Sunday, February 27, 2011

letter to Braidwood Times following last weeks meeting with Cortona at the Braidwood National Theatre


After reading last weeks Braidwood Times, I thought I would write a letter expressing my concerns regarding the proposed mine at Dargues Reef Majors Creek.

First and foremost, I will do as Cortona have done, and “set the record straight”… I am not against progress in any shape or form, with the sole stipulation that it does not negatively impact upon my existing amenity and privacy, harm or damage the environment in any way, or compromise my local community’s wealth (private or public) in any form.

That said, I find it hard to believe I have been asked as a resident of Majors Creek, by Cortona, to simply believe, and placidly accept, that none of the above will occur…. And this is why I make this statement…. I have been awoken during the night by drilling, I have walked across the property where I live and heard the sound of drilling rigs in the morning, in the afternoon and in the evening,  I have been confronted by members of the community who are pro mining in Majors Creek and felt like my privacy has been compromised, and my life has been affected in countless other ways negatively by the proposed mining operations and the existing explorative prelude to the proposed mining operations.

I feel that if Cortona were completely serious about becoming a part of the Majors Creek community, and integrating within our community, and affecting our community in a truly significant and positive way, they would have not compromised my existing amenity thus far in such a negative way.

I have read, and have viewed video footage of Mr van der Borgh (managing director of Cortona), discussing the extended life of the mining operations. Many people in the community, I believe, think the mining operations will be gone in the next 6-9 years.

Here is a direct quote from Mr van der Borgh  in the Western Australian Business News:

"…this underpins the robust economics of the operation, which is expected to generate strong cash flows and economic returns, providing a solid foundation for us to continue with our planned exploration programs aimed at increasing our resource base, extend the life of the operation, and potentially increase annual gold production rates"

The decisions that are made today by our elected representatives and government agencies, will affect us for many, many years to come, and how we live our lives in Majors Creek and indeed in our neighbouring towns.

I was disappointed to read the article in last weeks Braidwood Times regarding the meeting held in the Braidwood National Theatre. I was under the impression many concerns, regarding the operations of the mine, were raised by the community, however I feel these issues were not documented appropriately and given “air” time in the article.

Firstly, that Cortona would not legally be allowed continue operations and mine if their operations were found to compromise the amenity, acoustic or visual privacy, or any other legal entitlement of any of the residents of Majors Creek, a statement said by Cortona”s representatives on two separate occasions during the nights proceedings. 
Secondly, that I and others (including the editor of the local paper) did not receive due notification of the meeting and that was reflected in the number of residents of Majors Creek and the surrounding local community that were present on the night ( I believe totaling approximately 36) not including  Cortona’s representatives.
Thirdly, that Federal member for Monaro, Mike Kelly, was not present for more than just the start of the meeting and in actual fact simply attended the meeting to “introduce” Cortona’s representatives and then made a hasty exit not to be seen again that night.

Mr Kelly was not available for any discussion, or to hear the community’s response to Cortona’s presentation, or to listen to any of the questions put to the managing director of Cortona, Mr van der Borgh or his representatives, or to discuss the local community’s concerns. A sad fact and opportunity lost for Mr Kelly and the local community I believe.

Finally, and I feel most importantly is the issue:
If the mining operations compromise the amenity of any resident in the local community, or damage the environment in any way, or compromise the local community’s wealth be it public or private (and they say and have written they will not), but if they do, who will be directly responsible for making good financially, environmentally, and in every other way to the affected individuals and community.

Friday, December 3, 2010

DARGUE'S REEF MINE PROPOSAL REFERRED TO THE FEDERAL MINISTER FOR THE ENVIRONMENT

Some of you may have seen this already but please read below and get in touch if you can help or have expertise that may be useful in any way.
 
"The Dargue's Reef Mine proposal has been referred to the Federal minister for the Environment- see attachment. The public has only ten days to comment from the date it has been posted on the web. (It's not on the web yet, but probably will be posted there next week, ie the week beginning 28 November.
        As I understand it, once the mining company has responded the public will have another ten days to comment.
        The Federal Government has a duty under international agreements to protect threatened, endangered and critically endangered species. The mining company will need to show that there operations will either have no effect on the species immediately below the mine, or that they have taken steps to protect them. Note: none of these species were mentioned in their Environmental Assessment.
        Please- if you have any knowledge, interest or expertise in the area,  could you urgently add your comments when the matter is posted on the web site?
        The species concerned are listed  below. (There are many other endangered species in the area, but they are not yet listed by the Federal Government).
        Major concerns might be:

. Cortona plan to mix soil from the mine with concrete to  fill the areas that have been mined. This will have a dramatic and devastating effect on  the aquifer- concrete is strongly alkaline and most native species need slightly acidic conditions. In tests here even  2 square metres concrete paving affects native plants 50 metres away.

. Cortona plan to use the chemical Xanthate to process the ore. Any release of Xanthate into the water system or aquifer could also be devastating.

. Cortona have publicly stated that they plan to mine three times the amount stated under this present proposal, and that all material from their new sites will be processed at the Dargue's reef site, 1.5 km  upstream from the Major's Creek National Park Reserve. I strongly urge that ALL existing plans for mining and processing need to be assessed  at this stage, rather than have a  the far smaller development approved and the other developments approved piecemeal, as mere additions to an already approved development.

. Breeding sites of powerful owls and gang gangs have already been disrupted by trials at Dargue's Reef. For the first time in 36  years powerful owls appear to have failed to nest in the Major's Creek National Park Reserve gorge, almost certainly because of vibration and explosions.

. Cortona have done no survey of endangered flora and fauna, nor any investigation into their ecology or breeding patterns. without this no assurances can be given that there will be no threat.

. The Dargue's reef Mine is  only 1.7 km away from the precipitous descent into the Major's Creek gorge. If the 800,000 cubic metre tailings dam leaks or even gives way, the species in the gorge will be destroyed by a mix of heavy metal and Xanthate contaminated waste. Given the sheer amount of tailings,and the narrow confines of the gorge, any spill is likely to be forced upwards between the cliffs. the tailings dam will be 25 metres high. Tailings released into the gorge might rise  75-100 metres high in the narrow confined space.
        Note: all processing from the additional sites where Cortona is prosing to mine will be processed at the Dargue's reef site, according to Cortona's most recent bulletin. This is a far larger development than the present proposal allows for.

. the existing proposal is for a mine 500 metres deep ie half a kilometre. this will take it to 135 metres below the Major's Creek national park Reserve and the Major's Creek gorge. No adequate study or test has been made to see  how this will affect the aquifer.  only two test bores have been dug downstream of the mine. Cortoina's assertion that there will be no effect on the aquifer downstream and that there is very little transmission through the granite soils and bedrock are based on test bores predominantly uphill from the site.

.Cortona assert that the rock in the area is granite. There are however several intrusions of other rock in the areas downstream in the areas where the most endangered species exist. No tests have been done  on their permeability.

The Federally listed species that exist in the area immediately below the mine site are listed here. Please- if you can help at all, add your comment to the web site. If you know of any other endangered species  directly below the proposed mine, please  make them known to the department.  Due to the inaccessibility of much of the gorge it contains possibly more rare species than any other similar site in Austrlia. At the very least, there are rare orchid, bat and insect species that I am not competent to list. "


Federally listed animals within four kilometres downstream of the mine site include:

New Holland mouse (Pseudomys novaehollandiae)
Status:  vulnerable

Zieria adenophera (Araluen Zieria)
Status: endangered

Button Wrinklewort (Rutidosis leptorrhynchoides)
Status:  endangered

Araluen Gum (Eucalyptus kartzoffiana)
Status:   vulnerable

Grey Deua Pomaderris (Pomaderris gilmourii var. cana)
Status:  vulnerable

Spotted-tailed Quoll (Dasyurus maculatus)
Status: endangered

Tuesday, November 30, 2010

did someone say silver?

please click this link...

http://money.ninemsn.com.au/article.aspx?id=8172968


Study confirms viability of Cortona mine

Aspiring gold producer Cortona Resources Ltd says a study has confirmed the viability of the first phase of its Dargues Reef underground project.
The company said it would target ore production at 330,000 tonnes per annum from the New South Wales site, with gold production at 50,000 ounces each year.
Production is expected to begin in 2012 with output of about 249,000 ounces of gold and 73,000 ounces of silver during a six-year period.
Cash costs are expected to be $A628 dollars per ounce.
"The feasibility study is a very robust document which paves the way for the development of a highly efficient underground mining operation at Dargues Reef," said Cortona managing director Peter van der Borgh.
Shares in the company fell after the announcement was made, and at 1313 AEDT were trading off 2.5 cents, or 12.5 per cent, at 17.5 cents.

READ THIS......MINE LIFE EXPECTANCY......

....expect not to have a life here in Majors Creek unless you work for the mine.....

BE CLEAR ABOUT THIS FACT........AND I QUOTE .......

"This underpins the robust economics of the operation, which is expected to generate strong cash flows and economic returns, providing a solid foundation for us to continue with our planned exploration programs aimed at increasing our resource base, extend the life of the operation, and potentially increase annual gold production rates" Mr van der Borgh said.

PLEASE READ THIS ....

http://www.wabusinessnews.com.au/en-story/1/85365/Cortona-confirms-feasibility-of-Dargues

here is an extract....


Cortona Resources says a positive Feasibility Study has confirmed the viability of its proposed underground Dargues Reef gold project in New South Wales.


Cortona's managing director Peter van der Borgh said the study was very positive.

"Key highlights of the Feasbility Study include the high grade mining inventory, with an average forecast head grade of over 5g/t and the low estimated cash operating costs of A$628/oz, which would position Dargues Reef towards the lowest quartile for Australian gold producers," he said.

"This underpins the robust economics of the operation, which is expected to generate strong cash flows and economic returns, providing a solid foundation for us to continue with our planned exploration programs aimed at increasing our resource base, extend the life of the operation, and potentially increase annual gold production rates" Mr van der Borgh said......


.........Australian gold company Cortona Resources Limited (ASX: CRC) ("Cortona" or "the Company") is pleased to report the completion of a positive Feasibility Study confirming the viability of the proposed development of the Dargues Reef Gold Project, part of its 100%-owned Majors Creek Gold Project located 60km east of Canberra in south-east NSW.

The Feasibility Study, which was independently prepared by Mining Plus Pty Ltd with participation and contribution from various other parties, has confirmed the technical and economic viability of the Dargues Reef Gold Project, paving the way for development of an average 50,000oz per annum gold mining operation (annual range 36,000oz to 65,000oz) with forecast low cash operating costs and an initial 6 year mine life.

This Phase 1 operation is expected to generate strong cash flows and robust economic returns, providing an excellent foundation for Cortona to continue its aggressive near-mine and regional exploration programs targeting additional resources within the broader Majors Creek Project, which are expected to extend the life of the operation, potentially increase annual gold production rates and ultimately enhance economic returns. To this end, two rigs are currently on-site.

Recent exploration has already confirmed the high prospectivity of the near-mine environment, resulting in the discovery of the Ruby Lode (12.6m @ 9.9g/t gold from 112 metres), located 150 metres north of the proposed Dargues Reef underground mine. Resource drilling is continuing at the Ruby Lode targeting an initial JORC resource estimate by early next year. This recent exploration success has not been incorporated in the Feasibility Study.

Key Feasibility Outcomes

The Feasibility Study has confirmed the economic and technical viability of a proposed compact and efficient underground mining operation at Dargues Reef, with ore to be partially processed in a state-of-the-art 330,000tpa treatment facility located on site.

Production will commence at 270,000tpa in 2012 and ramp up to 330,000tpa in 2013, resulting in total production of 248,900oz of gold and 73,144oz of silver over a 6-year period. This mining inventory does not include the recently discovered Ruby Lode, potential depth and strike extensions at Dargues Reef, or other near mine opportunities that will offer potential to extend the Phase 1 mine life and potentially increase annual production rates.....

"This underpins the robust economics of the operation, which is expected to generate strong cash flows and economic returns, providing a solid foundation for us to continue with our planned exploration programs aimed at increasing our resource base, extend the life of the operation, and potentially increase annual gold production rates" Mr van der Borgh said.

"Our recent success in discovering the near-surface Ruby Lode, located just 150 metres north of the proposed underground infrastructure at Dargues Reef, highlights the prospectivity of the near-mine environment. We have numerous promising exploration opportunities within an economic transportation distance of the proposed treatment facility, and in addition to that the Dargues Reef Gold resource remains open at depth and along strike."
"We expect to be operating at Majors Creek for many years to come and we are confident that the Phase 1 operation represents just the first stage of what we believe will be a long-life gold mining business in this area, bringing new employment and many economic benefits to communities in the region," Mr van der Borgh added.

very interesting read indeed....

here is the link to this SMH article of Nov 29 2010

http://www.smh.com.au/business/all-well-and-good-for-ukraine-junior-20101128-18cdw.html

here is an section from it.......i would suggest that we are not talking about a 5 year "life expectancy" of this mine but something more.....


RUBY IS GOLDThe near record gold prices are giving junior gold companies their best ever shot at establishing a cash flow by getting in to production.
And so it is with Cortona Resources. Any day now, the company will release a feasibility study into the development of its Dargues Reef gold project on the historic Majors Creek goldfield, some 60 kilometres east of Canberra.
The study is expected to confirm that Dargues will be a robust small-scale mine capable of churning out about 50,000 ounces a year at competitive cash costs of less than $650 an ounce, over an initial five- or six-year mine life, and after capital expenditure of $60-$70 million.
Given cash margins of more than $760 an ounce on current Australian dollar gold prices, Dargues Reef is shaping up as a nice earner for a company like Cortona with its share price of 18¢ for a (fully diluted) market capitalisation of $38 million.
But what would really get interest up in the Cortona story would be the potential for a longer mine life. Thanks to a concerted near-mine exploration effort, that might well be on the cards.
Last week Cortona reported more interesting gold hits at its Ruby Lode discovery, all of 150 metres north of the Dargues Reef deposit (1.44 million tonnes at 6.2 grams of gold a tonne for 287,000 contained ounces).
With hits like 12.6 metres at 9.9 grams of gold a tonne, 9 metres at 3.9 g/tonne and 6 metres at 3.5 g/tonne, Ruby Lode looks to have the makings of a significant new shallow gold deposit within easy striking distance of the underground development at Dargues Reef.
It is way too early for Cortona to have included anything from the discovery in the Dargues Reef feasibility study. But with two drilling rigs whirring away at Ruby Lode, the expectation is that the discovery - and potentially other near mine finds - will make Cortona's 2012 entry in the ranks of gold producers a longer term affair than the Dargues Reef feasibility will suggest.


Wednesday, November 3, 2010

COUNCIL MEETING 1PM IN THE NATIONAL THEATRE....

Council will be conducting the meeting this thursday from 1pm in the National Theatre .....and because crowds are expected it has been moved to this location........the Dargues Reef mine project will be discussed at this meeting and so the more people in attendence the better.

Tuesday, November 2, 2010

PARTNERING BETWEEN GOLD COMPANIES....

...perfect for mining in say...Mongarlowe....and processing at Majors Creek.....dont you think?!

Please watch this little presentation....Cortona, Majors Creek, Braidwood, and Mongarlowe are mentioned several times...


This link is interesting i feel as it clearly outlines WHY our region is being targeted for gold exploration and mining....

1. no native title issues
2. water availability
3. electricity availability

Mining requires lots of water, and lots of electricity...!
The costs to our community will be huge.