This one is a real blocker for me at the moment. If the company cannot get permissions to get down deeper than, what, 16 m, due to inability to maintain the groundwater system integrity, this is going to be a major issue for any serious mining of the graphite resource (they want to go to at least 60 m, and in the future, no doubt, a lot more). I want to see resolution of this before I put any more cash into VXL. You can establish resources until the cows come home, and you can monitor groundwater levels very diligently, but if the govt never lets you mine them, they are monetary illusions, as are the all the plans of plant expansion and export opportunities. Making an open pit requires dewatering and this will extend a cone of depression in the groundwater out around the pit, for a significant distance. They are going to have to get clever on this one: maybe consider putting in a hydraulic barrier right around the pit extending to 60 metres to separate the pit groundwater system from that of the rest of the countryside...this is not trivial.
from the dec 24 2014 asx release:
The South Australian Department of State Development (DSD) on
23 December 2014 approved the company’s Program for Environment Protection and Rehabilitation (PEPR), the primary approval for
mining operations to recommence at the Uley Graphite facilities
. As a condition of this approval the company is lodging a rehabilitation bond of $1.708M for past and future work on the existing
Mining Leases. Valence Industries has also worked closely with South Australia’s Environment Protection Authority (EPA) and Department for Environment, Water and Natural Resources
(DEWNR) in the resolution of approvals, which includes the Works Approval under the Environment Protection Act, also received on 23 December 2014.The app
rovals allow Valence Industries to commence commercial scale graphite production from the existing stockpiles through the Phase I Plant. The approvals also allowValence Industries to construct and operate its Phase II plant expansion
and commence mining from Uley Pit 2. In Phase II ore from Uley Pit 2 will
be sourced from the starter pit outlined in the company’s Ore Reserve Statement to a depth of 16m. This is in line with the mine plan over the first 18 months of mine life. Groundwater has been a particular focus, with South Australian Government scientists determining that no groundwater will be used in the approved mining operations, and requiring Valence Industries
to undertake detailed monitoring to demonstrate the ongoing integrity of local water resources.Subject to satisfying government conditions relating to groundwater, Valence Industries intends to mine the Uley Pit 2 to a depth of 60 metres. To support these operations, and forming part of studies toward Valence Industries’future mine expansion plans, this monitoring will be conducted in close consultation with DSD, the EPA and DEWNR.Costs associated with these activities have been incorporated within the capital costs for the upcoming Feasibility Study.
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