Chapter 3 Project Description
Chapter 3 Project Description
Chapter 3 Project Description
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Since acquisition ABM has completed a number of close spaced drilling programs along with
extensive surface sampling which has led to a maiden resource at Old Pirate in April 2012.
The April 2012 JORC Compliant Resource estimation for Old Pirate was subsequently
updated in the first quarter of 2013.
At the time of acquisition of the Twin Bonanza Project Newmont had completed 315.8m
core drilling, 4,400m reverse circulation (RC) drilling, 514.5m core tails to RC drill holes and
10,877m of other forms of drilling (totalling 16,107m) at Old Pirate. ABM has drilled an
additional 44,416m within the proposed mineral lease area, closing up the drill spacing to a
nominal 25m x 25m in key parts of the deposit.
The total operational workforce for production (mining and processing operations) is
estimated to be approximately 68 personnel. The majority of the operational employees will
work a 2 weeks on/1 week off roster (mill – day and night shift), or 2 weeks on/1 weeks off
roster (mine – day shift only). Site based management, technical and support staff will work
either a 2 weeks on/1 week off roster or other rosters as such as required commensurate
with their roles.
The regional geology of the project is almost exclusively on Proterozoic age marine turbidite
sediments, of the Dead Bullock Group and Killi Killi formations (Boucher, 2011), and
intruded by the Buccaneer Monzogranite in the northwest of the project area. To the east
the Killi Killi formation transitions to the Dead Bullock Group. Air-photo interpretations and
field mapping show low-levels of outcrop outside of the main Old Pirate trend. The rocks
are all Proterozoic age with deposition 1900 to 1800Ma and intrusions / mineralisation
1800Ma to 1790Ma.
Local geology
In the vicinity of the Old Pirate deposit, outcrop and drill core reveal very coarse to fine
grained sands inter-bedded with 2 to 8m wide shale. Occasional amalgamated coarse sands
and thicker-shales occur, with the latter hosting the gold-bearing quartz veins. A solitary
chert bed has been found at Old Pirate and acts as a key marker horizon in geological
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mapping. The Old Pirate anticline can be traced 2.5km south and 5 km north of the main
deposit area.
Mineralisation
The Old Pirate high-grade gold deposit sits within a 4 kilometre long anomaly of gold in soil
samples. Old Pirate consists of outcropping gold bearing quartz veins hosted by folded shale
and sandstone, with the quartz veins preferentially developed in the thicker shale units.
Multiple veins have been mapped covering an overall area of 1800 metres by 300 metres
and range from a few centimetres to several metres in width. Drill results indicate gold
extends from surface to a depth of at least 200 metres. Gold is very coarse and can be
extremely high grade in the veins, however, is unevenly distributed resulting in a statistical
nugget effect. ABM’s application of detailed structural mapping combined with systematic
sampling has, in part, enabled the company to understand the statistical parameters
enabling a resource estimate to be completed. ABM has released surface trenching results
and drilling from three field seasons, along with its JORC compliant resource estimates,
scoping study results and subsequent discoveries of new clusters of veins.
Field mapping by ABM in 2010 and 2011 provided the basic framework for the surface
geology. Prior to the acquisition in March 2010 previous explorers drilled numerous reverse
circulation, vacuum and core holes, totalling 16,107m in the Old Pirate area. ABM has
drilled an additional 44,416m at Old Pirate, with the drill spacing being a nominal 25m x
25m in key parts of the deposit (Figure 3-1).
ABM conducted a series of surface sample programs, following the veins along strike to a
maximum depth of 60cm and excavating short costeans across the veins.
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Figure 3-1. Drilling and surface work at Old Pirate, as of July 2013.
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In April, 2012 ABM completed its first resource modelling and estimation of the Old Pirate
deposit. An updated resource estimation was completed in February 2013.
The Old Pirate trend consists of a series of a series of gold bearing quartz veins over a 1.8 km
strike length consisting of 3 distinct vein clusters of mineralisation named Old Pirate, Old
Glory and Golden Hind Deposits (Figure 3-1). Gold mineralisation is hosted primarily within
narrow quartz veins of between a few centimetres and 6m in width. Mineralised zones are
up to 40m in width and consist of multiple veins hosted primarily within sedimentary shale
horizons. Structurally the sequence has been folded into a faulted anticline. The resource
modelling is based on a total of 56,652m of drilling; in addition a further 3,355 surface
longitudinal trench samples were used to aid with the definition of the near surface geology
and grade distribution.
The resource modelling consisted of both manually constructed 3D grade shells and
automated grade shells generated from LeapFrog Modelling software. All mineralised grade
shells were constrained by a geological model constructed by ABM. The Old Pirate gold
deposit has a total uncut mineral resource estimate of 1.88Mt averaging 11.96g/t gold for
723,800 ounces (Table 3-1).
The gold at Old Pirate can be very coarse with gold grains commonly observed up to 3mm
and unevenly distributed throughout the veins. Drill sampling of individual veins and even
duplicate assaying of individual samples show a high-level of variability. This sampling effect,
also referred to as “nugget effect”, adds uncertainty to the overall magnitude of the system.
The defined indicated resource, with a moderate level of confidence, is based on zones
where there is extensive surface sampling along with 25m drill spacing to a depth of 50 to
100m and where drilling is consistent with the known geological model. The inferred
resource, with a lower level of confidence, refers to zones with wider drill spacing or no
areas of surface sampling or areas where the geological model is less well understood.
The total latest JORC compliant mineral resource reported by the company to the ASX on 4th
February, 2013 is as follows in table 3-1 below;
Gold grade (g/t) Gold grade (g/t) Ounces gold Ounces gold
Category Tonnes
(300g/t top-cut) (un-cut) (300g/t top-cut) (uncut)
Indicated 889 000 8.19 8.93 234 100 255 300
ABM proposes to conduct mining and processing at the Old Pirate deposit and surrounding
prospects, including Golden Hind and Old Glory (collectively called the “Twin Bonanza - 1”
project). It is hoped that further exploration and mining activity will identify other
mineralised zones to expand the mining inventory in the future.
Based on the currently defined resources this proposal seeks approval up to and including
the beginning of stage three of the staged mine development as detailed in sections 3.3.1
and 3.3.2. ABM plans open pit mining from three deposit areas, with onsite processing as
well as associated tailings dams, waste rock dumps and required infrastructure including
power station, accommodation, workshops and offices. It needs to be noted that
underground mining is not included in stage three and as such no approval is being sought
for this activity. The basis of the decision to proceed with the project is discussed in Chapter
4: Project rationale and alternatives.
ABM is instigating a risk managed staged approach to development where the scale of the
project is grown incrementally based on the knowledge derived during trial and mining
phases. ABM believes that this is a better approach to standard feasibility studies as the
level of disturbance and amount of capital is applied incrementally rather than upfront.
A feasibility study is not a guarantee of success and in the modern era of mining
approximately 70% of projects with detailed and positive feasibility studies generally fail to
achieve the target valuation. This failure of projects to achieve the value noted in typical
feasibility studies is well documented (e.g. McCarthy, 2013). The reasons for failure of a
project to achieve the outcome predicted in the feasibility study are numerable but include
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misestimations of resource, mining dilution factors, overall costs and future value of the
product.
As with other gold systems, the Old Pirate project has a number of technical risk factors
associated with the scale and the value of the project. These are noted in Table 3-2 below.
As a result of the above factors, ABM considers the “staged approach” to development (as
alternative to typical feasibility study) as being the best way to manage risk. This ensures
that the overall feasibility of the project is not based on the pre-development knowledge-
base and estimations of the project, but is alternatively presented as individual stages. The
economics of each stage inform the subsequent stages.
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The resource estimation model is defined as compliant with JORC 2012 reporting. As
defined in JORC 2012, inferred resource estimations are not to be used in assessing
economic parameters and in feasibility studies. However, as ABM progresses the staged
approach it anticipates converting aspects of the inferred resource into the indicated
resource category and subsequently reserves.
Stage one, trial mining up to 10 000 tonnes, including on site processing, is approved and
being completed at the Old Pirate project. Stage one is being conducted under an
exploration licence with permission from the Central Land Council (CLC) and the
Department of Mines and Energy (DME). This process involves open pit mining the top 5
metres of the project and processing the material using a small scale portable gravity gold
plant.
The high-grade gold at surface of Old Pirate makes it an unusual scenario in modern day
Australian mining industry as most high grade outcropping deposits were mined during the
gold-rush eras from the 1860s to 1930s. The trial mining stage is expected to increase
understanding of the geology, including grade, grade distribution, thickness, orientation and
mineralisation controls as well as the overall amenability to gravity gold recovery methods.
It may also expose additional veins and further increase the resource base.
Utilising the same processing plant (with minor upgrades) that is used in stage one, ABM has
developed a mine plan to optimally extract ores from surface to a depth of approximately
35 metres. The project economics for stage two have been modelled by ABM in conjunction
with Entech Mining Pty Ltd and a summary is presented Table 3-3. The model involves the
extraction of 276,403 tonnes of ore with a grade of 12.3g/t gold for a total of 109,000
ounces of gold. This model only uses indicated resource blocks, and any inferred resource
blocks in the top 35 metres have not been taken into account but provide further upside to
this model. It is important to note that the stage two model has not yet been updated from
findings from stage one and the overall outcome may differ from those presented.
Table 3-3. Cost summary / structure of stage two as modelled by Entech Mining Pty Ltd assuming A$1600 gold price.
Inferred Resourcenot included but adds upside to the existing model.
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Stage three economics cannot be accurately estimated until mining history is established
during stage two. However, given the high grade nature of the Old Pirate system and
compared to other similar projects around the world it is anticipated that the stage three
project will be economically feasible at an undetermined scale. Stage three will include
deepening of the open cut pits to continue high grade quartz vein mining at depth. For the
purposes of this document ABM is not able to present economics for stage three. However,
on the assumption that mining is economic and noting the disclaimer above, an
approximate 70% conversion of resource to ultimate mining inventory is presented as a
possible outcome. This will produce a further 1 million tonnes of material at an average
grade of 10g/t gold for 340,000 ounces. Stage three is likely to include an expansion of the
stage one / two plant to processing a nominal 240,000 tonnes per annum and thus
providing a further 4 year mine life. A comparison of development stages how they will be
upgraded overtime is presented in Table 3-4
The Buccaneer Porphyry gold project is located 5 kilometres north west of the Old Pirate
deposit. Whilst Buccaneer is included in the mineral lease area, mining gold bearing material
at Buccaneer is not part of the mining development plan and is not addressed in this EIS
process. As the stages two and three progress, ABM will look at the economic viability of
processing Buccaneer mineralised material using some of the infrastructure of the Twin
Bonanza gold project.
ABM seeks to continue mining and processing activity after the stage one trial is completed
and is seeking a mineral lease and all relevant approvals for that purpose, with the aim to
minimise delay between stage one and stage two.
The project will be developed in stages, from the trial mining (2013) through to the full scale
mining as proposed in this EIS report. The current EIS is seeking approval up to and including
the early parts of stage three. Further developments beyond this point including the
potential underground and mining of Buccaneer requires additional evaluation. Once
further developments are proven feasible, the company will consult with relevant
regulatory authorities on the requirements for additional approvals.
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Table 3-4. Existing trial bulk sample operation compared to the project
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It is intended that the tailings dam used for stage one will become the water storage dam
for stage two. The tails will be progressively pumped out and potentially reprocessed
through an improved gravity circuit, once reprocessed the tails will be placed into a larger
tails dam.
The expanded mining process (stage two) will involve the construction and operation of the
following components:
a. The mining of three open pits using drill, blast, load and haul techniques.
b. Converting the stage one tailings dam to a water storage dam.
c. The expansion and operation of gravity processing equipment for refining ore
with the addition of an enclosed intensive leach reactor, such as an Acacia
Reactor, for cyanide leaching of concentrates.
d. Installation of associated tailings dams, incorporating a dual cell tailings dam
and a concentrate residual dam (CRD) for cyanide treated tailings.
e. Constructing two waste rock dumps.
f. Installing ancillary infrastructure, including: generators/power plants, staff
accommodation, workshop and office areas.
g. Establishing a new sewage system and landfill area.
h. Upgrading and expanding a reverse osmosis plant for producing potable
water.
i. Potentially upgrading and lengthening of the existing airstrip.
j. Upgrading existing roads, and constructing new roads and haul roads.
k. Sourcing of water initially from within and external to MLA 29822.
As illustrated in Figure 3-2 and documented in Table 3-5 the facilities associated with the
project’s operations will include:
a. three Run of Mine (ROM) pads containing ore stockpiles associated with the
open pits and processing plant
b. ore processing facilities
c. tailings dams cells 2A and 2B (for deposition of gravity treated tailings only)
d. CRD (for deposition of small volumes of cyanide treated tailings with cyanide
removed prior to deposition)
e. two waste rock dumps (Northern Waste Rock Dump and Southern Waste
Rock Dump)
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The planned ROM pad, processing facility, offices, maintenance facilities and other
infrastructure sit centrally to the known mineralised zones. Only areas actually required for
use will be cleared and all topsoil will be stockpiled for future rehabilitation. The majority of
the disturbance is associated with the pits, waste rock dumps, tailings dams, abandonment
bund area and topsoil stockpiles (Table 3-5). The project will result in the clearing of 223.3
hectares during stages two and three, this is in addition to existing 32.5 hectares that has
been disturbed during stage one.
The processing facility is planned to be an expanded version of the facility installed for stage
one, which utilises a gravity gold recovery method. It is anticipated that gravity gold
recovery can remain the primary method of gold recovery. A fully enclosed intensive leach
circuit for the treatment of approximately 1 to 2 tonnes of concentrate per hour (using
cyanide on a small scale) has the potential to become part of the processing plant in the
future. The aim of the intensive leach circuit will be to extract gold from gravity
concentrated product and will be dependent on recoveries from tabling processes.
It is planned that the processing plant can be upgraded to between 200 000t and 300 000t
per annum by stage three should it be economically viable. The tailings will report to the
two celled tailings dam with the intense leach material being deposited in a lined CRD once
cyanide has been removed.
The tailings dam will be established in stages. Initially a five metre deep below ground
starter pit will be established with the capacity of 250 000 tonnes. This will be expanded to
hold an additional 600 000 tonnes via an above ground 5 metres high embankment
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enclosed tailings dam. This process is to be completed again to produce a second tailings
dam cell adjoining the first with the same configuration. Tailings dams will be designed,
constructed, and operated in line with the Australia National Committee on Large Dams
Guidelines on Tailings Dams 2012 (ANCOLD, 2012). External parties have been engaged to
design the tailings dams.
Site roads will require upgrading and new roads will need to be established to allow safe
transit around the operation. This will include haul roads that allow for traffic to operate
without disruption in both directions. Haul roads between the mine and processing facility
will be designed and updated as operations are progressed.
The current accommodation facility is proposed to be expanded during stage two or three.
The facility will be expanded to the west of the current camp, along the western side of the
planned mineral lease. The upgraded accommodation facility is expected to largely consist
of portable buildings. The existing disturbance will be retained for use as a recycling and
laydown area and equipment storage area.
The proposed mineral lease extends to the Buccaneer deposit, to the north-west of Old
Pirate (Figure 3-2). The extension of the mineral lease to include Buccaneer allows for the
extraction of clay that may be required in the construction of the tailings dam and CRD.
Water will be sourced from bores on the lease and bore fields to the west of the mineral
lease, under a section 19 agreement with the CLC. Refer to Chapter 6: Water management.
Upgrading of the main access road will only require gravel sheeting to maintain the surface
as the only large vehicles using the road will only be transporting mining infrastructure and
logistical supplies. Material to maintain the road is to be sourced from mine pits. No bulk
haulage is required for the product as the produced gold volumes can be easily transported
by other means to the Perth Mint.
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Table 3-5. Summary of Twin Bonanza project components and disturbance areas.
Total area
Proposed (Hectares)
Existing area
Component area including Description EIS section
(Hectares)
(Hectares) existing
areas
Bulk sample
Pit 1 (Old
8.9 7.1 16 trenches engulfed Chapter 3
Pirate)
by open pits.
Bulk sample
Pit 2 (Old Glory) 3.6 0.7 4.3 trenches engulfed Chapter 3
by open pits.
Bulk sample
Pit 3 (Golden
1.3 1 2.3 trenches engulfed Chapter 3
Hind)
by open pits.
Nominal height of
North waste 20 metres.
41.8 0 41.8 Chapter 10
rock dump Constructed of two
10 lifts.
Nominal height 16.5
metres constructed
South waste
18.8 0 18.8 of one 10 metre lift Chapter 10
rock dump
and one 6.5 metre
lift.
Composed of two
cells. Cell 2A and 2B.
Tailings dam 26.7 0 26.7 Embankment Chapter 10
constructed to 5
metres high.
Embankment
CRD 3.7 0 3.7 constructed to 5 Chapter 10
metres high.
Current tails storage
Water storage
0 1.3 1.3 converted to water Chapter 10
dam
storage dam.
Material used to cap
Siltstone
1.6 0 1.6 tailings dam and Chapter 10
stockpile
CRD at closure.
Material used to cap
Sandstone
1.6 0 1.6 tailings dam and Chapter 10
stockpile
CRD at closure.
Material used to cap
Gravel/pisolite
4.2 0 4.2 tailings dam and Chapter 10
stockpile
CRD at closure.
Expansion of camp.
Existing disturbance
used for laydown,
Camp 4 4.8 8.8 This Chapter
storage and
bioremediation
area.
Landfill/burn Burn area with
1 0 1 Chapter 9
area fenced landfill area.
Sewage pond – Earthen dam for
wastewater 1 0 1 leaching and Chapter 9
area evaporation.
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Total area
Proposed (Hectares)
Existing area
Component area including Description EIS section
(Hectares)
(Hectares) existing
areas
Expansion of
existing area. May
Processing area 1.6 0.6 2.2 Chapter 3
or may not be
raised.
Storage and
Processing ROM management of ore
1.3 0.2 1.5 Chapter 3
pad stockpiles. May or
may not be raised.
Storage and
management of ore
ROM pad pit 1 2.3 0 2.3 stockpiles from Old Chapter 3
Pirate. May or may
not be raised.
Storage and
management of ore
ROM pad pit 2 stockpiles from Old
2.3 0 2.3 Chapter 3
and 3 Glory and Golden
Hind. May or may
not be raised.
Power Positioned in
0.2 0 0.2 Chapter 3
generation area process area.
Haul roads designed
Haul roads 3.2 0 3.2 to be water Chapter 12
shedding.
Fire breaks
Fire Management
Fire breaks 1.3 0.3 1.6 maximum clearing
Plan – Appendix Z
width 6 metres.
Existing roads
incorporates both
Other roads 0.7 3.5 4.2 Chapter 12
pre bulk sample and
bulk sample roads.
Abandonment
Area encompassing
bund and
29.9 0 29.9 abandonment bund Chapter 3
internal area pit
and area within.
1
Abandonment
Area encompassing
bund and
18.8 0 18.8 abandonment bund Chapter 3
internal area pit
and area within.
2 and 3
Mining support
Included wash down
area including
2.3 0 2.3 and support Chapter 3
workshops and
infrastructure.
camp
Stockpiles paddock Chapter 11,
Main topsoil dumped to have Conceptual Mine
23.1 0 23.1
stockpile high surface to Closure Plan –
volume ratio. Appendix O
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Total area
Proposed (Hectares)
Existing area
Component area including Description EIS section
(Hectares)
(Hectares) existing
areas
Stockpiles paddock Chapter 11,
Camp topsoil dumped to have Conceptual Mine
1 0 1
stockpile high surface to Closure Plan –
volume ratio. Appendix O
Required for
Borrow pit 2 0 2 Chapter 3
potential clay lining.
Each Water Bore 30 Chapter 7, Water
Water bores 0.2 0.2 0.4 metre x 30 metre Management
area. Plan – Appendix F
Each Monitoring Chapter 7, Water
Monitoring
1.5 0 1.5 Bore 30 metre x 30 Management
bores
metre area. Plan – Appendix F
3 metre wide tracks
for access and
pipelines. A number
Access tracks
of existing tracks are
and pipelines to 0.6 0 0.6 Chapter 3
to be used in
bores
conjunction with
the proposed
disturbance.
Chapter 7,
Designed to 1:1 000
Main diversion Erosion and
3.4 0 3.4 year peak flow
structures Sediment Control
event.
Plan – Appendix E
Chapter 7,
Internal Designed for 1:100
Erosion and
diversion 1.4 0 1.4 year peak flow
Sediment Control
structures event.
Plan – Appendix E
Chapter 7,
Designed for 1:20
Settlement Erosion and
0.5 0 0.5 year peak flow
ponds Sediment Control
event.
Plan – Appendix E
Incorporates access
Explosive
1.5 0 1.5 track from haul Chapter 3
magazine
road.
Airstrip to be
lengthened and
widened. Based on
Airstrip 6 12.8 18.8 Chapter 12
airstrip 2000 m long
and 90 m wide with
parking apron.
Total 223.3 32.5 255.8
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3.4 Mining
3.4.1 Overview
The ore will be trucked from the open pits to one of three ROM pads for storage prior to
crushing and processing.
Mine waste rock will be placed into one of two waste rock dumps (Figure 3-3). The southern
waste rock dump will receive mined waste rock from the southern Old Glory and Golden
Hind pits. While the northern waste rock dump is to receive waste rock mined from the
northern Old Pirate pits. Indicative waste dump volumes are provided in Appendix M: ABM
Waste Memo which may vary slightly if final open pit mining designs are varied. Final waste
dump external batters will be at a gradient of 15 degrees to ensure effective rehabilitation
and to blend sympathetically with existing natural topography of the area.
In addition, selective siltstone and sandstone waste rock units and the top 800mm to
1000mm pisolites/gravel horizon covering the pits will be selectively handled and stockpiled
for the capping and rehabilitation of the tailings dam and CRD (Figure 3-7).
All waste dumps will be rehabilitated with topsoil (which will be removed and stockpiled
prior to establishment) and revegetated. For on-going expansion, it is expected that some
open pits will be able to be partially backfilled to reduce waste dump expansion. Backfilling
opportunities may be assessed as an ongoing part of mine planning and undertaken where
sterilisation of the ore bodies are likely to occur.
Mining will involve mining a series of open pits, including cut backs. The staged approach
will allow continued assessment of the ore system as more information becomes available
from both mining and resource extensional work.
Open pit mining will include the pegging out of the pit outline, clearing of top soil, the
establishment of safety and abandonment bunds and required roads.
The project’s open pit mining process will involve excavating overlying waste rock in
horizontal benches to expose the near vertical target quartz veins that host the gold, which
will then be removed for processing. The excavation will be undertaken in stages,
commencing at the shallowest depths of the ore-body. Based on the current resources the
indicative mining schedule is summarised in Table 3-6 and illustrates how mining will be
ramped up during staged development.
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Table 3-6. Indicative mining schedule stage two and stage three.
Figure 3-3 details the larger items contained in the proposed footprint of the development
of the Twin Bonanza project and focus of the EIS.
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Figure 3-3. Stage three with indicative waste dumps and tailings dams.
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Further geotechnical assessment will be undertaken with the exposure from the stage one
trial mining pits and with reference to final open pit designs.
With consideration given to the in-pit haul ramp, the overall wall angles that are generated
are presented below in Table 3-8. These angles were used for the pit design and will have a
maximum slope angle between haul ramp segments.
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Stage three pits are envisaged to a depth of between 35m and 150m below surface,
however ore body grade remains critical in determining the total optimal depth. For the
purposes of this EIS, a potential open pit boundary is based on an 80m deep excavation,
consistent with submissions related to the mineral lease.
An abandonment bund will be constructed around each of the open cut pits using the most
competent rock available. The bund dimensions are to be approximately 2 metres high with
a base of 5 metres and positioned at least 10 metres outside of the area designated as the
zone of instability. Approval is being sought to allow the clearing of the vegetation within
the bund boundaries in order to provide flexibility with the placement of infrastructure,
however, in practice this may not occur.
Key to maximising recovered grade for the operation will be the selective extraction of the
ore from waste rock. Grade control for the operation will carried out using a combination of
methods, including in-pit drilling, blast hole sampling, mapping and sampling of pit floors. It
is expected that extensive visual control, backed by sampling data, will be used to guide ore
extraction.
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1. fuel farm
2. oil farm
3. offices
4. crib (messing) rooms
5. workshops
6. ablutions
7. generators
8. potable water
9. non-potable water
10. heavy vehicle parking areas
11. light vehicle parking areas
Details of proposed blasting parameters for the project’s open pit are shown in Table 3-9.
Blasts are expected to occur every two to three days with multiple shots fired at the same
time.
Hole Area of
Bench height Hole depth Holes drilled typical shot Shots per
Material diameter
(m) (m) per day 2 year
(mm) (m )
2
Ore zone 2.5m 2.8m 64mm 80 200m 300
2
Waste rock 5m 5.5m 64mm 60 1b000m 240
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It is anticipated that 17 ancillary vehicles will be required as support vehicles for safe and
effective functioning of the mine. Table 3-10 outlines the nature of these tasks and the
equipment required.
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To accommodate stage two water needs, ABM will utilise at least one bore within the
mineral lease and also water resources adjacent. The adjacent water resources will be
located within a palaeochannel to the south west of the mineral lease where a borefield and
connecting pipeline are required (Figure 3-4). These areas are secured by the grant of an
interest in the land pursuant to s.19 of the Aboriginal Land Rights Act by the relevant land
trust. Two large paleochannels encircle the project area; these have been identified as the
most likely place to find further water if required during stage three.
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There is no proposal to take, or use surface water. ABM will not take, direct or use surface
water without first notifying all relevant stakeholders and seeking approvals. The overall
objectives of ABM’s surface water management will be in accordance to the Water
Management Plan (Appendix F) and Erosion and Sediment Control Plan (Appendix E). ABM
will divert the majority of the surrounding surface run-off around disturbed areas with the
use of surface diversion structures. As the project is positioned on high-ground in the
landscape and on diverging catchments no large catchment areas or rivers will be diverted
as part of the project (Figure 3-5).
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Within the project area the water table is typically situated approximately 100m below
surface, therefore dewatering is highly unlikely to be required. For any small volumes of
perched water (above the water table) the use of temporary in pit sumps for water capture
may be required in order to secure dry open pit working conditions. Subsequent water
captured will be available for use for dust suppression. This process would be sufficient for
all normal groundwater conditions.
During the wet season, it is likely that water will need to be removed from open pits. This
water will be directed to water storage facilities for future use whenever practicable. If it is
not practicable to dewater open pits to water storage facilities, such as when freeboard is
limited or tailings deposition may be compromised, water may be pumped to an alternate
open pit if available or discharged to the environment via a discharge method to prevent
erosion, such as rock discharge.
Water runoff from operational areas will be directed to 1:20 year peak flow, sized
sedimentation traps. All traps will be designed to appropriate standards and sized in
accordance with calculations from the site surface water modelling (Figure 3-4).
ABM is committed to the efficient use and responsible management of water resources in
its activities. By implementing water efficient work practices and recycling, the consumption
of raw water will be minimised. ABM will specifically achieve this through maximising the
recirculation of process water and tailings supernatant water for use within processing
facilities.
To manage surface water flow and sediment, the ROM pads may be raised with any
liberated sediment to be captured by settlement ponds. If the pads are not raised diversion
drains will be used to divert surface water and sediment to the settlement ponds.
3.4.12 Handling and stockpiling of waste rock and waste rock design
A total of 10.9 million tonnes of waste rock will be produced during the project (stage two
to three). The following swell factors were used for each material type to estimate the
surface volumes, and are presented below in
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Topsoil 130%
Fresh 125%
Two waste rock dumps known as the north and south waste rock dumps have been located
as close to the pits as possible and take into account the local constraints of potential future
deposits, zone of instability and any archaeological sites (Figure 3-3).
Waste rock dump design has incorporated the findings of both physical and chemical
characterisation. This has led to the more erosive and potentially less geochemically stable
units being encapsulated in the waste rock dump by more competent and inert materials.
This is illustrated in Figure 3-5. Further detail is provided in Chapter 10: Tailings and waste
rock management.
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Figure 3-6. Cross section through the northern waste rock dump detailing the positioning of waste rock.
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The final design of the waste rock dumps was a two staged geotechnical process to ensure
the landforms will be stable.
The first stage was the identification of the most resistant unit to erosion and potential
weathering with sufficient volumes to cover the waste rock dump. A 300kg sample of
oxidised sandstone was collected during the bulk sampling program and sent for laboratory-
scale erosion testing. A laboratory-scale rainfall simulator was used to measure the
potential erosion rates at varying slope angles.
It is predicted the average erosion rate for near-flat surfaces (i.e. pads, roads, etc.) was
negligible, at < 0.2 t/ha/yr, with approximately 90% of the predicted erosion expected in the
months of December, January, and February. In the case of waste dump batters with a
vertical height of 10 metres the erosion rate ranged between 5.1 t/ha/yr for a slope of 150
to 5.4 t/ha/yr for a slope of 210. Erosion rate increased as the vertical batter height
increased. Further details on the erosion testing can be sourced from Chapter 10: Tailings
and waste rock management.
A 150 batter angle was selected for the slope design with two 10 metre vertical lifts divide
by a 10 metre wide berm. This slope configuration then underwent landscape evolution
modelling via the Siberia Model over a period of 1000 years; further details of the erosion
modelling is Appendix AB: Topsoil Characterisation and Erosion Analysis. This highlighted
that the waste rock dumps were likely to have erosion levels that stabilise over time with
sediment contained inside the footprint of waste rock dump over the first 100 years. The
design parameters for the site waste dumps are outlined in table 3-12.
Table 3-12 Waste dump design parameters.
A geochemical review was undertaken on a selection of waste rock samples across the
deposit. Characterisation of the materials was carried out as defined by AMIRA1 as well as
an Acid Potential Ratio (APR) approach. In addition x-ray diffraction and x-ray fluorescence
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were carried out with XRF to determine the Geochemical Abundance Index (GAI) of the
materials. Leaching potential of the materials was determined by applying the Australian
Standard Leaching Procedure (ASLP) with pH, EC, major cations and anions as well as trace
elements determined on the leachates.
The geochemical review found that the bulk of the waste was classified as non-acid forming
(NAF (using the ABA/NAG approach)), with trace sulphides present in vein systems. The
samples were therefore deemed to have limited potential for Acid Mine Drainage (AMD).
The presence of arsenopyrite, pyrite and galena minerals in some of the samples indicated
that there is limited potential for leaching of As and Pb from the trace sulphides.
Management of the materials will primarily focus on isolating the material with the
potential to liberate elements thereby limiting the potential for leaching of elements in the
environment. ABM’s proposed waste rock dump design will involve isolating the material
with potentially arsenopyrite, pyrite and galena, in the centre of the waste dump, with the
benign and stable waste (NAF) used as the outer embankment walls.
For further details refer to Chapter 10: Tailings and waste rock management, and
Appendices L: ABM Tailings Memo and N: Geotechnical characterisation Memo.
3.5 Processing
Prior to the expansion the area will be cleared and topsoil will be recovered. The upgraded
processing operation consists of the following components:
1. ROM pad
2. crushing circuit
3. coarse gold gravity recovery
4. milling
5. fine gold gravity recovery
6. concentrate upgrade
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The general layout of the processing area is shown in Figure 3-7 and a preliminary design of
the processing circuit, as established for the bulk sample, is provided in Figure 3-8.
Crushing
ABM plans to use a multi stage crushing circuit, consisting of jaw, cone and impact crushers
to produce a product size in the order of 6mm from a maximum feed size of around 500mm
feed size is expected to be 250mm and target output is <6mm.
A scrubber is planned to sort oversize and produce slurry. Oversize will be re-fed to the
crushing circuit by a small front end loader.
Coarse gold recovery is planned using a jig with table upgrade. Currently planned are a
Russell Jig and Wilfley Table. Concentrates will be pumped for further upgrading and tails
will be forwarded to the mill for grinding.
Milling
All ore, other than material already captured for coarse gold recovery, will be milled to
liberate finer gold particles. The mill will be fed directly from the jig tails but will also receive
recirculating lode from throughout the circuit. The mill will be sized to handle the
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recirculating lode and the 10t to 35t per hour (depending on stage) minimum net circuit
throughput.
Target final grind size before going to tails is expected to be less than 106 micron.
Determination of optimal final grind size will be an important outcome of the stage one
work.
It is planned that all material from the mill, subject to screening of oversize, will go through
a centrifugal gravity concentrator. Currently, this is planned to be a Knelson concentrator.
The centrifugal concentrator will recover fine gold above the 20 micron size and is expected
to result in a high overall gold recovery.
Tailings from the centrifugal gravity concentrator will be passed through a cyclone and
subsequent underflow (being the larger and heavier particles) will be returned to the mill
for further grinding. Cyclone overflow (being the finer and lighter particles) will be sent to
the tailings dam.
As an outcome of the stage one trial processing, currently still in progress, ABM are
expecting to review further options for fine gold recovery from the tailings stream. This may
result in the installation of additional centrifugal gravity concentrator(s) combined with
intensive leach reactors.
Depending on overall recoveries and results of stage one, an intensive cyanide leaching and
elution circuit may be required. Intensive cyanidation involves a small scale pressure reactor
(such as an Acacia Reactor) and is applied to concentrates only. Intensive cyanidation uses
considerably less cyanide than conventional CIL or CIP processing.
3.5.3 Tailings
Gravity circuit tailings
It is proposed that gravity recovery for gold will be used and reagents, including cyanide, will
not be used in the gravity circuit. Tailings will be the crushed and ground material that has
been extracted from the local mineralised resource only.
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Bulk density test work has been conducted on tailings samples from laboratory gravity
recovery test work. The density has been calculated as 1.2t/m3 by testing the weight of
prepared samples in water and out of water to determine the both weight and displaced
volume of the tails sample.
The final tailings stream from the gravity circuit will be pumped to the tailings dam. Further
details of the existing and proposed tailings management operations are provided in
Chapter 10: Tailings and waste rock management, and Appendix I: Tailings Storage Facility
Conceptual Design report.
In the event that cyanide leaching is used, the small proportion of the ore (after
concentrating) will be selectivity leached as a concentrate within a closed circuit intensive
leach reactor (Figure 3-9). This is estimated a total 60 000 tonnes for the life of mine.
Within the intensive leach reactor process, a recycling and detoxification module using
sodium hypochlorite breaks down the cyanide. Once detoxified, the cyanide free waste
solution is to report to a purpose built CRD.
For further details refer to Chapter 10: Tailings and waste rock managment, and Appendix I:
Tailings Storage Facility Conceptual Design report.
Figure 3-9. Simplified process flow diagram for a Concep Acacia refinery system, as an example of an intensive leach
reactor.
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A geochemical review was undertaken on a selection of ore samples across the deposit.
Characterisation of the materials was carried as defined by AMIRA1 as well as by Acid
Potential Ratio (APR) approach. In addition, x-ray diffraction and x-ray fluorescence analyses
were carried out to determine the Geochemical Abundance Index (GAI) of the samples.
Leaching potential of the samples was determined by applying the Australian Standard
Leaching Procedure (ASLP) with pH, EC, major cations and anions as well as trace elements
determined on the leachates.
The geochemical review found that the bulk of the tailings were classified as NAF (non- acid
forming (ABA/NAG)) with minimal potential for acid mine drainage (AMD). The tailings
contain trace pyrite arsenopyrite and galena. The review highlighted that oxide tailings has
the limited potential to liberate arsenic into the environment.
• locating the tailings dam on existing areas within known arsenic anomalism so as to
reduce the adverse effects on the environment
• installing a permeability barrier of 1x10-8 to limit seepage
• recycling process water to reduce the potential for water to enter the natural
water-cycle
• installing monitoring boreholes around the tailings dam to monitor any seepage
into the environment.
Further details of the tailings management are provided in Chapter 10: Tailings and waste
rock management.
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The proposed management of the tailings during mining operations involves a multi-staged
approach, comprising both below (in pit) and above ground tailings dam structures.
Based on the tailings characteristics above, the following storage requirements were used
for the conceptual design:
The 1A/2A tailings dam configuration has been designed to store the tailings below and
above ground for the initial 850 000t of material. A similar 1B/2B tailings dam impoundment
cell will also hold an estimated 850 000t of material below and above ground. The option of
two dams with an interconnected wall far exceeds the projected volumes for this proposal
but provides contingency should further mining occur. Additionally, the staged design can
be either rehabilitated as below ground pits creating low rises or capped as stable
landforms, if the mining ceases prior to above ground use.
The CRD is designed to store tailings leached with cyanide through the intensive leach
reactor, and has a separate design and management. Tailings that have been subjected to
cyanidation will undergo total cyanide destruction prior to deposition in the CRD, however
ABM is using a conservative approach and separating all of the cyanide treated tailings from
the gravity only separated tailings stream.
The excavated spoil from the construction and excavation of 1A and 1B pits will provide the
necessary material required constructing both the tailings dams and the CRD embankments;
however additional material can be sourced from selected mine waste (Refer to section
3.4.14).
Investigations are still required to establish the natural soil permeability to assist with the
engineering of any required liner or construction works to achieve sufficiently low floor
permeability. This will be undertaken prior to the submission of the mining management
plan under the Mining Management Act.
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Limited information of the permeability and exact nature of the subsurface conditions is
available across the tailings dam footprint. Therefore, the use of clay or synthetic liners may
not be required to prevent downward migration of tailings water/leach, and could possibly
be substituted with effective earthworks/ground treatment to achieve a sufficiently low
permeability subgrade (1 x 10-8 m/s). The need for a liner will be evaluated during detailed
geotechnical investigation (refer to Appendix I: Tailing storage facility geotechnical
conceptual design).
The tailings will be transported from the mill to the tailings dams via a pipeline, and
discharged sub-aerially via a spigotted system. The system will be spaced equidistantly at
~50m intervals around the embankment perimeter. The spigots will operate either
individually, or in groups of adjoining outlets, in sequence around the tailings dam to
develop a beach of deposited tailings and force the supernatant water to flow to the centre
of the pond where it can be recovered by the decant pump for re-use in the plant.
Supernatant water from the tailings will be managed using a decant system. The recovered
water is transport via an HDPE pipeline to a water storage dam or the processing plant for
re-use. A spillway has been incorporated into the conceptual design of the tailings dam, with
the spillway invert located 500mm below the crest level and the supernatant pond to be
maintained at least 1.0m below the spillway invert. This spillway has been added as a
contingency in case a probable maximum precipitation event occurs during operations.
Other materials such as aggregates may be sourced for further works, such as road
upgrades or the air strip upgrade. Depending on location, quality of materials and onsite
sourcing, material may be brought in from other locations and will be the subject of
negotiation with the CLC and approval under relevant legislation. Where applicable mine
waste rock will be utilised for road base.
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Daily water level monitoring will be undertaken at the tailings dam, CRD and process water
plant. Monthly sampling of the tailings/process dam water will be undertaken, including a
full suite of metals, major ions and general parameters to monitor metal levels in the water.
For further details refer to Chapter 7: Water management and Appendix F: Water
Management Plan.
3.7 Infrastructure
The current plant, installed for exploration, has a nominal capacity of 15 000 litres per day
and will be upgraded if required with staged expansion of the operation. RO water will also
be used where applicable for certain machinery and operations on site.
ABM will actively monitor the quality of the water from the RO plant and the processing
plant. Currently rejected RO water is combined with the process water in the existing water
storage dam.
Permanent raw and potable water tanks will be installed to hold water prior to and after RO
treatment, tanks will have the capacity to hold approximately 100kL which will equate to
approximately 2 days water storage each.
Refer to Chapter 7: Water management and Chapter 9: Waste management for further
details.
3.7.2 Power
The proposed operation will include the development of additional infrastructure for power
generation and fuel storage. Power generation will be from diesel generator sets. Power will
be used for construction processes, operation of the processing plant, accommodation,
workshops and office infrastructure.
Power for the stage one trial mining and processing has been provided by diesel generators,
which have powered the camp and infrastructure including the processing plant. Currently
power generation occurs at each location and is separate for accommodation, kitchen and
ablutions, and processing.
Power lines or underground cables will be progressively installed, as staged expansion of the
operation progresses, to centralise power generation adjacent to the processing facility.
Bore fields are expected to remain as isolated power generation facilities, with a single small
generator set for each bore.
Presently a single diesel generator (genset) that has 1250kVA total power capacity powers
the processing plant for the bulk sample. For the bulk sample, power draw is in the order of
250kW at a processing rate of 10t per hour, or 25kWh per tonne. Additional, but smaller
power requirements are needed for accommodation and camp facilities as well as bores.
From the bulk sample, as total power draw of up to 35kWh per tonne processed is
considered reasonable for estimating total power requirements for ongoing operations,
without consideration of any potential future underground operations. Additional capacity
is required start-up of plant, such as the mill.
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For a processing rate of 300 000t per annum (40t per hour allowing for downtime) an
operating power capacity of 1 400kW is required, with an available power capacity of 3MVA
available for start-ups and variations in power draw. A range of options are under
consideration and power capacity will be progressively installed as staged expansion occurs.
Preliminary assessments indicate that the most feasible option will be to upgrade to utilise
four 1 MVA genset units on site. The aim will be to have two operating at any given time,
with one on standby for start-ups and one spare to allow servicing.
The final power configuration is yet to be finalised and ABM is exploring the feasibility of
using thermal solar energy to supplement the power generation (refer to thermal solar
energy and Chapter 16: Environmental Offsets.
Diesel consumption is expected to be in the order of 0.3 litres per kilowatt, or up to 3.2
million litres per annum.
The generator sets will be located centrally to infrastructure, on the south side of the main
east – west access road between camp and mining operations and north of the processing
facility (Figure 3-7).
The final power configuration is yet to be finalised and ABM exploring the feasibility of using
thermal solar energy to supplement the power generation. Current proposals involve a
3MWe CSP (Concentrating Solar Power) solar thermal plant with an option of 6 hours
storage (using molten salt as a heat reservoir). ABM will still require diesel generators for
hours of low solar output and high energy requirements. The current proposal that ABM is
considering will utilise solar-diesel hybridisation where the exhaust gases from the diesel
generating sets could be directed through a heat exchanger (that incorporates the solar
thermal oil pipework). In the standard genset system, that ABM currently employs, the
exhaust gasses will be around 390°c which results in around 305% of the fuel input being
lost to the atmosphere. Utilising the heat exchanger is estimated to recover 50% of the
emissions generating 0.45 MW (15%) further reducing the diesel fuel usage.
1. Twin Bonanza is an ideal location of solar thermal power with minimal de-rating (
loss of efficiency) for high ambient temperatures.
2. Use of thermal energy allows lower cost thermal storage which is easily integrated.
3. Extra thermal energy can be utilised from the diesel genset further reducing costs –
which is not feasible for PV circuits.
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Please note that thermal solar energy is only in a preliminary investigative stage that
requires further development. Until the technology viability has been confirmed and
evaluated, the operation will run on diesel power generation.
All fuel drums / chemical products shall be stored within either self bunded tanks, bunded
lined areas or within portable self bunded pallets. Permanent bunded storage areas are to
be located away from the accommodation site and drainage lines. Regular checks of the fuel
and chemical storage areas will be undertaken to check for the presence of leaking drums.
When leaking drums are identified the drum will be isolated and the liquids transferred into
a suitable container for ongoing storage.
It is not currently anticipated that an upgrade of the fuel storage capacity will be required in
the short term for stage two, however upgrades will be required for stage three to allow
enough storage capacity for operation through the wet season. With the upgrade all
relevant regulations and standards will be adhered to and appropriate regulatory
authorities notified.
The approved aviation fuel storage facilities at the project comprise solely AvGas for piston-
engine aircraft, stored appropriately in 205L steel drums on bunded pallets; storage is
aligned with AS1940-2004 Australian Standards (The storage and handling of flammable and
combustible liquids) and CASA Regulations. These facilities may require expansion if the
capacity of the airstrip and frequency of flights increase. Any expansion of the facilities will
be conducted in accordance with AS1940-2004 Australian Standards and CASA Regulations.
There will be no offsite fuel storage. Fuel will be provided by certified and authorised
contractors, and during transport will be the responsibility of the contractors.
Refer to Chapter 12: Road transport and Chapter 9: Waste management for further details.
Detonators and boosters, which are classed as explosives, will be kept secure in licensed
magazines in accordance with the relevant Northern Territory legislation and Australian
Standards (Figure 3-2). Explosives magazines will be located to the south of mining
operations and removed from any direct access from the Tanami Road.
3.7.6 Sewage
Ablutions will be established with the camp to service the work force. Septic tanks with
associated leach/evaporation systems will be installed in line with the Public Health
(General Sanitation, Mosquito Prevention, Rat Exclusion and Prevention) Regulations –
Regulation 28. As part of this process the Department of Health will receive, via the
prescribed form, notice of our intent to expand our waste management system.
Figure 3-10. Expansion footprint of existing accommodation village and associated infrastructure.
3.7.7.1 Telecommunications
The existing communications system on site comprises of an Orion Satellite System, which is
a re-deployable system that includes the following:
1. 98cm Anntenna
2. 2 Watt Radio
3. HN7740 VSAT Modem
ABM currently has two phone lines on site as well as WIFI internet access. Additional
communications are in the form of UHF for truck and vehicle movements. Satellite phones
are also available in every vehicle.
A VHF Air radio (licensed) is also in use for communications with aircraft coming to site.
The system will have the capacity to support 10 handsets with 6 phone lines and allow a
substantial amount more data capacity. Additional communications are in the form of UHF
radios for truck and vehicle movements. Satellite phones are also available in all vehicles.
Trucks, and most contractors coming to site will have the UHF radios and these would
normally be used around site.
3.7.8 Airport
The Wilson Camp Aerodrome is a refurbished older Aeroplane Landing Area from the 1980s.
It has recently been regraded and re-established. The airstrip was recommissioned, by ABM
after an assessment by Aerodrome Management Services Pty Ltd (AMS) in 2012. The airstrip
meets design guidelines provided by CASA as an Aeroplane Landing Area and is constructed
of compacted good quality lateritic gravel, with the capacity to fly in aircrafts that have less
than 9 seats.
It is likely that the airstrip will require upgrading for a larger operation. It is expected that
the upgrade will consist of lengthening the air strip to allow larger aircraft to land. Refer to
Chapter 12: Road transport and traffic management for further details.
Mine site infrastructure that will require progressive upgrades includes, but is not limited to;
1. tailings dam
2. CRD
3. waste rock dumps
4. additional ROM pads
5. rehabilitation stockpiles
6. borrow pits
7. explosive magazine
8. surface water diversion structures.
Wherever practicable the labour and equipment will be sourced locally. However due to the
specialised skills, equipment and components required, a variety of supplies and services
will be sourced from regional centres. Personnel and mobile equipment will be transported
through existing transport infrastructure with additional vehicles, trucks and planes put on
during peak times.
Prior to construction each area will be progressively cleared, contoured and conditioned
depending on the locational requirements. Once completed, the staged earthworks and
positioning of infrastructure will occur. To minimise disturbance existing laydowns will be
used and areas of proposed infrastructure may be used as temporary laydowns. During
construction the Sediment and Erosion Control Plan (Appendix E) will be implemented with
this plan transitioning into an operational plan.
Generally staff and contractors, except for local Traditional Owners, will fly in fly out offsite.
On occasions staff might be required to drive in via the Tanami Road and access road.
ABM has had a policy to hire Indigenous Australians from the local community as per ABM’s
agreements with the CLC. Refer to Chapter 13: Social, economic, cultural and heritage risks
for further details. The environmental management of the site is the task of an
environmental manager supported by an environmental officer; in addition it will also be
the responsibility of the respective managers and staff to support the implementation of the
environmental commitments and conditions.
Table 3-14.Specific roles required for operational workforce for mining. Minimum requirements for qualifications and
experience.
3.9.2 Emissions
Total emissions for the project were calculated and presented in Chapter 8: Air quality and
greenhouse gas emmissions.
The total emissions estimated (greenhouse gases – CO2, CH4, N2O, including emissions
from land clearing), fall well below the 50 kilotonnes annual reporting threshold for the
National Greenhouse Gas Account (NGA), stipulated by the National Greenhouse and Energy
Reporting Act (2007) (Cth). Chapter 8 and Appendix K: Air Quality Management Plan outlines
the management and mitigation strategies for the project.
At closure the infrastructure not used for the purposes of the post-mining land use will be
removed, tailings dams and CRD capped and waste rock dumps contoured for the re-
establishment of native vegetation. During operations, continuing stakeholder engagement
will further refine the proposed post mining land use to ensure the closure outcomes are
acceptable to the community, minimise liability and integrate into the surrounding land
management practices.
Further details on rehabilitation and closure can be accessed in Chapter 10: Tailings and
waste rock management, Chapter 11: Closure and rehabilitation and Appendix O:
Conceptual Mine Closure Plan and Appendix P: Conceptual Care and Maintenance Plan.