exploration operations mining management plan and … · 2017. 6. 25. · lorella springs station...

EXPLORATION OPERATIONS

MINING MANAGEMENT PLAN AND PUBLIC REPORT NORTH BATTEN PROJECT

MCARTHUR RIVER REGION, NT

Operator: MMG Exploration Pty Ltd

Authorisation Number: 0814-01

MMP Reporting Year: 2017 Author: Luke Mortimer Date: 26/05/2017 MMG Report No.: MMR 6758 Distribution: NT DPIR MMG Exploration Pty Ltd Sandfire Resources NL

Author Reviewed by Approved by Date 10/04/2017 12/04/2017 13/04/2017

Name Luke Mortimer Shaun Neal David Wallace

Signature

I David Wallace, Exploration Manager – Australia, declare that to the best of my knowledge the information contained in this mining management plan is true and correct and commit to undertake the works detailed in this plan in accordance with all the relevant Local, Northern Territory and Commonwealth Government legislation. SIGNATURE: …………………….. DATE:………………..

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TABLE OF CONTENTS MINING MANAGEMENT PLAN AND PUBLIC REPORT NORTH BATTEN PROJECT 1

Amendments 4

MINE MANAGEMENT PLAN 5

1 Operator Details 5 1.1 Organisational Structure 5 1.2 Workforce 6

2 Identified stakeholders and consultation 6

3 Project Details 6 3.1 previous activities and Current Status 9 3.2 Proposed Activities 15

4 Current Project Site Conditions 19 4.1 Local and regional geology 19 4.2 hydrology-hydrogeology 20 4.3 Flora and fauna 20 4.4 Native title 21 4.5 Land use 26

5 Environmental Management System / Plan 26 5.1 Environmental Policy and Responsibilities 26 5.2 Statutory and non-statutory Requirements 29 5.3 Induction and Training 29 5.4 Identification of Enviromental Aspects and Impacts 30 5.5 Environmental Audits and Inspections 35 5.6 Environmental Performance Reporting 35

5.6.1 Objectives and Targets 35

5.6.2 Performance Reporting 36

5.7 Emergency Procedures and Incident REporting 36

6 Exploration Rehabilitation 36 6.1 Exploration Rehabilitation register 38 6.2 Costing of Closure Objectives 40

7 APPENDICES 40 Appendix 1: 2014 - 2016 Drill site rehabilitation 40 Appendix 2: Previous & planned drill holes 40 Appendix 3 North Batten Project SHEC & Emergency Response Manaagement Plans 40 Appendix 4: Security Calculation 40 Appendix 5: Landowner acknowledgments 40 Appendix 6: 2014 Level 1 Flora and Fauna Surveys 40 Appendix 7: MMG 2016 Sustainability Report 41

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LIST OF TABLES

Table 1: Project Details 6 Table 2: Tenement Details 7 Table 3: Completed 2014 diamond drilling program 10 Table 4: Completed 2015 diamond drilling program 10 Table 5: Completed 2016 diamond drilling program 101 Table 6: Proposed 2017 diamond drilling program 106 Table 7: Planned ground disturbance for drilling, camp and geophysical survey activities 107 Table 8: Details of environmental aspects, impacts and control measures. 30 Table 9: Details of disturbance and rehabilitation policies and procedures 34 LIST OF FIGURES Figure 1: Regional location of the North Batten Project tenements. 8 Figure 2: Local-scale map of North Batten Project tenements (blue=granted; red=ALRA applications). 9 Figure 3: Drill hole and track locations in the Sawtooth Prospect area. 142 Figure 4: Drill hole and track locations in the the Rosie Creek-Mt Young area. 183 Figure 5: Drill hole and track locations in the the Berjaya NW area. 184 Figure 6: Proposed 2017 programme in the Rosie Creek-Mt Young area. 188 Figure 7: NVIS Map with vegetation distribution. 218 Figure 8: Native Title Map 22 Figure 9: AAPA registered and recorded heritage sites 24 Figure 10: 2017 AAPA application map 25 Figure 11: Project cadastral map 26 Figure 12: MMG Safety, Health, Environment and Community Policy 27 Figure 13: MMG Sustainability Policy. 28

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AMENDMENTS

Section Amendment

Section 2 Identified Stakeholders Removed reference to McArthur River Station. Re‐submitted MMP with proposed works on Lorella Springs Station only.

Section 3 Project Details Updated information regarding MMG’s impending tenement renewals.

Section 3.1. Previous Activities and Current Status Clarified information regarding the current status and use of water bore NBWB002.

Section 3.2 Proposed Activities Removed references to the 2 x drill holes proposed on McArthur River Station in Tables 6 & 7 and ex‐figure 7.

Section 4.5 Land Use Removed reference to McArthur River Station.

Section 5.4 Identification of Environmental Aspects and Impacts

Clarified Environmental Aspects applicable to the Project and Revised Table 8.

Section 5.5 Environmental Audits and Inspections Revised commentary on monitoring procedures.

Section 7 Appendices Provided a copy of MMG’s 2016 Sustainability Report.


MINE MANAGEMENT PLAN 1 OPERATOR DETAILS Company Details MMG Exploration Pty Ltd ABN: 96 119 136 659 Hong Kong Stock Exchange code: 1208 Australian Stock Exchange code: MMG Level 23/28 Freshwater Place Southbank Victoria Australia 3006 http://www.mmg.com [email protected]

Key Contacts Shaun Neal Principal Exploration Geologist (Project Manager) 0411 776 785 [email protected] Luke Mortimer Principal Exploration Geologist (Project Support) 0467 802 941 [email protected] David Wallace Exploration Manager – Australia (Project Sponsor) 0409 116 450 [email protected]

1.1 ORGANISATIONAL STRUCTURE

David WallaceExploration Manager ‐Australia

Luke MortimerPrincipal Geologist(Project Support)

Shaun NealPrincipal Geologist(Project Manager)

Contract Geologists

Charles Gianfriddo

Project Geologist

Louis CohalanExploration Geologist

Steve LycettSenior Field Technician

Contract Field Staff/Technicians


1.2 WORKFORCE It is expected that the program will require: Up to 8 MMG personnel (Geologists, Field Supervisors & Support Staff) Up to 4 contract Field Technicians and earthworks contractors Up to 12-14 Drilling Contractors The above numbers are based on the planned programme utilising two drill rigs on site. Contract field staff and earthworks contractors will be locally sourced as available.

2 IDENTIFIED STAKEHOLDERS AND CONSULTATION The following affected Pastoral Leaseholders (“Landowners”) have been duly consulted (Appendix 5):

1. Lorella Springs Station – Rhett Walker (Station Owner). Signed acknowledgement of proposed exploration activity plans and locations – Received 28/04/2017. This covers our proposed drilling programme in the Rosie Creek-Mt Young area.

Native Title Holders/Claimants; refer also to Section 4.4 Native Title. Narwinbi Aboriginal Land Trust and the Mara, Binbingka, Gurdanji and Yanyuwa People. MMG are currently negotiating land access agreements through the NLC and conducting heritage clearance surveys through the AAPA. The NLC are also involved in the engagement of on-site Cultural Monitors (Traditional Owners). Ongoing Stakeholder Consultations are achieved through the following: 1. Regular contact via phone and email. 2. Minimum 14 day written Notices of Entry and exploration activity plans and schedules are provided to all affected Stakeholders. Sandfire Resources NL, JV Partner, is regularly informed of our exploration programs and progress including quarterly and annual progress reports. The Northern Territory Geological Survey and DPIR are consulted and informed of our activities as per statutory reporting requirements.

3 PROJECT DETAILS

Table 1: Project Details Project Name: North Batten Authorisation No. 0814-01 (25 Aug 2014) Location North-eastern NT; McArthur River region

Site Access From Darwin: Stuart Hwy and Carpentaria Hwy; From Cape Crawford and Borroloola: Carpentaria Hwy Exploration Licence Holder Sandfire Resources NL Project Operator MMG Exploration Pty Ltd

The North Batten Project is an Option and JV Agreement between Sandfire Resources NL and MMG Exploration Ltd dated 29 May 2013 comprising of eleven granted Exploration Licenses for a total of 5206sq km (Figures 1 & 2; Table 2). Sandfire is the tenement holder whilst MMG are acting as the Project Operator. MMG’s principal exploration target is Zn-Pb-Ag mineralisation of SEDEX/ HYC-style and MVT/replacement-style.


Table 2: Tenement Details

LEASE STATUS GRANT DATE EXPIRY DATE

AREA (sub -blocks)

EL28656 grant 20111027 20171026 39 EL26836 renew retained 20090609 20170608 178 EL26835 renew retained 20090609 20170608 208 EL26831 renew retained 20090609 20170608 212 EL26833 renew retained 20090609 20170608 183 EL30158 renew retained 20090609 20170608 161 EL30152 renew retained 20090609 20170608 159 EL30137 renew retained 20090609 20170608 99 EL30048 renew retained 20050603 20170602 90 EL30156 renew retained 20090609 20170608 169 EL29022 grant 20120725 20180724 53 EL25501 *ALRA application EL26299 *ALRA application

* No exploration activities are planned for tenements under application. Table 2 shows many of the North Batten JV tenements are due to expire in June 2017. MMG have commenced the renewal process with rental payment and lodgement of renewal documents scheduled to take place 26 May 2017. The project is located in the McArthur River district in the north-east area of the Northern Territory, approximately 500 km south-east of Katherine and approx. 50 km west of the township of Borroloola (Figures 1 & 2). The project area is accessible from Darwin via the sealed Stuart Highway and Carpentaria Highway, or the Tablelands Highway via Mt Isa/Barkley and from the McArthur River Mine airport via the Carpentaria Highway (55 km). Station tracks provide four-wheel drive access to the majority of the area.


Figure 1: Regional location of the North Batten Project tenements (green).


Figure 2: Local-scale map of North Batten Project tenements (blue=granted; red=ALRA applications).

3.1 PREVIOUS ACTIVITIES AND CURRENT STATUS There is minimal development/infrastructure in place within the project area with cattle grazing the main land use. The closest localities are Cape Crawford and the township of Borroloola. Previous exploration in the North Batten project area has been focussed on zinc-lead, copper, manganese, diamonds and gold. Following the discovery of the nearby McArthur River deposit in the 1950s, there has been extensive exploration for similar Zn-Pb-Ag deposits. Work by previous explorers has mainly consisted of stream sediment sampling, mapping, airborne EM/magnetics, ground EM, soil sampling and drilling. Exploration in the area has been largely unsuccessful. MMG’s JV partner, Sandfire, has been involved in the area since 2004, with exploration focussed on base metals, manganese and diamonds. Prior to Sandfire, most exploration work in the area was completed by MIM, CEC, BHP, Rio Tinto (CRA) and Perilya. 2014 In 2014 MMG completed a helicopter-supported sampling program involving the collection of 1085 stream sediment samples. An approx. catchment sampling size of 25 km2 was achieved and the samples were analysed twice; once using a coarse fraction (-2mm to +425µm) and secondly using a fine fraction (-185µm), to assess for proximity and homogeneity indicators. Several anomalous assays were identified for further follow-up work. In 2014 MMG also completed an eight hole diamond drilling program as proposed in the 2014 MMP (3). No significant mineralisation was intersected during this drilling program although the results have improved our geological understanding of the region and will be used in the planning of future exploration programs.


Table 3: Completed 2014 diamond drilling program (see Appendix 2 for coordinates)

Tenement Prospect Hole ID Total Depth (m) Dip Azimuth

Date Completed

EL30158 Mt Young NBDD001 157.2 -80 159 17-Oct-14 EL30158 Mt Young NBDD002 429.1 -85 279 17-Oct-14 EL26835 Rosie Creek NBDD003 528.1 -80 99 08-Oct-14 EL26835 Rosie Creek NBDD004 578.8 -80 99 01-Oct-14 EL30156 Yalco East NBDD005 506.8 -70 54 09-Sep-14 EL26831 Sawtooth NBDD006 133.1 -60 279 16-Sep-14 EL28656 Leila Creek NBDD007 379.8 -75 299 29-Aug-14 EL30158 Mt Young NBDD008 427.2 -85 14 12-Oct-14

In regards to rehabilitation of the 2014 drilling program (see also Section 6.1 Rehabilitation Register & Appendix 1):

All 2014 drill pads and drill hole collars have been fully rehabilitated. All 2014 new access tracks were graded and left open for continued use by MMG during the 2015 drilling

programme. These access tracks are still being used by MMG as we retain interests in these areas (Figures 3-5).

The tracks which have been graded and left open at the request of the local landowners are at the Sawtooth (McArthur River Station; NBDD005 & 006) and Mt Young/Rosie Creek (Lorella Springs Station; NBDD001, 003, 004 & 008) Prospects.

2015 In 2015 MMG completed a helicopter-supported sampling program involving the collection of 379 stream sediment and 91 soil samples. The majority of which was infill and follow-up of the 2014 sampling program. An approx. catchment sampling size of 3.5 km2 was achieved and the samples were analysed using only a fine fraction (-180 µm). Several anomalous assays were identified for further follow-up work. MMG also completed an NSAMT geophysical survey along some existing established tracks within the Rosie Creek–Mt Young prospect area. It involved the reading of 305 AMT stations over a period of ~3 weeks. This survey involved nil to negligible ground disturbance. The results are being used to improve the geological interpretation and understanding of this particular area. MMG also completed a nine hole diamond drilling program (Table 4). Although a fifteen hole diamond drilling program was initially proposed in the 2015 MMP we were unable to complete the entire fifteen hole program due to budget and timing constraints. No significant mineralisation was intersected during this drilling program although the results have improved our geological understanding of the region and will be used in the planning of future exploration programs.

Table 4: Completed 2015 diamond drilling program (see Appendix 2 for coordinates)


Date Completed

EL26835 Rosie Creek NBDD009 423.1 -79.8 252.7 09-Sep-15 EL30048 Rosie Creek NBDD010 537.1 -79.9 207.6 23-Sep-15 EL30152 Rosie Creek NBDD011 103.7 -81.1 95.7 14-Sep-15 EL30152 Rosie Creek NBDD012 165 -80.5 273.2 18-Sep-15 EL26835 Rosie Creek NBDD013 317.8 -75.6 273 28-Sep-15 EL30156 Sawtooth NBDD014 168.2 -65.8 78.4 03-Oct-15 EL26831 Sawtooth NBDD015 374.4 -65.2 234.3 13-Oct-15 EL26831 Sawtooth NBDD016 262.1 -65.1 334.2 10-Oct-15 EL26831 Sawtooth NBDD017 436.9 -66.5 348.7 23-Oct-15 EL26831 *water bore NBWB001 36 -90 0 16-Jul-15 EL26831 *water bore NBWB002 102 -90 0 17-Jul-15



All 2015 drill pads and drill hole collars have been fully rehabilitated. All 2015 new access tracks have been graded and left open for continued use by MMG during the 2016

drilling programme. These access tracks are still being used by MMG as we retain interests in these areas (Figures 3-5).

The two water bores listed above were drilled within the Sawtooth Prospect for use during the 2015 drilling operations in that area. They were constructed in accordance with industry standards by an NT licensed water bore drilling contractor (Murranji Drilling) with full Bore Report documentation provided. Note that the first bore, NBWB001, was dry and subsequently backfilled and capped. The NBW001 site is not yet rehabilitated as it is located at the Sawtooth Driller’s camp site which also remains un-rehabilitated for future use. The second bore, NBWB002 was successful and remains capped but not plugged/abandoned in the event MMG wish to use it for any future drilling in the Sawtooth Prospect area which MMG are still actively exploring. Please note that MMG have not extracted any groundwater from NBWB002 since completion of the Sawtooth Prospect drilling programme in Oct 2015 nor are there any plans to extract groundwater from it in 2017. It has been agreed by the Landowner that in the event MMG has no further use for this bore it will be left open and handed over to McArthur River Station. Written confirmation will be sought from the Landowner once MMG decide to exit the area.

2016 During 2016 MMG completed the following exploration activities:

Completed a technical review of all 2015 drilling and geophysical survey results. Completed a “Falcon” airborne gravity gradiometry survey of the greater Rosie Creek/Mt Young Prospect

area involving approx. 5330 line km at an 80m flight height (March/April). The Falcon survey data results were subsequently used to improve our geological models of this region

and design drill testing of identified exploration targets. Various desktop studies including trace element geochemistry and 3D geological modelling Reconnaissance geological mapping, 3D modelling and drill targeting at the Berjaya Prospect. Historical drill hole core re-logging and re-sampling: a total of 10 holes relevant to the Berjaya and Rosie

Creek prospects. Reconnaissance geological mapping of anomalous stream catchments identified in the 2014-2015 surface

geochemistry surveys (13 catchments mapped). Completed a diamond drill hole programme involving eleven diamond drill holes (4493 m) and one water

bore (55m) (Figures 4 & 5). 2016 Drilling Programme Summary: MMG engaged DDH1 Drilling to complete eleven exploration diamond drill holes totalling 4493.0 metres from 1 September to 13 November 2016 (Table 5). In addition, a 55 m deep water bore (NBWB003) was drilled to supply water for the Berjaya NW prospect drilling (NB16DD018).

Table 5. Completed 2016 North Batten drill holes (see also Appendix 2 for coordinates)


Date Completed

EL26831 Berjaya NW NB16DD018 404.4 -81 158.1 06-Sep-16 EL26835 Rosie Creek NB16DD019 447.8 -80 042.9 17-Sep-16 EL26835 Rosie Creek NB16DD020 594.5 -80 086.4 27-Sep-16 EL30048 Dothraki NB16DD021 213.9 -77 125.8 01-Oct-16 EL30048 Dothraki NB16DD022 228.3 -77 127.4 05-Oct-16 EL30048 Rosie Creek NB16DD023 366.8 -77 053.5 11-Oct-16 EL30048 Rosie Creek NB16DD024 528.8 -78 020.5 19-Oct-16 EL26835 Rosie Creek NB16DD025 312.9 -80 086.2 23-Oct-16 EL26835 Rosie Creek NB16DD026 460.0 -79 087.7 29-Oct-16 EL26835 Rosie Creek NB16DD027 604.1 -80 086.6 05-Nov-16 EL26835 Rosie Creek NB16DD028 331.0 -80 092.3 09-Nov-16 *water bore NBWB003 55.0 -90 0 21-Aug-16



All 2016 drill pads and drill hole collars have been fully rehabilitated with the exception of NB16DD025, 27 and 28 which were left open with PVC piping laid down hole to allow for future down hole geophysical surveys.

The pads around these three collars were rehabilitated save for a light vehicle passage to allow access for geophysical survey crews.

All other drilled pads, and one undrilled pad at the Dothraki prospect, were fully rehabilitated with vegetation pushed back onto them. Two undrilled pads were left open (not rehabilitated) for the next 2017 drilling campaign, however, their sumps were backfilled.

The tracks created in 2016 to access the Dothraki and Berjaya NW drill pads were fully rehabilitated and are now inaccessible.

General comment in regards to all new access tracks created by MMG during 2014-2016: It is important to note that as MMG retain active interests in these areas for the foreseeable future our current practice is to fully rehabilitate drill pads and collars and to grade and leave open all tracks until we decide to exit the prospect areas. This practice is carried out with full consultation with the relevant Station Owners. Both Lorella Springs and McArthur River Stations have indicated that they will want many of our newly created tracks to remain open for their future use. Therefore, the plan is once MMG have elected to exit an area MMG will seek the input of the relevant Land Owners in regards to which tracks they wish to remain open and which tracks they wish us to rehabilitate. MMG will seek written confirmation from the relevant landowners regarding their requests to keep these particular tracks open.

Figure 3: Existing vs new access tracks cleared by MMG during 2014 and 2015 in the Sawtooth Prospect area (note no drilling at the Sawtooth Prospect in 2016).


Figure 4: Existing vs new access tracks cleared by MMG during 2014-2016 in the Rosie Creek-Mt Young area.


Figure 5: Existing vs new access tracks cleared by MMG during 2016 in the Berjaya NW Prospect area.


3.2 PROPOSED ACTIVITIES MMG’s principal target is Zn-Pb-Ag mineralisation of SEDEX/Sedimentary-hosted style. At this stage the 2017 program involves geological mapping, reconnaissance stream sediment and soil sampling, ground geophysical (Induced Polarisation or “IP”) surveys and a diamond drilling program. With the exception of the diamond drilling program the reconnaissance mapping, sampling and geophysical surveys are all considered “low impact” with negligible to no ground disturbance. Within the Rosie Creek-Mt Young prospect area MMG are planning in 2017 to complete twenty (20) diamond drill holes (Figure 6 and Tables 6 & 7). MMG are also planning to conduct several discrete IP surveys in the Rosie Creek-Mt Young area (approx. 47.5 line km along pre-existing and new tracks). Ground electrical surveys such as IP involve wire cables being laid out over the surface of selected areas which are then linked to metal electrodes that are dug into the surface. Depending on the surface these electrodes will involve small hand dug holes or pits ranging from 25cm to 1m in width to a depth of approx. 25-50cm Drill pads and tracks will be constructed in accordance with industry best practice e.g. dozer ‘blade up’, single lane traffic, stockpiling of top soil etc. Some new tracks will be required to access optimal drill pad locations and works will be required to upgrade existing tracks for initial access. MMG has internal procedures which govern how drill pads and tracks are constructed to maintain the lowest possible impact to the environment. An excavator and/or front-end loader will be used to clear tracks. All proposed access tracks and drill pads will be heritage surveyed by Traditional Owners/Cultural Monitors prior to any disturbance to ensure that any significant cultural sites or flora-fauna habitats are recognised, recorded and avoided during any proposed earthworks. Note that MMG have nominated a track clearance width of 5m (max.), however, this is a nominal contingency width only. MMG standard practice is for newly created tracks to be cleared to one standard truck width for single lane traffic only. However, past experience has shown that some sections of new tracks can quickly deteriorate with the development of deep ruts and/or become “boggy” sand. Ongoing regular track maintenance by MMG (e.g. grading and watering) mitigates this problem but declaring a nominal 5m clearance width allows for the contingency to later widen problematic track sections to allow two vehicles to pass. Drill pads of up to 50m x 50m (max.) will be cleared to accommodate a UDR1200 (or equivalent) drill rig, including work areas and sumps (typically 2 per drill pad). Sumps will be constructed as poly-film lined approx. 2m x 2m x 1.5m pits, with final depth dependent on the soil profile. Topsoil from each sump will be stockpiled separately to ensure that it is returned to the top of the site upon completion of the rehabilitation. All sumps will have animal egress ramps inbuilt and will be barricaded during all stages until rehabilitated. MMG have nominated a maximum drill pad site size of 50m x 50m as a nominal contingency size only due to the problematic ground conditions mentioned above. MMG standard practice is for minimalist size drill pads but have allowed for a maximum 50m x 50m due to past experiences with deterioration of drill pad sites during their use. Declaring a large 50m x 50m pad size allows for the contingency to later expand a drill pad if site conditions deteriorate to the point that vehicles become bogged and truck turning circles are required. Two remote field camps have been allowed for in the 2017 MMP and associated ground disturbance and security calculations. Though at the time of writing the exact location of these camps sites are unknown as that will be contingent on cultural heritage clearances to be conducted by the Cultural Monitors prior to the start of drilling. However, these camps will be utilised by the drilling crews and some MMG staff and will be positioned close to the drilling areas. Whether groundwater will be encountered is currently unknown given the “grassroots” nature and wide geographical spread of the proposed drill holes. However, it is MMG’s standard operating procedure to ensure that the drilling contractor carry sufficient supplies of cement and other drilling consumables to immediately cement and plug any drill holes that intersect artesian groundwater flows.


Of particular relevance to this 2017 MMP is that the AAPA have completed the requisite cultural heritage surveys and provided the relevant Authority Certificate for all proposed 2017 ground disturbing sites including the drill pads and access tracks as listed in this MMP (see Section 4.4 Native Title).

Table 6: Proposed 2017 diamond drilling program (see Appendix 2 for coordinates)

Tenement Prospect Hole ID Nominal Depth (m) EL30158 Mt Young plan17_01 500 EL30158 Mt Young plan17_02 500 EL30158 Mt Young plan17_03 500 EL26836 Mt Young plan17_08 450 EL26836 Mt Young plan17_11 500 EL30152 Rosie Horst Block plan17_13 250 EL26836 Rosie Horst Block plan17_14 500 EL26833 Rosie West plan17_18 600 EL26835 High Garden plan17_19 600 EL26835 West Rosie Plan17_21 600 EL26835 West Rosie plan17_22 600 EL26835 Rosie plan17_24 250 EL29022 Kings Landing plan17_25 500 EL29022 Kings Landing plan17_26 500 EL26835 Rosie plan17_28 600 EL26835 Rosie plan17_31 600 EL26835 Rosie plan17_32 600 EL26835 Rosie plan17_36 600 EL26835 Rosie plan17_39 600 EL26835 Rosie plan17_43 600


Table 7: Planned ground disturbance for drilling, camp and geophysical survey activities.

Mining Interests (i.e. titles) EL29022, EL26833, EL26835, EL26836, EL30152, EL30158.

What time of the year will exploration occur? May ‐ December 2017

How long is exploration expected to occur? 7 months

Type of drilling (i.e. RAB, RC, Diamond, aircore) diamond

Target commodity Sedimentary Hosted Zn‐Pb‐Ag

Is drilling likely to encounter radioactive material? No

Number of proposed drill holes 20

Maximum depth of holes 600m

Number of drill pads 20 Pads (50 m x 50m) = 5 ha total

Is drilling likely to encounter groundwater? Y

Number of sumps 40 sumps (2m x 2m x 1.5m) = 0.02 Ha

Length of line / track clearing Total 28.6 km length x 5m width = 14.3 ha

Number of costeans none

Total bulk sample (tonnes) none

Will topsoil be removed for rehabilitation purposes?

Yes. All disturbed sites will have the topsoil separately stockpiled and subsequently returned to original site upon rehabilitation.

Previous disturbance yet to be rehabilitated on title (ha) if known 90.22 ha (see Section 6.1 Rehabilitation Register)

Camp (Length: x Width: m)

Two camps; 50m x 50 m; 0.25 ha each = 0.5 ha total

Total area disturbed (hectares) 19.82 ha (tracks, drill pads and camps as listed above)

Other: Heritage Clearance Surveyed

Currently being organised through the AAPA & local NLC office prior to any ground disturbing activities commencing.


Figure 6: Proposed 2017 access tracks, IP survey lines and 20 x diamond drill hole programme in the Rosie Creek-Mt Young area.


4 CURRENT PROJECT SITE CONDITIONS

4.1 LOCAL AND REGIONAL GEOLOGY The McArthur Basin is a large sedimentary basin with an exposed area of about 180,000 km². Most of it lies within the north-eastern Northern Territory, and it extends over the border into the state of Queensland. Thick marine and non-marine sedimentary rocks were deposited from the late Palaeoproterozoic to the early Mesoproterozoic (1800-1430Ma). The North Batten Project area lies within the Batten Fault Zone (BFZ) where sediments of the Tawallah, McArthur and Roper Groups rest unconformably on the Scrutton Volcanics, and are partially concealed by Cretaceous and Tertiary sediments. As a base metals target, the McArthur Basin contains volcanic rocks and related intrusive igneous rocks and is a prime target area for SEDEX type economic sulphide deposits. This type of deposit holds 50% of the world’s zinc and lead reserves, and make up around 25% of world zinc and lead production. In particular the McArthur Basin hosts the world-class McArthur River (HYC) zinc-lead-silver deposits in close proximity to the northerly trending Emu Fault Zone along the eastern margin of the Project area. The Batten Fault Zone setting may also be considered prospective for “red-bed” and Mississippi Valley Tri-state (MVT) styles of base metal mineralisation. Around the margins of the Lorella Pocket the Mallapunyah/Masterton Formations contact may host red-beds style mineralisation within the Masterton Sandstone. There are some subtle EM features which probably correspond with black shales and may or may not have relevance to the conceptual target horizon. Within the McArthur Basin stratigraphic sequence, siltstone and dolomite lithologies may have provided hosts for replacement lead-zinc mineralisation analogous to the MVT deposition style. In the north of the North Batten Project tenements, potential exists for uranium mineralisation where the McArthur Basin basal sediments overlie, in part, coeval sequences of acid volcanics and granites, analogous to the host settings for major unconformity-related uranium deposits, e.g., Westmoreland, Queensland. In the northwest part of the North Batten Project a sedimentary iron formation, the Sherwin Ironstone Member, occurs within the McMinn Formation of the Mesoproterozoic Roper Group. The Sherwin Ironstone Member contains massive oolitic to pisolitic ironstone within interbedded medium to very coarse ferruginous sandstone, mudstone and shale. A resource has been identified along strike at the Roper Bar Iron Ore Project where the haematitic sandstone ironstones have been locally enriched by the addition of microcrystalline specular hematite. Diamonds have been the target of previous exploration over the area covered by the southern part of the North Batten Project; here there has been recovery of multiple macrodiamonds, as well as microdiamonds and kimberlitic indicator minerals from alluvial samples. The diamonds and indicators were recovered from creeks surrounding a remnant Cretaceous plateau within surrounding McArthur Group sediments. This situation is analogous to the Merlin Kimberlite cluster where Devonian-aged kimberlite pipes may occur beneath Cretaceous cover rocks. During the Cretaceous Period, around 90 to 100 million years ago, the coastal areas along the Gulf of Carpentaria were inundated by a shallow sea. Manganese accumulations were formed in embayments close to the shoreline of this sea in a series of depositional episodes. The largest of these is on Groote Eylandt, a large island located within the Gulf of Carpentaria. This style of Manganese occurrence is the target of exploration in the northern part of the North Batten Project. Cainozoic sediment and soil covers a substantial proportion of the area. In some areas older deposits such as laterite, calcrete and old coastal sediments are now being incised, while other units are being actively deposited, for example alluvial sediments in channels and on flood plains, and intertidal and supratidal deposits along the coast.


4.2 HYDROLOGY-HYDROGEOLOGY All major drainage is directed toward the coast including notably the Batten Creek, McArthur River and Rosie Creek. The areas of highest relief are within the Yiyinti and Tawallah Ranges, the main ridges of which reach or exceed 200m above sea level. The coastal plain rises steadily away from the coastline to about 100m along the eastern edge of Tawallah Range. Rates of natural erosion in the tenement package are very slow to moderate and fall into various geomorphic provinces (Mt Young Explanatory Notes, NTGS, 1993). In high level ridges of resistant sandstones, erosion is slow (as rocks are resistant) but sediment removal is rapid (as slopes are steep). In areas between ridges, broad shallow valleys form where sediment accumulates. The coastal terraces are nearly flat and have very slow erosion rates and very slow sediment removal rates. According to the NT DPIR database there are 51 water bores in the North Batten Project Tenement package. These would be mainly from pastoralists as well as associated with the former Western Deserts Haul Road. Salinity levels vary widely across the project areas and are site specific. MMG does not source any potable water from any local water bores but may elect to use or install local water bores for drilling purposes only dependent upon prior Landowner permission.

4.3 FLORA AND FAUNA The North Batten Project area environment is comprised of the following (Figure 7): Woodlands: Eucalyptus woodland in flat to undulating plains, well drained sands and earthy sands Open Woodlands: Corymbia and Eucalyptus trees, hummock and tussock grasses in low open woodland in

upland plains, moderately deep sands and occasional lithosols Tussock grasslands: Rare areas of Chrysopogon (mixed) tussock grassland in flood-plains and water courses,

heavy grey to black clays and alluvial soils As part of due diligence prior to commencing exploration activities in 2014, a Level 1 Flora and Fauna Survey was completed by consultants from GHD. Their review of our 2014 exploration areas identified 51 threatened fauna species (including 15 mammals, 23 birds and 13 reptiles) predicted or known to occur in the area listed under both the EPBC and TPWC Acts and 15 threatened flora species predicted or known to occur in the study area listed under the EPBC Act. For all eight drill sites GHD reported “no significant or threatened flora or fauna species, communities or habitat” at any site (Appendix 6). The 2014 GHD Flora and Fauna survey is considered broadly representative and indicative of environmental conditions across the North Batten Project as a whole. Although focused on eight specific drilling areas this initial 2014 flora and fauna survey was geographically widely spread across the length and breadth of the North Batten Project area. Therefore, its findings are considered as relevant and applicable to the proposed 2016 program.


Figure 7: NVIS Map with vegetation distribution by dominant type in North Batten project area.

4.4 NATIVE TITLE The North Batten project area tenements are subject to three registered Native Title Claims and one Determined Native Title Claim as listed below (Figure 8). In each case the representative for the Native Title Groups is the Northern Land Council (NLC): • NTD6031/02 DC02/30 Lorella-Nathan River • NTD6016/00 DC02/15 Lorella Downs • NTD6030/00 DC02/29 Billengarah • NTD17/2014 DCD2015/008 McArthur River


Figure 8: STRIKE output of Native Title Claims over the North Batten Project area (April 2017).


Two applications for Exploration Licences EL25501 and EL26299 are subject to Native Title free-hold land, administered by the NLC under the Aboriginal Land Rights (Northern Territory) Act 1976 (ALRA) on behalf of the respective Native Title Groups, and require agreement with all parties prior to grant and exploration. A database of all Registered and Recorded Heritage Sites and Restricted Work Areas on all granted exploration licences have been sourced from the Aboriginal Areas Protection Authority (AAPA) as a first pass filter for all planned exploration programs (Figure 9). These registered and recorded heritage sites are considered by MMG as off limits to exploration activities. Exploration activities may be permitted within “Restricted Work Areas” but only after further consultation and endorsement from the relevant Traditional Owners. To ensure that no Cultural Heritage Sites are disturbed MMG have in place the following procedures:

- MMG maintains a current database of all known registered and recorded heritage sites and restricted work areas as well as previously heritage cleared areas which are used as a first pass filter against all proposed field activity locations.

- Cultural heritage surveys are conducted on all proposed land disturbance sites. Currently, MMG engage the AAPA to undertake these surveys (see also comments below).

- As a further measure MMG employ local Traditional Owners as on-site Cultural Monitors to oversee all land disturbing activities.

In early 2015 MMG entered into preliminary negotiations with the NLC in regards to formalising a Heritage and Access Agreement which would cover all proposed MMG exploration activities on all North Batten tenements and applications. These negotiations are currently ongoing. In the meantime, with the approval of the NLC all current proposed ground disturbing activities are being heritage clearance surveyed by the AAPA in addition to local Indigenous Cultural Monitors organised through the local NLC Borroloola office. As in previous years MMG plan to continue to engage local Cultural Monitors to heritage clear all proposed drill site access tracks and pads prior to commencing any ground disturbing activities. In regards to previous AAPA heritage clearances MMG have received the following:

- 2014 drill sites and access tracks: Authority Certificate C2014/113 and C2014/114. - 2015 drill sites and access tracks: Authority Certificate C2015/140. - 2016 drill sites and access tracks: Authority Certificate C2016/052 and C2016/921.

In regards to our proposed 2017 drill sites and access tracks relating to this MMP MMG lodged an AAPA heritage clearance request on 22 December 2016 (Figure 10). The Authority Certificate for this completed application was received on 03 May 2017.

- 2017 Rosie Creek-Mt Young drill sites and access tracks: Authority Certificate C2017-040.


Figure 9: All AAPA Registered and Recorded Heritage Sites and Restricted Work Areas within the North Batten

Project area as supplied to MMG by the AAPA as at 09/12/2014.


Figure 10: Location of MMG’s 2017 AAPA heritage clearance survey application which covers all proposed ground

disturbance as listed in the 2017 MMP (denoted by blue polygons; lodged 22/12/16).


4.5 LAND USE Land status over which the granted exploration licences lie, either partially or wholly are as follows (Figure 11):

CLP429 Wurrunburru (Bing Bong) NT Por. 2432 PL757 Lorella Springs NT Por. 1333 Limmen National Park – in 2013 the Limmen National Park (LNP) was formalised and impacts part upon

EL28656, EL26831, EL26833, EL30137, EL30158 and EL30868. Refer to Section 2 and Appendix 4 for Landowner consultations.

Figure 11: North Batten project area with Cadastral information (NT DPIR- STRIKE as at 12/04/17).

5 ENVIRONMENTAL MANAGEMENT SYSTEM / PLAN

5.1 ENVIRONMENTAL POLICY AND RESPONSIBILITIES MMG’s Safety, Health, Environment and Community (SHEC) and Sustainability Policies are outlined as follows (Figures 12 and 13).


Figure 12: MMG Safety, Health, Environment and Community Policy.


Figure 13: MMG Sustainability Policy.


5.2 STATUTORY AND NON-STATUTORY REQUIREMENTS The following legislation and related regulations are applicable to this Project: Mineral Titles Act Mining Management Regulations Weeds Management Act Bushfires Act Heritage Conservation Act NT Aboriginal Sacred Sites Act Native Title Act Aboriginal Land Rights (Northern Territory) Act Environment Protection & Biodiversity Conservation Act Work Health and Safety (National Uniform Legislation) Act Soil Conservation and Land Utilisation Act Territory Parks and Wildlife Conservation Act Water Act Waste Management and Pollution Control Act Crown Lands Act Lands Planning and Mining Tribunal Act ISO9001 and ISO14001 certificated stipulations Lease conditions Authorisation conditions With respect to non-statutory requirements MMG have entered into positive negotiations with the NLC and local Traditional Owners in regards to obtaining land access agreements that cover this exploration project. As recommended by the NLC, MMG have in the interim engaged the AAPA to conduct cultural heritage clearance surveys of all our proposed ground disturbing activities such as the clearing of drill site access tracks and pads. Furthermore, MMG will continue to engage local Traditional Owners to act as Cultural Monitors during all ground disturbing activities and for stream and soil sampling. No works will be conducted without their endorsement.

5.3 INDUCTION AND TRAINING All persons - MMG Employees, contractors or visitors, at the North Batten Exploration Project shall receive, at a minimum, the site Project Induction. This induction is designed such that all Safety, Health, Environment and Community (SHEC) obligations, risks, and their respective controls, are explained and understood (see SHEC Management Plan; Appendix 3). The North Batten Exploration Project Leadership team will ensure personnel are deemed competent, and have the appropriate qualifications, job skills and training before they begin work with the project or before being assigned a new task. Examples of typical induction and training required by MMG include:

Mandatory skills and refresher training e.g. Applied 1st Aid, 4WD training and mobile equipment certification, fire safety awareness and firefighting;

Workplace procedures and work methods e.g. Standard Operating Procedures (SOP), Field Task Observations (FTO), Task Hazard Analyses (also known as JSA), mandatory pre-shift safety meetings;

Competency-based assessments e.g. on site driving competency assessments; Site emergency response scenario training; Environmental obligations and responsibilities e.g. waste management procedures, chemical and

hydrocarbon storage and use, pre-authorisation of land disturbing activities, fire prevention, sensitive flora and fauna and reporting of animal interactions.

Cultural Awareness training.


5.4 IDENTIFICATION OF ENVIROMENTAL ASPECTS AND IMPACTS Key project environmental aspects and impacts are summarised in Table 8 below. All of these Environmental Aspects are applicable to this project to varying degrees and times depending on the exploration activity being undertaken. The risk ratings were assigned using the Risk Matrix below as provided in the NT DPIR Mine Management Plan and Public Reporting Structure Guide for Exploration Operations (Figure 14).

Figure 14. Risk Ratings matrix used for Environmental Aspects and Impacts (as taken from NTDPIR Mine Management Plan and Public Reporting Structure Guide for Exploration Operations, Section 5.4).


Table 8: Details of environmental aspects, impacts and control measures.

Aspect Impact(s) Risk Rating

Preventative Control Measures (to prevent/minimize impact)

Mitigation Control measures (to monitor and remediate impact)

Surface Water Possible contamination of surface water by hydrocarbon and hazardous materials spillage from drilling or clearing activities. Potential damage to flora and fauna habitats. Increased soil erosion along banks.

Moderate Avoidance of waterways. Minimum buffer of 100m from camps and drill sites.

If affected, immediate rehabilitation of site. Monitoring/recording of rehabilitation progress.

Groundwater Potential groundwater release to surface and/or aquifer contamination from the drill hole intersection of artesian flows and/or intersection of multiple confined aquifers.

Moderate

Drilling contractors to carry enough cement/grout to immediately cement plug any artesian flows and multiple confined aquifers. (Note: the pastoralist will be notified in case they wish to convert it to a water bore for their future use).

If not required by the pastoralist, immediate cement/grout plugging of flowing zones.

Invasive Species Negative impact on indigenous flora and fauna if invasive species become established via vehicular traffic.

Moderate All vehicles are washed down on entry and exit to the project area and between all work sites.

Remove any introduced species according to guidelines.

Flora and Fauna

Negative impact on sensitive flora and fauna such as damage to habitats, introduction of invasive species, vehicle impact, injured or killed fauna due to clearing and drilling activities and related vehicular traffic. Fauna trapped in drill holes or sumps.

Moderate

Standard operating procedure is for at least one MMG personnel and two Traditional Owners (Cultural Monitors) to walk well in advance of the dozer during clearing activities which allows for early detection and avoidance of any fauna or sensitive environmental or cultural sites. Minimalist land disturbance approach. Avoidance of waterways. Adhere strictly to single lane track access, no off-road driving and project site speed limits (max 20 km/hr around pads/camps; 60 km/hr station tracks). Drill hole collars to be immediately capped. All sumps will have animal egress ramps inbuilt and will be

Immediate rehabilitation of any affected sites. Immediate reporting of environmental incidents including fauna interactions. Inspections, audits, monitoring procedures. Education through induction and training processes.


barricaded during all stages until rehabilitated. All vehicles are washed down on entry and exit to the project area and between all work sites (weed prevention). 2014 baseline flora and fauna survey results and recommendations.

Hydrocarbon and hazardous materials spillage

Possible contamination of surface and groundwater and flora/fauna habitats by hydrocarbon and hazardous materials spillage derived from camp, drilling or clearing activities.

Moderate

Diesel and lubricants are the only hydrocarbons stored and used on site. Typically in large volumes (thousands of litres) to operate drill rigs, support vehicles and camps. Strictly held in metered, double-bunded tanks. All rigs and camp sites have spill kits. Plastic liners are placed underneath drill rigs.

Standard operating procedure is for any spillage is to be dug up, bagged, and disposed of at a council designated facility. Use of biodegradable materials. Fully compliant and complete MSD sheets held on site.

Waste Possible pollution of surface and groundwater and flora/fauna habitats by poor waste handling procedures.

Low

At camps and drill sites waste collection facilities are in place and all waste is collected and disposed of appropriately.

Waste disposal at a council designated facility.

Noise and Air quality Occurrence of noise and air pollution associated with vehicular traffic, generators and drill rig operations.

Low

Use of hearing, eye and ear PPE. MMG employ a full-time water truck dedicated to watering all in-use tracks for dust suppression and track maintenance. All attempts are made to silence operating generators. Not considered a significant or likely issue given the nature and short term exposure of the drilling operations.

Regular maintenance and records of plant and equipment. Continual use of on-site dedicated water truck during drilling operations. Not considered a significant or likely issue given the nature and short term exposure of the drilling operations.

Clearing of vegetation for tracks, drill pads and sumps

Potential damage to sensitive flora and fauna habitats. Increased soil erosion due to poor earthworks.

Moderate

Standard operating procedure is for at least one MMG personnel and two Traditional Owners (Cultural Monitors) to walk well

Separate stockpiling and return of topsoil. Rapid rehabilitation of pads and tracks. “Ripping” of drill pads and placement of


in advance of the dozer during clearing activities which allows for early detection and avoidance of any fauna or any sensitive environmental or cultural sites. Minimalist ‘blade up’ clearing technique. Adhere strictly to single lane track access and no off-road driving. Avoidance of waterways..

logs etc. Physical access barriers (e.g. logs) placed on tracks to halt traffic. Avoidance of waterways. Follow recommendations from environmental surveys.

Soil Erosion Increased erosion due to poor earthworks and poor track building. Moderate

Use experienced operators with local knowledge. Minimalist “blade up” track and pad clearing technique. Routine maintenance (e.g. grading) of high traffic tracks. Emplacement of whoa-boy (diversion banks) wherever required for improved drainage. Physical access barriers (e.g. logs) placed on tracks to halt traffic. Avoidance of well vegetated areas and waterways.

Regular monitoring of disturbed areas including immediate reporting and remediation of any soil erosion outbreaks. Minimalist approach. Ensure tracks are built to a high standard. Use of whoa-boys (diversion banks) on tracks wherever required. “Ripping” and seeding if warranted.

Cultural and Heritage Sites Disturbance of sensitive sites. Moderate

MMG Standard Operating Procedure: (1) Prior area clearance surveys by the AAPA followed up by (2) at least two on-site Traditional Owners (Cultural Monitors) present for all land disturbing activities.

Report any site disturbance to the AAPA and DPIR. Remediate site as instructed.


In 2014 MMG Exploration engaged GHD to undertake a Level 1 Flora and Fauna Survey of our 2014 drilling areas. The key findings of this survey were as follows (Appendix 6):

1. Identified 51 threatened fauna species (including 15 mammals, 23 birds and 13 reptiles) predicted or known to occur in the area listed under both the EPBC and TPWC Acts and 15 threatened flora species predicted or known to occur in the study area listed under the EPBC Act.

2. For all eight drill sites GHD reported “no significant or threatened flora or fauna species, communities or habitat” at any of the drill sites site.

3. “Very few weeds were located during the surveys, the most notable being small patches of Hyptis suaveolens near existing tracks along water courses”.

The key recommendations of this GHD review were as follows (Appendix 6):

1. Resite holes NBDD006, NBDD007 and NBDD008 to minimise any potential impact on nearby water courses 2. Minimise the amount of new track clearing 3. Minimise any potential impact on streams, wetlands and waterholes 4. Ensure all machinery is washed down prior to entering the North Batten Project as well as between sites 5. Consider a fauna spotter or catcher during clearing activities.

In regards to the recommendations of the GHD review MMG conducted the following:

1. MMG did not re-site NBDD006, NBDD007 and NBDD008 as these drill holes were expressly positioned and designed to test specific detailed geological and geophysical targets. To move these drill sites would have rendered these drill tests ineffective and not worth attempting. The location of these drill sites ranged from approx. 40-120m away from minor seasonal streams that were dry for the duration of the drilling programme. The drill pads did not encroach upon any ephemeral pools or riparian environments associated with these dry streams. These drill pads and collars were rehabilitated soon after completion and prior to the upcoming wet season. GHD noted that for all three drill sites there was no evidence of significant or threatened flora or fauna species, communities or habitat.

2. As standard operating procedure MMG will continue to do the utmost to minimise the amount of new track clearing as it is best practice with considerable benefits to the company such as minimal environmental impact, time and cost savings, less rehabilitation etc. Wherever possible existing tracks were utilised as much as possible.

3. As standard operating procedure MMG will continue to do the utmost to minimise its impact on streams, wetlands and waterholes as it is best practice with considerable benefits to the company such as minimal environmental impact, time and cost savings, less rehabilitation etc. Wherever possible drill sites will be located away from any such natural water features to avoid any disturbance (minimum 100m encroachment buffer). Encroachment upon riparian environments is avoided at all costs.

4. In 2014 all drill rigs and associated vehicles were washed down with high pressure water hoses before entering and leaving the project area at the start and end of the exploration program. However, this practice was not repeated when moving between exploration sites during the exploration program. MMG recognised that this was a failure of our field procedures which was rectified during the 2015 field program and will continue to be enforced for all future drilling campaigns.

5. In regards to the use of fauna catchers/spotters it is standard operating procedure for at least one MMG personnel and two Traditional Owners (Cultural Monitors) to walk well in advance of the dozer during clearing activities which allows for early detection and avoidance of any fauna or any sensitive environmental or cultural sites. The local bush skills of the Traditional Owners greatly enhance the chances of early detection and avoidance of fauna.

With respect to weed management the 2014 GHD flora and fauna surveys concluded that the areas we have been operating in do not have a significant weed infestation problem that requires a comprehensive weed management plan. However, MMG recognise that the recommendation to wash down vehicles to and from site as well as within the project area is an appropriate preventative measure that will continue to be adhered to.


The 2014 GHD Flora and Fauna survey is considered broadly representative and indicative of environmental conditions across the North Batten Project as a whole. Although focused on eight specific drilling areas this initial 2014 flora and fauna survey was geographically widely spread across the length and breadth of the North Batten Project area. Therefore, its findings are considered as relevant and applicable to the proposed 2017 program.

5.5 ENVIRONMENTAL AUDITS AND INSPECTIONS Mandatory internal SHEC (Safety, Health, Environment and Community) auditing processes are in place to ensure compliance with both internal and external requirements. Of particular note is MMG’s Monthly Project SHEC Report which includes amongst other items the following details:

All SHEC incidents (including environmental incidents); Site fuel and water usage; Waste produced and disposal details; and Land area disturbed and rehabilitated.

All data generated from these monthly project SHEC reports is compiled and included within the publically available Annual MMG Sustainability Report. This information is captured via ERIK (Environment Reporting Information & Knowledge) which is a SAP based platform that captures and reports our corporate environmental data as per the MMG Environmental Compliance Reporting Standard. Site inspections and audits are undertaken on an irregular basis by the North Batten Project Manager, Exploration SHEC Manager and the Exploration Manager - Australia Region. The reason this is irregular is that MMG does not have a permanent established presence in this region and only operates on this project during the dry season. Site inspections take place during all active stages of access track and drill site preparation and rehabilitation works to ensure full compliance with procedures and standards. Washing down of vehicles as a weed management control is captured in vehicle logs and drill rig plods. Monitoring is an ongoing standard operating procedure conducted by the site Exploration Team during the field season and reported to the Project Manager via the daily and monthly SHEC reports as listed above. Key monitoring tasks include:

- Visual inspection of cleared access tracks/lines for evidence of soil erosion and effectiveness of any installed whoa-boys (diversion banks).

- Visual inspection of rehabilitated drill pads and access tracks gauge the progress of site rehabilitation and regrowth.

- Visual inspection of drill hole collar positions to check integrity of collar cap and burial as well as any evidence of groundwater seepage.

- Immediate reporting to the Site Supervisor of any environmental issue or incident. These are further captured in daily site pre-start meetings and Monthly Project SHEC reports (as listed above).

- Photographic records with commentary are captured during all stages of pad and track clearing works: (1) pre-disturbance; (2) post-disturbance but prior to work commencing; and (3) post-rehabilitation.

- As standard practice MMG try to collect photographic evidence of all sites annually, ideally after each wet season, dependent upon the amount of regrowth and access to the site. Examples of photographic monitoring of all 2014, 2015 and 2016 drill sites are provided in Appendix 1.

5.6 ENVIRONMENTAL PERFORMANCE REPORTING

5.6.1 Objectives and Targets Environmental data is documented, maintained and auditable to meet both internal and external obligations as stated in Sections 5.5 and 5.7.


The status of all rehabilitation activities to be as a minimum documented annually (post wet season) including photographs recorded at each of the following stages: (1) pre-disturbance; (2) post-disturbance but prior to work commencing; and (3) post-rehabilitation. As MMG are still very actively exploring the North Batten Project as a long term strategy environmental monitoring and inspections are ongoing.

5.6.2 Performance Reporting Conducted as outlined in Sections 5.5 and 5.7 and Appendix 3 (North Batten Project SHEC Management Plan). At the end of the 2016 field season (Nov 2016) rehabilitation activities were completed on the 2016 program sites as described in Section 3.1 - 2016. In April 2017 all 2014 and 2015 and some 2016 drill sites were visually inspected and photographed as part of regular inspection and monitoring procedures – see Appendix 1. This particular monitoring exercise was conducted using a helicopter as the ground conditions were wet and boggy on account of a good wet season. Furthermore, the use of the helicopter eliminated the need to drive over rehabilitated sites. For current status of rehabilitation activities refer to Section 6.1. Exploration Rehabilitation Register as well as Appendix 1. NT DPIR Inspections: On 22/9/2015 NT DPIR Mining Officers conducted on-site field inspections of our Rosie Creek drilling program whilst it was currently in progress. Their inspections included both past and currently in use drilling sites and access tracks relating to MMG’s 2014 and 2015 diamond drilling campaigns. The final inspection report (dated 9/10/2015) detailed that the inspected sites were found to be satisfactory whilst listing the following recommendations: “It is recommended that MMG Limited seek written confirmation from the landholder for the tracks that will remain open to be utilised by Tourists visiting the Lorella Springs Station. Many of the access tracks across the project area are now being utilised by tourists accessing the Lorella Springs Station. Grading and increased usage of tracks has resulted in sand blocking spur drains. This will become an issue during the wet season when the roads cannot drain effectively. All roads still being utilised and maintained by MMG should receive routine maintenance. Drill holes must be temporarily capped immediately on completion of drilling and prior to exiting the site.” In response to these recommendations MMG are seeking written confirmation letters from Landowners, working with Lorella Springs Station in regards to maintaining track conditions and are immediately capping drill collars.

5.7 EMERGENCY PROCEDURES AND INCIDENT REPORTING All environmental incidents will be reported as soon as possible to the Mining Compliance Division in accordance with Section 29 Mining Management Act (MMA) including the use of the official Notification of Incident Form. As outlined in the SHEC Management Plan (Appendix 3) the North Batten project has a detailed Emergency Response Management Plan as well as a mandatory incident reporting policy and procedure. All safety, health, environment and community incidents and events are reported using a combination of corporate systems including Incident and Event Management (IEM), ERIK (Environment Reporting Information & Knowledge) and Staketracker (Community-specific incidents).

6 EXPLORATION REHABILITATION Table 9 below details MMG’s rehabilitation policies and procedures.


Table 9: Details of disturbance and rehabilitation policies and procedures.

Disturbance Rehabilitation

Activities Schedule (Timing)

Closure Objectives / Targets

Monitoring Techniques

Drill holes

Collar plugged with

cement plug, cut below ground level and buried

(min. 400m depth).

Capped immediately after completion of

each hole. Cutting and burial of

collar below surface to occur at end of

program during pad rehabilitation.

All holes capped and stable at completion of

program. Invisible site after two wet seasons (dependent upon

rainfall amount)

Holes to be inspected at end of wet

season

Drill pads

Stockpiled topsoil replaced, ripped to

allow regrowth, placement of logs etc, re-seeding if required

At completion of program

Invisible site after two wet seasons (dependent upon

rainfall amount)

Hole sites to be inspected at end of wet

season

Sumps

Filled in, topsoil replaced, lining

removed and disposed of correctly



rainfall amount)

Hole Sumps to be inspected at

end of wet season

Tracks / Gridlines

Rehab after use or

maintain condition for use by Landowner

To be confirmed with Landowner

Invisible site after two wet seasons (dependent upon rainfall amount). Or written

confirmation from Landowners if they wish

tracks left open.

Tracks to be inspected at end of wet

season

Camp Sites

Stockpiled topsoil replaced, ripped to

allow regrowth, placement of logs etc, re-seeding if required



rainfall amount)

Hole sites to be inspected at end of wet

season


6.1 EXPLORATION REHABILITATION REGISTER

Reporting period Tenement

MMP Reference

Drill Holes /Pads

Drill Holes/ Pads

Rehab

Drill Line/ Access Track

Length Drill

line/access track rehab

(km)

Camp Camp Rehab Comments

(No.) (No.) (km) (ha) (ha)

2014

EL28656

2014/028

1 1 0.04 0 0.25 0.25 Leila drillers camp

EL29022 0 0 0 0

EL26831 1 1 1.46 0

EL26833 0 0 0 0

EL26835 2 2 10.51 0 0.25 0.25 Rosie Creek Driller's camp

EL26836 0 0 10.26 0

EL30048 0 0 0 0

EL30137 0 0 0 0

EL30158 3 3 9.62 0

EL30152 0 0 0 0

EL30727 0 0 0 0

EL30156 1 1 20.25 0 0.25 0.25

Yalco drillers camp

2015

EL28656

2015/0210

0 0 0 0

EL29022 0 0 19.78 0

EL26831 2 2 12.61 0

EL26833 0 0 0 0

EL26835 2 2 26.86 0 0.25 0.25

Rosie Creek camp near NBDD009

EL26836 0 0 23.56 0

EL30048 1 1 3.13 0

EL30137 0 0 0 0

EL30158 0 0 4.53 0

EL30152 2 2 0 0

EL30727 0 0 0 0

EL30156 3 2 8.12 0

0.25 0.0 Sawtooth driller's camp, no rehab, left open for future use. NBW001 to be rehabilitated along with the camp.


2016

EL28656

2016/0254

0 0 0 0

EL29022 3 2 1.39 0 1 x drill site undrilled, no rehab, left open.

EL26831 1 1 1.75 1.75 0.25 0.25 Berjaya NW prospect but camp located just outside MMG lease.

EL26833 0 0 0 0

EL26835 6 5 3.57 0 1 x drill site undrilled, no rehab, left open.

EL26836 0 0 0 0

EL30048 5 5 7.55 3.24 0.25 0.25 Drillers’ camp at Dothraki. 2 x drill pads not

drilled but fully rehabilitated.

EL30137 0 0 0 0

EL30158 0 0 0 0

EL30152 0 0 18.43 0

EL30727 0 0 0 0

EL30156 0 0 0 0

Total 33 30 183.42 ( 91.71 ha) 4.99 (2.49 ha) 1.75 1.5

Total rehab remaining = 90.22 ha: 3 x Pads = 0.75 ha Access tracks (5m) = 91.71 – 2.49 ha = 89.22 ha 1 x Camp site = 0.25 ha.


6.2 COSTING OF CLOSURE OBJECTIVES MMG 2017 Security Calculation is provided in Appendix 4.

7 APPENDICES

APPENDIX 1: 2014 - 2016 DRILL SITE REHABILITATION

2014_rehab_photos.pdf



APPENDIX 2: *COMMERCIAL-IN-CONFIDENCE PREVIOUS & PLANNED DRILL HOLES

APPENDIX 3 NORTH BATTEN PROJECT SHEC & EMERGENCY RESPONSE MANAGEMENT PLANS

2017_SHEC_ManagementPlan.pdf

2017_EmergencyResponse_Plan.docx.pdf

APPENDIX 4: *COMMERCIAL-IN-CONFIDENCE SECURITY CALCULATION: EXPLORATION OPERATIONS

APPENDIX 5: *COMMERCIAL-IN-CONFIDENCE LANDOWNER ACKNOWLEDGMENTS

APPENDIX 6: 2014 LEVEL 1 FLORA AND FAUNA SURVEY

FloraFaunaSurvey_NorthBattenProject31_

APPENDIX 7: MMG 2016 SUSTAINABILITY REPORT

MMG_Sustainability-Report-2016.pdf

exploration operations mining management plan and … · 2017. 6. 25. · lorella springs station...

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