https://www.engineeringnews.co.za
Copper|PROJECT|Project Management|Resources|Drilling|Operations
Copper|PROJECT|Project Management|Resources|Drilling|Operations
copper|project|project-management|resources|drilling|operations

Torrens drilling starts a scuffle

29th May 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – A public stoush has erupted between juniors Argonaut Resources and Aeris Resources over drilling at the Torrens copper project, in South Australia.

Aeris on Wednesday announced a pause in drilling at the Torrens project, in which it owns a 70% interest, after the current drillhole reached a target depth of 1 300 m.

Aeris told shareholders that a review of the geological information collected from the drilling programme, along with the recently finalised geophysical interpretation work, would now start, with drilling to be paused while the review is under way.

However, project partner Argonaut has objected to the cessation of drilling, raising concerns of mismanagement, and saying the drilling programme had ‘gone poorly’. Argonaut told shareholders that the drill operations were "disorganised" and "lacked project management".

Argonaut also estimated that on the completion of demobilisation and remediation, the joint venture (JV) would have spent nearly 120% of the agreed-upon budget, but tested only 20% to 25% of the initial targets, adding that the agreed drilling programme had included 8 to 10 holes at depths of between 700 m and 1 500 m.

“The proportion of Stage 1 drilling completed to date has been plagued by cost overruns. Some of these were legitimate, many were avoidable. The cost overruns have led to the premature curtailment, or at best suspension, by [Aeris subsidiary] Straits Resources of the Stage 1 drilling programme,” Argonaut said.

Argonaut on Wednesday said it was prepared to take over management of the JV and fund continued drilling, saying it was seeking "advice" and would take "appropriate action to remedy" the current situation if arrangements to continue the drilling could not be made.

Argonaut has also argued Straits’ opinion that more geological and geophysical work was required at the project area, arguing that more drilling is required to test and explain the geophysical anomalies.

Aeris executive chairperson Andre Labuschagne defended the decision to suspend drilling, saying that the programme had been managed well in what at times had been difficult and challenging conditions.

“The JV approved a A$5-million budget for 2019, which has now been incurred. We have paused drilling pending a review of the work completed and the geological information collected from the drilling programme before embarking on future stages of drilling.

“This approach is in line with what all responsible and experienced managers of a drill programme would be expected to do,” he said.

Edited by Creamer Media Reporter

Comments

Showroom

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.067 0.12s - 162pq - 2rq
Subscribe Now