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Smart Mining - Future Prosperity Program

Smart Mining - Future Prosperity program

The $29.08 million Smart Mining - Future Prosperity program includes three funding initiatives aimed at stimulating exploration investment in Queensland.  Funds totalling $7.28 million are available to assist mineral and energy explorers under the Collaborative Drilling, Cluster Formation and Industry Network Initiatives.

Round 4 of the Collaborative Drilling Initiative has A$1.5 million available in grants, with single grants of up to A$150 000.

Collabrative Drilling Initiative Round 4 - closes Friday 20 November 2009.

Contact:
Simon Crouch
Phone: +61 7 323 71491
Email: simon.crouch@deedi.qld.gov.au

Proposals can be submitted as follows:

Lodged in person to:
Information centre
Level 2 Mineral House
41 George Street
Brisbane QLD 4000

Or post to:
Exploration Attraction 
Queensland Mines and Energy
PO Box 15216
City East QLD 4002

Collaborative Drilling Initiative

The Collaborative Drilling Initiative (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 succesful proposals from Round 2 that are a useful reference guide for the next round of submissions.

Results of Round 1 Collaborative Drilling Initiative

Successful applicants from Round 1 of the Collaborative Drilling Initiative:

  • 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

Collaborative Drilling Initiative Round 1 technical successes (intersection of mineralisation).

As at 1 August 2009, 16 projects have been completed under the Collaborative Drilling Initiative 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 Mt 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 Approx. 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.

Collaborative Drilling Initiative Round 1 - Successful projects map

Collaborative Drilling Initiative Round 2 technical successes (intersection of mineralisation).

As at 1 August 2009, 12 projects have been completed under the Collaborative Drilling Initiative 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.
  • A joint venture between, 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 dilatational 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.

Collaborative Drilling Initiative Round 2 - Successful projects map

Results of Round 3 Collaborative Drilling Initiative

Successful applicants from Round 3 of the Collaborative Drilling Initiative:

  • 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
  • Mt 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

Detailed project information available on QDEX.

Collaborative Drilling Initiative Round 3 - Successful projects map

Cluster Formation Initiatives

The Cluster Formation Initiative (CFI) supports 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 will encourage better use of the available drilling and geophysical resources in the state.

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

Results of Round 1 Cluster Formation Initiative

Successful applicants from Round 1 of the Cluster Formation Initiative:

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

Results of Round 2 Cluster Formation Initiative

Successful applicants from Round 2 of the Cluster Formation Initiative:

  • Superior Resources Limited
  • Krucible Metals Limited

Cluster Formation Initiative Rounds 1 and 2 - Successful projects map

Industry Network Initiative

To encourage the growth of junior mineral exploration companies, funding is available to assist with access to technical and ancillary services that develop or help to develop deposit models and generate drilling targets.  Grants will be allocated for target generating research projects that use any specialist industry service or industry support organisation.

Funding will be provided to junior mineral exploration companies.  For more information view the guidelines, supporting documentation and FAQs.

Results of Round 1 Industry Network Initiative

Successful applicants from Round 1 of the Industry Network Initiative (INI):

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

Industry Network Initiative Round 1 - Successful projects map

Results of Round 2 Industry Network Initiative

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

Industry Network Initiative Round 2 - Successful projects map

Results of Round 3 Industry Network Initiative

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

Industry Network Initiative Round 3 - Successful projects map

Feedback

Queensland Mines and Energy seeks to continually improve the application processes and better target promotional opportunities, Smart Mining - Future Prosperity feedback forms have been made available for each of the three funding initiatives.

Smart Mining - Future Prosperity FAQs

General (relevant for all proposals)

Q What resource types are eligible for exploration assistance under the CDI, INI, and CFI?
A  The INI is restricted to mineral exploration other than coal. The CDI and CFI are open to minerals, petroleum, coal and geothermal exploration.

Q Can grant funding from all three initiatives be accessed for the one project/concept?
A 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.

Q  When can a company submit a proposal?
A  At any time before the closing date of proposals as posted on the DME website.

Q Are there any circumstances where approved funding can be increased?
A  NO.

Q 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?
A 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. 

Q  Can grant money go towards funding administration of tenure?
A  NO.

Q Can grant money be considered as part of the work expenditure commitment of a tenement?
A 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.

Q Does retrospectivity apply in relation to CDI and INI?
A NO.

Q Does retrospectivity apply in relation to CFI?
A 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.

Q Can project proposals apply to exploration tenure applications?
A 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

Q Can a company apply for CDI funding for resource definition drilling? 
A 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.

Q What is the maximum funding that can be applied for under the CDI?
A 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.

Q Are all drilling methods open to funding under the CDI?
A YES.  However, sample quality is considered in the assessment criteria.

Q Is mobilisation included in the drilling costs under the CDI?
A NO.  However, a proposal for grant funding of mobilisation costs may be lodged under the Cluster Formation Initiative if the eligibility criteria are met.

Q Is there flexibility to change the approved drilling program under the CDI?
A The drill program can be altered based on incoming results, however the target, as defined in the proposal cannot change.

Q Will CDI funding apply for the entire drill program? 
A 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

Q What organisations are eligible to be in a network?
A 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.

Q What is the maximum funding that can be applied for under the INI?
A $40,000 or half of the actual research costs, which ever is less.

Q Can targets generated under the INI be considered for a grant under the Collaborative Drilling Initiative?
A 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.

Q Is the INI available for projects other than minerals?
A NO.  The INI is only available for mineral exploration, excluding coal.

Q Does a Network have to be established for a proposal to be considered?
A The proposal must demonstrate that a network is in place.  Network partners need to be identified in the proposal.

Q How is a research project defined?
A 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.

Q How is a junior mineral exploration company defined?
A  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

Q What activities can be included in a research project?
A  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

Q  How is a cluster defined?
A  A cluster comprises two or more exploration and mining companies holding granted exploration tenure within a geographic area in Queensland.

Q Is a Joint Venture considered a cluster?
A 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.

Q How is a geographical area defined for the purposes of the CFI?
A 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.

Q What costs are eligible for reimbursement from a CFI grant? 
A 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. 

Q What is the maximum funding that can be applied for under the CFI?
A The maximum grant for the activities approved under the CFI is $50,000 or half of the actual mobilisation costs, which ever is less.

Q Is there a limit to the number of proposals that can be submitted by one cluster under the CFI?
A YES.   A cluster is limited to one proposal per year however this proposal may include mobilisation of different types of equipment.

Q Is there a limit to the number of times a tenure can be included in a cluster proposal?
A YES.   A tenure can only be included in one proposal per year.  However this proposal may include mobilisation of different types of equipment.

Q Is there a limit to the number of proposals that a company participates in?
A NO.   However a company will only receive funding once for a particular tenement or contiguous tenement package in a particular round.

 

 

Last Updated 13 November 2009