The NT Independent is providing an update of resource news from across the Northern Territory. Highlights this week include an increase in mineral production helping the NT’s bottom line and realising the second-highest value ever, Core Lithium commencing transfer of ore to Darwin Port, Arafura getting government approval for its rare earths plan, and more.

Territory’s mineral production value hits $4.86 billion this year

Mineral production for the 2021-22 financial year has recorded a total value of $4.86 billion, up 14 per cent from last year’s $4.28 billion. This year’s figure is also the second-highest value ever recorded in the Territory.

The highest mineral production value in the jurisdiction was recorded in 2018-19 at $4.92 billion.

“The minerals sector is a vital contributor to our economy, and this increased production value shows that there is no better place than the Territory for resource development,” Minister for Mining and Industry Nicole Manison said.

The latest figures from the Treasurer’s Annual Financial Report showed that higher manganese and zinc prices have contributed to the increase in the value of mineral production.

The value of manganese production for the period in review went up by 21 per cent to $1.78 billion, with the value of zinc-lead concentrate rising by 27 per cent to $1.15 billion. The volume of gold production also rose by 2 per cent to 528,000 ounces. The value of gold production increased by 4 per cent to $1.24 billion owing to better gold prices.

Arafura gets NT Govt nod for rare earths plan

The NT Government has approved Arafura’s mining management plan – the final stage of the NT environmental approval process for the construction of the company’s Nolans project in the Territory – scheduled to be constructed early next year. The approval completes the mining authorization for the project after the company recently executed a binding offtake agreement with Hyundai and Kia motors.

Under the agreement, Arafura will be supplying 1,500 tonnes of neodymium-praseodymium a year for seven years. The company said that other offtake agreements are being worked out, including with GE Renewable Energy.

The Nolans Bore deposit, 135 km north of Alice Springs, contains a JORC-compliant mineral resource of 56 million tonnes at an average grade of 2.6 per cent total rare earth oxides, or “TREO” and 11 per cent phosphate that extends to 215m below the surface. The project is estimated to cost $1.6 billion, with a net present value of between $2.4 billion and $4.2 billion and will include a mine, and processing facility which comprises beneficiation, extraction and separation plants, among other needed infrastructure.

“This approval validates the enormous amount of hard work undertaken since ramping up the Environmental Impact Studies in 2014,” Arafura managing director Gavin Lockyer said. “It provides the framework, along with our ESG commitment to transparency and openness, that will ensure we minimise the impact of the Nolans Project on the unique Central Australian Arid Zone environment.”

Core Lithium starts transporting ore to Darwin Port

Core Lithium Ltd (CXO) has started transporting spodumene direct shipping ore (DSO) from its Finniss Lithium Mine in the Territory to Darwin Port, with ship-loading to start at the end of this month.

Core Lithium CEO Gareth Manderson said the transportation of DSO is a significant milestone for the company and is considered a positive step towards its objective to export from Darwin Port within this year.

Last month, Core Lithium  completed the first sale of a spodumene DSO product from its Finniss Lithium Mine. The 15,000-dry metric tonnes (dmt) DSO sale was tendered on a cost, insurance, and freight (CIF) basis to several pre-screened participants active in the lithium-ion battery supply chain.

The company indicated that demand for the spodumene DSO material was strong, with the DSO cargo sold for US$951/dmt.

Emmerson assesses new copper-gold targets at Tennant Creek

Emmerson Resources (ERM) is again testing greenfield ground after new targets have been identified during a recent aerial survey at the joint venture Southern project near Tennant Creek in the Territory. ERM said the targets were generated from a 10,000-line-kilometre high-resolution drone aeromagnetic survey.

Drone technology, combined with innovative data processing and structural interpretation, has given ERM new insights regarding the ironstone geology that typically hosts high-grade gold mineralisation.

The ongoing exploration comprises 1,700m of the initial drilling program on behalf of its privately-owned joint venture partner Tennant Consolidated Mining Group (TCMG) as part of the latter’s $5 million earn-in commitment.

TCMG has acquired the majority of all gold-bearing tenure and associated infrastructure in the Tennant Creek region. ERM receives a free carried 6 per cent royalty on gold produced over the whole joint-venture Southern Project area where TCMG is earning its interest by financing exploration.

ERM will also be conducting a down-hole magnetic survey at its 100 per cent-owned Hermitage copper-gold discovery at Tennant Creek within this month. In September, ERM reported “outstanding” copper, gold, cobalt and bismuth grades from drilling at Hermitage

Falcon starts spudding of Amungee 2H Development well

Falcon Oil & Gas Ltd (FOG) and its joint-venture partner Tamboran Pty Limited – appointed operator of the exploration permit – have commenced the spudding of the Amungee 2H development well (A2H) with the Silver City Rig 40 on EP 98 in the Beetaloo Sub-Basin in the Territory.

Tamboran will drill the vertical and build section to a depth of approximately 2,450 metres, followed by the drilling of a 1,000-metre horizontal section within the primary target of the Amungee Member B Shale. After drilling, the A2H will be subjected to a hydraulic fracture stimulation program using a US-style unconventional shale design. The well will be structured with a 5-½ inch casing for effective placement of proppant into the formation, optimizing completion efficiency.

Falcon said this is the first of two horizontal wells in the Stage 3 program to be drilled during this drilling campaign. The precise location of the second horizontal well, also targeting the Amungee Member B shale is currently being evaluated, and an update will be provided in due course, the compnay said.