exploration operations mining management plan and …

EXPLORATION OPERATIONS

MINING MANAGEMENT PLAN AND PUBLIC REPORT

NORTH BATTEN PROJECT

MCARTHUR RIVER REGION, NT

Operator: MMG Exploration Pty Ltd

Authorisation Number: 0814-01

MMP Reporting Year: 2018

Author: Luke Mortimer

Date: 01/05/2018

MMG Report No.: MMR 6758

Distribution:

NT DPIR

MMG Exploration Pty Ltd

Sandfire Resources NL

Author Reviewed by Approved by

Date 01/05/2018 01/05/2018 01/05/2018

Name Luke Mortimer Laura Spelbrink David Wallace

Signature

I David Wallace, Exploration Manager – Australia, declare that to the best of my knowledge the information contained

in this mining management plan is true and correct and commit to undertake the works detailed in this plan in

accordance with all the relevant Local, Northern Territory and Commonwealth Government legislation.

SIGNATURE: ……………………..

DATE:………………..

MMG Mine Management Plan for 'Matchbox' Project of 42

TABLE OF CONTENTS

MINING MANAGEMENT PLAN AND PUBLIC REPORT NORTH BATTEN PROJECT 1

Amendments 4

MINE MANAGEMENT PLAN 5

1 Operator Details 5 1.1 Organisational Structure 5 1.2 Workforce 6

2 Identified stakeholders and consultation 6

3 Project Details 6 3.1 previous activities and Current Status 9 3.2 Proposed Activities 16

4 Current Project Site Conditions 20 4.1 Local and regional geology 20 4.2 hydrology-hydrogeology 21 4.3 Flora and fauna 21 4.4 Native title 22 4.5 Land use 27

5 Environmental Management System / Plan 27 5.1 Environmental Policy and Responsibilities 27 5.2 Statutory and non-statutory Requirements 30 5.3 Induction and Training 30 5.4 Identification of Enviromental Aspects and Impacts 31 5.5 Environmental Audits and Inspections 36 5.6 Environmental Performance Reporting 37

5.6.1 Objectives and Targets 37

5.6.2 Performance Reporting 37

5.7 Emergency Procedures and Incident REporting 38

6 Exploration Rehabilitation 38 6.1 Exploration Rehabilitation register 39 6.2 Costing of Closure Objectives 41

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

Appendix 7: MMG 2016 Sustainability Report 42

MMG Mine Management Plan for 'Matchbox' Project of 42

LIST OF TABLES

Table 1: Project Details 6 Table 2: Tenement Details 7 Table 3: Completed 2014 diamond drilling program 10 Table 4: Completed 2015 diamond drilling program 10

Table 5: Completed 2016 diamond drilling program 101

Table 6: Completed 2017 diamond drilling program 102

Table 7: Proposed 2018 diamond drilling program

107

Table 8: Planned ground disturbance for drilling, camp and geophysical survey activities 107

Table 9: Details of environmental aspects, impacts and control measures. 30

Table 10: 2017 Environmental Reporting. 37

Table 11: Details of disturbance and rehabilitation policies and procedures 38

LIST OF FIGURES

Figure 1: Regional location of the North Batten Project tenements. 8 Figure 2: Local-scale map of North Batten Project tenements (blue=granted; red=ALRA applications). 9 Figure 3: Drill hole and track locations in the Sawtooth Prospect area. 153 Figure 4: Drill hole and track locations in the the Rosie Creek-Mt Young area. 194 Figure 5: Drill hole and track locations in the the Berjaya NW area. 195

Figure 6: Proposed 2018 program. 199 Figure 7: NVIS Map with vegetation distribution. 22

Figure 8: Native Title Map 23 Figure 9: AAPA registered and recorded heritage sites 25 Figure 10: 2017 AAPA application map 26 Figure 11: Project cadastral map 27

Figure 12: MMG Safety, Health, Environment and Community Policy 28 Figure 13: MMG Sustainability Policy. 29

Figure 14: Environmental Risk rating Matrix. 31

MMG North Batten Project Mine Management Plan of 42

AMENDMENTS

Section Amendment

2017

Section 2 Identified Stakeholders Removed reference to McArthur River Station. Re-submitted

MMP with proposed works on Lorella Springs Station only.

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

renewals.

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

water bore NBWB002.

Section 3.2 Proposed Activities Removed references to the 2 x drill holes proposed on

McArthur River Station in Tables 6 & 7 and ex-figure 7.

Section 4.5 Land Use Removed reference to McArthur River Station.

Section 5.4 Identification of Environmental

Aspects and Impacts

Clarified Environmental Aspects applicable to the Project and

Revised Table 8.

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

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

Supplementary Amendments – Sept 2017

Section 2 Identified Stakeholders Added reference to McArthur River Station

Section 3.2 Proposed Activities Added references to the additional 5 x drill holes proposed on

both Lorella and McArthur River Stations in Tables 6 & 7,

updated Figure 6 and added Figure 7.

Section 4.4 Native Title Updated status of 2017 AAPA heritage clearance surveys.

Section 4.5 Land Use Added reference to McArthur River Station.

Section 7 Appendices Updated Appendix 2 drill hole database.

Updated Appendix 4 security calculation.

Updated Appendix 5 Landowner Access Agreements.

2018

Section 3.1. Previous Activities and Current Status Added completed 2017 activities.

Section 3.2 Proposed Activities Added proposed 2018 activities including Tables 7 and 8.

Section 4.4 Native Title AAPA Authority Certificates and applications update.

Section 5.5 Environmental Audits and Inspections Added 2017 environment reporting figures, Table 10.

Section 6.1 Exploration Rehabilitation Register Revised to included completed 2017 activities.

Appendix 1 Updated rehabilitation photos to include 2017 activities.

Appendix 2 Updated drill hole database.

Appendix 4 Revised 2018 Security Calculation


MINE MANAGEMENT PLAN

1 OPERATOR DETAILS

Company Details

MMG Exploration Pty Ltd

ABN: 96 119 136 659

Hong Kong Stock Exchange code: 1208

Australian Stock Exchange code: MMG

Level 23/28 Freshwater Place

Southbank Victoria Australia 3006

http://www.mmg.com

[email protected]

Key Contacts

Luke Mortimer

Principal Exploration Geologist (Project Support)

0467 802 941

[email protected]

Laura Spelbrink

Acting Principal Geologist (Project Manager)

0472 872 344

[email protected]

David Wallace

Exploration Manager – Australia (Project Sponsor)

0409 116 450

[email protected]

1.1 ORGANISATIONAL STRUCTURE

David Wallace

Exploration Manager - Australia

Luke Mortimer

Principal Geologist

(Project Support)

Laura Spelbrink

Acting Principal Geologist

(Project Manager)

Contract Geologist

Contract Geologist

Contract Geologist

Steve Lycett

Senior Field Technician

Contract Field Staff/Technicians

http://www.mmg.com/

mailto:[email protected]





1.2 WORKFORCE

It is expected that the program will require:

Up to 8 MMG personnel (Geologists, Field Supervisors & Support Staff)

Up to 4 contract Field Technicians and earthworks contractors

Up to 12-14 Drilling Contractors

The above numbers are based on the planned programme utilising two drill rigs on site.

Contract field staff and earthworks contractors will be locally sourced as available.

2 IDENTIFIED STAKEHOLDERS AND CONSULTATION

The following affected Pastoral Leaseholders (“Landowners”) have been duly consulted (Appendix 5):

1. Lorella Springs Station – Rhett Walker (Station Owner).

Signed acknowledgement of proposed exploration activity plans and locations - Pending.

2. McArthur River Station – David Kerr (Glencore – Legal Counsel; Station Owner representative).

Signed acknowledgement of proposed exploration activity plans and locations - Pending.

Also included in all these consultations are David and Margaret Daniels (Station Managers).

Native Title Holders/Claimants; refer also to Section 4.4 Native Title.

Narwinbi Aboriginal Land Trust and the Mara, Binbingka, Gurdanji and Yanyuwa People.

MMG are currently negotiating land access agreements through the NLC and conducting heritage clearance

surveys through the AAPA. The NLC are also involved in the engagement of on-site Cultural Monitors (Traditional

Owners).

Ongoing Stakeholder Consultations are achieved through the following:

1. Regular contact via phone and email.

2. Minimum 14 day written Notices of Entry and exploration activity plans and schedules are provided to

all affected Stakeholders.

Sandfire Resources NL, JV Partner, is regularly informed of our exploration programs and progress including

quarterly and annual progress reports.

The Northern Territory Geological Survey and DPIR are consulted and informed of our activities as per statutory

reporting requirements.

3 PROJECT DETAILS

Table 1: Project Details

Project Name: North Batten

Authorisation No. 0814-01 (25 Aug 2014)

Location North-eastern NT; McArthur River region

Site Access From Darwin: Stuart Hwy and Carpentaria Hwy;

From Cape Crawford and Borroloola: Carpentaria Hwy

Exploration Licence Holder Sandfire Resources NL

Project Operator MMG Exploration Pty Ltd

The North Batten Project is an Option and JV Agreement between Sandfire Resources NL and MMG Exploration

Ltd dated 29 May 2013 comprising of eleven granted Exploration Licenses for a total of 5206sq km (Figures 1 & 2;

Table 2). Sandfire is the tenement holder whilst MMG are acting as the Project Operator. MMG’s principal

exploration target is Zn-Pb-Ag mineralisation of SEDEX/ HYC-style and MVT/replacement-style.


Table 2: Tenement Details

LEASE STATUS GRANT

DATE

EXPIRY

DATE

AREA

(sub -blocks)

EL28656 renew retained 20111027 20191026 39










EL29022 granted 20120725 20180724 53

EL25501 *ALRA application ELA in 5 year moratorium from 14/12/2017

EL26299 *ALRA application ELA in 5 year moratorium from 14/12/2017 * No exploration activities are planned for tenements under application.

The project is located in the McArthur River district in the north-east area of the Northern Territory, approximately

500 km south-east of Katherine and approx. 50 km west of the township of Borroloola (Figures 1 & 2). The project

area is accessible from Darwin via the sealed Stuart Highway and Carpentaria Highway, or the Tablelands Highway

via Mt Isa/Barkley and from the McArthur River Mine airport via the Carpentaria Highway (55 km). Station tracks

provide four-wheel drive access to the majority of the area.


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


Figure 2: Local-scale map of North Batten Project tenements (blue).

3.1 PREVIOUS ACTIVITIES AND CURRENT STATUS

There is minimal development/infrastructure in place within the project area with cattle grazing the main land use.

The closest localities are Cape Crawford and the township of Borroloola.

Previous exploration in the North Batten project area has been focussed on zinc-lead, copper, manganese,

diamonds and gold. Following the discovery of the nearby McArthur River deposit in the 1950s, there has been

extensive exploration for similar Zn-Pb-Ag deposits. Work by previous explorers has mainly consisted of stream

sediment sampling, mapping, airborne EM/magnetics, ground EM, soil sampling and drilling. Exploration in the

area has been largely unsuccessful.

MMG’s JV partner, Sandfire, has been involved in the area since 2004, with exploration focussed on base metals,

manganese and diamonds. Prior to Sandfire, most exploration work in the area was completed by MIM, CEC, BHP,

Rio Tinto (CRA) and Perilya.

2014

In 2014 MMG completed a helicopter-supported sampling program involving the collection of 1085 stream

sediment samples. An approx. catchment sampling size of 25 km2 was achieved and the samples were analysed

twice; once using a coarse fraction (-2mm to +425µm) and secondly using a fine fraction (-185µm), to assess for

proximity and homogeneity indicators. Several anomalous assays were identified for further follow-up work.

In 2014 MMG also completed an eight hole diamond drilling program as proposed in the 2014 MMP (Table 3). No

significant mineralisation was intersected during this drilling program although the results have improved our

geological understanding of the region and will be used in the planning of future exploration programs.


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

Tenement Prospect Hole ID

Total

Depth (m) Dip Azimuth

Date

Completed

EL30158 Mt Young NBDD001 157.2 -80 159 17-Oct-14


EL26835 Rosie Creek NBDD003 528.1 -80 99 08-Oct-14

EL26835 Rosie Creek NBDD004 578.8 -80 99 01-Oct-14

EL30156 Yalco East NBDD005 506.8 -70 54 09-Sep-14

EL26831 Sawtooth NBDD006 133.1 -60 279 16-Sep-14

EL28656 Leila Creek NBDD007 379.8 -75 299 29-Aug-14


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

1):

All 2014 drill pads and drill hole collars have been fully rehabilitated.

All 2014 new access tracks were graded and left open for continued use by MMG during the 2015 drilling

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

3-5).

The tracks which have been graded and left open at the request of the local landowners are at the

Sawtooth (McArthur River Station; NBDD005 & 006) and Mt Young/Rosie Creek (Lorella Springs Station;

NBDD001, 003, 004 & 008) Prospects. Written confirmation will be sought from the Landowner once MMG

decide to exit the area.

2015

In 2015 MMG completed a helicopter-supported sampling program involving the collection of 379 stream

sediment and 91 soil samples. The majority of which was infill and follow-up of the 2014 sampling program. An

approx. catchment sampling size of 3.5 km2 was achieved and the samples were analysed using only a fine fraction

(-180 µm). Several anomalous assays were identified for further follow-up work.

MMG also completed an NSAMT geophysical survey along some existing established tracks within the Rosie

Creek–Mt Young prospect area. It involved the reading of 305 AMT stations over a period of ~3 weeks. This survey

involved nil to negligible ground disturbance. The results are being used to improve the geological interpretation

and understanding of this particular area.

MMG also completed a nine hole diamond drilling program (Table 4). Although a fifteen hole diamond drilling

program was initially proposed in the 2015 MMP we were unable to complete the entire fifteen hole program due

to budget and timing constraints. No significant mineralisation was intersected during this drilling program

although the results have improved our geological understanding of the region and will be used in the planning of

future exploration programs.

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


Total


Date

Completed

EL26835 Rosie Creek NBDD009 423.1 -79.8 252.7 09-Sep-15



EL30152 Rosie Creek NBDD012 165 -80.5 273.2 18-Sep-15

EL26835 Rosie Creek NBDD013 317.8 -75.6 273 28-Sep-15

EL30156 Sawtooth NBDD014 168.2 -65.8 78.4 03-Oct-15




EL26831 *water bore NBWB001 36 -90 0 16-Jul-15

EL26831 *water bore NBWB002 102 -90 0 17-Jul-15



1):

All 2015 drill pads and drill hole collars have been fully rehabilitated.

All 2015 new access tracks have been graded and left open for continued use by MMG during the 2016

drilling programme. These access tracks are still being used by MMG as we retain interests in these areas

(Figures 3-5).

The two water bores listed above were drilled within the Sawtooth Prospect for use during the 2015

drilling operations in that area. They were constructed in accordance with industry standards by an NT

licensed water bore drilling contractor (Murranji Drilling) with full Bore Report documentation provided.

Note that the first bore, NBWB001, was dry and subsequently backfilled and capped. The NBW001 site is

not yet rehabilitated as it is located at the Sawtooth Driller’s camp site which also remains un-rehabilitated

for future use. The second bore, NBWB002 was successful and remains capped but not

plugged/abandoned in the event MMG wish to use it for any future drilling in the Sawtooth Prospect area

which MMG are still actively exploring. Please note that MMG have not extracted any groundwater from

NBWB002 since completion of the Sawtooth Prospect drilling programme in Oct 2015. It has been agreed

by the Landowner that in the event MMG has no further use for this bore it will be left open and handed

over to McArthur River Station. Written confirmation will be sought from the Landowner once MMG

decide to exit the area.

2016

During 2016 MMG completed the following exploration activities:

Completed a technical review of all 2015 drilling and geophysical survey results.

Completed a “Falcon” airborne gravity gradiometry survey of the greater Rosie Creek/Mt Young Prospect

area involving approx. 5330 line km at an 80m flight height (March/April).

The Falcon survey data results were subsequently used to improve our geological models of this region

and design drill testing of identified exploration targets.

Various desktop studies including trace element geochemistry and 3D geological modelling

Reconnaissance geological mapping, 3D modelling and drill targeting at the Berjaya Prospect.

Historical drill hole core re-logging and re-sampling: a total of 10 holes relevant to the Berjaya and Rosie

Creek prospects.

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

geochemistry surveys (13 catchments mapped).

Completed a diamond drill hole programme involving eleven diamond drill holes (4493 m) and one water

bore (55m) (Figures 4 & 5).

2016 Drilling Programme Summary:

MMG engaged DDH1 Drilling to complete eleven exploration diamond drill holes totalling 4493.0 metres from 1

September to 13 November 2016 (Table 5). In addition, a 55 m deep water bore (NBWB003) was drilled to supply

water for the Berjaya NW prospect drilling (NB16DD018).

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


Total


Date

Completed

EL26831 Berjaya NW NB16DD018 404.4 -81 158.1 06-Sep-16

EL26835 Rosie Creek NB16DD019 447.8 -80 042.9 17-Sep-16

EL26835 Rosie Creek NB16DD020 594.5 -80 086.4 27-Sep-16

EL30048 Dothraki NB16DD021 213.9 -77 125.8 01-Oct-16

EL30048 Dothraki NB16DD022 228.3 -77 127.4 05-Oct-16

EL30048 Rosie Creek NB16DD023 366.8 -77 053.5 11-Oct-16




EL26835 Rosie Creek NB16DD027 604.1 -80 086.6 05-Nov-16

EL26835 Rosie Creek NB16DD028 331.0 -80 092.3 09-Nov-16

*water bore NBWB003 55.0 -90 0 21-Aug-16



1):

All 2016 drill pads and drill hole collars have been fully rehabilitated with the exception of NB16DD025, 27

and 28 which were left open with PVC piping laid down hole to allow for future down hole geophysical

surveys.

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

geophysical survey crews.

All other drilled pads, and one undrilled pad at the Dothraki prospect, were fully rehabilitated with

vegetation pushed back onto them. Two undrilled pads were left open (not rehabilitated) for the next 2017

drilling campaign, however, their sumps were backfilled.

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

are now inaccessible.

2017

During 2017 MMG completed the following exploration activities:

Conducted a technical review of all previous drilling and geophysical work.

Further interpretation of the 2016 “Falcon” survey, the results of which were used to improve our

geological understanding of the area and identify targets for drill testing.

Various desktop studies including geochemical mapping and 3D geological modelling.

Reconnaissance geological mapping and geochemical sampling of rock chips (May 2017).

Completed a diamond drilling programme including 21 drill holes (9255 m) (Figures 3 & 4 and Table 6).

2017 Drilling Programme Summary:

MMG engaged Titeline Drilling to complete twenty one (21) exploration diamond drill holes totalling 9255.5 m

from 28th

June until 5th

November 2017.

Table 6. Completed 2017 North Batten drill holes (see also Appendix 2 for coordinates)

Tenement Prospect Hole ID Total Depth (m) Dip Azimuth

Date

Completed

EL26835 High Garden NB17DD029 489.5 -80 220.8 02-Jul-17

EL26835 Rosie NB17DD030 296.3 -80 295.8 05-Jul-17

EL26835 Rosie NB17DD031 606 -80 40.79 12-Jul-17

EL26835 Rosie NB17DD032 759.5 -80 115.79 13-Jul-17

EL26835 Kings Landing NB17DD033 487.3 -80 295.78 21-Jul-17

EL26835 West Rosie NB17DD034 343.1 -80 85.79 30-Jul-17

EL26833 Rosie West NB17DD035 315.9 -80 205.8 17-Oct-17

EL26835 Rosie NB17DD036 404.5 -80 265.79 29-Jul-17

EL26835 Rosie NB17DD037 236.1 -80 265.54 29-Jul-17

EL29022 Kings Landing NB17DD038 208 -80 265.79 04-Aug-17

EL26835 Rosie NB17DD039 560.2 -80 275.79 13-Aug-17

EL30158 Mt Young NB17DD040 500 -80 285.82 22-Aug-17

EL30158 Mt Young NB17DD041 381.5 -80 285.82 28-Aug-17

EL30158 Mt Young NB17DD042 324.6 -80 286 05-Sep-17

EL26836 Mt Young NB17DD043 342 -80 285.82 10-Sep-17

EL26836 Rosie Horst Block NB17DD044 444.6 -80 105.8 16-Sep-17

EL26836 Mt Young NB17DD045 384.1 -80 106 22-Sep-17

EL29022 Rosie South East NB17DD046 520.09 -80 55.79 06-Oct-17

EL29022 Rosie South East NB17DD047 485.6 -80 275.79 15-Oct-17

EL30156 Yalco NB17DD048 600.6 -75 65.75 05-Nov-17

EL30156 Nhumby Nhumby NB17DD049 566 -80 245.74 29-Oct-17



1):

All 2017 drill pads and collars have been rehabilitated.

One pad left open from the 2016 programme was re-used in 2017 as a drill pad and has since been

rehabilitated.

Two drill pads not used for drilling in 2017 were fully rehabilitated.

22.5 kilometres of tracks from previous years’ drilling were rehabilitated (11.2 ha).

General comment in regards to all new access tracks created by MMG during 2014-2017:

It is important to note that as MMG retain active interests in these areas for the foreseeable future our current

practice is to fully rehabilitate drill pads and collars and to grade and leave open all tracks until we decide to exit

the prospect areas. This practice is carried out with full consultation with the relevant Station Owners. Both Lorella

Springs and McArthur River Stations have indicated that they will want many of our newly created tracks to remain

open for their future use.

Therefore, the plan is once MMG have elected to exit an area MMG will seek the input of the relevant Land Owners

in regards to which tracks they wish to remain open and which tracks they wish us to rehabilitate. MMG will seek

written confirmation from the relevant landowners regarding their requests to keep these particular tracks open.

In regards to inspection and maintenance in April 2017 and April 2018 all 2014-2017 drill sites and access tracks

were visually inspected and photographed as part of regular annual inspection and monitoring procedures – see

Appendix 1. These inspection/monitoring exercises were conducted immediately post-wet season using a

helicopter as it: (1) eliminates the need to drive over rehabilitated sites; (2) avoids disturbing potentially water

logged areas; and (3) the aerial view provides a superior overall view of site rehabilitation progress.

Any areas in need of maintenance will be identified for remediation during these inspection exercises. Given these

tracks are semi-permanent measures taken to reduce erosion include: minimalist “blade up” track and pad clearing

technique; routine maintenance (e.g. grading) of high traffic tracks; emplacement of whoa-boy (diversion banks)

wherever required for improved drainage; and physical access barriers (e.g. logs) placed on tracks to halt traffic.

Figure 3: Drill holes plus existing vs new access tracks cleared by MMG 2014 - 2017 in the Sawtooth Prospect area.


Figure 4: Drill holes plus existing vs new access tracks cleared by MMG during 2014-2017 in the Rosie Creek-Mt

Young area.


Figure 5: Drill holes plus existing vs new access tracks cleared by MMG during 2016 in the Berjaya NW Prospect

area.


3.2 PROPOSED ACTIVITIES

MMG’s MMG’s principal target is Zn-Pb-Ag mineralisation of SEDEX/Sedimentary-hosted style. At this stage the

2018 program involves geological mapping, reconnaissance stream sediment and soil sampling, ground

geophysical (Induced Polarisation or “IP”) surveys and a diamond drilling program. With the exception of the

diamond drilling program, the reconnaissance mapping, sampling and geophysical surveys are all considered “low

impact” with negligible to no ground disturbance.

In 2018 within the Rosie Creek prospect area located on the Lorella Springs Station MMG plan to complete eight

(8) diamond drill holes (Figure 6 and Tables 7 & 8). Within the Cow Lagoon, Berjaya, Tawallah fault, Alice Syncline

and Sawtooth North (Hammers) prospect areas located on the McArthur River Station, MMG propose to drill eight

(8) diamond drill holes as part of this MMP application (Figure 6 and Tables 7 & 8).

MMG are also planning to conduct an IP survey in the Rosie Creek-Mt Young area (approx. 58.9 line km along pre-

existing and new tracks). Ground electrical surveys such as IP involve wire cables being laid out over the surface of

selected areas which are then linked to metal electrodes that are dug into the surface. Depending on the surface

these electrodes will involve small hand dug holes or pits ranging from 25cm to 1m in width to a depth of approx.

25-50cm

Drill pads and tracks will be constructed in accordance with industry best practice e.g. dozer ‘blade up’, single lane

traffic, stockpiling of top soil etc. Some new tracks will be required to access optimal drill pad locations and works

will be required to upgrade existing tracks for initial access. MMG has internal procedures which govern how drill

pads and tracks are constructed to maintain the lowest possible impact to the environment. An excavator and/or

front-end loader will be used to clear tracks.

All proposed access tracks and drill pads will be heritage surveyed by Traditional Owners/Cultural Monitors prior to

any disturbance to ensure that any significant cultural sites or flora-fauna habitats are recognised, recorded and

avoided during any proposed earthworks.

Note that MMG have nominated a track clearance width of 5m (max.), however, this is a nominal contingency

width only. MMG standard practice is for newly created tracks to be cleared to one standard truck width for single

lane traffic only. However, past experience has shown that some sections of new tracks can quickly deteriorate with

the development of deep ruts and/or become “boggy” sand. Ongoing regular track maintenance by MMG (e.g.

grading and watering) mitigates this problem but declaring a nominal 5m clearance width allows for the

contingency to later widen problematic track sections to allow two vehicles to pass.

Drill pads of up to 50m x 50m (max.) will be cleared to accommodate a UDR1200 (or equivalent) drill rig, including

work areas and sumps (typically 2 per drill pad). Sumps will be constructed as poly-film lined approx. 2m x 2m x

1.5m pits, with final depth dependent on the soil profile. Topsoil from each sump will be stockpiled separately to

ensure that it is returned to the top of the site upon completion of the rehabilitation. All sumps will have animal

egress ramps inbuilt and will be barricaded during all stages until rehabilitated.

MMG have nominated a maximum drill pad site size of 50m x 50m as a nominal contingency size only due to the

problematic ground conditions mentioned above. MMG standard practice is for minimalist size drill pads but have

allowed for a maximum 50m x 50m due to past experiences with deterioration of drill pad sites during their use.

Declaring a large 50m x 50m pad size allows for the contingency to later expand a drill pad if site conditions

deteriorate to the point that vehicles become bogged and truck turning circles are required.

It is proposed that three remote field camps will be constructed for the 2018 field season, though at the time of

writing the exact location of these camps sites are unknown as that will be contingent on cultural heritage

clearances to be conducted by the Cultural Monitors prior to the start of drilling. However, these camps will be

utilised by the drilling crews and some MMG staff and will be positioned close to the drilling areas.


Whether groundwater will be encountered is currently unknown given the “grassroots” nature and wide

geographical spread of the proposed drill holes. However, it is MMG’s standard operating procedure to ensure

that the drilling contractor carry sufficient supplies of cement and other drilling consumables to immediately

cement and plug any drill holes that intersect artesian groundwater flows.

Of particular relevance to this 2018 MMP is that the AAPA have completed the requisite cultural heritage surveys

and provided the relevant Authority Certificate for the proposed 2018 ground disturbing sites in the Rosie, Cow

Lagoon and Berjaya prospects including the drill pads and access tracks as listed in this MMP (see Section 4.4

Native Title). Applications to the AAPA for cultural heritage clearance have already been submitted for the

remaining planned drill holes and track clearing in the Sawtooth North (Hammers), Alice Syncline and Tawallah

Fault prospects.

Table 7: Proposed 2018 North Batten drill holes (see also Appendix 2 for coordinates).

Tenement Prospect Hole ID Nominal

Depth (m)

EL26831 Cow Lagoon plan17_56 600

EL26831 Berjaya plan18_06 600

EL26831 Berjaya plan18_07 600

EL26831 Tawallah fault plan18_09 600

EL26831 Alice Syncline plan18_02 600



EL26835 Rosie Creek plan18_04 600








EL30156 Sawtooth North (Hammers) plan18_03 600

Table 8: Planned ground disturbance for drilling, camp and geophysical survey activities.

Mining Interests (i.e. titles) EL26831, EL26835, EL30048, EL30152, EL30156.

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

How long is exploration expected to occur? 7 months

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

Target commodity

Sedimentary Hosted Zn-Pb-Ag

Is drilling likely to encounter radioactive material? No

Number of proposed drill holes 16

Maximum depth of holes 600m

Number of drill pads

16 Pads (50 m x 50m) = 4 ha total


Is drilling likely to encounter groundwater?

Y

Number of sumps

32 sumps (2m x 2m x 1.5m) = 0.02 Ha

Length of line / track clearing

Drilling access: 39.8 km length x 5m width =

19.9 ha

IP lines: 49.6 km length x 4 m width =19.9 ha

Number of costeans none

Total bulk sample (tonnes)

none

Will topsoil be removed for rehabilitation purposes?

Yes. All disturbed sites will have the topsoil

separately stockpiled and subsequently

returned to original site upon rehabilitation.

Previous disturbance yet to be rehabilitated on title (ha) if known

76.7 ha (see Section 6.1 Rehabilitation

Register)

Camp (Length: x Width: m)

3 x camps (50 m x 50 m) = 0.75 ha

Total area disturbed (hectares) 44.6 ha (2018 tracks, drill pads and camps as

listed above)

Other: Heritage Clearance Surveyed

Currently being organised through the AAPA

& local NLC office prior to any ground

disturbing activities commencing.


Figure 6: Proposed 2018 access tracks, IP survey lines and 16 x diamond drill hole programme.


4 CURRENT PROJECT SITE CONDITIONS

4.1 LOCAL AND REGIONAL GEOLOGY

The McArthur Basin is a large sedimentary basin with an exposed area of about 180,000 km². Most of it lies within

the north-eastern Northern Territory, and it extends over the border into the state of Queensland. Thick marine

and non-marine sedimentary rocks were deposited from the late Palaeoproterozoic to the early Mesoproterozoic

(1800-1430Ma). The North Batten Project area lies within the Batten Fault Zone (BFZ) where sediments of the

Tawallah, McArthur and Roper Groups rest unconformably on the Scrutton Volcanics, and are partially concealed

by Cretaceous and Tertiary sediments.

As a base metals target, the McArthur Basin contains volcanic rocks and related intrusive igneous rocks and is a

prime target area for SEDEX type economic sulphide deposits. This type of deposit holds 50% of the world’s zinc

and lead reserves, and make up around 25% of world zinc and lead production. In particular the McArthur Basin

hosts the world-class McArthur River (HYC) zinc-lead-silver deposits in close proximity to the northerly trending

Emu Fault Zone along the eastern margin of the Project area.

The Batten Fault Zone setting may also be considered prospective for “red-bed” and Mississippi Valley Tri-state

(MVT) styles of base metal mineralisation. Around the margins of the Lorella Pocket the Mallapunyah/Masterton

Formations contact may host red-beds style mineralisation within the Masterton Sandstone. There are some subtle

EM features which probably correspond with black shales and may or may not have relevance to the conceptual

target horizon. Within the McArthur Basin stratigraphic sequence, siltstone and dolomite lithologies may have

provided hosts for replacement lead-zinc mineralisation analogous to the MVT deposition style.

In the north of the North Batten Project tenements, potential exists for uranium mineralisation where the McArthur

Basin basal sediments overlie, in part, coeval sequences of acid volcanics and granites, analogous to the host

settings for major unconformity-related uranium deposits, e.g., Westmoreland, Queensland.

In the northwest part of the North Batten Project a sedimentary iron formation, the Sherwin Ironstone Member,

occurs within the McMinn Formation of the Mesoproterozoic Roper Group. The Sherwin Ironstone Member

contains massive oolitic to pisolitic ironstone within interbedded medium to very coarse ferruginous sandstone,

mudstone and shale. A resource has been identified along strike at the Roper Bar Iron Ore Project where the

haematitic sandstone ironstones have been locally enriched by the addition of microcrystalline specular hematite.

Diamonds have been the target of previous exploration over the area covered by the southern part of the North

Batten Project; here there has been recovery of multiple macrodiamonds, as well as microdiamonds and kimberlitic

indicator minerals from alluvial samples. The diamonds and indicators were recovered from creeks surrounding a

remnant Cretaceous plateau within surrounding McArthur Group sediments. This situation is analogous to the

Merlin Kimberlite cluster where Devonian-aged kimberlite pipes may occur beneath Cretaceous cover rocks.

During the Cretaceous Period, around 90 to 100 million years ago, the coastal areas along the Gulf of Carpentaria

were inundated by a shallow sea. Manganese accumulations were formed in embayments close to the shoreline of

this sea in a series of depositional episodes. The largest of these is on Groote Eylandt, a large island located within

the Gulf of Carpentaria. This style of Manganese occurrence is the target of exploration in the northern part of the

North Batten Project.

Cainozoic sediment and soil covers a substantial proportion of the area. In some areas older deposits such as

laterite, calcrete and old coastal sediments are now being incised, while other units are being actively deposited,

for example alluvial sediments in channels and on flood plains, and intertidal and supratidal deposits along the

coast.


4.2 HYDROLOGY-HYDROGEOLOGY

All major drainage is directed toward the coast including notably the Batten Creek, McArthur River and Rosie

Creek. The areas of highest relief are within the Yiyinti and Tawallah Ranges, the main ridges of which reach or

exceed 200m above sea level. The coastal plain rises steadily away from the coastline to about 100m along the

eastern edge of Tawallah Range. Rates of natural erosion in the tenement package are very slow to moderate and

fall into various geomorphic provinces (Mt Young Explanatory Notes, NTGS, 1993). In high level ridges of resistant

sandstones, erosion is slow (as rocks are resistant) but sediment removal is rapid (as slopes are steep). In areas

between ridges, broad shallow valleys form where sediment accumulates. The coastal terraces are nearly flat and

have very slow erosion rates and very slow sediment removal rates.

According to the NT DPIR database there are 51 water bores in the North Batten Project Tenement package. These

would be mainly from pastoralists as well as associated with the former Western Deserts Haul Road. Salinity levels

vary widely across the project areas and are site specific. MMG does not source any potable water from any local

water bores but may elect to use or install local water bores for drilling purposes only dependent upon prior

Landowner permission.

4.3 FLORA AND FAUNA

The North Batten Project area environment is comprised of the following (Figure 7):

Woodlands: Eucalyptus woodland in flat to undulating plains, well drained sands and earthy sands

Open Woodlands: Corymbia and Eucalyptus trees, hummock and tussock grasses in low open woodland in

upland plains, moderately deep sands and occasional lithosols

Tussock grasslands: Rare areas of Chrysopogon (mixed) tussock grassland in flood-plains and water courses,

heavy grey to black clays and alluvial soils

As part of due diligence prior to commencing exploration activities in 2014, a Level 1 Flora and Fauna Survey was

completed by consultants from GHD. Their review of our 2014 exploration areas identified 51 threatened fauna

species (including 15 mammals, 23 birds and 13 reptiles) predicted or known to occur in the area listed under both

the EPBC and TPWC Acts and 15 threatened flora species predicted or known to occur in the study area listed

under the EPBC Act. For all eight drill sites GHD reported “no significant or threatened flora or fauna species,

communities or habitat” at any site (Appendix 6). It should also be noted that revisions to the EPBC and TP&WC

Acts rare and endangered species lists since 201.4 have not been taken into account.

The 2014 GHD Flora and Fauna survey is considered broadly representative and indicative of environmental

conditions across the North Batten Project as a whole. Although focused on eight specific drilling areas this initial

2014 flora and fauna survey was geographically widely spread across the length and breadth of the North Batten

Project area. Therefore, its findings are considered as relevant and applicable to the proposed 2018 program.


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

4.4 NATIVE TITLE

The North Batten project area tenements are subject to three registered Native Title Claims and one Determined

Native Title Claim as listed below (Figure 8). In each case the representative for the Native Title Groups is the

Northern Land Council (NLC):

• NTD6031/02 DC02/30 Lorella-Nathan River

• NTD6016/00 DC02/15 Lorella Downs

• NTD6030/00 DC02/29 Billengarah

• NTD17/2014 DCD2015/008 McArthur River


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


A database of all Registered and Recorded Heritage Sites and Restricted Work Areas on all granted exploration

licences have been sourced from the Aboriginal Areas Protection Authority (AAPA) as a first pass filter for all

planned exploration programs (Figure 9). These registered and recorded heritage sites are considered by MMG as

off limits to exploration activities. Exploration activities may be permitted within “Restricted Work Areas” but only

after further consultation and endorsement from the relevant Traditional Owners.

To ensure that no Cultural Heritage Sites are disturbed MMG have in place the following procedures:

- MMG maintains a current database of all known registered and recorded heritage sites and restricted work

areas as well as previously heritage cleared areas which are used as a first pass filter against all proposed

field activity locations.

- Cultural heritage surveys are conducted on all proposed land disturbance sites. Currently, MMG engage

the AAPA to undertake these surveys (see also comments below).

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

land disturbing activities.

In early 2015 MMG entered into preliminary negotiations with the NLC in regards to formalising a Heritage and

Access Agreement which would cover all proposed MMG exploration activities on all North Batten tenements and

applications. These negotiations are currently ongoing.

In the meantime, with the approval of the NLC all current proposed ground disturbing activities are being heritage

clearance surveyed by the AAPA in addition to local Indigenous Cultural Monitors organised through the local NLC

Borroloola office. As in previous years MMG plan to continue to engage local Cultural Monitors to heritage clear all

proposed drill site access tracks and pads prior to commencing any ground disturbing activities.

In regards to previous AAPA heritage clearances MMG have received the following:

- 2014 drill sites and access tracks: Authority Certificate C2014/113 and C2014/114.

- 2015 drill sites and access tracks: Authority Certificate C2015/140.



In regards to all proposed 2018 drill sites and access tracks relating to this MMP the status of the AAPA Authority

Certificates are as follows (Figure 10):

- 2018 Cow Lagoon and Warramanna drill sites and access tracks: Authority Certificate C2018-008.

- 2018 Sawtooth North (Hammers), Alice Syncline and Tawallah Fault prospects: Applications lodged;

Authority Certificate pending.


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

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


Figure 10: Location of MMG’s 2018 AAPA heritage clearance survey applications for all proposed 2018 ground disturbance sites not already covered by pre-existing AAPA Authority Certificates (denoted by blue polygons).

Note that the applications located within ELA31687 are in preparation for when this tenement is eventually granted.


4.5 LAND USE

Land status over which the granted exploration licences lie, either partially or wholly are listed below (Figure 11).

The majority of these pastoral leases are used as commercial cattle stations.

CLP429 Wurrunburru (Bing Bong) NT Por. 2432

PL757 Lorella Springs NT Por. 1333

PPL1051 McArthur River NT Por. 4319

Leila Creek Station NT Por. 3333

Limmen National Park – in 2013 the Limmen National Park (LNP) was formalised and impacts part upon

EL28656, EL26831, EL26833, EL30137, EL30156, EL30158 and EL30868.

Refer to Section 2 and Appendix 4 for Landowner consultations.

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

5 ENVIRONMENTAL MANAGEMENT SYSTEM / PLAN

5.1 ENVIRONMENTAL POLICY AND RESPONSIBILITIES

MMG’s Safety, Health, Environment and Community (SHEC) and Sustainability Policies are outlined as follows

(Figures 12 and 13).


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


Figure 13: MMG Sustainability Policy.


5.2 STATUTORY AND NON-STATUTORY REQUIREMENTS

The following legislation and related regulations are applicable to this Project:

Mineral Titles Act

Mining Management Regulations

Weeds Management Act

Bushfires Act

Heritage Conservation Act

NT Aboriginal Sacred Sites Act

Native Title Act

Aboriginal Land Rights (Northern Territory) Act

Environment Protection & Biodiversity Conservation Act

Work Health and Safety (National Uniform Legislation) Act

Soil Conservation and Land Utilisation Act

Territory Parks and Wildlife Conservation Act

Water Act

Waste Management and Pollution Control Act

Crown Lands Act

Lands Planning and Mining Tribunal Act

ISO9001 and ISO14001 certificated stipulations

Lease conditions

Authorisation conditions

With respect to non-statutory requirements MMG have entered into positive negotiations with the NLC and local

Traditional Owners in regards to obtaining land access agreements that cover this exploration project. As

recommended by the NLC, MMG have in the interim engaged the AAPA to conduct cultural heritage clearance

surveys of all our proposed ground disturbing activities such as the clearing of drill site access tracks and pads.

Furthermore, MMG will continue to engage local Traditional Owners to act as Cultural Monitors during all ground

disturbing activities and for stream and soil sampling. No works will be conducted without their endorsement.

5.3 INDUCTION AND TRAINING

All persons - MMG Employees, contractors or visitors, at the North Batten Exploration Project shall receive, at a

minimum, the site Project Induction. This induction is designed such that all Safety, Health, Environment and

Community (SHEC) obligations, risks, and their respective controls, are explained and understood (see SHEC

Management Plan; Appendix 3).

The North Batten Exploration Project Leadership team will ensure personnel are deemed competent, and have the

appropriate qualifications, job skills and training before they begin work with the project or before being assigned

a new task.

Examples of typical induction and training required by MMG include:

Mandatory skills and refresher training e.g. Applied 1st Aid, 4WD training and mobile equipment

certification, fire safety awareness and firefighting;

Workplace procedures and work methods e.g. Standard Operating Procedures (SOP), Field Task

Observations (FTO), Task Hazard Analyses (also known as JSA), mandatory pre-shift safety meetings;

Competency-based assessments e.g. on site driving competency assessments;

Site emergency response scenario training;

Environmental obligations and responsibilities e.g. waste management procedures, chemical and

hydrocarbon storage and use, pre-authorisation of land disturbing activities, fire prevention, sensitive flora

and fauna and reporting of animal interactions.

Cultural Awareness training.


5.4 IDENTIFICATION OF ENVIROMENTAL ASPECTS AND IMPACTS

Key project environmental aspects and impacts are summarised in Table 9 below. All of these Environmental

Aspects are applicable to this project to varying degrees and times depending on the exploration activity being

undertaken. The risk ratings were assigned using the Risk Matrix below as provided in the NT DPIR Mine

Management Plan and Public Reporting Structure Guide for Exploration Operations (Figure 14).

Figure 14. Risk Ratings matrix used for Environmental Aspects and Impacts (as taken from NT DPIR Mine

Management Plan and Public Reporting Structure Guide for Exploration Operations, Section 5.4).


Table 9: Details of environmental aspects, impacts and control measures.

Aspect Impact(s) Risk

Rating

Preventative Control Measures

(to prevent/minimize impact)

Mitigation Control measures (to

monitor and remediate impact)

Surface Water

Possible contamination of surface water by hydrocarbon and hazardous materials

spillage from drilling or clearing activities. Potential damage to flora and fauna

habitats. Increased soil erosion along banks.

Moderate

Avoidance of waterways.

Minimum buffer of 100m from

camps and drill sites.

If affected, immediate rehabilitation of

site.

Monitoring/recording of rehabilitation

progress.

Groundwater

Potential groundwater release to surface and/or aquifer contamination from the

drill hole intersection of artesian flows and/or intersection of multiple confined

aquifers.

Moderate

Drilling contractors to carry

enough cement/grout to

immediately cement plug any

artesian flows and multiple

confined aquifers.

(Note: the pastoralist will be

notified in case they wish to

convert it to a water bore for

their future use).

If not required by the pastoralist,

immediate cement/grout plugging of

flowing zones. Pastoralist to be contacted

immediately prior to any cementation.

Invasive Species Negative impact on indigenous flora and fauna if invasive species become

established via vehicular traffic. Moderate

All vehicles are washed down on

entry and exit to the project area

and between all work sites.

Remove any introduced species

according to guidelines.

Flora and Fauna

Negative impact on sensitive flora and fauna such as damage to habitats,

introduction of invasive species, vehicle impact, injured or killed fauna due to

clearing and drilling activities and related vehicular traffic.

Fauna trapped in drill holes or sumps.

Moderate

Standard operating procedure is

for at least one MMG personnel

and two Traditional Owners

(Cultural Monitors) to walk well

in advance of the dozer during

clearing activities which allows

for early detection and avoidance

of any fauna or sensitive

environmental or cultural sites.

Minimalist land disturbance

approach.


Adhere strictly to single lane

track access, no off-road driving

and project site speed limits (max

20 km/hr around pads/camps; 60

km/hr station tracks).

Drill hole collars to be

immediately capped.

All sumps will have animal egress

ramps inbuilt and will be

Immediate rehabilitation of any affected

sites.

Immediate reporting of environmental

incidents.

Fauna interactions are reported internally

to potentially reduce any further

interactions.

Inspections, audits, monitoring

procedures.

Education through induction and training

processes.

If warranted, source seed for threatened

flora.


barricaded during all stages until

rehabilitated.

All vehicles are washed down on

entry and exit to the project area

and between all work sites (weed

prevention).

2014 baseline flora and fauna

survey results and

recommendations.

Hydrocarbon and

hazardous materials

spillage

Possible contamination of surface and groundwater and flora/fauna habitats by

hydrocarbon and hazardous materials spillage derived from camp, drilling or

clearing activities.

Moderate

Diesel and lubricants are the only

hydrocarbons stored and used

on site. Typically in large volumes

(thousands of litres) to operate

drill rigs, support vehicles and

camps.

Strictly held in metered, double-

bunded tanks.

All rigs and camp sites have spill

kits.

Plastic liners are placed

underneath drill rigs.

Standard operating procedure is for any

spillage is to be dug up, bagged, and

disposed of at a council designated

facility.

Use of biodegradable materials.

Fully compliant and complete MSD

sheets held on site.

Waste Possible pollution of surface and groundwater and flora/fauna habitats by poor

waste handling procedures. Low

At camps and drill sites waste

collection facilities are in place

and all waste is collected and

disposed of appropriately.

Waste disposal at a council designated

facility.

Noise and Air quality Occurrence of noise and air pollution associated with vehicular traffic, generators

and drill rig operations. Low

Use of hearing, eye and ear PPE.

MMG employ a full-time water

truck dedicated to watering all

in-use tracks for dust

suppression and track

maintenance.

All attempts are made to silence

operating generators.

Not considered a significant or

likely issue given the nature and

short term exposure of the

drilling operations.

Regular maintenance and records of

plant and equipment.

Continual use of on-site dedicated water

truck during drilling operations.

Not considered a significant or likely

issue given the nature and short term

exposure of the drilling operations.

Clearing of vegetation for

tracks, drill pads and

sumps

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

to poor earthworks.

Moderate

Standard operating procedure is

for at least one MMG personnel

and two Traditional Owners

(Cultural Monitors) to walk well

Separate stockpiling and return of

topsoil.

Rapid rehabilitation of pads and tracks.

“Ripping” of drill pads and placement of


in advance of the dozer during

clearing activities which allows

for early detection and avoidance

of any fauna or any sensitive

environmental or cultural sites.

Minimalist ‘blade up’ clearing

technique.

Adhere strictly to single lane

track access and no off-road

driving.

Avoidance of waterways..

logs etc.

Physical access barriers (e.g. logs) placed

on tracks to halt traffic.


Follow recommendations from

environmental surveys.

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

Use experienced operators with

local knowledge.

Minimalist “blade up” track and

pad clearing technique.

Routine maintenance (e.g.

grading) of high traffic tracks.

Emplacement of whoa-boy

(diversion banks) wherever

required for improved drainage.

Physical access barriers (e.g. logs)

placed on tracks to halt traffic.

Avoidance of well vegetated

areas and waterways.

Regular monitoring of disturbed areas

including

immediate reporting and remediation of

any soil erosion outbreaks.

Minimalist approach. Ensure tracks are

built to a high standard.

Use of whoa-boys (diversion banks) on

tracks wherever required.

“Ripping” and seeding if warranted.

Areas of high risk of erosion, which

includes but is not limited to

high traffic tracks, to be identified.

Cultural and Heritage Sites Disturbance of sensitive sites. Moderate

MMG Standard Operating

Procedure: (1) Prior area

clearance surveys by the AAPA

followed up by (2) at least two

on-site Traditional Owners

(Cultural Monitors) present for all

land disturbing activities.

Report any site disturbance to the AAPA

and DPIR.

Remediate site as instructed.


In 2014 MMG Exploration engaged GHD to undertake a Level 1 Flora and Fauna Survey of our 2014 drilling areas.

The key findings of this survey were as follows (Appendix 6):

1. Identified 51 threatened fauna species (including 15 mammals, 23 birds and 13 reptiles) predicted or

known to occur in the area listed under both the EPBC and TPWC Acts and 15 threatened flora species

predicted or known to occur in the study area listed under the EPBC Act.

2. For all eight drill sites GHD reported “no significant or threatened flora or fauna species, communities or

habitat” at any of the drill sites site.

3. “Very few weeds were located during the surveys, the most notable being small patches of Hyptis

suaveolens near existing tracks along water courses”.

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

1. Resite holes NBDD006, NBDD007 and NBDD008 to minimise any potential impact on nearby water courses

2. Minimise the amount of new track clearing

3. Minimise any potential impact on streams, wetlands and waterholes

4. Ensure all machinery is washed down prior to entering the North Batten Project as well as between sites

5. Consider a fauna spotter or catcher during clearing activities.

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

1. MMG did not re-site NBDD006, NBDD007 and NBDD008 as these drill holes were expressly positioned and

designed to test specific detailed geological and geophysical targets. To move these drill sites would have

rendered these drill tests ineffective and not worth attempting.

The location of these drill sites ranged from approx. 40-120m away from minor seasonal streams that were

dry for the duration of the drilling programme.

The drill pads did not encroach upon any ephemeral pools or riparian environments associated with these

dry streams.

These drill pads and collars were rehabilitated soon after completion and prior to the upcoming wet

season.

GHD noted that for all three drill sites there was no evidence of significant or threatened flora or fauna

species, communities or habitat.

2. As standard operating procedure MMG will continue to do the utmost to minimise the amount of new

track clearing as it is best practice with considerable benefits to the company such as minimal

environmental impact, time and cost savings, less rehabilitation etc. Wherever possible existing tracks were

utilised as much as possible.

3. As standard operating procedure MMG will continue to do the utmost to minimise its impact on streams,

wetlands and waterholes as it is best practice with considerable benefits to the company such as minimal

environmental impact, time and cost savings, less rehabilitation etc. Wherever possible drill sites will be

located away from any such natural water features to avoid any disturbance (minimum 100m

encroachment buffer). Encroachment upon riparian environments is avoided at all costs.

4. In 2014 all drill rigs and associated vehicles were washed down with high pressure water hoses before

entering and leaving the project area at the start and end of the exploration program. However, this

practice was not repeated when moving between exploration sites during the exploration program.

MMG recognised that this was a failure of our field procedures which was rectified during the 2015 field

program and will continue to be enforced for all future drilling campaigns.

5. In regards to the use of fauna catchers/spotters it is standard operating procedure for at least one MMG

personnel and two Traditional Owners (Cultural Monitors) to walk well in advance of the dozer during

clearing activities which allows for early detection and avoidance of any fauna or any sensitive

environmental or cultural sites. The local bush skills of the Traditional Owners greatly enhance the chances

of early detection and avoidance of fauna.

With respect to weed management the 2014 GHD flora and fauna surveys concluded that the areas we have been

operating in do not have a significant weed infestation problem that requires a comprehensive weed management

plan. However, MMG recognise that the recommendation to wash down vehicles to and from site as well as within

the project area is an appropriate preventative measure that will continue to be adhered to.


The 2014 GHD Flora and Fauna survey is considered broadly representative and indicative of environmental

conditions across the North Batten Project as a whole. Although focused on eight specific drilling areas this initial

2014 flora and fauna survey was geographically widely spread across the length and breadth of the North Batten

Project area. Therefore, its findings are considered as relevant and applicable to the proposed 2018 program.

5.5 ENVIRONMENTAL AUDITS AND INSPECTIONS

Mandatory internal SHEC (Safety, Health, Environment and Community) auditing processes are in place to ensure

compliance with both internal and external requirements. Of particular note is MMG’s Monthly Project SHEC

Report which includes amongst other items the following details:

All SHEC incidents (including environmental incidents);

Site fuel and water usage;

Waste produced and disposal details; and

Land area disturbed and rehabilitated.

All data generated from these monthly project SHEC reports is compiled and included within the publically

available Annual MMG Sustainability Report. This information is captured via ERIK (Environment Reporting

Information & Knowledge) which is a SAP based platform that captures and reports our corporate environmental

data as per the MMG Environmental Compliance Reporting Standard.

Site inspections and audits are undertaken on an irregular basis by the North Batten Project Manager, Exploration

SHEC Manager and the Exploration Manager - Australia Region. The reason this is irregular is that MMG does not

have a permanent established presence in this region and only operates on this project during the dry season. Site

inspections take place during all active stages of access track and drill site preparation and rehabilitation works to

ensure full compliance with procedures and standards. Washing down of vehicles as a weed management control

is captured in vehicle logs and drill rig plods.

In April 2017 and April 2018 all 2014 - 2017 drill sites and access tracks were visually inspected and photographed

as part of regular inspection and monitoring procedures – see Appendix 1. In both instances these

inspection/monitoring exercises were conducted immediately post-wet season using a helicopter as it: (1)

eliminates the need to drive over rehabilitated sites; (2) avoids disturbing potentially water logged areas; and (3)

the aerial view provides a superior overall view of site rehabilitation progress.

Monitoring is an ongoing standard operating procedure conducted by the site Exploration Team during the field

season and reported to the Project Manager via the daily and monthly SHEC reports as listed above. Key

monitoring tasks include:

- Visual inspection of cleared access tracks/lines for evidence of soil erosion and effectiveness of any

installed whoa-boys (diversion banks).

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

regrowth.

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

evidence of groundwater seepage.

- Immediate reporting to the Site Supervisor of any environmental issue or incident. These are further

captured in daily site pre-start meetings and Monthly Project SHEC reports (as listed above).

- Photographic records with commentary are captured during all stages of pad and track clearing works: (1)

pre-disturbance; (2) post-disturbance but prior to work commencing; and (3) post-rehabilitation.

- As standard practice MMG try to collect photographic evidence of all sites annually, ideally after each wet

season, dependent upon the amount of regrowth and access to the site. Examples of photographic

monitoring of all 2014 - 2017 drill sites are provided in Appendix 1.


2017 Reporting

Table 10. 2017 Environmental Reporting.

2017 Reporting Comments

Environmental Incidents None

Water Consumption 12.03 ML

Diesel Consumption 192,431 L

Volume Waste to Local Landfill 26.4 m3

Volume of Waste Recycled 4.5 m3

2018 Estimates: unknown at the time of writing as dependent upon on final field program completed.

5.6 ENVIRONMENTAL PERFORMANCE REPORTING

5.6.1 Objectives and Targets

Environmental data is documented, maintained and auditable to meet both internal and external obligations as

stated in Sections 5.5 and 5.7.

The status of all rehabilitation activities to be as a minimum documented annually (post wet season) including

photographs recorded at each of the following stages: (1) pre-disturbance; (2) post-disturbance but prior to work

commencing; and (3) post-rehabilitation.

As MMG are still very actively exploring the North Batten Project as a long term strategy environmental monitoring

and inspections are ongoing.

5.6.2 Performance Reporting

Conducted as outlined in Sections 5.5 and 5.7 and Appendix 3 (North Batten Project SHEC Management Plan).

In April 2017 and April 2018 all 2014 - 2017 drill sites and access tracks were visually inspected and photographed

as part of regular inspection and monitoring procedures – see Appendix 1. In both instances these

inspection/monitoring exercises were conducted immediately post-wet season using a helicopter as it: (1)

eliminates the need to drive over rehabilitated sites; (2) avoids disturbing potentially water logged areas; and (3)

the aerial view provides a superior overall view of site rehabilitation progress.

For current status of rehabilitation activities refer to Section 6.1. Exploration Rehabilitation Register as well as

Appendix 1.

NT DPIR Inspections:

On 22/9/2015 NT DPIR Mining Officers conducted on-site field inspections of our Rosie Creek drilling program

whilst it was currently in progress. Their inspections included both past and currently in use drilling sites and access

tracks relating to MMG’s 2014 and 2015 diamond drilling campaigns. The final inspection report (dated 9/10/2015)

detailed that the inspected sites were found to be satisfactory whilst listing the following recommendations:

“It is recommended that MMG Limited seek written confirmation from the landholder for the tracks that will remain

open to be utilised by Tourists visiting the Lorella Springs Station.

Many of the access tracks across the project area are now being utilised by tourists accessing the Lorella Springs

Station. Grading and increased usage of tracks has resulted in sand blocking spur drains. This will become an issue

during the wet season when the roads cannot drain effectively. All roads still being utilised and maintained by MMG

should receive routine maintenance.

Drill holes must be temporarily capped immediately on completion of drilling and prior to exiting the site.”

In response to these recommendations MMG are seeking written confirmation letters from Landowners, working

with Lorella Springs Station in regards to maintaining track conditions and are immediately capping drill collars.


5.7 EMERGENCY PROCEDURES AND INCIDENT REPORTING

All environmental incidents will be reported as soon as possible to the Mining Compliance Division in accordance

with Section 29 Mining Management Act (MMA) including the use of the official Notification of Incident Form.

As outlined in the SHEC Management Plan (Appendix 3) the North Batten project has a detailed Emergency

Response Management Plan as well as a mandatory incident reporting policy and procedure.

All safety, health, environment and community incidents and events are reported using a combination of corporate

systems including Incident and Event Management (IEM), ERIK (Environment Reporting Information & Knowledge)

and Staketracker (Community-specific incidents).

6 EXPLORATION REHABILITATION

Table 10 below details MMG’s rehabilitation policies and procedures.

Table 11: Details of disturbance and rehabilitation policies and procedures.

Disturbance Rehabilitation

Activities Schedule (Timing)

Closure Objectives /

Targets

Monitoring

Techniques

Drill holes

Collar plugged with

cement plug, cut below

ground level and buried

(min. 400m depth).

Permanently sealed if

groundwater flows

intersected.

Capped immediately

after completion of

each hole.

Cutting and burial of

collar below surface to

occur at end of

program during pad

rehabilitation.

Immediately

permanently seal

groundwater flows if

intersected.

All holes capped and

stable at completion of

program.

Invisible site after two wet

seasons (dependent upon

rainfall amount).

No surface water flow of

intermixing of multiple

aquifers.

Holes to be

inspected at

end of wet

season.

Drill pads

Stockpiled topsoil

replaced, ripped to

allow regrowth,

placement of logs etc,

re-seeding if required

At completion of

program



rainfall amount)

Hole sites to be

inspected at

end of wet

season

Sumps

Filled in, topsoil

replaced, lining

removed and disposed

of correctly

At completion of

program



rainfall amount)

Hole Sumps to

be inspected at

end of wet

season

Tracks /

Gridlines

Rehab after use or

maintain condition for

use by Landowner

To be confirmed with

Landowner



rainfall amount). Or written

confirmation from

Landowners if they wish

tracks left open.

Tracks to be

inspected at

end of wet

season

Camp Sites

Stockpiled topsoil

replaced, ripped to

allow regrowth,

placement of logs etc,

re-seeding if required

At completion of

program



rainfall amount)

Hole sites to be

inspected at

end of wet

season


6.1 EXPLORATION REHABILITATION REGISTER

Exploration Activities Rehabilitation Summary (Cumulative)

Reportin

g period

Teneme

nt

MMP

Referenc

e

Drill

Holes

/Pads

Rehab’

d Drill

Holes/

Pads

Drill Line/

Access

Track

Length

Rehab’d

drill

line/access

track (km)

Camp

Camp

Rehab’

d Comments

(No.)

(No.)

(km)

(ha)

(ha)

2014

EL28656

2014

1 1 0.04 0 0.25 0.25 Leila drillers camp

EL29022 0 0 0 0

EL26831 1 1 1.46 0

EL26833 0 0 0 0

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

EL26836 0 0 10.26 0

EL30048 0 0 0 0

EL30137 0 0 0 0

EL30158 3 3 9.62 0

EL30152 0 0 0 0

EL30727 0 0 0 0

EL30156 1 1 20.25 0 0.25 0.25 Yalco drillers camp

2015

EL28656

2015

0 0 0 0

EL29022 0 0 19.78 0

EL26831 2 2 12.61 0

EL26833 0 0 0 0

EL26835 2 2 26.86 0 0.25 0.25 Rosie Creek camp near NBDD009

EL26836 0 0 23.56 0

EL30048 1 1 3.13 0

EL30137 0 0 0 0

EL30158 0 0 4.53 0

EL30152 2 2 0 0

EL30727 0 0 0 0

EL30156 3 2 8.12 0 0.25 0

Sawtooth driller's camp, no rehab, left open for future use.

NBW001 to be rehabilitated along with the camp.

2016

EL28656

2016

0 0 0 0

EL29022 3 2 1.39 0.33 1 x drill site undrilled, no rehab, left open.

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

EL26833 0 0 0 0

EL26835 6 5 3.57 1.76 1 x drill site undrilled, no rehab, left open.

EL26836 0 0 0 0


EL30048 3 3 7.55 5.16 0.25 0.25 Drillers’ camp at Dothraki. 2 x drill pads not drilled but fully rehabilitated.

EL30137 0 0 0 0

EL30158 0 0 0 0

EL30152 0 0 18.43 0

EL30727 0 0 0 0

EL30156 0 0 0 0

2017

EL28656

2017

0 0 0 0

EL29022 2 3 2.23 3.26 Created as 16Plan_07 in 2016; drilled and rehabbed in 2017

EL26831 0 0 0 0

EL26833 1 1 0 0

EL26835 11 11 17.42 20.52 0.25 0.25

EL26836 3 3 1.59 13.98 0.25 0.25

EL30048 0 0 0 0

EL30137 0 0 0 0

EL30158 3 3 2.45 6.98 0.25 0.25

EL30152 0 0 0 1.46

EL30727 0 0 0 0

EL30156 2 2 4.94 4.94 0.25 0.25

Total

53 51 212.05

(106.02 ha)

60.14

(30.07 ha) 2.5 2.25

Remaining drill pads (x2) 0.5 ha

Remaining camps (x1) 0.25 ha

Remaining tracks 75.95 ha

Total remaining 76.70 ha


6.2 COSTING OF CLOSURE OBJECTIVES

MMG 2018 Security Calculation is provided in Appendix 4.

This is based upon the current cumulative land disturbance totals of: (1) proposed 2018 land disturbance (Table 8); and (2) previous disturbance yet to be rehabilitated (Section 6.1 – Rehabilitation Register).

7 APPENDICES

APPENDIX 1: 2014 - 2017 DRILL SITE REHABILITATION

2014_rehab_photos.pdf




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

APPENDIX 3 NORTH BATTEN PROJECT SHEC & EMERGENCY RESPONSE MANAGEMENT PLANS

2017_SHEC_ManagementPlan.pdf

2017_EmergencyResponse_Plan.docx.pdf

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

APPENDIX 5: *COMMERCIAL-IN-CONFIDENCE LANDOWNER ACKNOWLEDGMENTS

APPENDIX 6: 2014 LEVEL 1 FLORA AND FAUNA SURVEY

FloraFaunaSurvey_NorthBattenProject31_31598 GHD.pdf

APPENDIX 7: MMG 2016 SUSTAINABILITY REPORT


MMG_Sustainability-Report-2016.pdf

exploration operations mining management plan and …

Documents