Magnesite opportunities in New South Wales

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OCTOBER 2014 Magnesite Opportunities in New South Wales, Australia To Adelaide A.C.T. QUEENSLAND VICTORIA SOUTH AUSTRALIA New England Orogen Lachlan Orogen Murray Basin Delamerian Orogen Curnamona Craton Thomson Orogen Mudgee DUBBO Wentworth Cobar ORANGE WOLLONGONG Nyngan Walgett Coonamble Gunnedah Parkes Broken Hill Narrabri Inverell Cowra Goulburn Griffith NOWRA Batemans Bay Narooma Bega Cooma Moree WAGGA WAGGA ALBURY Grafton Yamba Ballina LISMORE NEWCASTLE Balranald Deniliquin Tibooburra Lightning Ridge Eden BATHURST PORT MACQUARIE COFFS HARBOUR Kempsey Taree Muswellbrook Bourke TAMWORTH Armidale SYDNEY CANBERRA Piedmont Magnesite Piedmont Magnesite Noakes Magnesite Deposit Noakes Magnesite Deposit Baileys Magnesite Deposit Baileys Magnesite Deposit Thuddungra Magnesite Mine Thuddungra Magnesite Mine Attunga Magnesite Attunga Magnesite Fifield Magnesite Fifield Magnesite Whitton Road Magnesite Whitton Road Magnesite REFERENCE Magnesite occurrence Small Medium Large Very large Operating mine Deposit Ultramafic rocks/ serpentinites Export port Railway Major road, sealed Major road, unsealed Gas pipeline Gas pipeline, proposed Fifield Fifield Thuddungra Thuddungra 200 km N Overview • New South Wales hosts large, ultrapure, cryptocrystalline and nodular deposits, as well as widespread regolith- hosted replacement deposits. • Boutique opportunities exist for agricultural and specialist applications. • World magnesite supply has been impacted by modernisation in China reducing its export capacity. Western nations are seeking other suppliers, so there is strong demand from local and international markets. Geological setting Magnesite (MgCO 3 ) is rhombohedral (47.8% MgO and 52.2% CO 2 when pure) and occurs as a solid solution with siderite (FeCO 3 ). Deposits in New South Wales are typically: • ultrafine-grained (crypto- to micro-crystalline or ‘bone’) • coarse-grained ‘sparry’ Development opportunities • Large, high-grade colluvial channel-hosted deposits (e.g. Thuddungra and nearby Noakes, Baileys Magnesite deposit etc.) • Weathered ultramafic intrusions (e.g. Fifield) • Nepheline olivine basalts and leucitites (Cargelligo deposits, e.g. Whitton Road) • Vein-style silica-carbonate deposits (Piedmont and Attunga) Exploration opportunities • Clarence–Moreton Basin: Sedimentary deposits may occur near the Gordonbrook Serpentinite • Great Serpentinite Belt: smaller vein-style (Krubath-type) are widespread • Delamerian Orogen: Potential for large, sparry deposits resourcesandgeoscience.nsw.gov.au

Transcript of Magnesite opportunities in New South Wales

Page 1: Magnesite opportunities in New South Wales

O C TO B E R 2 0 1 4

MagnesiteOpportunities in New South Wales, Australia

To Adelaide

A.C.T.

Q U E E N S L A N D

V I C T O R I A

SO

UT

H A

US

TR

AL

I A

New EnglandOrogen

LachlanOrogen

Murray Basin

Delamerian OrogenCurnamonaCraton

Thomson Orogen

MudgeeDUBBO

Wentworth

Cobar

ORANGE

WOLLONGONG

Nyngan

Walgett

Coonamble Gunnedah

Parkes

BrokenHill

Narrabri

Inverell

Cowra

Goulburn

Griffith

NOWRA

Batemans Bay

Narooma

Bega

Cooma

Moree

WAGGAWAGGA

ALBURY

Grafton

Yamba

Ballina

LISMORE

NEWCASTLE

Balranald

Deniliquin

TibooburraLightning Ridge

Eden

BATHURST

PORT MACQUARIE

COFFS HARBOUR

Kempsey

TareeMuswellbrook

Bourke

TAMWORTH

Armidale

SYDNEY

CANBERRA

Piedmont MagnesitePiedmont Magnesite

Noakes MagnesiteDeposit

Noakes MagnesiteDeposit

Baileys MagnesiteDepositBaileys MagnesiteDeposit

Thuddungra MagnesiteMineThuddungra MagnesiteMine

AttungaMagnesiteAttungaMagnesite

Fifield MagnesiteFifield Magnesite

Whitton RoadMagnesite

Whitton RoadMagnesite

REFERENCE

Magnesite occurrenceSmallMediumLargeVery largeOperating mineDepositUltramafic rocks/serpentinitesExport portRailway Major road, sealedMajor road, unsealedGas pipelineGas pipeline, proposed

FifieldFifield

ThuddungraThuddungra

200 km

N

Overview

• New South Wales hosts large, ultrapure, cryptocrystalline and nodular deposits, as well as widespread regolith-hosted replacement deposits.

• Boutique opportunities exist for agricultural and specialist applications.

• World magnesite supply has been impacted by modernisation in China reducing its export capacity. Western nations are seeking other suppliers, so there is strong demand from local and international markets.

Geological setting

Magnesite (MgCO3) is rhombohedral (47.8% MgO and 52.2% CO2 when pure) and occurs as a solid solution with siderite (FeCO3).

Deposits in New South Wales are typically:• ultrafine-grained (crypto- to micro-crystalline or ‘bone’)• coarse-grained ‘sparry’

Development opportunities• Large, high-grade colluvial channel-hosted deposits (e.g.

Thuddungra and nearby Noakes, Baileys Magnesite deposit etc.)

• Weathered ultramafic intrusions (e.g. Fifield)• Nepheline olivine basalts and leucitites (Cargelligo

deposits, e.g. Whitton Road)• Vein-style silica-carbonate deposits (Piedmont and Attunga)

Exploration opportunities• Clarence–Moreton Basin: Sedimentary deposits may occur

near the Gordonbrook Serpentinite• Great Serpentinite Belt: smaller vein-style (Krubath-type)

are widespread• Delamerian Orogen: Potential for large, sparry deposits

resourcesandgeoscience.nsw.gov.au

Page 2: Magnesite opportunities in New South Wales

Project highlights

Thuddungra Magnesite mine: (measured resource) 3.8 Mt @ 55.1%, MgCO3. Currently produces 30 000 tpa (~12% of national supply). The ore is cryptocrystalline and nodular, of exceptional quality (>99.8% MgCO3) and suitable for refractories and pharmaceuticals. It includes lower-grade bulk material suitable for a wide range of applications.

Additional ore occurs at the nearby Noakes and Baileys Magnesite deposits.

Noakes: (measured resource) 12.6 Mt @ 43.0% MgCO3.

Fifield Magnesite mine produced ~895 000 tonnes hard magnesite (99.19% MgO calcined).

The nearby BHP Magnesite mine produced ~1 Mt of magnesite.

Cincinatti mine has existing mine infrastructure.

Cargelligo (Whitton Road deposits) has numerous deposits of 93.4–97.3% MgCO3 with ferric oxide from 0.5–1.8%.

World magnesia production (from magnesite) by country

China 49%

Turkey 6%

Spain 3%Others 3%Slovakia 5%Russia 12%

North Korea 2%

India 3%

Greece 2%USA 2%

Brazil 5%

Austria 5%

Australia 3%

Total resources in Australia = 330 Mt

31%causticcalcinedmagnesia

69%dead-burned

magnesia

Australia

Source: http://www.indmin.com/magnesia.html

Magnesite end products — totalled 582 700 t (USA, 2008)

Dead-burned and fused magnesia: 386 000 tRefractories (including steel and metallurgical industries)Cement Glass

Caustic calcined magnesia: 167 000 tCements for flooring, wallboards and mouldings Acoustic tilesVarious environmental and chemical applications

Crude magnesite (MgCO3): 15 800 tChemicalsAgriculturePharmaceuticals

2.39%Other

66.24%Dead-burned and fused magnesia

2.71%Crude magnesite

28.66%Caustic calcined magnesia

Source: http://minerals.usgs.gov/minerals/pubs/commodity/magnesium

Magnesite (MgCO3)

Channel-hostedMgCO3

Plan view

In-situMgCO3

SiO2 + MgCO3

Serpentinite andmagnesite-bearingcolluvium

SiO 2SiO

2

Ground-waters

Surface

Soil horizons

Mixed overburden

Thuddungra magnesite mineWeathered serpentinitePalaeochannel

REFERENCE

~2m0

~250 m0

Cross-section of palaeochannel fill in the Thuddungra district (diagrammatic only).

Contact: [email protected] | +61 2 4963 6500Disclaimer: The information contained in this publication is based on knowledge and understanding at time of writing (October 2014), using publicly available information. Because of advances in knowledge, users are reminded of the need to ensure that information upon which they rely is up to date. The information contained in this publication may not be or may no longer be aligned with government policy nor does the publication indicate or imply government policy. No warranty about the accuracy, currency or completeness of any information contained in this document is inferred (including, without limitation, any information in the document provided by third parties). While all reasonable care has been taken in the compilation, to the extent permitted by law, the State of New South Wales (including the NSW Department of Planning and Environment) exclude all liability for the accuracy or completeness of the information, or for any injury, loss, or damage whatsoever (including without limitation liability for negligence and consequential losses) suffered by any person acting, or purporting to act, in reliance upon anything contained herein. Users should rely upon their own advice, skills, interpretation and experience in applying information contained in this publication. The product trade names in this publication are supplied on the understanding that no preference between equivalent products is intended and that the inclusion of a product name does not imply endorsement by the Department over any equivalent product.