The NSW Land and Environment Court has ordered Aboriginal applicants Andrew Donnelly and David Mundine to pay the costs of their failed action over the Timbarra Gold Project to Ross Mining NL.

The costs order follows the applicants' unsuccessful attempt to obtain a ruling from the Land and Environment Court on the existence of native title.

In making the costs order, His Honor Mr Justice Talbot rejected the applicants' argument that they had brought the action in the public interest. He ruled instead that "[a]lthough the issue of native title is a prominent issue in contemporary Australia, its existence at common law has been confirmed by the High Court and recognized by the Native Title Act ...There is no identified public interest in attempting to vest this Court with jurisdiction to hear and determine what, in effect, amounted to a claim for establishment of native title."

Mr Justice Talbot went on to say that the rights claimed by the applicants "are, in a sense, private rights, notwithstanding the wide content of native title." He ordered the applicants to pay Ross Mining the costs of the proceedings.

Ross Mining Executive Director John Lawton said the Company would now take steps to enforce the costs order against Donnelly and Mundine. "It is plain from the judgement of the Court that there was no public interest in these proceedings — this was a case brought by Donnelly and Mundine for their own private benefit. Ross Mining and its shareholders incurred considerable expense in defending these proceedings, and Donnelly and Mundine must now help meet those costs."

An application by the Tenterfield Shire Council for a similar costs order against Donnelly and Mundine is pending.

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For further information: Mr John Lawton, Executive Director, Ross Mining NL

Ph: (07) 3239 2333 or 0412 517 579

Ross Mining NL is pleased to announce that the Timbarra Gold Project, located on the Timbarra Plateau near Tenterfield, has received all necessary approvals and will commence construction shortly.

Local residents will no doubt be aware that a handful of environmental extremists have continued to make misleading claims about the Project and have attempted to blockade the site. This is despite the Project receiving the approval of the NSW Government, and despite the rulings of the Mining Warden and the Land and Environment Court against them, and in favor of the Project.

While we are not concerned about the protesters, whose efforts will not stop the Project, we are concerned that you, the local community, have all the facts.

For this reason, our answers to some of the most commonly asked questions about the Project are set out below.

We are a medium sized Australian mining company with operations at Yandan in central Queensland, and projects in central Queensland and the Solomon Islands. Our staff are firmly committed to protecting the environment from the impact of mining operations, and we have an excellent environmental record. We have been studying the ecology of the Timbarra Plateau since 1993 so that we can ensure that flora and fauna are properly protected throughout the life of the Project.

The project will affect just 85 hectares of the Timbarra Plateau, leaving 99.57% of the Plateau undisturbed.

Despite suggestions to the contrary, the project area is not pristine, nor is it a wilderness area. The site shows extensive impact from previous logging, grazing and mining activities, as well as bushfires. Further, the area was mined from the 1850s through to the 1930's, when cyanide vats were used on site.

No rehabilitation work was ever carried out following these activities. Nevertheless, the area appears untouched to untrained observers, demonstrating its potential for successful regeneration.

As far as the Timbarra River is concerned, water for the project can only be removed when the river has significant flow (more than 60,000 cubic metres per day at the Drake gauge). Even then, the mine is permitted to take no more than 4% (2,400 cubic metres) of this flow per day. Water use will be closely monitored by the Department of Land and Water Conservation.

We will protect local populations of threatened species by implementing a comprehensive flora and fauna management plan. This plan draws on the knowledge of highly experienced biologists who have spent thousands of hours in field work on the Plateau. Additional studies will proceed during the life of the Project.

The approval process for the project has been exhaustive. The Minister for Mineral Resources approved the original Project on the basis of a detailed Environmental Impact Statement. The local community, the Environmental Protection Authority, the National Parks and Wildlife Service, and the Departments of Land and Water Conservation and Mineral Resources have all had input into the approval process for the Project.

The recent addition to the Project was approved by the Tenterfield Council and the process followed was upheld by the NSW Land and Environment Court.

The environmental studies undertaken for this Project are among the most detailed ever conducted in Australia for a gold mine development.

We have used these studies to design the Project to best-practice environmental standards. Indeed, we are proud to say that in some cases we have set new standards for this type of mine.

Our environmental management plans have been subject to an unprecedented level of scrutiny by government agencies, and the Timbarra Project will be one of the most highly regulated mines in Australia. The Mining Lease and Pollution Control Approval contain more than 160 conditions, most of which involve environmental requirements. As the Project proceeds, the Department of Mineral Resources, the Environmental Protection Authority and the National Parks and Wildlife Service will meet regularly to review its environmental performance.

Gold will be extracted using the heap leach process, a fully contained process that produces neither discharge nor tailings. All waste rock will be deposited in stable waste rock dumps or back into the open-cuts, which will be progressively rehabilitated.

The Project has many design features and operating procedures to ensure the safe use of cyanide during the gold extraction process.

The heap leach pads are specifically designed to prevent cyanide leakage into groundwater. The design used in the Project actually exceeds best-practice standards, with liners 50% thicker than those usually used in Australia being laid over 400 mm of compacted clay. In addition to this precaution, a groundwater interception system will sample the groundwater beneath the pad. The groundwater around the heaps will be sampled on a regular basis.

Some people have suggested that in a severe storm, the heap leach pads might overflow and release cyanide to nearby streams. To allow for storms, the entire heap leach system has been designed to drain to a storm water pond with a capacity of 140,000 cubic metres. This is sufficient to take all runoff from a 1 in 400 year rainfall event (equivalent to 475 mm in 72 hours). The site will be progressively rehabilitated throughout the life of the mine. All disturbed areas, such as waste rock dumps and pits, will be rehabilitated as soon as practicable. Topsoil and native seeds will be collected during clearing for this purpose.

From the outset, we have sought the views of the local community on the Project, holding meetings with interested individuals and groups, and distributing brochures. We have also spent considerable time talking about the project to local newspapers and radio stations in order to stimulate questions and discussion.

We will continue to encourage comment and feedback from local residents throughout the life of the Project (see contact details below).

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The extremist critics of the Project won't tell you that they are opposed to mining in principle, regardless of how responsibly it is carried out, or what benefits it brings to the community.

For example, they won't tell you that the Project will create some 60 jobs directly and some 150 jobs indirectly over 5 years, giving the region a much needed financial boost. All of the mine's employees will be based in Tenterfield, and our estimate is that the Project will inject some $4 million a year into the local economy.

Nor will they tell you that the project will also benefit the Tabulam Bundjalung Aboriginal Community, who have negotiated an agreement under which Ross Mining will fund services, education, training, employment and community works.

Environmental groups do not have a monopoly on concern for the environment. Some mining companies are genuinely concerned about the environment as well. Ross Mining is proud to be one of them.

If you would like more details, please contact Matthew Orr, our Environment Manager, at PO Box 1546, Milton Qld 4064, or fax (07) 3320 3115. Alternatively, you can look us up on the Internet at http://www.rossmining.com.au.

Two contractors employed to control traffic in the Timbarra Gold Mine have been injured in an attack by three protesters. The police are now conducting an investigation into the incident.

Mr Lawton said the attack was mystifying. "It was completely unprovoked. The gatekeepers were just doing their job, which was to ask people to produce permits showing that they were entitled to enter the mining lease."

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For further information: Mr John Lawton, Executive Director, Ross Mining NL

Ph: (02) 6736 3821 or 0412 517 579

The NSW Land and Environment Court ruled yesterday that it did not have jurisdiction to hear a number of claims brought by Aboriginal applicants Andrew Donnelly and David Mundine against Ross Mining NL and the Tenterfield Shire Council, in relation to the Timbarra Gold Project.

Ross Mining Executive Director, Mr John Lawton, said that the applicants had effectively asked the Court to find that they had a valid native title claim. Instead, in a key decision, Mr Justice Talbot had found that the Land & Environment Court was an "inappropriate forum" to determine the existence of native title, and that the applicants' claim of native title "should be pursued in the manner prescribed by the Native Title Act".

Mr Justice Talbot also struck out the applicants' challenge to Mining Lease 1386, on the basis that the Land & Environment Court lacked the jurisdiction to make any declaration or other order in respect of the validity of the mining lease.

His Honour also dismissed the applicants' claim that their consent to roadworks was required under the Environmental Planning and Assessment Act 1979, finding that the applicants were not "owners" of land for the purposes of s77 of the Act.

Mr Lawton said today's decision meant that the vast majority of the Donnelly/Mundine claims had been dismissed and only a few minor matters were now before the Court. "I think it is fair to say that Andrew Donnelly and David Mundine have lost the case" he said. "In the circumstances, we will be encouraging them not to pursue the remaining points of their application. We will also be seeking an order for costs against them".

Mr Lawton said that the litigation had been a pointless exercise. "Donnelly and Mundine are well aware that the Timbarra Project has the endorsement of the Tabulam Bundjalung, who are the traditional Aboriginal landowners in the area. We have an agreement with the Tabulam Bundjalung, under which they have agreed to support the project, and we have undertaken to fund services, education, training, employment and community works. The agreement also includes a detailed process for complying with all State and Commonwealth laws relating to Aboriginal heritage issues".

Mr Lawton described today's decision as an important victory for Ross Mining. "We hope that it will send a strong message to the other groups opposing the Timbarra Project. That message is, you will not stop the project. Every legal challenge has failed, and construction is underway. On any realistic assessment, the litigation against the project should now cease."

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For further information: Mr John Lawton, Executive Director, Ross Mining NL

Ph: (02) 6736 3821 or 0412 517 579

Disseminated granite hosted gold deposits at Timbarra
northern New South Wales

Roger Mustard
Ross Mining NL

This talk was presented by Roger at an AIG-BEDG meeting in Brisbane, 23 June 1999,
and at an AIG geological gathering in Townsville, 25 June 1999.

The deposits are situated at the historical Timbarra Goldfields in the southern part of the New England Fold Belt (NEFB) in New South Wales. The project is currently under development, with the initial gold production expected in last quarter of 1998. 5 deposits with a total Identified Mineral Resource of 16.8 Mt at 0.73g/t gold (396,800 oz of contained gold) and a Proved and Probable Reserve of 13 Mt at 0.81 g/t gold (340,200 oz of contained gold) will be mined (Ross Mining NL 1998 Annual Report, Figure 1 Table 1). The deposits represent an economically significant, unusual style of intrusive hosted disseminated gold mineralisation.

Mine construction commenced in May, 1998 and the conventional open cut mining operations began at the Poverty Pit in January, 1999. The waste to ore ratios average approximately 1:1 for the life of the mine. Processing is carried out using heap leach techniques on ore crushed to minus 12mm. The gold extraction rate is estimated at 90% over 90 days. The cash cost to produce an ounce of gold is estimated at A$265 per ounce (US$160). Initial gold production at the 2 Mtpa heap leach operation occurred in March 1999, and is expected to produce 55,000 ounces of gold per year for an initial mine life of six years. During 1999 ore will be mined from both Poverty and RMT pits.

The Timbarra Goldfield was discovered in 1853 and the subsequent working of alluvial and soft eluvial material (weathered granite) up until 1938 resulted in an estimated total production well in excess of 100,000 oz of gold. Modern exploration commenced in 1969 targeting potential large tonnage low-grade gold deposits.

Permo-Triassic (245-238 Ma) high-K Granites of the Tenterfield-Stanthorpe region form a distinct group within the I-type Moonbi Supersuite informally named the Stanthorpe granite group (Blevin and Chappell, 1996). Leucogranites of the Moombi supersuite represent the most significant group of mineralised granites in the NEFB having produced Sn, W, Mo, Ag, As, Bi, Cu, Pb, Au, flourite, beryl and topaz. (Blevin and Chappell, 1993).

Three main granite types recognised in the Stanthorpe granite group are the Bungulla, Stanthorpe and Ruby Creek types which form a textural and compositional continuum considered to represent a differentiating magma series (increasing specialisation). Stanthorpe type granite lies directly on top of Bungulla type granite in the Timbarra area forming the present day topographic high known as the Timbarra Tablelands.

The Stanthorpe type granite can be divided into a variably porphyritic medium to fine grained hornblende-biotite granite called Monty’s granite, which is intruded by a later stage fractionated, texturally variable medium to coarse grained equigranular biotite granite termed the Surface Hill granite. The Surface Hill granite has a chilled contact with the Monty’s granite, with locally extensive development of a fine grained carapace facies.

Mineralisation is invariably within the Surface Hill granite either immediately beneath the carapace or within 200 metres RL (below internal aplite layers). Structure has localised and enhanced gold mineralisation along fractures, joints and faults.

The style of mineralisation at Timbarra, principally disseminated with minor sheeted veins is analogous to that displayed by granite hosted W and Sn deposits. The gold mineralisation has a low total sulphide content (<1%), and is associated with Mo and Bi.

Blevin, P L and Chappell, B W, 1993. The influence of fractionation and magma redox on the distribution of mineralisation associated with the New England Batholith., in New England Orogen Conference, pp 423-429.

Blevin, P L and Chappell, B W, 1996. Internal evolution and metallogeny of Permo-Triassic high-K Granites in the Tenterfield-Stanthope region, southern New England Orogen, Australia, in Proceedings of Mesozoic geology of the Eastern Australian Plate Conference, pp 94-100 (Geological Society of Australia; Sydney).

Ross Mining NL Annual Report, 1998.