated with the ore zone at Mt Wright. The sulphidic shale interval is potentially a zone of anomalism distal to potential breccia hosted gold mineralisation associated with the interpreted magnetic ring feature or mineralisation at depth.
  • Liontown Resources Limited completed drilling at Mt Redan, located around 50 km south-west of Charters Towers, intersected several anomalous intervals of As, Hg and Sb which reflects anomalism returned from previous soil and rock chip sampling. It is inferred that the system has started as an alkaline system, but has a later, acidic overprint. Au and Ag results from the drilling are most elevated associated with sericite. Drilling has not identified the core, adularia alteration zone with predominant alteration assemblages within the drilling range from sericite-chlorite/albite to sericite. This is a suggestion of an overall low level of alteration which is also evident within the majority of the logging of the drilling. The anomalism identified within the drilling is potentially associated with upper portions of an epithermal system. Any gold mineralisation within the system is potentially located further at depth or associated with nearby structures including the Boundary Fault and/or the Hill C Detachment.

Detailed project information available on QDEX.

Successful projects map

Round 3 results

Successful applicants from Round 3 of the CDI

  • ActivEX Limited
  • Arrow Energy Ltd
  • BHP Billiton Ltd
  • Bondi Mining Limited
  • CNW Pty Ltd
  • D'Aguilar Gold Ltd
  • Gold Finance and Exploration Pty Ltd on behalf of Buffalo Gold Limited
  • Isa Tenements Pty Ltd (a subsidiary of GBM Resources Ltd)
  • Krucible Metals Ltd
  • Mojo Mining Pty Ltd
  • Mount Isa Metals Ltd
  • North Queensland Metals Ltd
  • Paradigm Metals Ltd
  • Queensland Minerals Australia Pty Ltd
  • Sovereign Metals Ltd
  • Superior Resources Limited
  • Xstrata Copper Exploration Pty Ltd

Technical successes (intersection of mineralisation)

As of 1 May 2010, nine projects have been completed under the CDI Round 3. Five are considered technical successes related to mineralisation as reported by the following companies:

  • At the Champ Prospect, 300 km south of Mount Isa, Krucible Metals Ltd has postulated there are four steeply dipping and north-north-west trending lodes defined from the limited drilling to date - these are all open to the north and south where the lodes are obscured by sand cover. Further drilling, both along strike and at depth, is planned next year for this potential new 'frontier' discovery. Better holes from recent drilling at the Champ Prospect include intersections of:

    2 m at 1.23% copper from 62 m in hole TMRC 44
    9 m at 0.43% copper from 36 m in hole TMRC 45
    6 m at 0.41% copper from 26 m in hole TMRC 47
    12 m at 0.16% zinc from 32 m in hole TMRC 34
  • First pass drilling conducted by Mount Isa Metals Ltd earlier this year on Barbara North Lode, 240 km north of Mount Isa, returned significant near surface sulphide intersections including 8 m at 3.74% copper. Further high grade assay results received for the Barbara North Lode deposit:

    7 m at 3.97% copper and 0.26 g/t gold from 98 m in hole BARC 038
    8 m at 3.25% copper and 0.32 g/t gold from 10 m in hole BARC 040
    6 m at 4.00% copper and 0.29 g/t gold from 95 m in hole BARC 044
  • North Queensland Metals Ltd's Zig Zag Project has identified mineralised fractionated granite; however, gold content was well below anticipation. Although the hematitic alteration maybe regional green sericite (plus pyrite) seems prospect-specific, possibly indicating the outer zones of porphyry style mineralisation.
  • Paradigm Metals Ltd intersected disseminated copper sulphide mineralisation within a 90 m magnetite interval in the second drill hole at the Blue Bush project, 140 km north of Cloncurry. Drill hole BBD002 was stopped at 455.5 m after intersecting semi-massive magnetite (a form of iron oxide) containing disseminated sulphides from 357 to 445 m. Gold is also anomalous along with copper, up to 0.12 g/t Au over a 2 m interval.
  • Located about 25 km south-west of Gympie, D'Aguilar Gold Ltd discovered fine disseminated and locally coarse sulphide; and abundant fine and remobilized veinlet and blebby magnetite were observed in both holes. A 20 m zone of disseminated to vein hosted sulphide was intersected at around 100 m in both holes.
  • Arrow Energy Limited's aim to recover coal seam gas from the late Permian Fort Cooper Coal Measures of central Queensland, 200 km south-west of Mackay, using fracture stimulation techniques was successful having produced the coal seam gas for the first time.

Detailed project information available on QDEX.

Successful projects map

Round 2 results

Successful applicants from Round 2 of the CDI

  • Anglo American Exploration (Australia) Pty Ltd
  • AusQuest Limited (2 grants)
  • Avalon Minerals Ltd
  • Basin Gold Pty Ltd
  • Carpentaria Exploration Ltd
  • Carpentaria Gold Pty Ltd
  • Cloncurry Metals Ltd (2 grants)
  • Core Coal (Qld) Pty Ltd
  • Drummond Gold Limited
  • Gold Aura Limited (2 grants)
  • Icon Resources Ltd
  • Impact Minerals Limited
  • Krucible Metals Ltd
  • Maranoa Resources Pty Ltd
  • Mount Isa Metals Ltd (2 grants)
  • Red Metal Limited
  • Sovereign Metals Ltd (2 grants)
  • Tasman Resources NL
  • Teck Cominco Pty Ltd
  • Western Metals Ltd
  • Zamia Resource Pty Ltd

Technical successes (intersection of mineralisation)

Twelve projects have been completed under the CDI Round 2. Seven are considered technical successes related to mineralisation as reported by the following companies:

  • Anglo American Exploration (Australia) Pty Ltd and Falcon Minerals Ltd - one of the most successful discoveries was from drilling completed by Anglo American (Australia) Pty Ltd with significant gold mineralisation at the Saxby Project 225 km north-east of Mount Isa. This drilling intersected significant mineralisation of 17 m at 6.75 grams per tonne (g/t) gold from 631 to 648 m and 7 m at 1.98 g/t gold from 614 to 621 m. Values of nickel up to 1268 parts per million were also intersected.
  • Teck Cominco Australia Pty Ltd - successfully delineated a new alteration - mineralisation system of an iron oxide copper-gold type deposit at the McKinlay Project 100 km east-south-east of Cloncurry.
  • Sovereign Metals Ltd - the Middle Creek Project, 50 km north-north-west of Cloncurry discovery of an intense alteration and relatively low sulphide mineralisation in a dilational zone in a major structural corridor with prominent shearing; and the Piccaninny Project, 114 km north-north-east of Georgetown, confirmed previous grassroots exploration of the presence of extensive base and precious metal epithermal mineralisation.
  • AusQuest Limited - two respective drill holes at the Machattie and Mulligan projects near Bedourie, the first found a potentially fertile hydrothermal system and the second discovery of minor copper and nickel sulphide mineralisation.
  • Cloncurry Metals Ltd - possible intersection of the outer halo of a Broken Hill style mineralised system at their Kennedy Highway Project 150 km east-north-east of Boulia.

Detailed project information available on QDEX.

Successful projects map

Round 1 results

Successful applicants from Round 1 of the CDI

  • ActivEX Limited
  • Anchor Resources Limited
  • AusQuest Limited
  • Auzex Resources Limited
  • Brother's Mining Pty Limited
  • Citigold Corporation Limited
  • Curtain Bros (QLD) Pty Limited
  • Geodynamics Limited
  • Gold Aura Limited
  • Gold Finance and Exploration Limited on behalf of Buffalo Gold Limited
  • Laing Exploration Pty Limited
  • Matilda Minerals Limited
  • Mt Coolon Gold Mines Pty Limited
  • Newcrest Operations Limited
  • Opal Horizon Limited
  • Red Metal Limited
  • Renison Consolidated Mines NL
  • Superior Resources Limited
  • Xtreme Resources Limited

Technical successes (intersection of mineralisation)

Sixteen projects have been completed under the CDI Round 1. Eight are considered technical successes related to mineralisation as reported by the following companies:

  • Auzex Resources Limited - tin mineralisation at their Khartoum Project 20 km north-west of Mount Garnet.
  • Gold Aura Limited - copper and zinc mineralisation reported from the Wallabadah A1 Project, 40 km north-north-east of Croydon.
  • Renison Consolidated Mines NL - gold mineralisation from their Agate Creek Project, about 45 km south-south-west of Forsayth
  • Citigold Corporation Ltd - gold mineralisation at their Charters Towers Deeps Project.
  • Red Metal Limited - low-grade copper and nickel mineralisation at Elizabeth Springs Project 100 km south-east of Boulia, and Taldora Project, 160 km north-east of Cloncurry.
  • ActivEX Limited - molybdenite mineralisation reported at the Lake Monduran Project, 55 km west of Bundaberg.
  • Laing Exploration Pty Ltd - co-existent epithermal and porphyry mineralisation comprising gold, base metals, and molybdenum reported at the Nightflower Project, 30 km north of Chillagoe.
  • Anchor Resources Limited - a new gold discovery and significant copper mineralisation and lesser silver, lead and tin at Clayholes Dam, as part of the Greenvale East Project, 25 km north-east of the old Greenvale nickel mine

Detailed project information is available on QDEX.

Successful projects map

Cluster Formation Initiatives

The CFI supported groups of exploration companies who share resources by assisting with the costs of mobilising drilling equipment and geophysical resources into an area to test exploration targets. Through better scheduling and cooperation among explorers, this initiative aimed to encourage better use of the available drilling and geophysical resources in the state.

Funding was provided to mineral and energy explorers. For more information view the guidelines, supporting documentation and FAQs.

Round 2 results

Successful applicants from round 2 of the CFI

  • Superior Resources Limited
  • Krucible Metals Limited

Successful projects map

Round 1 results

Successful applicants from round 1 of the CFI

  • Xtreme Resources Limited
  • Superior Resources Limited
  • Red Metal Limited
  • Teck Cominco Limited

Industry Network Initiative

To encourage the growth of junior mineral exploration companies, funding was made available to assist with access to technical and ancillary services that developed or helped to develop deposit models and generate drilling targets. Grants were allocated for target generating research projects that used any specialist industry service or industry support organisation.

Funding was provided to junior mineral exploration companies.

Round 3 results

  • ActivEX Limited
  • Icon Resources Ltd
  • Earth Ray Exploration Pty Ltd
  • CNW Pty Ltd

Successful projects map

Round 2 results

  • MM Mining Pty Ltd
  • Drummond Gold Limited
  • Earth Ray Exploration Pty Ltd
  • Gold Aura Limited

Successful projects map

Round 1 results

Successful applicants from Round 1 of the INI

  • ActivEX Limited
  • Ozmin Resources Pty Ltd
  • Icon Resources Ltd
  • Queensland Gold and Minerals Limited

Successful projects map

Feedback

The Department of Employment, Economic Development and Innovation (DEEDI) continually seeks to improve the application processes and to better target promotional opportunities, Smart Mining - Future Prosperity feedback forms have been made available for each of the three funding initiatives.

Frequently asked questions (FAQs)

General (relevant for all proposals)

  1. What resource types are eligible for exploration assistance under the CDI, INI, and CFI?
    The INI is restricted to mineral exploration other than coal. The CDI and CFI are open to minerals, petroleum, coal and geothermal exploration.
  2. Can grant funding from all three initiatives be accessed for the one project/concept?
    Yes. Success in obtaining a grant under one Initiative does not preclude any company from applying for grants under other Initiatives, eg. a single project could obtain grant funding from the CFI and the CDI.
  3. When can a company submit a proposal?
    At any time before the closing date of proposals as posted on the DEEDI website.
  4. Are there any circumstances where approved funding can be increased?
    No.
  5. Will a company be entitled to all the approved grant funding if the project costs are less than the cost estimate contained in the proposal?
    No. Where total costs are less than the estimate in the proposal, funding will be in proportion to the ratio of funding requested and the estimated total cost in the proposal.
  6. Can grant money go towards funding administration of tenure?
    No.
  7. Can grant money be considered as part of the work expenditure commitment of a tenement?
    Yes. However, failure to access a grant under any initiative is not an acceptable reason for any tenure holder not to complete the work program commitment under their tenure.
  8. Does retrospectivity apply in relation to CDI and INI?
    No.
  9. Does retrospectivity apply in relation to CFI?
    Yes. Only if mobilisation occurs after the submission of a proposal and before an assessment period, the proposal will continue to be assessed for a grant under this initiative.
  10. Can project proposals apply to exploration tenure applications?
    No. Proposals can only apply to granted tenure with regard to CDI and CFI. INI does not require tenements to be held in Queensland (see section 3.1 of the INI guidelines regarding Eligibility).

Collaborative Drilling Initiative

  1. Can a company apply for CDI funding for resource definition drilling? 
    No. The grants are designed to promote exploration in greenfield and under-explored or frontier areas of Queensland and drill testing of new exploration concepts. The assessment criteria reflects this approach. It is unlikely a resource definition proposal would rank highly.
  2. What is the maximum funding that can be applied for under the CDI?
    The maximum grant for direct drilling costs approved under the CDI will be $150,000 or half of the actual costs, which ever is less.
  3. Are all drilling methods open to funding under the CDI?
    Yes. However, sample quality is considered in the assessment criteria.
  4. Is mobilisation included in the drilling costs under the CDI?
    No. However, a proposal for grant funding of mobilisation costs may be lodged under the Cluster Formation Initiative if the eligibility criteria are met.
  5. Is there flexibility to change the approved drilling program under the CDI?
    The drill program can be altered based on incoming results, however the target, as defined in the proposal cannot change.
  6. Will CDI funding apply for the entire drill program? 
    CDI funding will apply for the drill holes that test the target specified. Should peripheral drilling be included in a proposal this will not be considered for funding. Only specified drill holes in the proposal may be funded.

Industry Network Initiative

  1. What organisations are eligible to be in a network?
    Any private or public sector organisation or individual that works in the industry, services the industry or supports the industry. This includes, but is not limited to geological consultants, laboratories and universities.
  2. What is the maximum funding that can be applied for under the INI?
    $40,000 or half of the actual research costs, which ever is less.
  3. Can targets generated under the INI be considered for a grant under the Collaborative Drilling Initiative?
    Yes. However, a proposal must be lodged for consideration under the CDI. It is anticipated that the INI final report will form the basis of the CDI proposal.
  4. Is the INI available for projects other than minerals?
    No. The INI is only available for mineral exploration, excluding coal.
  5. Does a Network have to be established for a proposal to be considered?
    The proposal must demonstrate that a network is in place. Network partners need to be identified in the proposal.
  6. How is a research project defined?
    The objective of the research project must be to generate a new exploration project or projects, or develop exploration targets and concepts that have demonstrable economic and technical merit.
  7. How is a junior mineral exploration company defined?
    A junior mineral exploration company is defined as one that has:
    • no cash flow from an operating mine within the last 12 months; and
    • minimal working capital; and
    • assets in the form of mineral exploration properties; and
    • should the junior mineral exploration company be a subsidiary, the junior status will also apply to its parent company
  8. What activities can be included in a research project?
    The research can include geological mapping, geophysical interpretation and innovative geophysical data acquisition processing, geochemical sampling (other than drilling), data compilation, review and modelling.

Cluster Formation Initiative

  1. How is a cluster defined?
    A cluster comprises two or more exploration and mining companies holding granted exploration tenure within a geographic area in Queensland.
  2. Is a Joint Venture considered a cluster?
    No. A Joint Venture is considered a discrete entity separate from its members. A cluster can constitute a Company X with its own tenure and a JV of Company X and Company Y with tenure in the same geographic location.
  3. How is a geographical area defined for the purposes of the CFI?
    This is at the discretion of the department based on the economic merit of distance to be mobilised and the distance between cluster company tenure.
  4. What costs are eligible for reimbursement from a CFI grant? 
    Half of total mobilisation costs are eligible. Mobilisation costs are costs associated with moving drilling equipment or geophysical resources to the first work program in the geographic area of the cluster and the cost of moving this equipment from one nominated tenure to another nominated tenure in the cluster.
  5. What is the maximum funding that can be applied for under the CFI?
    The maximum grant for the activities approved under the CFI is $50,000 or half of the actual mobilisation costs, which ever is less.
  6. Is there a limit to the number of proposals that can be submitted by one cluster under the CFI?
    Yes. A cluster is limited to one proposal per year however this proposal may include mobilisation of different types of equipment.
  7. Is there a limit to the number of times a tenure can be included in a cluster proposal?
    Yes. A tenure can only be included in one proposal per year. However this proposal may include mobilisation of different types of equipment.
  8. Is there a limit to the number of proposals that a company participates in?
    No. However a company will only receive funding once for a particular tenement or contiguous tenement package in a particular round.

Contact

Simon Crouch
Phone: +61 7 3035 5252
Email:Simon.Crouch@deedi.qld.gov.au



Last updated 14 March 2012

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