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Rediscover Victoria Drilling
Round 3 | Round 2 | Round 1 | Reports | Frequently Asked Questions | Contact
Latest Updates
- Round 3 applications opened Wednesday 28 October 2009 and will close on Wednesday 25 November 2009. Proposals can be for minerals exploration or geothermal exploration in Victoria.
- Round 2 programs are underway.
- Round 1 is complete.
Overview
Exploration is the key driver for identifying new and exciting discoveries which lead to the development of important earth resource projects and supporting economic growth in the state. The Victorian Government has committed $5 million dollars over four years until 2012 to the Rediscover Victoria initiative to support and encourage exploration. Approximately $2.5 million of this funding will be dedicated to a strategic drilling project in collaboration with industry called Rediscover Victoria Drilling (RVD).
RVD grants will provide funding assistance to Victorian minerals tenement holders and geothermal permit holders, to encourage innovative drilling programs, particularly in areas previously seen as either higher risk or having limited prospectivity. Proposals for funding must demonstrate intent to drill test new exploration concepts, or accepted exploration concepts in previously unexplored areas.
The benefits of greater exploration drilling in greenfields areas, especially if economic resources are intersected, are:
- significant increases in Victoria’s geological knowledge base;
- a better understanding of Victoria’s resource potential;
- increased prospects for successful discoveries; and
- an enhanced perception of Victoria’s prospectivity.
Proposals may be for a single drill hole or a program of drill holes testing a defined target or concept. Companies are limited to submitting three proposals per round, each addressing a different target or concept.
An important objective of RVD is the quick release of new geoscience data from drill holes, providing industry with vital information needed to make business development decisions. As such, all results, including access to drill sample material and the final report, are to be made publicly available after a maximum confidentiality period of three months, commencing after approval of the final report, provided there are no conflicts with statutory or corporate regulations. | Diamond drilling, North Mammoth,near Corryong,
north-eastern Victoria by Dart Mining Pty Ltd |
For the third round of funding, the Department of Primary Industries (DPI) Victoria will seek proposals for RVD grants to be used to undertake innovative exploration drilling from holders of:
- exploration or mining licences under the Mineral Resources (Sustainable Development) Act 1990 (Vic) (MRSDA)
- exploration permits under the Geothermal Energy Resources Act 2005
It is encouraged that proposals demonstrate a linkage to the other sector where possible.
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Round 3
Round 3 of Rediscover Victoria Drilling opened on Wednesday 28 October 2009. Applications must be submitted to the DPI Tender Box as per the Round 3 Guidelines by 4:30pm AEDST Wednesday 25 November 2009. The Application documents are available below.
Round 3, with grants totalling up to $700,000 available, is open to proposals from the minerals sector and from the geothermal sector. Grants may be up to $100,000 but not more than 50% of the actual direct drilling costs.
An open Industry Brief will be held on Friday 6 November 2009 from 9:30am in the Theatrette, Mezzanine Level, 1 Spring Street, Melbourne.
An Industry Brief will be held for the geothermal sector on Thursday 12 November 2009 during lunch on Day 2 of the Australian Geothermal Energy Conference.
Questions raised at the industry briefs are included in FAQs below.
To view the PDF documents you will need Acrobat Reader. A free copy can be downloaded from the Adobe website (external link)
Rediscover Victoria Drilling Round 3 Guidelines - Minerals and Geothermal (PDF 5.3MB)
Rediscover Victoria Drilling Round 3 Application Form - Minerals (PDF 468KB)
Rediscover Victoria Drilling Round 3 Deed of Agreement - Minerals (Exposure Draft) (PDF 530KB)
Rediscover Victoria Drilling Round 3 Application Form - Geothermal (PDF 468KB)
Rediscover Victoria Drilling Round 3 Deed of Agreement - Geothermal (Exposure Draft) (PDF 530KB)
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Round 2
On Thursday 13 November 2008, the Minister for Energy and Resources Peter Batchelor announced the grant recipients for Round 2 funding.
There was a strong response from industry with 32 applications submitted for Round 2 grants, reiterating from Round 1 the interest in exploring Victoria’s untapped resources.
Round 2 Progress
Goldsearch Limited (Rediscover Victoria Drilling Grant: $46,000) has completed a drilling program prospecting for base and precious metals, south-east of Mansfield. Goldsearch drilled one diamond drill hole to 500m in depth to test a volcanic sequence. Exploration results were released in October 2009.
Dart Mining NL (RVD Grant: $66,000) for a plan to conduct a drilling program prospecting for Molybdenum and precious and base metals south of Corryong. The company proposed reverse circulation and rotary air blast drilling to test a ring shaped structure identified with anomalous Molybdenum mineralisation.
Highlake Resources Pty Ltd (RVD Grant: $66,000) has completed a drilling program prospecting for base and precious metals, north of Wangaratta. The company drilled one diamond drill hole to 870.2m in depth to test a volcanic intrusive complex. DPI anticipates releasing the exploration results in December 2009.
Beaconsfield Gold Mines PL (RVD Grant: $66,000) for a plan to conduct a drilling program prospecting for base and precious metals, in western Victoria. The company proposed diamond core drilling to conduct further exploration for the ‘Stavely Copper Project’.
GBM Resources Limited was successful with two projects. The first (RVD Grant: $66,000) is for a plan to conduct a drilling program prospecting for gold and antimony near Malmsbury, north-west of Melbourne. The company proposed diamond core drilling to test for an underlying intrusive body. The second (RVD Grant: $56,000) is for a plan to conduct a drilling program prospecting for copper and gold near Lake Bolac, east of Hamilton. The company proposed reverse circulation with diamond tail drilling to test the prospective nature of the Stavely-Grampian Zone.
Perseverance Exploration Pty Ltd (a wholly owned subsidiary of Northgate Australian Ventures Corp.)(RVD Grant: $56,000) for a plan to conduct a drilling program prospecting for gold south-east of Bendigo. The company commenced diamond core drilling in September 2009 to test and gather information on the extent and style of gold mineralisation within granite, dyke and structurally controlled mineralised settings in the area.
Synergy Metals Ltd (RVD Grant: $41,000) for a plan to conduct a drilling program prospecting for precious and base metals north of Omeo. The company proposed diamond drilling to test potential economic gold mineralisation.
St Barbara Limited (RVD Grant: $25,500) for a plan to conduct a drilling program prospecting for gold west of Boort. The company proposed aircore drilling to test gravity highs that are undercover.
Providence Gold & Minerals Pty Ltd (RVD Grant: $25,500) has completed a drilling program prospecting for gold at Mitiamo, north of Bendigo. The company drilled 17 air-core drill holes for a total of 1820m in length to test a gravity high zone target that is undercover. DPI anticipates releasing the exploration results in December 2009.
Round 2 Documents:
The Round 2 Application Documents are available on request from the RVD Project Office.
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Round 1
Minister for Energy and Resources Peter Batchelor announced in February 2008 the award of Round 1 RVD grants totalling more than $375,000. The grants will aid exploration companies to search for new base metal, gold and precious metal prospects near Stawell, Lake Bolac, Hamilton, Ballarat and in the Towong Shire in Victoria’s north-east.
There was a strong response from industry with 24 applications submitted for Round 1 grants, highlighting a keen interest to explore Victoria’s untapped resources.
Round 1 Progress
Beaconsfield Gold Ltd (Rediscover Victoria Drilling Grant: $80,000) has completed its four-hole drill program and submitted a final report covering the exciting mineralisation intersected in the Thursday's Gossan Prospect area of the Grampian Ranges’ Stavely region in Western Victoria showed tremendous promise. Beaconsfield Gold defined several high-grade primary copper (predominantly chalcopyrite) intersections from its first diamond drill hole. These intersections, together with high-grade supergene copper (chalcocite) intersections generated by a previous explorer, show the Thursday’s Gossan prospect has potential to host significant, high-grade copper mineralisation with associated nickel, gold and silver values. Exploration results were released in June 2009 and showed a very strong magnetic zone depicted to represent the Williamsons Road Serpentinite was in fact a series of fault wedges consisting of serpentinite, metasediments, tuffs and small intrusives heavily faulted and generally strongly mineralised. Case study (PDF 457KB)
Dart Mining NL (RVD Grant: $59,194) has completed a five-hole drill program and submitted a final report confirming the presence of host rocks known to contain gold, silver and base metals mineralisation at its North Mammoth prospect in north-east Victoria. Using diamond-core drill methods Dart Mining drilled to a maximum depth of 230 metres. Exploration results were released in June 2009 and identified faulting beneath the 'Mammoth Formation' porphyry. Little mineralisation is evident above the fault or surface, though anomolous base metals do occur, presumably second leakage and originally distal hypogene expressions. Identification of cover rocks comprising fault slices and blocks beneath which Mammoth stringer and stockwork mineralisation was identified to the north. Case study (PDF 473KB)
Highlake Resources Pty Ltd (RVD Grant: $69,500) has completed an 84 hole drill program and submitted a final report prospecting for nickel near Stawell, North-West of Melbourne, in February 2009. The company drilled 83 air-core holes for a total of 3232m in length and a single diamond drill hole to a depth of 202.20m, to test for Avebury-style nickel mineralisation. DPI anticipates releasing the exploration results in December 2009.
Penshurst Resources Pty Ltd (RVD Grant: $97,500) have reported on their three-hole drill program near Penshurst, south of Hamilton, and received payment of their grant in November 2008. Penshurst Resources Pty Ltd intersected a series of gabbroic intrusives in hole one, followed by turbidite metasediments in hole two. In hole three they encounted a significant sand interval, interpreted as a palaeo-valley under basalt. Exploration results were released in February 2009. | Diamond drilling near Stavely, western Victoria
by Beaconsfield Gold Pty Ltd |
Peter Forwood and John Forwood (RVD Grant: $29,105) has completed a 7 hole drill program and submitted a final report. They drilled 7 air-core holes for a total of 338.5m in length at a greenfields site near Ararat, prospecting for gold and copper. Exploration results were released in October 2009.
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Frequently Asked Questions
General questions
Q Are all drilling methods open to funding under the RVD?
A YES.
Q How are RVD funding grant amounts calculated?
A RVD grants are calculated on direct drilling costs only and not on ancillary or associated exploration services such as costs of administration, drill rig mobilisation costs or the costs of geochemical analysis of drill samples.
Q What are Direct Drilling Costs?
A Direct drilling costs are the costs incurred by the grant recipient for drilling the holes specified in their Rediscover Victoria Drilling proposal, which may include the cost of a drilling contract entered into between the recipient of the grant and a drilling contractor. Direct Drilling Costs do not include costs associated with mobilisation, geological or geochemical or geophysical studies, laboratory or assay analyses, legal or ground access costs.
The following factors may be included as Direct Drilling Costs:
- ‘Active Costs’, drilling supporting activities such as mixing mud and drill rig repair and maintenance,
- ‘Inactive Costs’, drilling supporting activities such as waiting for parts (repairs), sludge removal, water supplies, down hole survey and orientation marking.
Q Are companies that previously applied for Round 1 and/or Round 2, whether they received a grant or not, able to apply for Round 3?
A YES
Q What is the maximum funding amount that can be applied for under the RVD?
A The maximum grant for direct drilling costs approved under RVD will be $100,000 or half of the actual direct drilling costs, which ever is less.
Q Are there any circumstances where approved funding can be increased?
A NO
Q Will a company be entitled to the entire approved grant funding if the actual direct drilling costs are less than the cost estimate contained in the proposal?
A If actual direct drilling costs are less than the cost estimate contained in the proposal, the actual grant will be the lesser of:
- the estimated grant originally approved; or,
- half the actual direct drilling costs incurred.
In addition, variations to the drilling program may also affect the grant amount.
Q Can RVD grant money be considered as part of the work expenditure commitment of a tenement?
A NO
Q Can a company apply for RVD funding retrospectively?
A NO
Q Can a company apply for RVD funding for resource definition drilling?
A NO. The grants are designed to promote exploration in greenfields and under explored areas of Victoria and drill testing of new exploration concepts.
Q For what period of time are the results of the drilling program kept confidential?
A For three months after approval of the final report, The final report is due four months after the completion of the drilling program.
Q When will the approved grant funding be paid?
A Payment of the approved grant funding is subject to approval of the final report.
Questions from Round 3 Industry Briefs
1. Question: Can you explain how the external assessment panel deals with the applications?
Answer: In Round 3, the Department of Primary Industries (DPI) will appoint two independent, external assessment panels, one for assessing minerals proposals and the other for geothermal proposals. Each consists of industry members who have relevant experience across the sector. Initially, proposals are screened for compliance with submission requirements and company standing with respect to exploration obligations. Next, each eligible proposal is independently assessed against the criteria in the Guidelines by all members of the panel and given a ranking. Subsequently, the members meet to finalise rankings across all the reviewed proposals before making recommendations of offers which are submitted to the Secretary of DPI for approval.
2. Question: What does the external assessment panel rank proposals on?
Answer: The members of the panel consider the merit of each proposal with respect to the following themes as detailed in the Guidelines:
- Technical: Is the proposal innovative with respect to location, deposit model and target concept, commodity or drilling techniques? Will it increase the understanding of the geological setting of earth resources in Victoria?
- Commercial: How does the proposal relate to existing exploration plans and how will the proposal be managed to ensure completion in the proposed timeframe?
- Economic: What are the chances of a successful discovery and what does the path of commercialisation look like?
3. Question: Do applicants need to have an ‘approved work plan’ in place prior to submitting a proposal?
Answer: No. However, an approved work plan may indicate a better understanding of the proposed drilling and provide greater certainty in completing drilling in the project timeframe.
4. Question: Is it sufficient for the purposes of a proposal to base the “Estimated Total Drilling Costs” on a $/m quote from a drilling contractor? (eg; $100,000 based on $100/m for 1000m of drilling)
Answer: Yes, for the purposes of a proposal. However, additional information identifying possible / likely cost breakdowns may indicate a better understanding of the proposed drilling. Note that it is expected the tax invoices submitted to DPI to confirm the actual direct drilling costs after the completion of drilling will detail the component costs of the total cost. The Guidelines provide further information on costs eligible as Direct Drilling Costs.
5. Question: It can be very difficult to determine, before the fact, what the proportion of active and inactive costs are likely to be for a project. Do both need to be outlined in the proposal?
Answer: No, they do not need to be outlined in the proposal. However, additional information identifying possible / likely cost breakdowns may indicate a better understanding of the proposed drilling.
6. Question: What sort of feedback can unsuccessful applicants expect?
Answer: If a proposal is unsuccessful, DPI will offer feedback with respect to the requirements (section 3) and assessment criteria (section 5) of the Guidelines that were not satisfied. As the assessment process for proposals is equivalent to a tender process, there will be no comparative feedback relative to other proposals.
7. Question: What happens if we are currently undertaking preliminary geophysics but have yet to finalise the locations of holes for the proposed target?
Answer: DPI understands that target definition evolves as the available data improves. It is acceptable to lodge an application with the locations of potential drill holes, which may be subject to change. DPI needs to be advised once the locations of drill holes are finalised, but provided the integrity of the project is not compromised, it is unlikely that the relocation of holes will affect the grant.
8. Question: What happens if, on the basis of other geological or geophysics information, we decide to change collar locations?
Answer: The Deed of Grant Agreement requires that DPI be advised of such changes as soon as possible. Provided the integrity of the project is not compromised it is unlikely that the relocation of holes will affect the grant.
9. Question: What is the policy for establishing the pro-rata funding where, for example, the project ends with only 60% of the holes drilled but 80% of the available budget has been expended?
Answer: As there are likely to be a range of factors involved, DPI will consider the impact of drilling program variations on the Actual Grant Amount on a case-by-case basis. Key at the highest level will be the extent to which the original objectives are achieved. The Deed of Grant Agreement requires that DPI be kept informed of possible and actual variations as early as possible.
10. Question: What are the applicant’s requirements regarding submission of core to DPI at the completion of the project.
Answer: The program requires that samples are representative of the findings of the drilling program. In general, borehole intervals of the order of tens of metres, spanning important geological structures, mineralised zones and significant intersections, as well as intervals hosting significant/unusual structures and mineral assemblages are sought. In the case of core samples, preference is for ¼ core of complete length of the hole most representative of the project.
Contact
For further information please contact:
David Gallus
Manager, Rediscover Victoria - Drilling
Strategic GeoScience
Phone: +61 (0)3 9658 4536
Email: David.Gallus@dpi.vic.gov.au
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