Data release - as updated [made at SA Director of Mines' discretion] : Meningie, Ashville and Warnes (the Meningie South Gypsum Project). Licence-specific annual reports and project joint annual reports, for the period January 1995 to 12/11/2018.
Published: 12 Jan 1918 Created: 12 Nov 2024 Revised: 12 Nov 2024

This set of reports describes the resource discovery, process of appraisal, selective extraction and product sales history relating to a group of small Holocene surficial gysum deposits located in the brackish to saline swampy hinterland extending...

This set of reports describes the resource discovery, process of appraisal, selective extraction and product sales history relating to a group of small Holocene surficial gysum deposits located in the brackish to saline swampy hinterland extending east and south of Meningie township, near Lake Albert. These are believed to have formed by evaporation of ponded saline waters after the last marine transgression about 6000 years ago. Much of the gypsum is of Premium Grade, consisting of >90% CaSO4.2H2O. There is no overburden masking the deposits. Following the initial discovery in 1995 and 1996 of fine-grained and high grade gypsum-bearing lacustrine sediments by using push-tube coring down to a maximum depth of about 6 m to evaluate the nature of the beds of several larger salt lakes, surface geological mapping was undertaken with the aid of aerial photographs. This work enabled the identification of wide, non-gypsiferous areas within the northern and southern parts of EL 2215, where the salt lakes contain carbonate evaporitic sediments rather than gypsum. Consequently, a total of 55 square km of the original 126 square km licence area was relinquished in November 1999. Mining commenced in December 1997 at the Gemlake gypsum deposit on ML 5996 located 6 km south of Meningie township, which is enclosed by EL 2215. Here the calculated in-ground resource totals 48 000 tonnes. A further eight deposits lie within the licence area, scattered over 8 km north-south, and together these are reckoned to contain 1.342 Mt of mineable gypsum. Clanto is the largest found, with 1.0 Mt. During the year 2000, Meningie Gypsum began researching and pursuing entry into the supply chain for agricultural, viticultural, horticultural and industrial markets. The company principals for a second time attended the South East Field Days in March 2000. There was extensive advertising done in rural newspapers and in Telstra's Yellow Pages business phone directory, besides the conduct of mail drops and phone marketing campaigns. The sales of bulk gypsum continued to improve during the year, with the company commencing to sell a high grade product presented in 10 kg, 25 kg and 40 kg bags. Sales of this product were made both locally and interstate, and the company began to receive considerable expressions of interest from overseas parties. A new market entry was established in Sydney for the company's bagged gypsum, to be used as a flocculant. During the year 2001, Meningie Gypsum began a research project to determine what might be the sodic soil response to different rates of gypsum application. A demonstration of this project was given to Langhorne Creek vignerons in February 2002. A new research project was commenced in March 2002 on the flocculating ability of Meningie gypsum. It was anticipated that promulgation of the results of this research could lead to the wider acceptance of Meningie gypsum as a substitute for alum in the water purification industry. A new market for the bulk gypsum products was also established in the stock feed industry. In addition, Meningie gypsum started to be sold in bulk to a mineral processing company which is supplying a milled product to the food industry. At the Gemlake deposit about 7000 tonnes of gypsum were mined early in 2001, resulting in sales of 4238 tonnes in the first six months of 2002. Samples were taken from stockpiles and assayed for product quality control purposes. Field trips were made to EL 2572 Ashville in November 2001 and in January 2002. A push tube sample, AS 11, was taken from the Albert prospect, while at Mason's Lake deposit, hole AS2, which had been drilled in 1999, was deepened. The recovered sediment cores were logged and sub-sampled for assay. During the year 2003, sales of bulk gypsum were made to vineyards in several wine regions in South Australia. However, overall the level of sales achieved during the year was adversely affected by the 2002 drought, which was responsible for lower farm and vineyard incomes, restricting demand. About 2500 tonnes of gypsum were mined from the Gemlake deposit on ML 5996, resulting in sales of 1926 tonnes in the first six months of 2003. Sales of small bags of gypsum for the home garden market continued to expand. 3 exploratory push tube coreholes were drilled in mid-2003 on lakes in the southern part of EL 2877 Meningie not previously tested. During the year 2004, the company continued to sell bulk gypsum within South Australia, and also in Victoria, to the agricultural industry for broad acre spreading. Sales improved due to better seasonal conditions. Bulk sales were made to vineyards in several wine regions in South Australia, which had also benefitted from a better season. Sales of small bags of gypsum for the home garden market continued to expand. In addition to supplying the market in South Australia, sales were made to Tasmania and the Northern Territory. Further marketing trips interstate were made to try to gain access to supplying plaster, cement and stock feed manufacturers. In late 2004, potential customers and joint venturers from Victoria were shown over the deposits. Two export companies with links to the Middle East, China and Tanzania expressed an interest in promoting bulk and bagged Meningie gypsum to markets overseas. Representatives of one of these companies visited Meningie in early September 2005. A field trip was made to EL 2810 Warnes in late December 2004, during which a mineral claim of 164 hectares extent was pegged over Lihou Swamp. This claim was registered as MC 3461 on 6/3/2004. In consequence, Lihou Swamp became excised from this Exploration Licence. At the Gemlake deposit, a mining campaign was conducted in the first six months of 2005. Several thousand tonnes of gypsum were extracted from the lake bed and carted to the stockpile pad located adjacent to the lake, in preparation for intended sales during 2006. Samples of the stockpile were taken in order to monitor the rain-fed natural leaching diminution of salt content in it, a necessary step to be completed before the gypsum can be screened and sold. Record sales of bulk gypsum were made in the first six months of 2006 into existing but rapidly growing marketplaces. By the end of October more than 4400 tonnes had been sold. Several bulka bags of gypsum were sold to an absorbent manufacturer in Adelaide. There was also interest shown by a Victorian-based manufacturer of tartaric acid. During 2007, the company entered into an agreement with another agricultural products mining and marketing company, Agricola Mining, whereby it would have exclusive marketing rights for Meningie gypsum. Some experiments were carried out to investigate the use of gypsum in reducing phosphate levels, and hence algal blooms, in waste water. This experiment was suggested by United Utilities, which manages waste water treatment plants in rural areas. Results were inconclusive, but further tests are needed. At Gemlake, there was no gypsum remaining in the stockpiles by 30/6/2007. 2642 tonnes were sold for agricultural and viticultural purposes during this time. Because of the wet season, the lake will need to to dry out before a new mining campaign can get underway in the coming summer. During 2007-2008, the company continued to research and pursue agricultural, viticultural, horticultural and industrial markets for its gypsum. Marketing trips were made throughout South Australia and also into Victoria and New South Wales. The marketing agreement in place with Agricola Mining Pty Ltd was proving highly successful, with annual sales reaching a record of 18 289 tonnes. In October 2007, Derek Moullae (Sales Manager SA, Rocla Quarry Products) contacted Jeff Olliver, enquiring after sources of gypsum in South Australia that could supply 250 000 tonnes per year to Fletcher Building Limited for cement and plaster manufacture in New Zealand. Following initial discussions, an updated Information Memorandum was provided on the Meningie Gypsum deposits. In February 2008, the Lihou deposit was inspected. Rocla was given a copy of the Ashville licence 1992 geological report which documents the in-ground resources estimated for it (Indicated at 1.7 Mt), and for the largest deposit (Warnes Lake with a minimum of 4.4 Mt) which the company holds. A grab sample was collected by Rocla from the Warnes Lake deposit trial mining stockpile. As well, the geological report describing the in-ground resources of gypsum identified on EL 3744 Meningie was loaned to Rocla during a related inspection made then at the Clanto and Gemlake deposits. During the same field trip, the top 5 cm in the exposed pit faces at Gemlake was sampled for CSIRO to perform a laboratory investigation of the presence and identity of protozoa which may be of benefit to the soil that is treated with gypsum. In October 2008, advice was received from Rocla that its parent company Fletcher Building had decided to indefinitely postpone negotiations to either acquire Meningie Gypsum or sign a long-term purchase contract. During 2008-2009, sales of gypsum reached 13 500 tonnes, again being affected by drought. By the end of February 2008, all of the mineable gypsum at Gemlake had been extracted, so therefore it was decided to transfer mining activities during early 2010 to one of the unmined deposits located within 2 km of the processing facility established at Gemlake. In the interim, Meningie Gypsum would peg a mineral claim, apply for a Mining Lease, and compile the Mining and Rehabilitation program required to be submitted to PIRSA. Sales of gypsum in bulk again decreased during 2009-2010 due to the continuing drought, with only 10 665 tonnes being moved. During the year, Meningie Gypsum became aware that industrial major Knauf, who own 150 plasterboard manufacturing plants throughout the world, were seeking two large deposits of plaster grade gypsum to supply 300 000 tonnes per year to their proposed second plasterboard plant in Indonesia. In January 2010, Dr Mustafa Cihan (Exploration Geologist, Knauf AS) collected samples from two stockpiles at Elephant Lake deposit located on ML 6011. On 11 and 12 June, Dr Cihan and Dr Gunnar Wiessner (Head of Corporate Development Southern Europe, Middle East and Russia) inspected the Clanto, Gemlake, Elephant Lake, Warnes and Lihou deposits. The recently extracted unscreened stockpile at Elephant Lake, and the 1994 trial mining campaign unscreened stockpile at Warnes, were sampled. Analysis data for the four samples taken is presented. Information about the equipment required and operating costs envisaged to produce 100 000 tonnes per year from Elephant Lake and Warnes were compiled and forwarded to Knauf. Also, the possible mining and transport of 20 tonne bulk samples from both deposits were costed, including costs for their loading on a ship at Port Adelaide to be transported to Indonesia for plaster making tests. An updated Company Profile was supplied for their perusal before Paul Pike and Mike McNamara (Directors, Mulgundawa Salt Pty Ltd) inspected salt harvesting possibilities at Lihou, Warnes, Clanto and Elephant Lake on 18 June 2010. Water samples were collected from the open cut workings on Elephant Lake and at the end of the mine access embankment at Warnes. A tender was provided in May 2010 to an agent based on the Gold Coast Queensland to supply 174 150 tonnes of agricultural grade gypsum in six shipments to Uttar Pradesh, India for a Sodic Land Reclamation Project costed at US$197 million. During 2010-2011, sales of bulk gypsum increased to 16 621 tonnes as farmers recovered from the drought. The marketing agreement made with agent Agricola Mining was renewed, under amended conditions. The opportunity to export gypsum to supply 300 000 tonnes per year to the proposed second Knauf plasterboard plant in Indonesia did not eventuate. Knauf decided that it was too expensive to ship 60 tonnes each from the stockpile at Warnes on EL 3649 and two stockpiles at Elephant Lake on ML 6011 to Turkey for plaster making tests. Mulgundawa Salt Pty Ltd decided to investigate salt harvesting at Cookes Plains, Wellington, Nalpa and Snowtown, rather than Meningie. Cheetham Salt and Ocsalt will be contacted to gauge their interest. Following site inspections that were carried out in July 2011, Wanderriby, one of the unmined deposits situated within 2 km of Gemlake, was selected for mining. Power-screening of the last 14 000 tonnes of dried and leached Gemlake gypsum present on the stockpile pad commenced on 10 October 2011. EL 3433 straddles the Princes Highway 20 km north of Meningie, and covers the Lihou deposit which abuts the highway on the east south of Crosby Road. Based on 63 push-tube and hand auger holes that were drilled in 1991 and 1992, the deposit is thought to contains 1.7 Mt of indicated resources. Its calculated average grade, obtained from chemical analyses of 145 push tube and hand auger samples, is 67.4% gypsum and 4% salt. Selective mining is expected to yield a leached product of about 90% gypsum. Vegetation Heritage Agreement 1460 was proclaimed on 10 September 2010 and covers more than half of the gypsum resources at Lihou. Meningie Gypsum had no prior opportunity to comment, despite holding EL 3433 at the time. A detailed report is being prepared for PIRSA. Based on data from 15 holes drilled for gypsum, Lihou also contains a calculated 536 000 tonnes of fine-grained unconsolidated limestone which could be sold as lime. This material has potential high use as neutralising agent to treat acid waste, because the acid soils present in the Murraylands and Mount Lofty Ranges/Fleurieu Peninsula requires large quantities of lime to render them fertile. Lihou is 200 km closer to these areas than are existing mines on the Limestone Coast used to supply such lime. Rural Solutions branch of PIRSA has reported that there is currently an annual market of 50 000 tonnes, but only 22 000 tonnes were purchased in 2010 because of the high transport cost. During 2011-2012, a total of 15 025 tonnes of power-screened gypsum was sold from Gemlake in the six months to 30 June 2012. For the year overall, bulk gypsum sales increased to 19 163 tonnes. News was received that Adelaide Brighton Cement have acquired a major part of the Blanchetown gypsum deposit, so they have no interest in the Warnes deposit at Meningie, which Agricola Mining had been trying to sell to them. During 2012-2014, Meningie Gypsum's bulk gypsum production was obtained from the Elephant Lake deposit situated outside of the subject project area; a total of 11 912 tonnes of power-screened gypsum was sold from here in the six months to 30 June 2013. Agricola Mining continued to do marketing trips throughout South Australia, Victoria and New South Wales, and particular attention was given to promoting the three bulk commodities at Lihou - gypsum, gypsum-lime and lime - that could potentially be produced from this one operation. An invited field inspection made of the largest two salt lakes, Warnes and Lihou, by Kevin Taylor (Cheetham Salt) concluded that the potential for salt harvesting was low. During 2013-2014, Meningie Gypsum produced and sold a record 22 000 tonnes of bulk gypsum from Elephant Lake on its ML 6011. Other intended gypsum production, to come from Masons Lake on ML 6069, is yet to commence. Sean Kennedy conducted a small research project in which laboratory scale measurements of soil permeability were recorded after amendments induced by using various concentrations of gypsum. The results looked promising, and could lead to the publication of a guide for farmers and viticulturists' use in determining optimum rates, in tonnes per hectare, at which they should apply gypsum to their soils. In keeping with the philosophy of Meningie Gypsum, the laboratory set-up used was low-tech. The research paper describing the project and its findings was submitted to Soil Science Australia for publication in their journal. Gypsum produced from Meningie is being assessed as a possible feedstock in the production of prefabricated building panels. The applied research is being carried out both at the headquarters of the interested construction company at Monarto and also at the University of South Australia at The Levels. Preliminary findings are promising. During the period 2014 to 2016, no work was done. EL 4667 Ashville and EL 5213 Meningie were jointly fully surrendered on 14/1/2016, leaving just the one remaining project licence, EL 4905 Warnes [Lake]. During 2017 and 2018, no work was completed on renewed licence EL 5889, and as such no technical report was submitted. The companies efforts have been focused on marketing with the aim of increasing sales. During the 2018 reporting year the company undertook research and testing feasibility of supplying Ultra-fine gypsum.

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About this record

Record No mesac25774
Topic Geoscientific Information
Type of Resource Document
Category Type
Document Type Mineral Company Report - Mineral Exploration
Contributor Agricola Mining Pty Ltd
Sponsor Meningie Gypsum Pty Ltd
Tenement
Tenement Holder Olliver Geological Services Pty Ltd;Sean and Cynthia R. Kennedy;Meningie Gypsum Pty Ltd
Operator Meningie Gypsum Joint Venture
Geological Province Murray Basin
Mine Name Clanto gypsum deposit;Wanderibby gypsum deposit;Gemlake gypsum deposit;Lihou gypsum deposit
Stratigraphy
Commodity
Notes
Notes: The subject three licences were originally granted to prospectors Jeff Oliver and Sean Kennedy after they discovered commercial quantities of gypsum and gypsarenite associated with contemporary small salt lakes within swamps in the Meningie...

Notes: The subject three licences were originally granted to prospectors Jeff Oliver and Sean Kennedy after they discovered commercial quantities of gypsum and gypsarenite associated with contemporary small salt lakes within swamps in the Meningie district. The first licence taken up, EL 2215 Meningie, was granted on 24/10/1996. Thereafter a commercial holding company, Meningie Gypsum Pty Ltd, was formed in early November 1997 to mine, process and market gypsum for agricultural and specialty uses. Tenure of the ELs was transferred by the partners to that company in February 1998. EL 2572 Ashville, straddling the Princes Highway about 20 km north of Meningie and covering an area of 25 square km, was granted to Meningie Gypsum on 3/1/1999. It covers the previously delineated Mason's Lake gypsum deposit, and also the western portion of the Lihou gypsum deposit. EL 2810 Warnes [Lake] was granted to Meningie Gypsum on 3/5/2001. It covers the eastern portion of the previously delineated Lihou gypsum deposit, and also all of the Warnes Lake deposit. Geographic Locality: Murray Mallee;Meningie;Warnes;Ashville Doc No: Env 09241 Drillhole: MS1 - MS109;(338444);(338449 - 338457);AS2;AS11 - AS15;(338445 - 338448)

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Language English
Metadata Standard ISO 19115-3

Citations

Use constraints License
License Creative Commons Attribution 4.0
Persistent identifier https://pid.sarig.sa.gov.au/document/mesac25774
Citation Olliver, J.G.;Kennedy, S.;vanden Brink, T.;Turner, A. 1918. Data release - as updated [made at SA Director of Mines' discretion] : Meningie, Ashville and Warnes (the Meningie South Gypsum Project). Licence-specific annual reports and project joint annual reports, for the period January 1995 to 12/11/2018. Mineral Company Report - Mineral Exploration
https://pid.sarig.sa.gov.au/document/mesac25774

Technical information

Status
Maintenance and Update Frequency
Geographic Reference GDA2020 (EPSG:7844)
Geo bounding box {"type":"Polygon","coordinates":[[[139,-36],[139.5,-36],[139.5,-35.5],[139,-35.5],[139,-36]]]}
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