20 December 2002


For further
information,
please contact

Newmont Waihi Operations

07 863 8192

 


Community Consultative Committee


Both Newmont Waihi and the Hauraki District Council are very aware that there is a large range of questions and concerns about the closure and rehabilitation of the Martha Mine – in particular the pit and surrounding land.
The community has indicated support for a Waihi Community Consultative Committee to be established to consider these and other issues.
This is not a good time of year to start a committee, as people are busy preparing for the Christmas holiday period. Forming the committee will involve quite a bit of effort for those who wish to take part. It is suggested that we wait until next year before calling the first meeting.
The following information is provided now to allow those people interested in being part of the Committee to be better prepared and able to contribute to the proposal in the New Year.

Initial Objective
1. To provide a forum for the free and regular exchange of ideas, concerns and information, including:
(i) Identifying concerns and issues facing individuals and groups within the Waihi Community;
Such issues may include, among others
• Securing the subsidence hazard zones
• Resolving the pit wall stability issue and the potential threat to the Cornish Pumphouse
• Developing & refining the Golden Legacy project.
(ii) Improving the community’s understanding of the principles, goals and constraints under which Newmont Waihi operates.
(iii) Working towards better outcomes for all parties.
(iv) Ensuring that the deliberations and recommendations of the Committee are made available to the wider Waihi community.
2. Through improved communication, seeking better and more comprehensive solutions to community and operating issues associated with Newmont Waihi Operations.

Suggested Structure
The structure proposed by the company and Council is:
1. An invitation will be extended to any interest or community group in the Waihi area to be a part of the Community Consultative Committee.
2. Each group may have up to two elected representatives on the Committee. These representatives will need delegated authority to present the position of the group they represent, and to provide feedback from the meetings to their group.
3. The Committee will be chaired by an independent facilitator selected and paid for by Newmont Waihi, and approved by the Hauraki District Council.
4. The Committee will meet monthly. Meetings are tentatively scheduled to be held on a weekday evening (specific times and a venue will be confirmed following the initial meeting).
5. There will be a formal agenda for each meeting, and minutes will be circulated to all groups on the Committee.
Part of each meeting will be allocated to presentations from Council and/or Newmont Waihi and their advisors where appropriate, with opportunity provided for feedback discussion from all parties. Part of each meeting will also be allocated to presentations and discussion of specific community issues.

Proposed Schedule
Late January 2003
Circulation of a Registration of Interest letter to known interest groups
Notice of Registration of Interest in the Waihi Leader and Hauraki Herald
Selection of preferred meeting Facilitator, approval by Hauraki District Council,
notification via Waihi Leader and Hauraki Herald
Early February 2003
Notice of initial meeting in the Waihi Leader and Hauraki Herald
Mid February 2003
First meeting.
The objective of this meeting will be to:
- introduce the Facilitator
- introduce the interested group representatives
- confirm a time, dates and a venue for future meetings
- agree a draft agenda to take forward to future meetings
Monthly thereafter
Regular meetings.


Favona Underground Project

Newmont Waihi has recently lodged an application to construct an exploration decline as part of ongoing investigation into the feasibility of the proposed Favona underground mine. If the consents are granted construction on the exploration decline could start early in 2003.
Here we summarise information presented throughout the year on the Favona project.
The full text of this material can be found in What’s New at www.favona.co.nz

Defining the Ore Body
Favona Core Logging

A total of around 30,000 metres of core drilling has been carried out at Favona since January 2001.
The amount of drilling required to define an ore body is related to the continuity of geological features that host the ore minerals. Some mineral resources can be continuous over large areas; for example the extensive coal beds that occur at Huntly. Coromandel gold is hosted in complex vein systems that require more detailed information. More drillcore is required to accurately estimate the amount of gold present and where it is located.
Each metre interval of drillcore from Favona has been photographed and logged in detail, with particular attention given to accurate depth and orientation measurements, along with geological information. A geological model of the Favona vein system has been put together. This becomes increasingly reliable as more drilling information is acquired. Assay results are combined with
the geological model to form the basis of an
ore reserve that will predict the amount of
mineable ore within the deposit.


Above: Core is logged directly into laptop computers.
Above right: A box of core ready to photograph and split.


Mine Access

Access to the ore body for mining will initially use the exploration decline, which will be extended to a total length of around four to five kilometres.

The portal at the Golden Cross Mine was a typical underground mine entrance.


Mine Construction
What is visible on the surface of a modern underground mine?

Modern underground mining is far less conspicuous than times of old.
There will be little to see of the proposed Favona Underground Project on the surface. Two air vent shafts, an escape shaft, the mine portal, a short haul road and a temporary waste rock stockpile are all that will be noticeable.
Fresh air will be circulated to underground by drawing used air to the surface. Fans and silencers sit on top of the air vent shafts that are typically six metres high and 2.4 metres in diameter.
The escape shaft links underground levels to the surface by way of a ladder inside a vertical shaft. An escape shaft may appear on the surface as a simple grate or a structure similar in size to a stock drinking trough.
A short haul road will link the portal to the mill stockpiles. Planting will screen the haul road from the west.

This computer drawn image shows the surface impression of an air vent shaft.


Further Investigation
The Exploration Decline

An exploration decline is a tunnel that provides access from the surface to underground exploration drilling positions.
The exploration decline allows more accurate and thorough investigative drilling and sampling. Drilling from underground provides much better information of the ore body than is achieved through drilling from the surface and is common practice.
The entrance to the Favona exploration decline (the portal) would be located on the eastern side of Gladstone Hill, about 200 metres west of the existing Process Plant. The tunnel would be five metres wide by five metres high to allow for underground earthmoving machinery and drilling rigs. The decline will slope from the surface towards the target horizon 150-200 metres below ground surface.
To get to this depth and enable the exploration drilling along the known length of mineralisation, the decline will need to be at least one kilometre in length, and the applications seek consent for about two kilometres of tunnel.
The portal and decline would be constructed by conventional drill and blast or mechanical methods.
This is not a large project compared with the existing operation. The total volume of excavated material is equivalent to about one week of Martha Mine production. In addition, the majority of activity will take place underground.

Potential Economic Effect

Benefits arising from the Favona Underground Project were identified in an economic study commissioned by the company. The project will provide direct employment to 130-150 people. Including the flow-on effect of the capital investment in the mine, the total economic impact of the project is estimated to:
• Provide full time equivalent employment of around 300.
• Produce a total economic output of around $40 million dollars during the project's 18-month construction phase.
• Produce a total economic output of around $50 million dollars a year during the operational phase, 80% of which will remain in New Zealand, around one third of which will be spent in Waihi, and another third in the upper North Island.
These estimated economic benefits are in addition to those associated with the existing Martha Mine that is set to operate until 2007.

Now and Then
How has underground mining changed in 50 years?

Working underground was hard, dirty and dangerous. Miners drilled, blasted and transported the ore in confined, poorly ventilated areas, lit only by a carbide lamp or candle. They had no protective gear and often worked in the wet. It could be very hot or cold, depending on where in the mine they were working. Communication was by bells, and later telephone. Charges were let off manually, with fuses long enough to allow workers to reach the comparative safety of the next level.
Rock was drilled and blasted, then shovelled into 900kg trucks pushed by hand. Later larger horse drawn trucks were used.
Ore was hauled and hoisted to the surface. Shafts were sunk to give access to the lower workings. Drives (tunnels) were constructed to access the ore body. Stopes followed the ore body and provided the gold bearing ore, leaving a void.
Heavy kauri timbers supported shafts, drives and stopes, although in some areas the ground was considered sound enough not to require support. Stopes up to fifty feet wide without timber support were commonly worked on the Martha Reef. Most shrink stopes were commonly not filled after the ore had been removed.

Modern under-ground mining methods have changed sig-nificantly. Underground access is gained via a decline. Electric hydraulic drill rigs known as jumbos have largely replaced pneumatic hand-held machines.
Automated production drill rigs change rods and drill to specified depths.
Unmanned, remote control machines dig the broken ore and cart it to stockpiles where low profile underground mining trucks haul payloads of up to 50 tonnes to the surface.
Workers keep in touch by a radio system that extends throughout the mine.
Fresh air is constantly drawn underground. Working areas are well lit. Escape ways provide an exit in case of an emergency. Modern underground mining has a solid safety record.
Underground, workers wear a variety of Personal Protective Equipment. This can range from the mandatory hardhat, cap lamp, steelcap boots, fluorescent jacket, safety glasses and oxygen-generating self rescuer to specialist equipment such as high humidity goggles and shock absorbing harnesses.
After the ore is mined backfilling of voids provides long term geotechnical integrity of the underground workings.

 


Holiday Work for Uni Students


Each year Newmont Waihi offers university students the opportunity to work at the mine during their annual vacation from the end of November to the end of February.
Preference is given to local students and those whose subjects are related to the work undertaken at Martha Mine.
This year all but two of the ten eleven students are from Waihi. They are studying subjects as diverse as geology, earth sciences, electrical engineering, management and environmental engineering.
This means that there are students working in the open pit, at the process plant, in the Environmental Department, at Reception, on mine tours and in policy implementation.
These holiday jobs are much more than just a way of earning some money to augment the student loan. For many students they are a valuable ‘inside look’ at the practical applications of material studied during the academic year.
The ‘hands on’ experience is regarded as extremely valuable. The students know just how difficult it can be to get paid employment that is directly related to their chosen field of study. The opportunity to put into practice what you learn, to do the theory and then see it in action can help put ideas into context and perspective.
The job can also provide an insight into future employment possibilities, acting as a ‘taster’ and aiding later decision making. It can clarify goals and career opportunities. Most of these jobs will be outside the gold mining industry as the majority of skills are transferable.
For some of the students their vacation job can provide useful potential employment and industry contacts, and all will leave with a job reference to add to their CV.
For Julie Collins the work is particularly relevant. Julie has just completed her Bachelor’s degree in Management Studies at Waikato. In her thesis Julie studied aspects of community relations and promotion for Newmont Waihi and is now working to implement some of the recommendations she made.
This year’s group of students has found Newmont Waihi staff friendly, helpful, and willing to share their knowledge and experience, although most admit to coming in for a some good natured ribbing too. And the best part about working here? Most readily admit that it’s the opportunity to have a vacation job and be close to the best beach in the country at Christmas and New Year. It’s as good as it gets.

The University students involved in Newmont's student work experience programme.





Wormseeding with Waihi Schools

Students from Waihi schools recently participated in an earthworm study in association with Newmont Waihi.
A total of 301 Year 5 and 6 students from the six local primary schools were involved in the project, which culminated in a worm seeding exercise for each school at Newmont Waihi’s waste rock embankment.
The Company’s Education Officer prepared a unit of lessons for teachers of Year 5 and 6 classes to use at school before and after the visit to the mine. Each class made their own wormery as a part of their study and kept it in the classroom. This enabled the students to view their earthworms’ activities closely over a period of time and to understand why their presence in pasture and gardens is so beneficial.
On the visit to the waste rock embankment each group took part in activities at the worm ‘farm’ area and on the embankment itself.
As the waste rock embankment is built up the bulk fill is covered with a layer of subsoil one metre in depth. Over this a 100mm layer of topsoil is spread and then planted with a mixture of pasture grasses. The topsoil tends to contain a low earthworm population. In order to improve the pasture’s productivity, earthworms are introduced to the rehabilitated areas by placing sods from an area with a high earthworm population onto the new pasture. The sods are laid upside-down on the embankment at 10 metre intervals in a grid pattern. Lime is sprinkled under and around each sod to encourage the worms to migrate to the new soil.
Good pasture can support large numbers of earthworms, from 600 to 1000 per square metre. Adequately earthwormed pastures have almost as much weight of earthworms beneath the soil surface as animal live weight grazing the pasture. There may be 7 tonnes or 20 million earthworms in one hectare.
Given time, the earthworms in the rehabilitated waste rock embankment will spread out and multiply. One earthworm will spread one metre in a year and, under favourable conditions, will produce between 50 and 60 cocoons per year. On average, three earthworms will hatch from each cocoon.
Worm seeding in association with the six local primary schools has taken place at the Martha Mine in the past in 1992 and 1994. This has been carried out under the guidance of Paul Gregg, Associate Professor of Soil Science from the Institute of Natural Resources, Massey University.




Above: Newmont's Gary Choat helps a Waihi East school student with worm seeding.



MARTHA MINE TOURS

Martha Mine Tours operate Monday to Saturday during the busy summer period. To cater for the rise in demand, the tours are taken in a 48-seater coach. Tours start at 11.00am each day and last about an hour. A mini-bus will take an additional tour in the afternoon if needed.
Tours currently leave from the Newmont Waihi offices in Moresby Avenue. From December 27 tours will leave from the Waihi Information Centre at the top end of Seddon Street. During the Waihi Summer Festival from 10 to 16 January tours will leave from the Memorial Hall in Seddon Street.
Our first stop is the Western Viewing Platform where we explain the mining operations inside the open pit. This is a good opportunity to take photos, particularly with the new dump truck icon nearby.
The second phase of the tour follows the conveyor belt to the processing plant. Here, we explain what happens to the ore-bearing rock to extract the gold and silver and to the tailings slurry that remains after extraction of the precious metals.
We then follow the remainder of the conveyor belt up to the waste rock embankment. Here you can see heavy machinery being loaded with waste rock to build the embankment. While on the industrial site all passengers remain on-board the coach.













Drilling the face face of a drive in a typical underground mine.

Blast Exceedance
17 December 2002


We apologise for the alarm and inconvenience caused by our blasting on the morning of 17th December. Two blasts were fired at 10:51 am and vibration exceedances were recorded at several monitoring points.
Our immediate investigations indicate that due to a combination of unfortunate circumstances the connections to the computer controlled firing system were wrongly connected. This allowed all the holes in the blasts to be fired at once instead of in their normal delay sequence.
We are now working with both Macmahon and the explosive supplier to ensure that extra checking procedures and modifications to the computer software programmes are put in place to prevent this happening again.
Again, please accept our apologies for this unfortunate incident.

Dave Ingle
General Manager
Newmont Waihi Operations