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MINING PROPOSAL

for

MT HENRY, PART 1

HIGGINSVILLE GOLD OPERATIONS

MT HENRY PART 1 COMPRISES THE FOLLOWING MINING LEASES: M63/515: Mt Henry Pit, ROM, Water Dam, Site Office, Workshop, Topsoil Stockpiles, Mawson

Waste Dump, Woodward Waste Dump Stage 1

L63/64: Main Access Road

Prepared by: METALS X March 2016

Metals X Mining Proposal for Mt Henry– Part 1

March 2016

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MINING PROPOSAL CHECKLIST (as per Appendix 6 in Mining Proposal Guidelines)

Q No Mining Proposal Checklist Y/N Page Comments

Public Availability

1 Are you aware that this Mining Proposal is publicly availability?

Y

2 Is there any information in this mining proposal that should not be publicly available?

N

3 If ‘No’ to Q2, do you have any problems with the information contained within this Mining Proposal being publicly availability?

N

4 If ‘Yes’ to Q2, has confidential information been submitted in a separate document / section?

N/A

5 Has the Mining Proposal been endorsed? (See last page Checklist.)

Y

Mining Proposal Details

6 Have you included the tenement number(s), site name, proposal overview and date in the title page?

Y

7 Who authored the Mining Proposal? Metals X

8 State who to contact for enquiries about the Mining Proposal?

Kellie Carter, Environmental Department, Higginsville Gold Operations

9 How many copies were submitted to DMP? Hard Copies = 1 DMP Office Kalgoorlie

Electronic = 1. Online

10 Is this Mining Proposal to support lease application?

N In future application for P63/1890 to a General

Lease to be applied

11 Has a Geological Resource Statement been included (refer section 4.3.2 of Mining Proposal Guidelines)

Y Refer Table 2

12 Will more than 10 million tonnes of ore and waste be extracted per year? State total tonnage.

N

13 Will more than 2 million tonnes or ore be processed per year? State total throughput.

N Supplementing feed to the Higginsville Gold

Operation

14 Is the Mining Proposal located on pre-1899 Crown Grant Land? (not subject to the Mining Act 1978)

N

15 Is the Mining Proposal located on Reserve Land? If ‘Yes’ state Reserve types in space below:

N No mining activities or infrastructure or clearing located on Reserve land.

16 Will the Mining Proposal occur within or affect a declared occupied town site?

N

17 Is the Mining Proposal within 2 km of the coastline or a Private Conservation Reserve?

N

18 Is the Mining Proposal wholly or partially within a World Heritage Property, Biosphere Reserve, Heritage Site or Soil Reference Site.

N


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Tenement Details

19 Are all mining operations within granted or applied for tenement boundaries?

Y

20 Are you the tenement holder of all tenements? Y

21 If ‘No’ at 20, do you have written authorisation from the tenement holder(s) to undertake the Mining Proposal activities? (Refer to section 4.2.1 of the Mining Proposal Guidelines)

N/A

22 Is ‘Yes’ at 21, then is a copy of the authorisation contained within the Mining Proposal?

N/A

23 Have you checked for compliance against tenement conditions?

Y All conditions checked up on DMP database Mineral Titles Online

Location and Site Layout Plans

24 Have you included location plans showing tenement boundaries and mining operations?

Y Appendix 1

25 Have you included site layout plans showing all mining operations and infrastructure in relation to tenement boundaries?

Y Appendix 1

26 Have you included “Area of Disturbance Tables” for all tenements impacted by mining operations?

Y Table 9

Environmental Protection Act

27 Does the Mining Proposal require referral under Part IV or the MOU? If ‘Yes’ describe why in space below:

N

28 Has the EPA set a level of assessment? If yes state:

N/A

29 Is a clearing permit required? If ‘No’ then explain why in space below?

Y

30 If ‘Yes’ at Q29 then has a permit been applied for?

Y Yes Approved

31 Is a Works Approval required by the DEC (formerly DoE)?

N

32 Has a Works Approval application been submitted to the DEC (formerly DoE)?

N


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Stakeholder Consultation

33 Have the following stakeholders been consulted? (use N/A if not applicable)

Shire?

Y A copy of this proposal to be presented to the

Dundas shire

Pastoralist? N Vacant Crown Land

DEC (formerly CALM)? N

Main Roads? N

Others? (specify):

Y Approval for Mt Henry Safety Management Plan to be submitted to DMP Safety Division.

Environmental Assessment & Management

34 Is the Mining Proposal wholly or partially within DEC (formerly CALM) managed areas?

N

35 If ‘yes’ at Q34 has DEC (formally CALM) been consulted?

N/A

36 Is the Mining Proposal wholly or partially within a Red Book Area or a Bush Forever Site?

N

37 Will the Mining Proposal impact upon a Water Resource Area, Water Reserve, declared or proposed catchment, Groundwater Protection Area, significant lake or Wetland?

N

38 Is a water or de-watering licence required? Y Already Applied for October 2015

39 If ‘Yes’ at Q38 then has the licence(s) application been submitted?

Y

40 Does the Mining Proposal include a new tailings storage facility or changes to existing tailings storage facility?

N

41 Have waste characterisation assessments been undertaken (e.g. AMD, dispersiveness, salinity)?

Y Yes Attached as Appendix 6

42 Have flora and fauna surveys been undertaken? Y Yes Attached as Appendix 3 and 4

43 Are any rare / endangered species present? N

44 Has a Preliminary Closure Plan has been included?

N HGO will provide a separate specific Mt Henry Mine closure plan which has been reviewed by DMP


March 2016

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Table of Contents ___________________________________________________________________________________________________________________________________________________________________________________

1. SUMMARY AND COMMITMENTS ............................................................................................. 1

2. BACKGROUND INFORMATION ................................................................................................ 2

2.1. OWNERSHIP.......................................................................................................................... 3

2.2. PROJECT OBJECTIVES ........................................................................................................... 3

2.3. LOCATION AND SITE LAYOUT PLANS ....................................................................................... 4

2.4. HISTORY ............................................................................................................................... 8

2.5. EXISTING FACILITIES ............................................................................................................. 9

3. EXISTING ENVIRONMENT ...................................................................................................... 10

3.1. REGIONAL GEOLOGY ........................................................................................................... 10

3.2. LOCAL GEOLOGY (MT HENRY PIT) ....................................................................................... 11

3.3. CHARACTERISATION OF WASTE ROCK AND TAILINGS ............................................................. 12

3.4. LANDFORM AND SOILS ......................................................................................................... 15

3.5. REGIONAL HYDROGEOLOGY ................................................................................................ 16

3.5.1. Mt Henry Pit Hydrogeology ........................................................................................ 16

3.6. CLIMATE ............................................................................................................................. 18

3.7. SURFACE DRAINAGE ........................................................................................................... 18

3.8. FLORA ................................................................................................................................ 19

3.9. FAUNA ................................................................................................................................ 22

3.10. SOCIAL ENVIRONMENT ........................................................................................................ 25

4. PROJECT DESCRIPTION ........................................................................................................ 27

4.1. AREA OF DISTURBANCE ....................................................................................................... 27

4.2. MINING OPERATIONS- MT HENRY PIT ................................................................................... 27

4.3. ORE TRANSPORT ................................................................................................................ 31

4.4. ORE PROCESSING .............................................................................................................. 31

4.5. TAILINGS STORAGE ............................................................................................................. 31

4.6. SUPPORT FACILITIES ........................................................................................................... 31

4.7. WORKFORCE ...................................................................................................................... 32

4.8. RESOURCE REQUIREMENTS AND REGIONAL INFRASTRUCTURE .............................................. 32

4.9. COMPLIANCE WITH LEGISLATION AND OTHER APPROVALS ..................................................... 32

5. ENVIRONMENTAL IMPACTS AND MANAGEMENT ............................................................... 33

5.1. LAND CLEARING .................................................................................................................. 33

5.2. WATER ............................................................................................................................... 34

5.2.1. Groundwater .............................................................................................................. 34


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5.2.2. Potable Water ............................................................................................................ 34

5.3. FLORA, FAUNA AND ECOSYSTEM .......................................................................................... 34

5.4. TOPSOIL AND SOIL PROFILES ............................................................................................... 35

5.5. DOMESTIC AND INDUSTRIAL WASTE PRODUCTS .................................................................... 35

5.6. TAILINGS MANAGEMENT ...................................................................................................... 35

5.7. WASTE ROCK DUMP DESIGN ............................................................................................... 35

5.8. WASTE ROCK DUMP PAF MANAGEMENT .............................................................................. 39

5.9. HYDROCARBON MANAGEMENT ............................................................................................. 41

5.10. DANGEROUS GOODS AND HAZARDOUS SUBSTANCES ............................................................ 41

5.11. ATMOSPHERIC POLLUTION AND NOISE .................................................................................. 41

6. SOCIAL IMPACTS ................................................................................................................... 43

6.1. HERITAGE ........................................................................................................................... 43

6.2. LAND USE AND COMMUNITY ................................................................................................. 43

6.3. SOCIAL ENVIRONMENT ........................................................................................................ 43

6.4. WORKFORCE INDUCTION AND TRAINING ................................................................................ 44

7. MINE CLOSURE ...................................................................................................................... 45

7.1. POST MINING LAND USE ...................................................................................................... 46

7.2. REHABILITATION .................................................................................................................. 46

7.2.1. General Closure Implementation Management Actions ............................................. 46

7.2.2. Open Pit .................................................................................................................... 47

7.2.3. Waste Rock Final Landform ....................................................................................... 48

7.2.4. Administration, Workshop and Infrastructure ............................................................. 49

7.2.5. Water Management and Drainage Structures ............................................................ 49

7.2.6. Roads, Corridors and Fences .................................................................................... 50

7.2.7. Exploration ................................................................................................................ 50

7.3. STRATEGIC FRAMEWORK FOR MINE CLOSURE ...................................................................... 50

7.4. SUBMISSION OF MINE CLOSURE PLAN DOCUMENTS .............................................................. 51

Appendix 1 Site Layout Plans Appendix 2 Higginsville Environmental Management Plan Appendix 3 Flora Report- Mattiske Appendix 4 Fauna Report- Western Wildlife Appendix 5 Groundwater Report- GDS

Appendix 6 Geochemical Analysis of Waste Material- RGS


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1. SUMMARY AND COMMITMENTS

The Mt Henry Gold Operation is located 20 km south of Norseman and 70 km south of the

Higginsville Gold Operations in the Goldfields region of Western Australia. Mt Henry Pit is accessed

via the goldfields Esperance highway via a haul road on L63/64. This Mt Henry Part 1 Mining

Proposal comprises the following mining leases:

M63/515: Mt Henry Pit, ROM, Water Dam, Site Office, Workshop, Topsoil Stockpiles, Mawson



Commitments to reduce potential environmental risks and issues associated with the development of

the Mt Henry Mining Proposal Part 1 include:

Commitment 1: All clearing will be preapproved and viewed by the Environmental

Coordinator.

Commitment 2: Dust suppression through the use of saline groundwater will be used on

haul roads to minimise the impacts of dust on the surrounding

environment.

Commitment 3: Drains, culverts and catchment sumps will be constructed along all land-

based roads and surface infrastructure to prevent the egress of hyper-

saline water to the surrounding vegetation except under heavy rainfall

conditions.

Commitment 4: Higginsville Gold Operations has developed an Environmental

Management Plan, including procedures to ensure that the

environmental impacts of the project are minimised and Mt Henry will fit

within the overall Higginsville Gold Project plan.

Commitment 5: An updated specific mine closure plan has been documented for Mt

Henry, it is Higginsville Gold Operations proposal to incorporate this

closure plan into the Higginsville Site closure plan which is due for

resubmission in 2016. Various knowledge gaps and additional

commitments within the plans and this mining proposal will be included

within the new plan.

Commitment 6: A new Safety Bund wall around the Mt Henry pit will be constructed with

fresh rock prior to pit being closed off and project finished.

Commitment 7: Mt Henry Pit entrances will be bunded; to stop public access to pits once

mining is complete.

Commitment 8: Mt Henry pit waste dump primary earthworks will be finished during life

of project or within 6 months of Mt Henry mining being completed.

Including spreading topsoil, subsoil, mulch, contour ripping and seeding

of waste dump.


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2. BACKGROUND INFORMATION

Gold was first discovered in the Dundas Hills area in 1892, which resulted in gold prospectors moving

into the area and establishing the townsite of Dundas in 1893, which is located in close proximity to

the project. In 1894 Norseman was established and as it was in a location of richer goldfields, it

gradually outgrew the Dundas townsite. The townsite, which was located just west of the Mt Henry

Joint Venture tenements, was eventually abandoned. A commemorative plaque remains there today.

The Central Norseman Gold Corporation held most of the tenements in the project area from 1935 to

1980. Since that time exploration activities have occurred under several companies, with mining of

the Mt Henry Pit and underground occurring from 1982-1988 on M63/515 by Australis Mining NL. No

approvals for this historic mining are listed on tenement conditions.

In 2010, DMP approved a Mining Proposal to develop the Mt Henry Pit however the proposal was

never implemented. The following shows a timeline of recent activity in the Mt Henry area:

2010 – DMP approved a Mining Proposal for a mining operation around the Mt Henry deposit for Matsa.

2011 – Panoramic entered into a Joint Venture with Matsa.

2011 – 2014 – Ongoing exploration and baseline studies.

2015 – Metals X acquired the Mt Henry Gold Project from Panoramic and Matsa

February 2016 – Metals X commenced Infill drilling of the Mt Henry Pit Area.

This Mining Proposal, termed Mt Henry Mining Proposal Part 1, is associated with the cut back/open

pit mining of Mt Henry Pit and carting ore via the Goldfields Esperance Highway to Higginsville Gold

Operations for complete processing. Higginsville’s 1Mtpa treatment plant has been in operation since

2008 and will be utilised to treat the large low grade, low strip ratio Mt Henry open cut pit. Future

plans to extend the Mt Henry Woodward waste dump (Stage 2) as well as mine two additional

deposits Selene and North Scotia will be presented in the future, within separate mining proposals.

In November 2013, the Department of Mines and Petroleum accepted the Higginsville Gold

Operations Mine Closure Plan which is due for resubmission in 2016.

Mt Henry also has a specific mine closure plan written with this mining proposal. In 2016 Metals X

propose that the two closure plans be incorporated into the one. Various knowledge gaps and

additional commitments within the existing plans and this mining proposal will be incorporated into the

new plan.


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2.1. OWNERSHIP

Ownership details of tenements are listed in Table 1 below. Avoca Mining Pty Ltd are wholly owned

subsidiaries of Metals X Limited, which therefore own 100% of the Mt Henry tenements.

Tenement Owner % Ownership

M63/515

L63/64

Avoca Mining Pty Ltd

Avoca Mining Pty Ltd

100%

100%

Table 1: Ownership Details

M63/515: Mt Henry Pit, ROM, Water Dam, Site Office, Workshop, Topsoil Stockpiles, Mawson



2.2. PROJECT OBJECTIVES

The key objectives and project resource for the Mt Henry Pit are detailed in Table 2.

Key Project Objectives

Mineral to be Mined Gold

Ore 8,339,050t @1.49g/t

Minable Ounces 367,000 oz

Strip Ratio 5:1

Waste rock materials – Total 41,846,931t

Approx Main Surface RL 270mRL

Top of Ridge Surface RL 223mRL

Depth of Void 150 meters

Water table depth 10-35 meters below surface

Open Pit Mining Method Conventional - 5m Benches

Maximum mill feed rate (with inferred) 110,000 tonnes per month

Life of Mine (Reserve / with inferred) 60 months Recovery (Au) 90%

Resource (Indicated & Inferred) 17,964,[email protected]/t

Resource ounces (Indicated & Inferred) 775,879 oz

Project Resources as of Date March 2015 Optimised By Intermine Engineering Consultants

Table 2: Key Objectives / Project Resource for the Mt Henry Pit

The prime objective of this proposal is the mining of Mt Henry Pit as additional feed to the Higginsville

treatment plant. The following assumptions explain the project in further detail.


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1. A majority of this development utilises land/tenements that were previously mined in the

1980’s by Australis Mining NL, previous tenement holders include Matsa Resources Limited

and Panoramic Resources Limited

2. The Mt Henry pit mineralisation strikes north to South for a distance of 1.0km and extends

from the top of the ridge line to a depth of 270m. Mineralisation primarily consists of broad

zones up to 35m in width with a number of narrower lodes adjacent dipping at approximately

70° to the west.

3. Ore will be hauled from the Mt Henry Pit via the Coolgardie Esperance Highway to Higginsville

Gold Operations for processing which is approximately 85 km in distance

4. Ore produced will be treated at the Higginsville Treatment Plant which was commissioned in

June 2008 and is currently being fed from the Trident underground mine and Lake Cowan

open pits.

5. Workforce will be obtained for Mt Henry project from the local regional centres including

Norseman and will supplement with fly-in, fly-out personnel from Perth.

6. Minimal resources and set up is required, as it will be done as part of the existing Higginsville

Gold Project, with only a site office and workshop being set up at Mt Henry

7. Mining of Mt Henry pit is medium term with an expected timeframe of approximately 60

months, and will be mined in conjunction with other ore source from the Higginsville Gold

operations.

8. A lease application to convert P63/1890 to G63/7 is currently in progress as soon as it is

approved an addendum to this Mining Proposal will be submitted allowing the extension of the

Woodward Waste dump to the West.

2.3. LOCATION AND SITE LAYOUT PLANS

As shown in Figure 1 The Mt Henry Gold Operation is located 20 km south of Norseman and 70 km

south of the Higginsville Gold Operations in the Goldfields region of Western Australia A larger set of

site layout plans is included in Appendix 1 of this Mining Proposal.

These site plans Figures 1 - 3, show the conceptual layout of the proposed Mt Henry pit, mining area

and surrounding infrastructure tenement boundaries.


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Figure 1: Higginsville / Mt Henry location


March 2016

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Figure 2: Mt Henry tenure


March 2016

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Figure 3: Proposed Mt Henry Pit


March 2016

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2.4. HISTORY

Higginsville Gold Operations currently operates in two main project areas Higginsville and Lake

Cowan with Mt Henry being the 3rd and new project area. Chalice mine is currently in care and

maintenance.

Higginsville Gold Operations commenced in 2006 with preparation of the Trident underground gold

mine followed by a new mill being constructed a few years later. Table 3 is a history of Higginsville

Gold Operations approved mining projects/proposals.

Mining Proposal – Document Title Date Approved DMP Reference

Number

Mining Proposal Trident– (Part 1)

March 2006

5316

Mining Proposal Trident – (Part 2) January 2007 5612

Mining Proposal Trident – (Part 3) July 2007 5729

Mining Proposal Higginsville Tailings Storage Facility (TSF) December 2007 5888

Mining Proposal Trident – (Part 4) April 2008 5926

Mining Proposal Pastefill Plant March 2009 21320

Mining Proposal Fairplay Open Pit (Part1) March 2010 24663 & 26039

Mining Proposal Dewater Chalice Pit to Aphrodite Pit June 2010 26797

Mining Proposal Dewater Chalice Pit to Chalice West Lake January 2011 28042

Mining Proposal for Chalice Underground Mine (Part 1) March 2011 29493

Mining Proposal for Vine Open Pit (Part 1) April 2011 30107

Mining Proposal for Chalice Underground Mine (Part 2) September 2011 31259

Mining Proposal for Vine Open Pit (Part 2) October 2011 32103

Mining Proposal for Fairplay Pit (Part 2) (Fairplay North Pit) May 2012 33947

Mining Proposal for Higginsville TSF Lift August 2012 35354

Mining Proposal for Corona Underground (Part 1) September 2012 36144

Mining Proposal for Chalice Underground Mine (Part 3)

Integrated Waste landform

June 2013 39370

Mining Proposal Mining of Chalice Gravel Pit October 2013 43220

Mining Proposal Dewater Chalice Underground to Chalice

West Lake

January 2014 43791

Mining Proposal Lake Cowan Part 1 (Louis Pit) April 2014 47320

Mining Proposal Lake Cowan Part 2 (Josephine pit and

Haul Road)

August 2014 50744

Mining Proposal Lake Cowan Part 3 (Napoleon Pit) December 2014 53122

Mining Proposal Aphrodite Inpit TSF September 2015 55735

Mining Proposal Fairplay Pits Part 3 (Fairplay North Pit,

East Pit and Cutback Pits)

October 2015 56173

Mining Proposal Mt Henry Part 1 (this document)

Table 3: HGO’s approved Mining Proposals.


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2.5. EXISTING FACILITIES

The mining related disturbances associated with mining at Mt Henry pit by Australis Mining NL in the

1980’s are still visible and Metals X is using these previously disturbed areas as much as possible for

the mining and expansion of the Mt Henry pit. Apart from existing mining disturbances there are no

existing physical facilities on site. The Coolgardie Esperance Highway will be utilised for access to

the site and for transportation of the ore to the Higginsville Gold Operation for processing.

The existing Higginsville accommodation village will continue to be used for the housing of personnel

as well as local accommodation within the Norseman community.


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3. EXISTING ENVIRONMENT

3.1. REGIONAL GEOLOGY

Greenstone rocks of the Norseman region can be broadly correlated with the Kalgoorlie-Kambalda

region in that they form a distinct lithology which is bounded on all sides by major regional shears.

The Norseman Terrane has prominent Banded Iron Formation (BIF), which distinguishes it from the

Kalgoorlie-Kambalda lithology.

The Archean rocks in the Norseman area have been classified into the following series of formations:

Penneshaw Formation: The Penneshaw Formation forms the greenstone sequence on the eastern

side of the belt. It consists of mafic volcanic rocks with interlayered units of felsic volcaniclastic and

sedimentary rocks, and is intruded by doleritic sills and dykes. This formation is intruded by the

Buldania Granite complex in the east and is structurally overlain by the Noganyer formation in the

west.

Noganyer Formation: The Noganyer Formation forms a distinct sedimentary sequence of siliclastic

rocks, principally silicate facies BIF, chert, sandstone and shales. Intrusion of dolerite dykes and

sills are common throughout. The Mt Henry and Selene gold deposits are hosted in the Noganyer

Formation. This formation is conformably overlain by the Woolyeenyer Formation.

Woolyeenyer Formation: The Woolyeener Formation both dips and faces west and consists of a

sequence of mafic volcanic rocks with minor ultramafics and sedimentary units. Syn-volcanic

dolerite dykes and sills intrude the strata and Noganyer Formation below. This formation hosts the

Norseman style quartz reef gold mineralisation as well as the Abbotshall gold deposit which is

hosted in a regionally extensive porphyry/siliceous sedimentary unit of the Woolyeenyer Formation.

It is unconformably overlain by the Mt Kirk Formation.

Mt Kirk Formation: The Mt Kirk Formation consists of felsic volcanic and sedimentary rocks which

are intruded by large, thick mafic sills. The Mt Kirk Formation is bounded to the west by a granite-

gneiss complex. No gold deposits have been found in the Mt Kirk Formation.

Intrusive Rocks: Intrusive rocks in the Norseman area comprise:

Large external granitoid complexes that bound the greenstone belt to the southeast and

southwest.

A suite of domal granites and porphyry that intrude the western granitoid complex and the

Woolyeenyer Formation.

Stocks of potassic granite and associated pegmatite.

Proterozoic dolerite dykes that intrude sets of east-west fractures in the craton.

The solid rock geology is overlain by Quaternary and Tertiary sediments, comprising aeolian dune

deposits, alluvium and colluvium. These include Tertiary Wollubar Sandstone which forms the basal

sand within the palaeochannels. These are overlain by silts and clays of the Perkolilli Shale, which

outcrop under Lake Dundas and the greater Lake Cowan palaeochannel system.


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3.2. LOCAL GEOLOGY (MT HENRY PIT)

The Mt Henry deposit is hosted in the Noganyer Formation as described in the above section. The

host rock is predominantly silicate facies BIF with minor meta-basalts and dolerites. Sulfide minerals

range from trace to 10%. The predominant sulfide mineral is pyrrhotite with minor pyrite, arsenopyrite,

chalcopyrite and marcasite. Gold occurs in narrow and discrete quartz veins in clouds with silicate

minerals. It also occurs in close proximity to sulfide minerals, particularly pyrrhotite.

The main lode is an elongated orebody that is 1.9 km long, six to ten meters wide and dips at 65º

towards the west. It occurs as a mineralised shear usually (but not always) along the hanging wall

contact of the BIF. The mineralisation can occur along the contacts and into the overlying chert and

dolerites of the Woolyeenyer Formation as well as underlying dolerite sills where they occur.

The shear that hosts the mineralisation within the BIF strikes north to south and dips 65º towards the

west, paralleling the stratigraphy. Late pegmatite dykes cut across all previous geology and deplete

mineralisation where they cross the lodes. Apart from the main lode, there are several minor footwall

lodes and two discrete supergene lodes.

Oxidation goes to a maximum depth of 30 m in pockets. As the ore zones are high in sulfides, the

ore body is more oxidised than the hanging wall and footwall waste rocks. It has been assumed that

the rocks will be fairly “fresh” from depth 20 to 30 m from the natural surface, and that the first few

metres will be transitional.

Figure 4: Cross-section of the geology of the Mt Henry Pit showing key geological features


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3.3. CHARACTERISATION OF WASTE ROCK AND TAILINGS

No new or any increases amounts of tailings will be produced as a result of this proposal. All ore will

be trucked and treated at the Higginsville Gold Operations treatment plant.

Several material characterisation assessments have been undertaken at the project over the past few

years. The most recent and comprehensive assessment was undertaken by consultant RGS (2014)

where 148 waste rock samples were collected from 42 drill holes providing a good representation of

all the waste rock expected to be generated at the Mt Henry Pit. This report is attached as Appendix

6; Figure 5 shows waste characterisation sample location within Mt Henry Pit.

Figure 5: Waste characterisation sample location within Mt Henry pit.


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There are five waste rock types identified within the Mt Henry pit. Percentages of the waste type are

listed in Table 4. A portion of waste rock is classified as Predominantly Acid Forming (PAF). This is

contained within the BIF, it is easily recognisable and can be visually identified in advance of

excavation and an appropriate destination planned for the material.

Percentage of

Waste Within

the Mt Henry

Deposit

Waste Type Preliminary Characteristics

50% Mafic basalt and dolerite Predominantly Non Acid Forming (NAF)

33.% Banded Iron Formation (BIF) Predominantly Acid Forming (PAF)

6% Pegmatites Predominantly Non Acid Forming (NAF)

11% Sediments and schists Variable

>1% Quartz reef Non Acid Forming (NAF)

Table 4 Mt Henry pit waste characterisation.

PAF waste will be managed by encapsulating the PAF material within no acid forming (NAF) material

prior to completion of the waste dumps. Details on the dump construction can be seen in Section.5

A summary of waste rock physical characteristics is taken from Appendix 6 is below:

The Mt Henry project has undergone characterisation with respect to sodicity, salinity (in leachate),

dispersive potential and particle size distribution. Investigation findings are set forth below followed by

a discussion of the influence of material characterisation on mine planning and landform design.

Cation Exchange Capacity and Sodicity: The effective cation exchange capacity (eCEC) and

exchangeable sodium percentage (ESP) results for 12 selected samples (8 Mafic B&D and 4

Pegmatite waste rock samples from the 22 composite waste rock samples described in the RGC

Report. These rock types were selected for testing as they are likely to report to the outer surfaces of

waste rock dump facilities.

The exchangeable cation results indicate that the eCEC of the 12 waste rock samples ranges from

2.6 to low 24 meq/100g, and is typically low (median = 9.4 meq/100g). The eCEC values for

Pegmatite are typically in the “very low” range compared to the “moderate” range for Mafic B&D

(Table 4-3).


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The ESP results for the waste rock samples range from low (2.8%) to high (44.9%) and are typically

low for Pegmatite and slightly elevated for Mafic B&D, indicating that Mafic B&D is likely to be non-

sodic and that Pegmatite could be moderately sodic. Generally samples with ESP values less than 6

are considered non-sodic, whereas greater than 6 are considered moderately sodic, and greater than

14 are considered strongly sodic and may be susceptible to dispersion and erosion (Isbell, 2002; and

Northcote and Skene, 1972).

Overall, the results of the eCEC and ESP tests on the waste rock samples indicate that the materials

represented by these samples are likely to have low to moderate sodicity levels (dependant on rock

type) and have a low to moderate risk of being susceptible to dispersion and erosion.

Particle Size Distribution and Emerson Aggregate Tests: In order to further investigate the

potential for using waste rock materials as part of construction, revegetation and rehabilitation

activities at the Project, Particle Size Distribution (PSD) and Emerson Aggregate tests were

completed on the representative composite samples of waste rock materials described above. The

results from the PSD tests and Emerson Aggregate test are provided in the RGC report. Whilst

performed on crushed materials, these tests are required to address recommendations in WA

guidelines for preparing Mine Closure Plans (DMP and EPA 2011).

The PSD results indicate that the samples are described as sandy gravel and generally have a

particle size distribution range that goes from silt to fine gravel. For most samples, at least 50% of the

sample passes through a 2.36 mm screen size.

The Emerson Aggregate Test results indicate that all samples are classified in the range Emerson

Class 5 to 8, which suggests that the materials are either non-dispersive (Mafic B&D) or have a

relatively low propensity to disperse (Pegmatite). These test results align reasonably well with the

findings of the eCEC and ESP results.

Salinity: The EC value of KLC leachate from most waste rock samples is relatively low and less than

1,000 μS/cm. Three waste rock samples have EC values in initial leachate greater than 1,000 μS/cm

[Mafic B&D (Mt Henry)-2], Mafic B&D (Mt Henry)-7, however the data show a decreasing trend and

most EC values remain significantly less than 500 μS/cm after two years of leaching. The initial

elevated EC values are probably due to the increased solubility of minerals through crushing the

waste rock materials before loading into the KLC test columns.


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3.4. LANDFORM AND SOILS

Between Norseman and Kalgoorlie there is a concentration of greenstone belts that contain a mixture

of metamorphosed mafic to ultramafic volcanic rocks (including basalt, amphibolite, dolerite and

gabbro), felsic volcanic rocks, and meta sedimentary rocks (including cherts and banded iron

formations) Mt Henry project lies at the southern extent of the NorsemanWiluna Greenstone Belt and

is described as zone 265 as per described by P Tille 2006, Soil Landscapes of WA’s Rangelands

and Arid Interior, Figure 6.

Figure 6: Soil landscape zones of the Kalgoorlie provence.

“The undulating plains have extensive areas of calcareous loamy earths with red loamy earths and

red loamy duplexes (shallow and deep). Red/brown and yellow loamy earths, red shallow sands and

cracking clays are also present. Salt lake soils are present in saline valley floors and Red deep sands

are found on lunettes associated with lakes. The gently sloping uplands on granite have yellow sandy

earths and yellow loamy earths, with some yellow deep sands and ironstone gravelly soils. The hilly

terrain on greenstone has red loamy earths, calcareous loamy earths and calcareous shallow loams,

along with stony soils and red shallow loams. Sand plains have red deep sands, with some yellow

deep sands in the west. On the sandy surfaced plains there are red deep sands and red loamy earths

with red sandy earths”

(Department of Agriculture and Food, 2006, Soil landscapes of WAs Rangelands and Arid Interior, P.

Tille)

Generally soils in the goldfields region are typically alkaline with a pH range of 7.0 to 9, low soil

fertility and electrical conductivity of 14mS/cm, indicating moderate soil salinity. Section 5.4 details

topsoil management.


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3.5. REGIONAL HYDROGEOLOGY

(Section 3.5 extracted from H1 Desktop Hydrogeological Assessment, Mt Henry Open Pits, October

2015, complete by Groundwater Development Services)- Attached as Appendix 5.

Groundwater in the area is characterised by low relief and easterly draining palaeo-drainage systems

underlain by Archean sequences. Groundwater levels range from 250 to 275 mAHD at the Mt Henry

deposit and around 245mAHD at Lake Dundas.

In this area, groundwater typically occurs in:

Regional catchment controlled flow systems in fresh and weathered fractured rock aquifers.

Tertiary palaeochannel sands (Wollubar Sandstone).

Calcrete units that commonly overlie palaeochannel deposits.

Shallow alluvium.

Groundwater recharge by direct rainfall infiltration or by stream flow during episodic rainfall events

occurs mainly on or adjacent to the catchment divides, beneath which there are corresponding,

subdued groundwater divides. The groundwater moves from these divides to discharge into salt

lakes along the palaeo-drainages. In the salt lake’s the groundwater is evaporated and concentrated

to brine, which then descends and moves downstream in the palaeochannel sand to eventually

discharge into the Eucla Basin

Groundwater salinities in the project area typically range from about 1,000 to 200,000 mg/L Total

Dissolved Solids (TDS). Low salinity groundwater, ranging from 1,000 to 5,000 mg/L TDS occurs in

areas most affected by direct rainfall recharge, e.g. near catchment divides and within shallow

alluvium and calcrete units. The highest salinity groundwater occurs low down in the catchments

within palaeochannel sands and deeper fractured rock aquifers.

Small supplies of groundwater can be found throughout the area. Large, fresh groundwater supplies

are rare, but large, reliable supplies of saline to hypersaline groundwater are obtainable from the

palaeochannel sand and site specific shear zones and deeply oxidised zones in the fractured rocks.

3.5.1. MT HENRY PIT HYDROGEOLOGY

Indications at present are that Mt Henry pit will produce saline groundwater at a maximum flow rate

(~5.5 litre/sec) and be intersected between 10-35 meters below surface, after which a sump will be

constructed within the Pit and water utilised for dust control from a water cart. The dust control

requirements at project commencement may not be met through pit dewatering so an alternative plan

is to install a lake drainage interception trench on the edge of Lake Dundas (Described water dam on

maps) to extract further groundwater at project commencement. Water extraction licences have


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currently been applied for at the Mt Henry Project area. It is envisaged that as part of the groundwater

licence pit water and groundwater extraction points will be sampled and water level recorded

quarterly until the end of the mining operation.

Groundwater salinity of the Mt Henry pit ranges from 10,000 mg/L (MTHWE02) in the north to

121,000 mg/L TDS (MTHWE07) in the south. It was concluded that groundwater salinity increased

down dip of the orebody lithology. Higher salinity was considered to be representative of the ambient

groundwater quality in the crystalline bedrock. The analytical results have been reproduced below in

Table 5. The water quality results show hypersaline water quality which is representative of

groundwater and surface water in the Dundas Paleodrainage system.

Analyte Unit MTHWE02 MTHWE03 MTHWE04 MTHWE07

pH 7.3 7.5 7.7 7.1

Total Dissolved Solids mg/L 10,000 17,400 18,200 121,000

Electrical Conductivity mS/cm 16 20 27 140

Bicarbonate alkalinity as HCO3 mg/L 240 320 460 170

Carbonate alkalinity as CO3 mg/L <1 <1 <1 <1

Hydroxide alkalinity as OH mg/L <5 <5 <5 <5

Total alkalinity as CaCO3 mg/L 190 260 380 140

Chloride mg/L 4,100 5,700 6,900 63,000

Sulphate mg/L 2,200 5,100 5,000 9,200

Nitrate, NO3 mg/L <0.05 <0.05 0.06 <0.05

Aluminum, Al mg/L <0.02 <0.02 <0.1 <1

Arsenic, As mg/L <0.02 <0.02 <0.1 <1.0

Calcium, Ca mg/L 290 370 490 450

Cobalt, Co mg/L 0.01 0.02 <0.05 <0.05

Copper, Cu mg/L <0.005 <0.005 <0.025 <0.25

Iron, Fe mg/L 6.5 <0.02 <0.1 <1

Magnesium, Mg mg/L 550 800 1,000 5,700

Manganese, Mn mg/L 2.5 2.6 1.7 4.1

Nickel, Ni mg/L 0.024 0.099 0.062 0.39

Potassium, K mg/L 64 84 100 370

Silica, soluble mg/L 52 49 52 17

Silicon, Si mg/L 24 23 24 7.8

Sodium, Na mg/L 2,600 5,000 5,500 40,000

Zinc, Zn mg/L 0.03 0.09 <0.05 <0.05

Total hardness by calc CaCO3/L CaCO3//L 3,000 4,200 5,400 24,000

Table 5: Groundwater analysis results


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3.6. CLIMATE

Higginsville and the Mt Henry project experiences an arid to semi-arid climate with hot summers and

mild winters with cool nights. Rainfall is unreliable, but mean delivery per month tends to be slightly

higher during the winter period. Rainfall patterns are typically associated with cold fronts in winter

and thunderstorms and rain bearing depressions in summer.

Temperatures range in summer from 15ºC to the high 30ºC early 40ºC’s. Winter ranges from 0ºC to

the low 20ºC; the coldest month is July when some frosts can be expected.

The closest official Bureau of Meteorology (BoM) weather recording station is at Norseman where

climate data is available for the period from 1897 to 2014.

Statistic Element Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual/ Average

Mean maximum temperature (ºC)

32.6 31.3 28.8 24.6 20.4 17.5 16.8 18.5 21.6 25.0 28.1 30.7 24.7

Mean minimum temperature (ºC)

15.8 15.9 14.5 11.6 8.5 6.3 5.1 5.4 7.3 9.7 12.3 14.1 10.5

Mean Monthly rainfall (mm)

19.9 24.9 24.4 23.4 30.5 30.1 26.8 24.8 21.4 20.3 20.4 21.4 288.2

Table 6: Climate data for Norseman (source: BoM, 2014)

3.7. SURFACE DRAINAGE

In regard to minor surface water drainage surrounding the Mt Henry Project Area. Ongoing

engineering work will be undertaken to ensure surface drainage and runoff continues as currently

established. Runoff will naturally flow towards Lake Dundas. Stormwater runoff will be channelled

around any proposed pits.

Mt Henry area is located on elevated ground to the NW of Lake Dundas. No diversions will be

required as pits and waste dumps currently site outside main drainage lines. On the north side of Mt

Henry pit surface water drains to the north while at the southern end of the pit surface water drains

south east back towards lake Dundas. There are no expected drainage issues with this project as it

does not sit within a floodway or main drainage line. These main drainage channels can be seen in

Figure 7, shown in light blue as well as Appendix 1.

In regards to Lake Dundas, a lake bed flood depth between 0.5m-1 m would be expected after a

1/100 year flood event.


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Figure 7: Mt Henry surface water drainage lines (drawn in light blue)

3.8. FLORA

A flora and vegetation survey (3400ha) of the Mt Henry project area was undertaken by Mattiske

Consulting Pty Ltd (Mattiske) in 2012 and 2013. This report has been provided as Appendix 3 with

the summary presented below.

The initial Level 2 flora and vegetation survey was undertaken from 23 to 26 October 2012, and a

second survey from 10 to 14 June 2013 to capture seasonal variation and to provide more detailed

flora and vegetation data for the Mt Henry Project area. This mining proposal falls within this study

area.

No threatened flora species were recorded during the surveys, however, eight priority flora species

were recorded by Mattiske and a further three have been previously recorded by other consultants

within the Mt Henry survey area Table 7.


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SPECIES CONSERVATION

STATUS

MATTISKE

RECORD

OTHER

RECORD

Eucalyptus ?jimberlanica P1 X

Drosera salina P2 X1

Philotheca apiculata P2 X

Allocasuarina eriochlamys subsp. grossa P3 X

Beyeria sulcata var. truncata P3 X2

Cyathostemon sp. Salmon Gums (B. Archer 769) P3 X

Eremophila purpurascens P3 X

Eucalyptus brockwayi P3 X

Gnephosis sp. Norseman (K.R. Newbey 8096) P3 X2

Goodenia laevis subsp. laevis P3 X

Melaleuca coccinea P3 X

Note: ‘Other records’ are based on data sourced from 1Paul Armstrong and Associates (2004c); and

2Botanica Consulting (2010) consultant reports.

Table 7: Summary of priority flora species recorded in the Mt Henry Project Area

From a regional perspective, all priority species recorded in the Mt Henry survey area also occur in

areas outside the mining tenements. Priority species were predominantly recorded within vegetation

community W1, along ridges adjacent to Lake Dundas and hills within and surrounding the Mt Henry

pit. Priority species also occurred in the S2 and W3 communities on salt lake margins east of the

North Scotia pit. The extent of Eucalyptus brockwayi (P3) was mapped using individual records of its

occurrence (both MCPL and previous records) along with aerial photography of the area to place it

within a particular community type. The focus on the extent of Eucalyptus brockwayi was due to the

high number of individual recordings of the species within pit boundaries.

A number of other significant flora were recorded within the Mt Henry survey area including three

species (plus a potential four other species) that represented an extension of their currently known

ranges and three species (Lepidosperma sp. aff. lyonsii, Grevillea acuaria sens lat, Hibbertia

exasperata sens lat) that were undescribed or part of a species complex that will be further split. It is

possible that when these taxa are split, some may be described as priority species.

A total of eight introduced (weed) species were recorded within the Mt Henry survey area, however,

none are declared pest organisms pursuant to section 22 of the Biosecurity and Agriculture

Management Act 2007 (BAM Act).

Seven vegetation communities were described within the Mt Henry survey area (with a further 4

described outside the immediate impact boundaries to provide local context). This included three

woodland communities of mixed Eucalyptus spp. over various shrubs and four shrubland

communities on the salt lake margins and granite outcrops. These communities are similar to those

described in previous surveys of the area and reflect patterns consistent with regional vegetation of


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the Coolgardie bioregion and Great Western Woodlands.

The Mt Henry mining proposal falls within the vegetation communities W1

The Mt Henry pit area fall within the W1 vegetation classification:

Woodland to open woodland of Eucalyptus dundasii , Eucalyptus torquata and other mixed

Eucalyptus spp. over Melaleuca sheathiana , Exocarpos aphyllus , Scaevola spinescens , Alyxia

buxifolia , Eremophila glabra subsp. glabra and Pomaderris forrestiana over Westringia rigida and

Ptilotus obovatus on orange-brown clayey loam with gravel on slopes and ridges.

Figure 8 is a representative photo of W1 vegetation classification.

Figure 8: W1 vegetation classification

Mt Henry pit area has historical workings, minor open pit workings and exploration drilling that was

previously disturbed, rehabilitated and then disturbed again via exploration drilling. Figure 9 shows

current view of proposed Mt Henry Pit area.


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Higginsville Gold Operations also has an Environmental Management Plan within which has a fauna

management program, Mt Henry activities fall under this plan.

Figure 9: Mt Henry pit current disturbed area

3.9. FAUNA

Extension of mining activities in the study area is likely to result in the loss of some native

vegetation (and therefore fauna habitats). It is of low significance as most species are

expected to occur in the nearby protected Brockway Timber Reserve to the North of Mt Henry

and would move once vegetation clearing commences. All avian and migratory species are

mobile and will readily move to adjacent areas if disturbed and or they are seasonal occasional

visitors.

A Level 2 fauna survey of the Mt Henry area was undertaken in 2012 and 2013 by consultant

Western Wildlife with the summary of the report presented below and the full report attached as

Appendix 4. The survey was undertaken in accordance with Environmental Protection Authority

(EPA) Position Statement No.3 (EPA 2002) and EPA Guidance Statement 56 (EPA 2004). The

project area was surveyed in the spring from 6 – 19 November 2012, and late summer from 11 –22

February 2013.


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The methods used to sample the fauna of the area included:

Trapping for reptiles, amphibians and small mammals

Spotlighting and head-torching

Bat surveys using ultrasonic detectors

Bird surveys

Keeping opportunistic records

Targeted searches for conservation significant fauna including the Hooded Plover, Malleefowl

and Chuditch.

Trapping took place at ten sites across the study area with each site consisting of ten pitfall traps,

ten funnel traps, ten Elliott traps and two cage traps. The traps were open for eight nights

each in November and February, giving a total of 5,120 trap-nights.

Species of conservation significance were classified as Conservation Significance 1 if listed under

The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) or The Western

Australian Wildlife Conservation Act 1950 (WC Act), Conservation Significance 2 if listed as a Priority

species by the Department of Parks and Wildlife, or Conservation Significance 3 if a locally significant

species.

The Mt Henry study area has the potential to support a wide range of vertebrate species including up

to 7 amphibian, 69 reptile, 135 bird and 32 mammal species. A total of one frog, 44 reptile, 74 bird

and 20 mammal species were recorded from the study area during the November 2012 fauna survey.

There are 20 species of conservation significant fauna that potentially occur in the study area, nine of

which were recorded in or directly adjacent to the study area.

The species of Conservation Significance 1, 2 and 3 that may occur in the area are listed within Table

8.


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Species Conservation Significance Western

Wildlife

Record

during

Survey

Carpet Python (Morelia spilota imbricata) Significance 1, WC Act (Schedule 4)

Malleefowl (Leipoa ocellata) Significance1, EPBC Act (Vulnerable), WC Act

(Schedule 1)

Peregrine Falcon (Falco peregrinus) Significance 1, WC Act (Schedule 4) x

Common Sandpiper (Tringa hypoleucos) Significance 1 ,EPBC Act (migratory)

Common Greenshank (Tringa nebularia) Significance1, EPBC Act (migratory)

Red necked Stint (Calidris ruficollis) Significance1, EPBC Act (migratory) x

Sharp tailed Sandpiper (Calidris acuminata) Significance1, EPBC Act (migratory)

Curlew Sandpiper (Calidris ferruginea) Significance1, EPBC Act (migratory)

Fork tailed Swift (Apus pacificus) Significance1, EPBC Act (migratory)

Rainbow Bee eater (Merops ornatus) Significance1, EPBC Act (migratory) x

Chuditch (Dasyurus geoffroii) Significance1, EPBC Act (Vulnerable), WC Act

(Schedule 1)

Australian Bustard (Ardeotis australis) Significance2, Priority 4

Hooded Plover (Charadrius rubricollis) Significance2, Priority 4 x

Inland Western Rosella (Platycercus icterotis

xanthogenys)

Significance2, Priority 4 x

Shy Heathwren (Hylacola cauta whitlocki) Significance2, Priority 4 x

Crested Shrike-tit (Falcunculus frontatus) Significance2, Priority 4 x

Crested Bellbird (Oreoica gutteralis gutteralis) Significance2, Priority 4 x

Central Long eared Bat (Nyctophilus

timoriensis)

Scarlet-chested Parrot (Neophema splendida)

Inland Dotterel (Charadrius australis)

Significance2, Priority 4

Significance3

Significance3

x

Table 8: Summary of conservation significant fauna species recorded during the survey.

Of the Conservation Significance 1 species the Peregrine Falcon and Rainbow Bee-eater were

recorded in the study area and the Red-necked Stint was recorded nearby on Lake Dundas. The

Carpet Python is likely to occur in low densities throughout the study area, and the Rainbow Bee-

eater is a breeding visitor to the area. The Red-necked Stint, Common Sandpiper, Common

Greenshank, Sharp-tailed Sandpiper and Curlew Sandpiper are all migrants that may occur in low

numbers on Lake Dundas and saltpans during the summer months. The Chuditch is likely to be


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locally extinct, given the lack of nearby records in recent times. Although old (25 years +) Malleefowl

mounds were found in the study area during targeted searches, it is unknown if this species still

occurs in the local area.

All of the Conservation Significance 2 species were recorded in or near the study area except the

Australian Bustard and Central Long-eared Bat. The Hooded Plover was recorded on Lake Dundas,

and may possible breed in the area. The Shy Heathwren favours understorey vegetation and the

shrublands near Lake Dundas. The Inland Western Rosella, Crested Shrike-tit and Crested Bellbird

are likely to occur throughout the eucalypt woodlands on the plains and on the rocky ridges.

Of the Conservation Significance 3 species the Scarlet-chested parrot was recorded in the study area

during the fauna survey.

3.10. SOCIAL ENVIRONMENT

The project is located in the Shire of Dundas in Western Australia. This region contains Unallocated

Crown Land and reserves, and is sparsely populated with grazing, fishing, aboriginal heritage,

tourism, exploration and mining being the primary land users. The population of the shire fluctuates;

however in 2013 the population was approximately 1200. The majority of the project is located on

Unallocated Crown Land with small sections of reserves. The Shire of Dundas actively enhances

tourism and the Historic Dundas Townsite is visited by many tourists. The previous tenement owners

and Metals X have been in consultation with the shire regarding its mining plans for the area and will

continue consultation to attain an open and honest relationship. A map attached as Appendix 1

shows the reserves for the area.

The Norseman-Dundas Heritage Trail: This trail is not heritage listed but passes a number of

historical sites and runs through the Dundas town and then loops back to Norseman. Consultation

with the Shire of Dundas is underway for the diversion of the heritage trail around the Woodward

Waste dump Stage 2. Metals X will continue to liaise with the shire regarding this.

Dundas Historical Cemetery Site (No. 4296): Sits next to the main site access road into the project.

No clearing and mine development or infrastructure has been planned inside this area.

Dundas Rocks and Dundas Townsite: This is the location of the former Dundas townsite that was

established in 1892. There is little evidence of the original townsite remaining only a few information

plaques/signs installed by the Shire as a reminder of the historical location- (which is a great initiative).

The proposed activities will not affect this heritage area. As any clearing and mine development or

infrastructure has been planned around this area.


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Brockway Forrest Reserve (19725): The Reserve covers some 3724 ha and is currently controlled

by the Department of Parks and Wildlife. It was gazetted as a timber reserve in 1975. The proposed

activities will not affect this reserve. As any clearing and mine development or infrastructure has been

planned around this area.

Noganyer Soak (Site 2924): A search of the Department of Aboriginal Affairs (DAA) Aboriginal

Heritage Inquiry System (AHIS) indicated that there are no registered aboriginal sites; however there

is one heritage place within the project area. Noganyer Soak (Site 2924). Future Mining proposals

(such as North Scotia will need to review an additional heritage site, Horse Rocks -Site 2923 to the

south west). Both sites are classified as ethnographic places with archaeological artefact/scatters.

Metals X has in place an agreement with the Ngadju group over the area.

Great Western Woodland: The project area is located within the Great Western Woodlands, an

area of biological richness almost 16 million hectares in size, extending from the edge of the wheat

belt to Kalgoorlie-Boulder in the north, to the inland deserts and the Nullarbor Plain to the east. Part

of the Great Western Woodlands plan is to allow long term conservation of this area’s unique natural

and cultural values through coordination and integration of many planning and management elements

in the area. The Mt Henry project is situated on the southern edge of the woodlands and represents a

small disturbance area. Once mining of the area is completed apart from the pits, the area will be

rehabilitated this is unlike urban development or clearing for farming practices which will never return

to their natural state.

No pastoral leases occupy the Mt Henry Project area as is it situated on Vacant Crown Land.


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4. PROJECT DESCRIPTION

4.1. AREA OF DISTURBANCE

TENEMENT DESCRIPTION AREA (ha)

M63/515 Mt Henry Pit 31.94

Mawson Waste Dump 45.37

Woodward Waste Dump (Stage 1)

24.08

Haul Roads/Access Tracks 5.65

Run of Mine (ROM) 4.35

Topsoil/Mulch Stockpiles 17.84

Water Dam 0.3

Workshop/Office 4.25

Abandonment Bunds 3.84

TOTAL CLEARING M63/515 137.62

L63/64 Haul Roads/Access Tracks 5.65

TOTAL CLEARING L63/64 5.65

TOTAL PROJECT CLEARING

143.27ha

Table 9: Area of Disturbance

4.2. MINING OPERATIONS- MT HENRY PIT

The Mt Henry Deposit will be exploited by conventional open cut mining methods utilising excavators

and a combination of dump trucks. It is planned that pioneering equipment would remove the top

levels of the ridges on the eastern side of the waste dump to establish benches suitable for larger

equipment. The pit will be mined in a series of cutbacks. Pits will be accessed using up 15 to 22

meter wide ramps to allow for passing bays at a gradient of 1 to 8 suitable for dump trucks. The pit

will be mined to a depth of 150 meters with two main ramps servicing the northern and southern

sections of the pit and exiting predominantly on the western side where topography is more

favourable for waste dumps and stockpile locations. Drilling Blasting and Mining operations are

planned to be conducted by a mining services contractor with the principle retaining control of the

engineering, geological control and management functions.


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A total of 41,846,931 tonnes of waste will be mined to produce 8,339,050 tonnes of ore at 1.49 g/t.

Ore will be hauled from the Mt Henry Pit via the Coolgardie Esperance Highway to Higginsville Gold

Operations which is approximately 85 km. Ore will be processed using Higginsville 1.4 Mtpa

treatment plant which uses conventional CIL processing.

Waste material will be hauled to Mawson waste dump located to the north of the pit and Woodward

waste dump located to the west of the pit. The waste dump locations were determined with respect to

the geology, topography and natural landscape values.

The Mawson waste dump would be used to place waste from the northern section of the pit mainly

from the ridge area. The Woodward waste dump would be accessible for the life of mine. Extension of

the Woodward waste dump towards the West will be proposed in an Addendum to this mining

proposal once the lease is converted from a “P” to a “G” lease, which is currently being progressed.

A preliminary Mt Henry Pit Life of Mine design, as depicted in Figures 10-12 was completed, the

parameters include:

Pit Design contains 8.34Mt at 1.49g/t.

Total pit mined is 50Mt at a strip ratio of 5:1.

Recovered gold is 367,000oz

The pit is approximately 150m deep in the southern and northern areas.

Pit Ramp widths are up to 22m wide with passing bays and a gradient of 1 in 8

Pit Wall Batter angles up to of 75° and heights of 20m with minimum berm widths of 8m

Two main pit ramps servicing the northern and southern sections of the pit and exiting

predominantly on the western side where topography is more favourable for waste dumps and

stockpile locations.


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Figure11: Proposed Mt Henry Pit



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4.3. ORE TRANSPORT

Ore will be hauled from the Mt Henry Pit via the Coolgardie Esperance Highway to Higginsville Gold

Operations for processing which is approximately 85 km in distance

It is proposed the existing haul road on L63/64 will be widened to a maximum of 25 meters and

upgraded. There is no engineering work required for surface drainage and runoff for this road. In

regards to pipeline Licence 59 crossing L63/64, Metals X are in discussions with Worley Parsons who

are the asset managers of the Kambalda Esperance Gas Pipeline. Metals X are currently in the

process of obtaining approval to cross the pipeline. Once approval has been obtained then proof of

such approval will be provided to the DMP to satisfy the tenement conditions placed on L63/64.

Previously established haul roads will continue to be used and will incorporate drains, culverts and

catchment sumps to prevent the egress of hyper-saline water to the surrounding vegetation except

under heavy rainfall conditions. Dust suppression through the use of saline groundwater will be used

on haul roads to minimise the impacts of dust on the surrounding environment.

Metals X are also in discussion with the Norseman shire and surrounding tenement holders (Central

Norseman Gold Corporation) about an alternative haulage route around the Norseman townsite

rather than through the town of Norseman, (Prinsep Street, Coolgardie Esperance Highway).

Agreements are yet to be finalised.

4.4. ORE PROCESSING

No new or any increases in ore processing will be produced as a result of this proposal. All ore will be

processed at the Higginsville Gold Operations treatment plant up to a rate of 110,000 tonnes per

month for 60 months

4.5. TAILINGS STORAGE

No new or any increases in tailings will be produced as a result of this proposal in the Mt Henry area.

Existing facilities will be used at the Higginsville Gold Operation 85 km to the north.

4.6. SUPPORT FACILITIES

The Norseman community will play an important part in this mine development. It is expected

personnel will be housed within the Norseman community within an existing camp or house type

accommodation, with a limited number of personnel being fly in fly out. Already Higginsville Gold

Operations utilise many of the Norseman contractors for various work which will continue together

with other regional centres assistance such as Kalgoorlie Boulder, Kambalda and Esperance.


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4.7. WORKFORCE

Open pit mining contractors will be employed to complete the mining under the supervision of

Higginsville Gold Operations personnel. An estimated number of up to 50 people will be required for

this project. Where possible, people will be sourced from the local Norseman community.

4.8. RESOURCE REQUIREMENTS AND REGIONAL INFRASTRUCTURE

No extra resource or regional infrastructure will be required for this mining proposal. It should be

noted Higginsville Gold Operations supports the Norseman shire in its rallying for construction of an

all weather airstrip facility for the town. Currently Higginsville employees fly in/out of Kalgoorlie

Boulder Airport. If the Norseman airstrip upgrades were completed it certainly would be looked at as

port for employees travelling to both the Mt Henry Project and the Higginsville Gold Operation.

4.9. COMPLIANCE WITH LEGISLATION AND OTHER APPROVALS

Higginsville Gold Operations will comply with associated mining tenement conditions as well as

applicable Acts and their Regulations not restricted to but include the following:

Higginsville Gold Project Operating Licence 8146/2007/3

Various Groundwater Extraction Licences

Rights in Water and Irrigation Act 1914

Soil and Land Conservation Act 1945

Wildlife Conservation Act 1950

Bush Fires Act 1954

Aboriginal Heritage Act 1972

Agriculture and Related Resources Protection Act 1976;

Mining Act 1978

Conservation and Land Management Act 1984

Environmental Protection Act 1986

Mining Safety & Inspection Act 1994

Local Government Act 1995

Land Administration Act 1997

Environment Protection and Biodiversity Conservation Act 1999 (Commonwealth);

Native Title Act 1999

Contaminated Sites Act 2003

Dangerous Goods Safety Act 2004

Mining Rehabilitation Fund Act 2012


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5. ENVIRONMENTAL IMPACTS AND MANAGEMENT

Higginsville Gold Operations has a Site Environmental Management Plan (EMP) that addresses:

Environmental licences and approvals

Native vegetation

Weeds and introduced plant species

Fauna

Aboriginal heritage

Groundwater monitoring

Domestic and industrial waste materials

Hydrocarbon products and materials

Saline water

Rehabilitation

The EMP covers all mining and processing associated with the Higginsville Gold. The EMP has been

attached as Appendix 2; it was recently updated in January 2016 to include the Mt Henry Project

Area.

5.1. LAND CLEARING

143.27 ha is required for clearing of the Mt Henry Part 1 Mining Proposal Area. This will include the

Mt Henry Pit, Waste dumps, Run of Mine pads (ROM), topsoil/mulch stockpiles, abandonment bunds,

site office/workshop/lay down area, haul roads/access tracks, abandonment bunds and water

dam/lake trench for water dust suppression. All clearing and rehabilitation will be recorded by

Higginsville Gold Operations internal disturbance records plus various Purpose Clearing Permits

which are being processed through the DMP Native Vegetation Branch. The project is located

predominantly on woodland to open woodland of mixed Eucalyptus species over various shrubs. The

proposed Mt Henry pit area is already disturbed/rehabilitated from previous mining/exploration

activity. The area of disturbance for the development of this mining proposal is shown in Table 9

under Section 4.

Standard site management strategies for clearing include:

Where possible, previously disturbed areas will be cleared before non disturbed areas;

Before clearing commences, the areas to be cleared will be well-defined so that over-clearing

will be avoided;

Induction of employees to ensure disturbance is confined to areas identified clearly in the field;

Clearing operators will be supervised;

Protecting all vegetation outside of the clearing profile;

Rehabilitating disturbed areas not required for ongoing maintenance;


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Prior to any development being commenced, vegetation and topsoil will be cleared and

stockpiled for later use at selected sites;

Progressively rehabilitate completed areas as soon as practicable; and the use of only local

native plant species.

5.2. WATER

5.2.1. GROUNDWATER

Extracted groundwater will be monitored via a groundwater extraction licence. A licence has currently

been applied for through the Department of Water Groundwater (DoW) and is being assessed. The

hypersaline groundwater will be utilised for dust suppression only. At the commencement of the

project a trench on Lake Dundas and a possible storage dam next to the trench will be commissioned

for dust suppression. Once the water within Mt Henry pit is available for use (10-35 meters below

surface) this will then be used as a priority for dust suppression. It is not intended to discharge any

groundwater to Lake Dundas and a groundwater bore may also be required to meet dust suppression

demands. Department of Water Groundwater extraction licences include quarterly sampling and

analysis which will be presented in an annual report to the Department of Water for assessment.

5.2.2. POTABLE WATER

A small quantity of potable water will be required at the Mt Henry Mine to service the crib room, office

and ablution block. This will be trucked from Norseman as required and stored in 2 x 20kl tanks.

5.3. FLORA, FAUNA AND ECOSYSTEM

To reduce potential impacts on fauna and flora associated with the proposed clearing within this

mining proposal the following has and will be undertaken:

Where possible, previously disturbed areas will be cleared before non disturbed areas. (The

Pit area is substantially disturbed by exploration drilling and access into the Mt Henry area

follows an existing well established haul road;

Dense shrub land is searched for Malleefowl and their breeding mounds prior to any clearing

activity;

Large hollow bearing trees are left wherever possible;

Habitat clearing is minimised wherever possible;

Personnel involved in clearing are made aware of the potential presence of Carpet Pythons,

so if individuals are seen can be relocated to suitable habitat.


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5.4. TOPSOIL AND SOIL PROFILES

Mulch, topsoils and subsoils will be segregated and stockpiled in selected locations. Topsoils will be

harvested to a maximum depth of 200mm; averaging 100mm. Topsoils will be stored to a maximum

depth of 2m Subsoils will be selectively harvested when they are composed of coarse durable

laterites and gravel rich, well graded subsoils. These will be stockpiled at variable depths.

There is an abundant supply of competent subsoils which would be a suitable; in fact more desirable

growth media cover for waste dump batter slopes.

Total growth media requirements based on a 100mm average cover are 1000 cubic metres per

hectare. Total estimated area for topsoil harvesting (not yet disturbed) is 80 ha which will deliver

approximately 80,000 cubic meters of topsoil. These volumes of topsoil respread at an average

depth of 150mm will be sufficient to cover waste dump top and flat surfaces to a total of

approximately 50 hectares. As discussed, waste dump batters will be covered with armouring subsoil

which will act as both an armour and growth media. All topsoil and mulch will be respread during final

land rehabilitation.

5.5. DOMESTIC AND INDUSTRIAL WASTE PRODUCTS

No new or any increases in amounts of domestic or industrial waste products will be produced as a

result of this proposal. The Environmental Management Plan attached as Appendix 2 details

domestic and industrial waste products within the Waste Management section. All of the Mt Henry’s

waste (landfill) will be collected and disposed of within the Higginsville Gold Operations landfill facility.

If there is an opportunity to utilise the Norseman town landfill facility, Metals X will approach the shire

for its approval.

5.6. TAILINGS MANAGEMENT

At the Mt Henry Project no new or any increases in amounts of tailings will be produced as a result of

this proposal.

5.7. WASTE ROCK DUMP DESIGN

Mt Henry Mawson and Woodward waste dumps have been redesigned and suitably located outside

the potential zone of stability around the open pit in accordance with DMP guidelines.


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Waste Rock Landform Construction Specifications

Maximum Total

Vertical Height

45 Meters

Maximum Individual

Batter Lift Height

15m depending on fall of ground at base. Generally 10m

Minimum Berm

Width

10m wide after reprofiling

Individual Batter

Slope Angle

20/15 Concave Slope (upper 50% is 20 degrees lower is 15 degrees).

Average 17.5 degrees

Overall WRD Batter

Profile Slope Angle

<15 Degrees

Water Control Water Harvesting. Water contained on the dump by cell and perimeter

bunding of tops and berms and contour ripping

Armour Not expected to be required due to the nature of the material being

mined. After reprofiling an assessment of the presented batters will be

made and where low stability material is identified a 1m layer or

armouring benign caprock or transitional waste will be spread over

these sections rather than the 150mm specified below.

Topsoil Topsoils and suitable subsoils will be harvested for spreading over the

rehabilitated landform. It is noted that the Mt Henry project has good

quality lateritic or coarse blocky sub soils/shallow lithologies. These are

frequently superior to respreading skeletal topsoils on slopes. Hence

tops will be allocated topsoils and batters will be allocated coarse

subsoils. Both topsoils and subsoils will be spread at an average of

150mm.

Perimeters: Where sediment discharge may be an issue or fall of ground along the

toe warrants it, sediment interception or flow dissipation low rock bunds

will be installed.

PAF PAF material is expected in 2 lithotypes. Operational testing will

categories material encountered in mining in these lithotypes. Cells will

be created within the WRD so that these materials are deeply

encapsulated. Where practicable Acid Consuming material will be

placed above and around this material in the final configuration.


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Capacity Mawson waste dump 8.3M m3

Capacity Woodward waste dump (Stage1): 3.7 M m3

Capacity Woodward waste dump (Stage2, separate Mining Proposal)15.5 M m3

Total PAF lcm (loose cubic meters) required is 4.0M m3

Figure 13: Waste Rock Landform Specifications

Figure 14: Mt Henry Waste Dump Cross Section


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Figure 15: Mawson waste dump

Figure 16: Woodward waste dump Stage 1


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5.8. WASTE ROCK DUMP PAF MANAGEMENT

The waste dumps have been designed to include a number of separate cells for encapsulation of the

PAF waste material, primarily the BIF, which will be continually be removed over the life of the mine.

The following figures show an encapsulation sequence for the Woodward waste dump. The inert

material is shown in blue with the PAF material in orange. A PAF cell would be open and gradually

encapsulated by inert material progressively throughout mining operations; maximum exposure time

is expected to be 12 months. PAF cell design cover thickness includes minimum 5m coverage

vertically to base or top surface and 10m laterally to any batter face.


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Figure 17: Woodward Waste dump Stage 1 PAF encapsulation

The same methodology would be used for the Mawson waste dump. Please note it is proposed to

extend the Woodward waste dump (stage 2) to the west. An addendum to this mining proposal will be

submitted once tenure is granted, the same methodology for encapsulating the PAF waste material

will continue to be utilised in the expanded stage 2 waste dump.

The majority of the PAF materials are easily recognisable by lithology (ie. rock type), which can be

predicted in advance of mining and an appropriate destination planned for this material. The majority

of the BIF and Sediment/Schist rock types at the Mt Henry deposit will need to be selectively handled

and encapsulated within NAF waste rock at the waste rock dump facilities.

Metals X geologists will use a visual assessment method to identify and mark out PAF waste rock

materials for selective handling (ie. through lithological (rock type) and mineralogical (visible sulfide)

characteristics).

The use of the NAG test as a suitable field test for confirming the NAF/PAF nature of waste rock

materials at the Project during operations are to be considered.

To achieve appropriate encapsulation of the PAF material of high fines content and low

permeability this will be directly scheduled for correct placement or stockpiled during mining for use in

the construction and lining of the PAF Cell. Materials surrounding the PAF material will be traffic

compacted to form a seal and water will be directed away for the top footprint of the PAF cell.

The PAF Cells will constitute approximately 33% of the overall WRD footprint. The top wastedump

landform section overlying the PAF cell will drain onto sections which overly NAF. Where it is

considered there is insufficient storage on the portion of the dump overlying NAF material water will

be directed down the ramp at closure which will be formed into a hardened rock drain of sufficient

robustness to manage predicted velocities.

Metals X will revise the block model once infill drilling is completed which is currently being

undertaken, to be completed by April 2016. The final model will calculate more accurate volumes for

BIF and Sediment/Schist rock types. Metals X will provide a revised waste rock schedule which will

include the latest volumes of PAF waste rock, more detailed commentary on the potential for some

lithologies to act as net acid consuming material and greater accuracy on sequencing and positioning

of PAF, NAF and acid consuming material within and around the PAF cell and greater clarity on it’s

dimensions. All of this information will be incorporated into the MCP review which will occur when the

Mt Henry MCP is incorporated into the Higginsville MCP which will occur prior to the construction of

the PAF cell being commenced.


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5.9. HYDROCARBON MANAGEMENT

No new or any increases in amounts of hydrocarbons will be used as a result of this proposal.

The Environmental Management Plan attached as Appendix 2 details site hydrocarbon management

within the Waste Management section. All waste hydrocarbons will be removed from site by licenced

controlled waste carriers, for disposal offsite.

Any hydrocarbons stored onsite as will be as per required: Bulk fuel storage will be within double

skinned tanks and smaller drums will be stored within bunded areas that contain 110% of the largest

drum contents and 25% of the total volume of stored liquids together with spill kits.

Figure 18: Example of workshop hydrocarbon containment

5.10. DANGEROUS GOODS AND HAZARDOUS SUBSTANCES

No new or any increases in amounts of dangerous goods will be used as a result of this proposal.

Explosives will be managed by the Higginsville Gold Operations Safety department as per various

acts and regulations. Dangerous Goods and hazardous substances will be outlined in the Safety

Management Plan to be submitted to the DMP Safety division for approval.

5.11. ATMOSPHERIC POLLUTION AND NOISE

Dust will be controlled with the regular use of water trucks around the site and on site roads on an as

required basis.


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Prior to accessing groundwater within the pit for site dust suppression a drainage interception trench

will be dug with an excavator along the edge of Lake Dundas to naturally collect groundwater from

the Lake. The trench will not be lined and is estimated to be up to 50 meters in length. An example of

concept is provided below. This will be regulated by a Groundwater extraction licence from

Department of Water which has been applied for and advertised.

Figure 19: Example of Lake Edge drainage interception trench

As part of the National Pollution Inventory and National Greenhouse Energy Reporting quantities of

air and other emissions will be estimated or measured and reported annually for the Higginsville

Project.

All operations will comply with the noise regulations under the Mines Safety and Inspection Act 1994,

Mines Safety and Inspection Regulations 1995 and the Environmental Protection Act (Noise)

Regulations1997.


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6. SOCIAL IMPACTS

6.1. HERITAGE

A search of the Department of Aboriginal Affairs (DAA) Aboriginal Heritage Inquiry System (AHIS)

indicated that there are no registered aboriginal sites; however there is one heritage place within the

project area. Noganyer Soak (Site 2924). The Site is classified as an ethnographic place with

archaeological artefact/scatters. Metals X has in place an agreement with the Ngadju group over the

area and are currently in progress with an enquiry specifically relating to Site 2924.

The project is located in the Shire of Dundas in Western Australia. This region contains Unallocated

Crown Land and reserves, and is sparsely populated with grazing, fishing, aboriginal heritage,

tourism, exploration and mining being the primary land users. The population of the shire fluctuates;

however in 2013 the population was approximately 1200. The majority of the project is located on

Unallocated Crown Land with small sections of reserves. The Shire of Dundas actively enhances

tourism and the Historic Dundas Townsite is visited by many tourists. The previous tenement owners

and Metals X have been in consultation with the shire regarding its mining plans for the area and will

continue consultation to attain an open and honest relationship. A map attached as Appendix 1

shows the reserves for the area.

6.2. LAND USE AND COMMUNITY

Other Land occupiers within this mining proposal include the Dundas Shire (shire number 3080).

This is the second project Metals X has operated within the Dundas shire, the first project being

Chalice. Higginsville Gold Operations has previously operated harmoniously with the Dundas Shire ,

and understands that this project requires considerable shire consultation which it has commenced.

As part of this consultation, this Mining proposal will be presented to the Shire.

Mt Henry Project area is situated on crown land and not upon any pastoral lease. The nearest

pastoral lease being Madoonia Downs Station, the pastoral boundary is located approximately 70km

from the Mt Henry Project.

6.3. SOCIAL ENVIRONMENT

Higginsville Gold Operations provides a flexible and stable working arrangement with its Higginsville

employees allowing them to be fly in / fly out from Perth or regional drive in / drive out. This supports

local communities such as Norseman, Kambalda, Esperance and Kalgoorlie as well as providing

opportunities to a wide range of local/regional contractors to support the minesite.

The Mt Henry Project is aiming to attract many Norseman locals for its Mt Henry Project, with the aim

to house them within Norseman.


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This proposal will enable continued stability of the benefits Higginsville Gold Operations offers to its

local community. On a broader scale, production from the site contributes to the state economy and

the Australian GDP.

6.4. WORKFORCE INDUCTION AND TRAINING

All of the workforce, both Higginsville Gold Operations staff and contractors, will be given a general

site induction on arrival at the site this includes health, safety and environmental aspects. Every

employee or contractor will be required to complete or maintain a re-induction course every three

years. The initial and repeat induction courses contain a specific section on environmental issues

related to the Higginsville Gold Operations.

A specific Mt Henry Pit induction will be developed targeting the surface mining operations.

Accompanying the induction will be procedures that address safe work practices relating to high risk

work areas identified within the Mt Henry mining project.


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7. MINE CLOSURE

Higginsville Gold Operations has an approved Mine Closure Plan that outlines the detailed closure

objectives, criteria and activities for the following specific areas:

Open Pits/Underground Voids

Surface Waste Dumps

Tailings Storage Facilities

Process Plant

Workshops and Bulk Hydrocarbon Storage

Administration Areas and Camp Facilities

Haulage and Access Roads

Dewatering Pipelines, Water Supply Pipelines & Monitoring Bores

Explosives and Detonator Magazines

This closure plan was developed with the assistance of consultant Rory Haymont from Trajectory and

was aligned to the DMP closure plan guidelines. A copy of this plan can be provided if required, due

to its large size it has not been included as an attachment. The plan covers 4 main project areas of

the Higginsville Gold Operations leases which include:

Project Area 1- Higginsville Mining Area

Project Area 2- Lake Cowan Mining Area

Project Area 3 -Palaeochannel Mining Areas

Project Area 4 -Chalice Mining Areas

Proposed Project Area 5- Mt Henry Mining Area

The Higginsville Gold Operations Mine Closure plan was approved by the Department of Mines and

Petroleum on the 1st November 2013 and is due for resubmission in 2016.

An updated specific mine closure plan has also been documented for Mt Henry, it is Higginsville Gold

Operations proposal to incorporate this closure plan into the Higginsville Site closure plan which is

due for resubmission in 2016. Various knowledge gaps and additional commitments within the plans

and this mining proposal will be included within the new plan.

Specific Closure and Waste Dump / Haul Road Rehabilitation commitments to this Mining Proposal

Include the following: (if approved they will be incorporated into the mine closure plan prior to its

review in 2016)

A Safety Bund wall around Mt Henry Pits will be constructed with fresh rock prior to pit being

closed off and project finished.


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Mt Henry Pit entrances will be bunded, to stop public access to pit once pit mining is

completed.

Mawson and Woodward Waste Dump primary earthworks will be finished during life of project

or within 6 months of Mt Henry Pit mining being completed. Including spreading topsoil, mulch,

contour ripping and seeding of waste dump.

7.1. POST MINING LAND USE

Upon the completion of mining activities the area will return to its vacant crown land use.

7.2. REHABILITATION

Submission of the recently updated Mt Henry Mine closure plan will be forwarded as a separate

document together with this mining proposal.

A general rehabilitation outline for each project component is listed below:

General Closure Implementation Management Actions

Open Pit

Waste Rock Final Landform

Administration Workshop and Infrastructure

Water Management and Drainage Structures

Roads Corridors and Fences

Exploration

7.2.1. GENERAL CLOSURE IMPLEMENTATION MANAGEMENT ACTIONS

In the absence of closure or rehabilitation issues requiring specific actions, the following default

measures will be applied and used to calculate the rehabilitation and closure costs. There are

essentially three activities associated with site closure:

Demolition- All permanent structures will be dismantled or demolished and removed to a depth of at

least one metre. Recoverable materials may be sold if a suitable market can be found at the time of

decommissioning. All inert rubble and materials resulting from the demolition exercise which

cannot be re-used will be disposed within the designated closure landfill facility for the Project. During

operation, all of the Mt Henry’s domestic waste (landfill) will be collected and disposed of within the

Higginsville Gold Operations landfill facility or the Norseman town landfill facility, if Metals X

obtains necessary approval from The Norseman Shire. Hazardous wastes will be disposed at

appropriately licensed facilities off site.

All surface pipelines, power cables/lines and security fences will be removed and materials will be

sold, re-used or otherwise disposed within the closure landfill facility.

Sub-surface pipelines will remain if they cannot be economically salvaged, but will be appropriately

drained, flushed and sealed (crimped or capped). Plastic pond liners will be cut, folded and


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buried in situ for below-ground ponds or removed to the disposal site for above ground ponds.

Clean up and Remediation The largest hazardous material (by volume) required on the site will

be diesel, used for mining equipment and vehicles. At closure, remaining chemicals and

hydrocarbons will be returned to the supplier or sold to a third party. Waste chemicals,

hydrocarbons and contaminated materials will be removed offsite for disposal at a licensed facility

or remediated on site prior to disposal on site. Remaining rubbish will be removed and

disposed within the inert landfill as per existing procedures.

Rehabilitation and Revegetation Following demolition of infrastructure and site clean-up, the

remaining disturbed sites will be regraded to re-establish pre-existing drainage lines.

During operations, topsoil up to 100 – 400mm mm thick will be stripped from available sites and

stockpiled. Stockpiles will be a maximum of two metres high and be located in water shedding

sites, to prevent localised flooding/inundation. Topsoil will be directly returned progressively to

rehabilitated landforms during waste rock landform construction if this is feasible. Weed

management of Topsoil Stockpiles and vegetation debris occurs as required to reduce the potential

spread of weeds into rehabilitated areas.

During rehabilitation, previously stockpiled topsoil will be respread at between 100mm and 150mm

deep and ripped to a depth of 500mm to 1m along the contour to reduce compaction and ensure

cohesion between the topsoil, the and the disturbed land surface. Ripping will also provide niches

where water, organic matter and seed can collect.

Seeding with native shrubs and tree seeds will be conducted to supplement the seed source within

the topsoil, the respread vegetation and adjacent native vegetation. The species selected for

the revegetation programme will depend on the site-specific conditions (e.g. slope, drainage, soil

conditions).

7.2.2. OPEN PIT

The Mt Henry open pit will not be refilled and will remain a permanent feature; An abandonment bund

will be in place, in compliance with the DMP Guideline to discourage access.


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Figure 20: Abandonment Bund Wall Guideline

7.2.3. WASTE ROCK FINAL LANDFORM

Exactly as per Section 5.7 within this Mining Proposal.

Earthworks Construction, Dumping will be carried out such that the configuration is realised and

depths of competent waste, batter angles and berm widths are achieved as specified.

PAF, Any potentially acid forming material produced by the Project will be managed to minimise

the potential for the production of acid runoff or leachate, and minimise the potential effects on the

receiving environment should localized acid generation occur.

PAF material present as ore will be stockpiled on the ore pads for a minimal amount of time prior to

being processed at the proposed Higginsville processing facilities. A waste rock characterisation

sampling program will be implemented throughout the life of the Project. This program will

ensure accurate identification and disposal requirements of the waste material.

The waste dumps have been designed to include a number of separate cells for encapsulation

of the PAF waste material, primarily the BIF, which will be continually be removed over the life

of the mine. Where practicable acid consuming waste will be placed around and above cells during

their construction.

Revegetation, The revegetation of all landforms has the overall objective of creating surface

conditions conducive to the establishment and survival of self-sustaining vegetation that is native to

the region. Revegetation is achieved by the respreading of topsoil with its bank of native seed, and

by deep ripping of the topsoil and subsoil to promote a rough surface suitable for the

establishment of seedlings and for enhancing infiltration of water. Where necessary, the

establishment of vegetation will be assisted by seeding species which are common in the area


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and which are known to establish readily.

Seeding rates have been designed to reflect the surrounding natural bush with regards to species

composition. Seed rate is 10kg/ha.

All seed that is collected for use in rehabilitation is tested for viability by specialist contractors.

Seeds are cleaned and free of debris and as appropriate may be treated by exposure to

smoked water or mechanical scarification for hard coated seeds to encourage germination.

7.2.4. ADMINISTRATION, WORKSHOP AND INFRASTRUCTURE

All infrastructure including utility services, and office buildings, will be removed at the end of

operations. Power, water bores and septic systems will be shut down and all buildings will be

removed from site. Any inert scrap which is not suitable for re-use or recycling will be buried on

site.

Remediation will be undertaken of any soil contaminated by hydrocarbons or effluent to prevent

impacts on the surrounding environment. Workshops and supporting facilities will be

decommissioned when they are no longer required by the Project.

It is anticipated that most of the Project’s infrastructure and facilities will be sold and/or

relocated to other sites. Other infrastructure not suitable for recycling, reuse or salvage will be

buried onsite. Where infrastructure has been removed, the sites will be recontoured, topsoiled,

ripped and seeded where necessary.

The workshop shed and service equipment will be dismantled, removed and service equipment

sold. The concrete pads established for the workshop, wash bays, stores etc. will be excavated and

for later re-use, or buried on-site. All inert scrap material and parts not suitable for re-use or

recycling will be either buried or taken off-site for appropriate disposal.

The diesel fuel and lubricant storage tanks that are self-bunded will be transported off site and

sold. To prevent contamination, any hydrocarbons in the base of bunds or sumps will be pumped out

prior to removal, for disposal off-site to a licenced waste provider. Any hydrocarbon-contaminated

soil will be removed prior to revegetation activities taking place and taken to the bioremediation

area.

7.2.5. WATER MANAGEMENT AND DRAINAGE STRUCTURES

All earth drains will be backfilled by dozing loose earth from the immediately adjacent area into the

drains and providing for an approximately 30% overfill to allow for settlement. Cross berms,

consisting of 0.5 m high lightly compacted earth walls will be provided at appropriate intervals (50 m

intervals allowed for) in order to divert any rainfall runoff water that may be channelled by the back

filled drains.

Waste water treatment facilities will be removed and any contaminated material treated

according to relevant guidelines.

The septic treatment system and waste water will be decommissioned by licensed personnel and

removed off-site for disposal at an approved facility by a licensed operator or in the case of

infrastructure reuse or recycling, where permitted.


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7.2.6. ROADS, CORRIDORS AND FENCES

The haul road will be rehabilitated, unless the Stakeholder requests and approvals are sought.

Access tracks for monitoring purposes will remain as required.

7.2.7. EXPLORATION

The following rehabilitation process will be undertaken for exploration pads and tracks:

Remove and dispose of drill spoil appropriately;

Conduct earthworks as required to correct current erosion, remove drill pad sumps and

rectify vehicle tyre ruts on access tracks;

Remove rubbish, including sample bags;

Scrape windrows of rocks back over drill pads and access track;

Re-spread topsoil and removed vegetation over tracks and drill pads (where possible avoiding

damage to plants that have naturally established);

Seed and/or plant with species from the adjacent vegetation and those identified

recruiting naturally to the area (if required);

Where practicable, seeding to be conducted just prior to the onset of forecast wet weather;

Prevent access into the rehabilitated areas;

Annually assess rehabilitation success.

Scarification or ripping of drill pads and access tracks to encourage revegetation and limit

access. Main drill access base lines will remain open unless a stakeholder requests otherwise.

7.3. STRATEGIC FRAMEWORK FOR MINE CLOSURE

The objective of the Mine Closure Plan at Higginsville is to rehabilitate affected areas to produce safe,

stable and non polluting landforms. To ensure that soil erosion and subsequent sedimentation is

minimised and that endemic plant species are re-established to a self sustaining complex into which

local fauna will be able to return and re-establish.

Further objectives of this plan are recommended by the Australian and New Zealand Minerals and

Energy Council (ANZMEC), strategic Framework for Mine Closure (2000) include:

To enable all stakeholders to have their interests considered during the mine closure process;

To ensure the process of closure occurs in an orderly, cost effective and timely manner;

To ensure there is clear accountability, and adequate resources, for the implementation of the

closure plan; and

To establish a set of indicators that will demonstrate the successful completion of the closure

process..


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7.4. SUBMISSION OF MINE CLOSURE PLAN DOCUMENTS

Submission of the recently updated Mt Henry Mine closure plan will be forwarded as a separate

document together with this mining proposal.

It is Higginsville Gold Operations proposal to incorporate this Mt Henry Mine closure plan into the

approved Higginsville Site closure plan which is due for resubmission in 2016. Various knowledge

gaps and additional commitments within the plans and this mining proposal will be included within the

new plan.

As previously stated a copy of the Higginsville Gold Operations Mine Closure Plan can be provided if

required, due to its large size, it has not been included as an attachment but can be made available

upon request.

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