Recent figures released by national, state, and territory authorities continue to show that mineral exploration is still running hot across Australia. Backed by strong government and financial market support, the hunt for precious, base, speciality, and battery metals is extremely active and doesn’t look like it is slowing down.
According to the latest figures from the Resources and Energy Quarterly September 2022, gold exploration expenditure across the nation hit a new record in 2021–22. The record high of A$1.6B in 2021–22, was up 4.0% from the previous record in 2020–21. Gold accounted for 41% of Australia’s total mineral exploration expenditure (at A$3.9B) in 2021–22.
Western Australia (WA) remained the centre of gold exploration activity in Australia in 2021–22, accounting for 71% (or A$1.1B) of total gold exploration expenditure, followed by Victoria (10% or A$166M), and New South Wales (NSW) at 7.2% or A$114M.
It was noted that while copper exploration numbers fell in some areas, they were still historically high, with expenditure growing by 11% quarter-on-quarter, to reach A$136M in the June quarter 2022.
Meanwhile, nickel and cobalt exploration expenditure hit a 14 year high. Compared to the June quarter 2021, nickel and cobalt exploration expenditure increased 31% to A$80M in the June quarter 2022. This is the highest exploration expenditure since the September quarter of 2008.
Zinc exploration expenditure also increased significantly in 2021-22, while exploration expenditure for silver, lead, and zinc rose 67% year-on-year in the June quarter 2022.
With minerals being a major export earner for the country, it is no surprise that governments are ramping up their financial support for the industry.
Mineral exploration is still running hot across Australia
New South Wales
The NSW government recently announced it will invest a further A$1.5M to support explorers to search for new deposits of critical minerals and high-tech metals essential for the manufacture of batteries, electric vehicles, and other renewable technologies.
The state’s deputy premier and minister responsible for resources, Paul Toole, said the funding, which is part of the next round of the New Frontiers Cooperative Drilling Programme, will further strengthen the NSW’s position as a leader in critical minerals and high-tech metals exploration and mining.
Mr Toole said the new programme was part of the NSW government’s commitment to promoting exploration investment and supporting the long-term sustainability of the sector.
“Critical minerals and high-tech metals represent a new frontier for mining in NSW, with the potential to generate thousands of jobs and billions of dollars in investment supporting our regional economies and communities,” Mr Toole said.
“Stimulating exploration will ensure NSW is prepared for surging demand for critical minerals in the future global economy, and now more explorers than ever before can access the funding, with eligibility to be expanded to include exploration geophysics.
“By encouraging exploration, we are improving our understanding of the state’s mineral resources to fully realize its economic potential.”
The commitment follows a recent NSW government 2022-23 budget announcement of A$130M for a new Critical Minerals and High-Tech Metals Activation Fund, which will entice mining and processing investment in NSW.
Western Australia aerial survey excitement
In late October, the WA and Australian governments revealed that in a world-first, the largest survey of airborne electromagnetic (AEM) data has been collected across the state.
Federal minister for resources and northern Australia, Madeleine King, said the data collection is aimed at understanding the state’s geology and resource potential – offering industry important insights to inform more targeted surveying.
“This data will deepen our understanding of groundwater, minerals, including critical minerals, and hydrogen storage, which are all essential in our transition to net zero emissions by 2050,” Minister King said.
“This data is already being used by industry and the CSIRO to progress exploration for rare earth element-bearing clays and other minerals which will be key to our clean energy future.
“As we strive towards our new net-zero economy, we have already seen this data be used to map salt for hydrogen storage, uncovering great potential for the development of multiple caverns underground in salt deposits.”
The mapping programme was made possible through the Geoscience Australia’s Exploring for the Future programme and the Western Australian government’s Exploration Incentive Scheme led by the Geological Survey of Western Australia (GSWA).
WA’s minister for mines and petroleum, Bill Johnston, said the survey is a major achievement that will keep the state at the forefront of geoscientific understanding.
“Exploration is the lifeblood of our resources sector, and I am confident the AEM survey’s data will help uncover the state’s next big discovery.
“It’s encouraging to see that exploration companies are already using survey data to target in-demand battery and critical minerals such as nickel, graphite, and rare earth elements.”
Several companies have already used the survey’s early-release AEM data to target basement anomalies identified in the survey lines.
Earlier this year, Buxton Resources (ASX: BUX) located an unidentified bedrock conductor at its Narryer nickel-copper-platinum group elements project in the Western Yilgarn Craton margin.
Meanwhile, Mamba Exploration (ASX: M24) has located targets at its Copper Flats project in the East Kimberley and Torque Metals (ASX: TOR) has found anomalies that may indicate nickel mineralization at its Paris Project in the Eastern Goldfields.
The A$225M Exploring for the Future programme has been gathering precompetitive data about Australia’s geology since 2016.
Victoria making waves
Elsewhere, vibrations caused by natural events, such as waves breaking on a beach or earthquakes, are helping us to better understand the Earth’s geological evolution, its deep geology, and Victoria’s resource potential.
The Geological Survey of Victoria (GSV) is collaborating with Geoscience Australia (GA) to unlock secrets hidden in rocks deep underground by measuring seismic waves from vibrations in the Earth caused by sources big and small.
The initiative is part of the Australian Passive Seismic Array Project (AusArray). Activities are scheduled to commence later this year using over one hundred two-litre, milk-bottle-sized sensors spread across the state.
GSV’s director, Paul McDonald, said that by determining how quickly vibrations travel through different parts of the Earth’s crust, passive seismic data can be used to interpret the distribution of rock types at depth.
“The result will be used to build a three-dimensional model of Victoria’s sub-surface, resulting in a better understanding of our geological history, and helping us to assess the state’s resource potential more accurately.
“Importantly, the model will allow us to assess for natural hazards and this could inform decisions about infrastructure design and placement.”
Mr McDonald said the AusArray initiative was part of GA’s Exploring for the Future programme.
“It’s about contributing to a sustainable, long-term future for Australia through an improved understanding of the nation’s minerals, energy, and groundwater potential.”
Data acquired for the AusArray-Victoria and national AusArray projects will be publicly available through GA’s Data Discovery Portal.
This article was updated on 3 January 2023 to reflect that Buxton Resources’ Narryer project is located in the Yilgarn, not the West Kimberly as stated in the previous version.
