Exploration and Land Access

Underground exploration operation

Exploration is the process of searching for deposits of minerals in the ground.  It is initially conducted over wide areas and becomes more focused and intense when and where potentially economically recoverable resources are identified.  In its initial stages exploration can be as simple as analysing rock types, soil characteristics and rock chip samples, while more detailed investigations involve various forms of drilling and larger scale excavations.

Having a vibrant exploration industry in NSW is critical to the future of the NSW minerals industry.  While mining is a relatively secure investment, exploration is highly risky with very few exploration programs uncovering economically recoverable resources.  It is essential that NSW has effective funding programs and incentives in place to encourage exploration investment as well as providing explorers with sufficient access to land to undertake exploration.  There is tight competition for exploration investment both domestically and internationally and NSW must remain competitive.

Regulation of exploration activities

Before a company can begin exploration, it must first obtain an exploration licence issued under the Mining Act 1992.  An exploration licence gives the licence holder exclusive rights to explore for the group of minerals specified in the area covered by the licence.  Exploration licences contain conditions which ensure any disturbance caused by exploration is minimised and rehabilitated. The licence holder is required to lodge a substantial security deposit with the government to ensure that rehabilitation is completed.

Before entering a landholder’s property, a licence holder must negotiate an access arrangement with the landholder.  Licence holders require access to land within the licence area so they can determine the occurrence, nature and extent of mineral deposits.   An access arrangement sets out issues such as where on the property the exploration activities will take place, at what times, for how long and under what conditions, and what compensation will be paid to the landholder.  Consent must also be given before exploration activities can be conducted close to a principle place of residence, gardens, or other significant improvements.

Exploration methods

• Reconnaissance: This initial work usually involves a visit by a geologist to look at rock outcrops and to map the geology. It may involve vehicle access to a property, taking and recording measurements and walking across the area. It may also involve gathering small samples from rock outcrops, soils or streams for chemical analysis. Reconnaissance exploration can also include airborne surveys. This involves low flying helicopters or light aircraft fitted with instruments flying in a grid pattern.
• Follow-up Investigations: The reconnaissance stage may identify areas requiring further investigation. This could involve surveying the area, taking additional small soil or rock samples for analysis, geophysics surveys using electronic instruments and more detailed airborne surveys. Generally these techniques have low impact and only involve small areas of ground disturbance.
• Detailed Investigations: If an area of a potential mineral resource is discovered, the next stage of exploration would usually involve drilling. Drilling is expensive, so the number of holes drilled to test an area of interest is kept to a minimum. Explorers normally use truck-mounted drill rigs. This stage may also involve digging trenches or test pits to take a bulk sample. However, bulk sampling is not a regular occurrence and is generally only required as part of feasibility investigations for a mining proposal

                          Core sample extracted

Relevant Links

Fact Sheet – Mineral Exploration and You

NSWMC Exploration Handbook 2010

Case Studies

Community Engagement - Exploration to Development, Alkane Resources Limited

Construction and Management of Drill Sites, Malachite Resources Limited

Use of Above-Ground Sumps for Air Drilling, Cortona Resources Limited

Diamond Drilling Using Above-Ground Tanks and a 'Mud Farm' System, Barrick (Cowal Gold Mine)

Management of Percussion Drill Samples, Cortona Resources Limited

Exploration Rehabilitation in Native Woodland, Alkane Resources Limited

Successful Rehabilitation on Steep, High Rainfall Terrain, Alkane Resources Limited