A potentially world-class-sized critical mineral discovery near Coober Pedy was aided by South Australian Government geological pre-competitive data.
The high-grade titanium-heavy mineral sand discovery at Petratherm Limited’s Muckanippie Project area produced exceptional surface sample grades ranging from 10 to 50 per cent titanium dioxide from two large prospect areas.
Titanium is on Australia’s national critical mineral list and the critical mineral lists of major trading partners, including the US, the EU, India, Japan and South Korea, for its uses in electric vehicles, battery storage, wind technology, pigments and as an alloy in steel and superalloys. It is essential for modern technologies, economies and national security.
The global market for titanium in 2022 amounted to US$28.6 billion, and is forecast to grow to nearly US$52 billion in 2030.
According to the South Australian Government, the discovery would not have been fast-tracked without the Geological Survey of South Australia and the South Australian Drill Core Reference Library.
Drilling samples from an original 1991 drilling campaign kept at the Core Library had geological logs describing abundant bands of dark minerals present in the overlying cover. At the time, no examination for titanium was undertaken as it was assumed the bands were just iron-rich bands and titanium markets were of no major significance in 1991.
Following recognition of mineralisation on the ground, Petratherm geologists examined the historic logs and assayed the drill holes. This confirmed the dark minerals as titanium ore, ilmenite, leucoxene and rutile.
Public geoscience – also referred to as pre-competitive geoscience data – like the original 1991 logs near Coober Pedy, helps explorers refine their search areas and reduce their investment risks, leading to new discoveries and mining income for the state.
The Survey is responsible for collecting, storing, analysing and presenting pre-competitive geoscience data. For decades, the Survey has produced and collected vast quantities of data and information in collaboration with government agencies, universities and industry, delivering huge dividends to the state’s economy.
An economic study and modelling by ACIL Allen into the value that pre-competitive geoscience data contributes to the state’s mining sector and its economy found:
The Survey hosts a treasure trove of public data with a replacement value of more than $7.5 billion
Even using conservative assumptions, at least $6.50 is returned to the South Australian economy for every dollar invested in the survey
The $7.5 billion asset is represented in physical form at the state’s internationally renowned Core Library and as freely available data on the SA Resources Information Gateway.
The Survey has been collecting geoscientific data for more than 140 years, and its contributions now rank South Australia as one of the top jurisdictions in the world for geological datasets. Critically, the Survey has been integral to some of the most significant discoveries in South Australia’s mining history, with discoveries at Oak Dam, Carrapateena and Olympic Dam all supported by Survey data.
As the world accelerates its efforts to decarbonise economic development through electrification and renewable energy, demand for the Survey’s services is set to rise.
South Australian Minister for Energy and Mining, Tom Koutsantonis, congratulated Petratherm for its critical mineral discovery, which could be very significant for the nation.
“This achievement reinforces the importance of pre-competitive geoscience data for new discoveries.
“I’m incredibly proud of the Survey’s work and the world-leading repository of information it has built. That information has been integral to making our state an attractive place to do business.”
Mr Koutsantonis said the ACIL Allen report demonstrates the value of pre-competitive geoscience and that it is critical in the mineral industry ecosystem.
“It’s unequivocal in its assessment that this sort of information accelerated discoveries like Olympic Dam. The Survey and its data have also helped uncover the mammoth copper reserves at Oak Dam, a project that has the potential to transform our state as we harness the world’s clean energy transition.
“It also endorses South Australia’s ongoing commitment to public geoscience and pre-competitive data. The return on investment our state gets from these investments couldn’t be clearer. At a minimum, it has returned $6.50 for every dollar we’ve invested – and that figure could be as high as $13.
“The Survey has a proud history and a proven record of delivering huge economic returns to the state. I applaud the efforts to date and I look forward to seeing it grow as a magnet for investment in South Australia.”
Petratherm’s CEO, Peter Reid, said the Drill Core Reference Library is a world-class repository of South Australia’s subsurface geology, housing over 100 years of exploration drilling.
“As an explorer, I have often thought there must be discoveries waiting to be made there, particularly for ‘new economy critical metals’ which were not on the exploration radar in earlier times.
“Another important point in this discovery is that the original drilling program from which we obtained these historical samples was undertaken by the South Australian Geological Survey in 1991 as part of an initiative to increase knowledge in South Australian geology and investment in the South Australian Mineral Industry.
“The SA Geological Survey has been a leader in these initiatives for some time, and it’s one of the reasons we love exploring here.”
Mr Reid said Petratherm’s titanium discovery at its Muckanippie Project near Coober Pedy in South Australia could be a sizeable critical minerals project, with mineralisation over a large area.
“Apart from offering world-class pre-competitive data to aid and focus exploration, the Core Library is a critical learning laboratory for explorers towards understanding South Australia’s mineral systems. It has also attracted new explorers and investors to South Australia, as they can see firsthand the state’s rich mineral potential.”
Petratherm Chairman Derek Carter, said that when mineralisation was first detected by Petratherm geologists mapping at the surface, the company was thrilled to see that historical drilling undertaken in the region 30 years earlier was being maintained at the Core Library.
“This pre-competitive data allowed us to immediately undertake assaying of the rock strata and determine the extent of the discovery of new titanium heavy mineral sands.
“South Australia has long been seen as a favourable jurisdiction for resources exploration, ranking highly in external surveys, and more importantly, this is evident in the support that PTR has received across its various exploration projects in the region.
“We are proud to do business in South Australia, and we thank the state for its support.”
