TARGET
MINERALS EXPLORATION INITIATIVE
Exploration Grants Guidelines
Round 2
November 2016
TABLE OF CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
Overview of the TARGET Minerals Exploration Initiative ................................... 3
Eligibility Criteria – TARGET (Round 2) ............................................................. 4
Timelines ....................................................................................................... 6
How to Apply for Funding ............................................................................... 7
Application Assessment Process ...................................................................... 8
Evaluation Criteria .......................................................................................... 9
Compliance and Legal Matters ...................................................................... 10
Conditions of Acceptance for Successful Applicants ........................................ 11
Further Information ...................................................................................... 12
Appendix 1: TARGET (Round 2) - Eligible Exploration Activities ...................... 13
Appendix 1a: Community Engagement Activities ........................................... 14
2
1. Overview of the TARGET Minerals Exploration Initiative
The TARGET Minerals Exploration Initiative (TARGET) is a $15 million Victorian Government initiative to
attract investment in minerals exploration for base metals and/or gold.
The Victorian Government seeks to accelerate and increase private sector investment in exploration and
development of Victoria’s mineral endowment. This has the potential to deliver jobs and other economic
benefits, particularly in regional Victoria.
The primary aims of TARGET are to:
a)
b)
c)
Increase investment in minerals exploration in Victoria,
Strengthen understanding of Victoria’s mineral prospectivity, and
Lead to new commercial mineral discoveries.
The TARGET initiative includes:


$11.7 million for exploration grants for companies to conduct minerals exploration programs, to be
co-funded by the company,
Funding to improve availability of pre-competitive geoscience data.
TARGET is administered by Minerals Development Victoria, which is a business unit of the Victorian
Government’s Department of Economic Development, Jobs, Transport and Resources (the Department).
TARGET exploration grants will be issued for holistic exploration programs under the Department’s standard
grant agreement.
Exploration programs must include community engagement activities, which may also be eligible for TARGET
funding.
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2. Eligibility Criteria – TARGET (Round 2)
Minerals exploration and mining companies are invited to apply for Round 2 exploration grants for new
exploration activities proposed to be undertaken by the company within the designated TARGET (Round 2)
Project Area.
2.1
A company must meet each of the Eligibility Criteria outlined in 2.1(a)-(d) below,
a) Hold a valid licence issued under the Mineral Resources (Sustainable Development) Act 1990
(MRSDA) in the designated TARGET (Round 2) Project Area (see Figure 1), with the proposed
exploration program to occur within this area.
Licences that are pending renewal or a decision on a Retention/Mining licence application (and
the underlying licence is held by the Applicant) as at 14 November 2016 will be considered
eligible to apply.
b) Propose to explore for base metals and/or gold.
c) Either:
i.
Be fully compliant with its licence requirements and have no outstanding compliance
and/or enforcement notices, directions or prosecutions (issued under the MRSDA or any
other regulatory authority relating to minerals) issued on any licence within Victoria which
is held by the same legal entity or a wholly owned subsidiary, or
ii.
If the company does not satisfy this requirement (2.1(c)(i) above), the company must, as
part of its TARGET grant application:
 disclose and provide details of any outstanding compliance and/or enforcement
notices, directions or prosecutions (issued under the MRSDA or any other regulatory
authority relating to minerals) issued on any licence within Victoria which is held by
the same legal entity or a wholly owned subsidiary, and
 provide any rectification plans or commitments
The Department may take this information into account, at its absolute discretion in
determining the application’s eligibility to be considered for TARGET (Round 2) funding.
d) Undertake to advise The Department’s nominated officer immediately of any compliance and/or
enforcement notices, directions or prosecutions which are issued on any licence within Victoria
which is held by the same legal entity or a wholly owned subsidiary, during the course of the
evaluation, Grant Agreement execution and during the exploration program to completion (if
successful).
Any company that fulfils these Eligibility Criteria is invited to apply for Round 2 funding.
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Figure 1: TARGET Round 2 Area
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2.2
The following activities are not eligible for TARGET (Round 2) mineral exploration grants:
a) Activities within an identified existing mineral resource,
b) Exploration for commodities other than base metals and gold,
c) Activities where a demonstrable benefit or increase in geoscience knowledge, which would
result from the proposed exploration program for which TARGET (Round 2) grant funding is
sought, is absent.
2.3
TARGET (Round 2) grants are not available for exploration activities located within population centres
(as delineated by areas gazetted within a road speed limit of less than 100 kilometres per hour).
2.4
Activities proposed by the Applicant to receive TARGET (Round 2) funding must be in addition to
activities the company is required to undertake under their existing conditions for that particular
licence.
2.5
TARGET (Round 2) funding offered to successful Applicants shall not exceed 50 per cent of the total
program cost for eligible exploration activities, as listed in Appendix 1 (Activities). Administrative,
land access and program management costs are not eligible exploration activities for the purposes of
TARGET (Round 2).
2.6
Companies must have met, or must demonstrate to the satisfaction of the Department that they will
meet, their existing licence(s) expenditure requirements for their licence(s), prior to commencing any
TARGET (Round 2) funded activities.
3. Timelines
Table 1: TARGET (Round 2) Timeline
Round 2 Applications Open
Monday 14 November 2016
(Application documents will be publicly released
and made available through the TARGET website –
www.earthresources.vic.gov.au/TARGET)
Round 2 Applications Close
Tuesday 10 January 2017 (5pm AEDST)
Expected notification of outcome
March 2017
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4. How to Apply for Funding
4.1
TARGET (Round 2) applications will only be accepted in the form of a completed TARGET (Round 2)
Project Proposal Form.
Applicants will need to download and complete the TARGET (Round 2) Project Proposal Form at:
www.earthresources.vic.gov.au/TARGET
All sections of the form must be completed for it to be considered an eligible application.
4.2
There may be more than one proposal per company. However, each application must be for a
separate licence. A separate Project Proposal Form must be submitted for each proposal.
4.3
The completed Project Proposal Form(s) and all attachments must be submitted in digital (PDF or MS
Word) format to [email protected].
4.4
An applicant’s completed Project Proposal Form and all attachments must be received by the
Department before 5pm (AEDT) on 10 January 2017.
4.5
Project Proposal Forms must address all of the evaluation criterion for TARGET (Round 2) funding, as
shown in Section 6 of these Guidelines.
4.6
Applications will be assessed on the responses provided for each section within the space provided on
the Project Proposal Form, with attachments to be used to provide further clarification.
4.7
It is the applicant’s responsibility to ensure the completed Project Proposal Form and all attachments
are lodged by the specified closing date and time. All applications will be acknowledged using the
contact details provided on the Project Proposal Form.
Table 2: Summary of TARGET (Round 2) Application Process
Applications Open
Applications Close
To submit your
Proposal
Monday 14 November 2016
Tuesday 10 January 2017 (5pm AEDT)
1. Read the Eligibility Criteria and other information in this document and
on the TARGET website: www.earthresources.vic.gov.au/TARGET
2. Download the TARGET (Round 2) Project Proposal Form from
www.earthresources.vic.gov.au/TARGET
3. Fill in all sections of the Project Proposal Form
4. Email the completed form, with any attachments to
[email protected] before the closure of applications
5. All proposals will be acknowledged using the contact details provided on
the Round 2 Project Proposal Form
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5. Application Assessment Process
5.1.
All proposals will be initially screened by the Department for compliance against the Eligibility Criteria
outlined in Section 2 of this document.
5.2.
The Department will complete a licence assessment of all eligible proposals.
A company must be compliant with its licence requirements and any notices, directions or
enforcements issued under the MRSDA or any other regulatory authority relating to minerals, issued
on any licence within Victoria which is held by the same legal entity or any wholly owned subsidiary,
(to the satisfaction of the Department, at its absolute discretion), to receive TARGET (Round 2) grant
funding.
A company’s compliance record for the last three years on each of its licences within Victoria and
those held by any fully owned subsidiary will also be reviewed and may be taken into account at the
absolute discretion of the Department, in selecting successful TARGET (Round 2) funding recipients.
5.3.
A Technical Evaluation Panel comprising experts in technical geoscience, commercial exploration and
stakeholder and community engagement will assess all compliant proposals against the Evaluation
Criteria outlined in Section 6 of this document.
5.4.
The assessment process will be competitive, with the Evaluation Criteria used to assess and rank
proposals.
5.5.
A minimum assessment standard will be required for each of the evaluation criterion for a proposal to
be considered for grant funding.
5.6.
A representative of the applicant may be invited to provide further information if clarification of a
proposal is required by either the Department or the Technical Evaluation Panel.
5.7.
The Technical Evaluation Panel and licence assessments will be considered by the Department in
selecting the successful grant funding recipients and determining the final grant funding to be offered
to these recipients.
5.8.
The Department will notify Applicants of their success or otherwise to be offered TARGET (Round 2)
funding.
5.9.
Unsuccessful applicants will be provided with feedback on the evaluation of their proposal(s).
5.10. The Department will issue final grant agreements for signature to successful TARGET (Round 2) grant
applicants.
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6. Evaluation Criteria
6.1
The Round 2 TARGET (Round 2) Evaluation Criteria are set out in the table below. Applications must
address each of the Evaluation Criterion by completing the TARGET (Round 2) Project Proposal Form
available on the TARGET website at: www.earthresources.vic.gov.au/TARGET.
Weighting
1
The Company
1.1
Financial Viability
1.2
Company Strategy
1.3
Relevant Expertise
2
The Project
2.1
Technical Merit
2.2
Economic Merit
2.3
Timetable
2.4
Budget
2.5
Community
Engagement
Demonstrate that the company can fund the exploration activities proposed,
including whether they will need to raise funds and the timeline for doing so.
Demonstrate how the exploration proposal forms part of a coherent and
compelling strategy for the company and the project.
Demonstrate that an experienced and qualified team will be used in the design
and completion of the proposed exploration activities.
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Demonstrate that the proposal addresses a significant knowledge gap which has
the potential to advance the project,
and
Discuss how the proposal tests a technically sound target(s). (Sufficient
supporting evidence for target generation and testing, including geological plans
and cross sections must be included).
Demonstrate the economic benefits that the exploration proposal would bring to
local communities &/or more broadly,
and
Demonstrate how the proposal has the potential to increase exploration activities
and geoscience knowledge in under-explored areas.
Provide a well-designed, efficient and achievable timetable for the proposed
exploration activity, including planning/desktop studies through to final reporting.
Provide realistic budgets (with itemised cost breakdowns) which demonstrate
efficient use of TARGET funding.
Provide an outline, scope and details regarding how relevant community
engagement activities will be conducted to maintain open and transparent
communication and minimise any potential impact of the project on communities.
Total
30
9
10
10
10
10
10
10
100
7. Compliance and Legal Matters
7.1
The contents of all proposals will remain confidential.
7.2
Details of grant recipients for TARGET (Round 2) funded projects will be disclosed publicly in a manner
determined by the Department, as soon as practicable following the completion of the execution of
TARGET (Round 2) grant agreements.
7.3
All program data and results for TARGET (Round 2) funded projects must be made available in a digital
format (in accordance with the Victorian Minerals Exploration Reporting Guidelines March 2014), at
the time of submission by the TARGET grant recipient of the milestone report.
This information will be made publicly available after a confidentiality period of three months
following approval by the Department of the milestone report.
The Victorian Minerals Exploration Reporting Guidelines March 2014 is available at
http://www.earthresources.vic.gov.au/earth-resources/licensing-and-approvals/minerals/licencecompliance/reporting-and-expenditure/reporting-of-exploration-licence-expenditure-and-activities.
7.4
Unsuccessful proposals will remain confidential unless the applicant consents to their release or their
release is required by law.
7.5
The Department reserves the right to:
7.6
a.
Extend the proposal closing date at its absolute discretion
b.
Amend the requirements for proposals at any time prior to the closing date, provided that the
amendment is disclosed publicly on the TARGET website
c.
Seek clarification or further information from the applicant in relation to any aspect of a
proposal after the closing date
d.
Terminate the grant application process at any time before or after the receipt of proposals.
The Department will notify applicants if the grant process is terminated but is not obligated to
give any reasons for such a decision
e.
Consider or accept a late proposal.
The Department is not obligated to:
a.
Accept any proposal and may choose to offer funding for part only of a proposed program
b.
Allocate grants based on the recommendations of the Technical Evaluation Panel
c.
Give reasons for its selection or the termination of the grant application process.
7.7
The Department may, at any time during the assessment process, exclude a proposal which is
substantially incomplete or lacks substantiated evidence to support the Application.
7.8
The Department is not liable for costs incurred by an applicant in developing its proposal, whether an
applicant is successful or unsuccessful in receiving TARGET (Round 2) funding or if the assessment
process is terminated.
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8. Conditions of Acceptance for Successful Applicants
8.1
All exploration activities are to be conducted in accordance with The Code of Practice for Mineral
Exploration (The Code), the requirements of the Licence and of the Earth Resources Regulator.
The Code can be downloaded from http://www.earthresources.vic.gov.au/earth-resources/licensingand-approvals/minerals/guidelines-and-codes-of-practice/code-of-practice-mineral-exploration.
8.2
All successful TARGET (Round 2) grant recipients will be expected to participate in relevant community
engagement activities, at the request of the Department. These activities would be in addition to the
community engagement activities required to fulfil the recipient’s existing licence obligations.
8.3
All successful TARGET (Round 2) grant recipients will be required to enter into the Department’s
standard grant agreement with the State of Victoria (a template grant Agreement is available on the
TARGET website - www.earthresources.vic.gov.au/TARGET). Milestone requirements will be
described as part of the Agreement. These will include milestone reports (including relevant invoices)
and a Final Report.
8.4
Grant agreements may not be executed by the Department (at its discretion) if the applicant has any
outstanding compliance and enforcement notices, directions or prosecutions (issued under the
MRSDA or any other regulatory authority relating to minerals) on the licence, or for any other licence
within Victoria held by the company or any wholly owned subsidiary.
8.5
The term of the grant agreement will be negotiated with each grant recipient, based on the scope and
proposed timings of the grant funded activities. The term will not exceed the expiration date for the
Licence.
8.6
The preference is to complete exploration activities as early as possible, ideally commencing within six
months of executing the grant agreement.
8.7
The following will apply to the management of TARGET (Round 2) grant funding for successful
applicants:
a.
Where the actual program costs are less than the estimated program costs, the actual TARGET
(Round 2) grant will be the amount which is the lesser of the grant amount set out in the grant
agreement and the amount which is up to 50 per cent of the actual program costs.
b.
Where the actual program costs are more than the estimated program costs, the actual
TARGET (Round 2) grant will be the amount which is the lesser of the grant amount set out in
the grant agreement and the amount which is up to 50 per cent of the estimated program
costs.
c.
TARGET grants will be paid incrementally over the life of the program, following the delivery of
agreed milestones, as specified in individual grant agreements. No payments will be made in
advance of the completion of exploration activities. The final milestone will be the delivery of
the Final Report, no later than three months following the completion of exploration activities.
d.
Where a company has been issued a compliance and enforcement notice, direction or
prosecution under the MRSDA, milestone TARGET (Round 2) payments will not be made until
the compliance matters have been addressed to the satisfaction of the Department.
e.
Details of the requirements for all milestone linked deliverables will be defined in the grant
agreement.
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f.
State funding contributions, including funding received as TARGET (Round 2) exploration
grants, cannot be included by a licence holder as part of reported exploration expenditure on
a Licence for the purpose of satisfying licence expenditure requirements under the conditions
of the licence (as per the MRSDA).
g.
Companies that receive TARGET (Round 2) grants are required to increase their exploration
activity and expenditure above that required under any existing Licence conditions.
h.
Geoscience data acquired as part of the exploration program and all reports will be made
publicly available online by the Geological Survey of Victoria following an exclusivity period of
three months following the approval of the final report submitted by the licensee.
9. Further Information
For further information please contact:
TARGET Project Manager
Minerals Development Victoria
Department of Economic Development, Jobs, Transport and Resources
Email: [email protected]
Phone: +61 3 9452 8961
Any further information will be made available progressively on the TARGET website at:
www.earthresources.vic.gov.au/TARGET
The website includes links to the following:

TARGET (Round 2) Guidelines (this document)

TARGET (Round 2) Project Proposal Form

Frequently Asked Questions

Template Grant Agreement
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Appendix 1: TARGET (Round 2) - Eligible Exploration Activities
Drilling
Diamond Core
-
Percussion
-
Other
-
Sample Analysis
Drill core
-
Drill chips
-
Geochemical (lithogeochemistry and ore grade
analyses)
Petrology
Geochronology
Hyperspectral, hand held XRF (including machine
hire, but not including equipment purchase)
Other analyses may be eligible on request
-
Equipment/crew mobilisation and demobilisation
Equipment hire
Data acquisition
Data processing
-
Sample analysis
Hand held XRF
Bulk samples
Geophysical
Surveys
Airborne
Ground
Downhole
Geochemical
Surveys
Soil
Drill rig and ancillary vehicles mobilisation and
demobilisation
Rig moves
Drilling activities (incl. casing, grouting, conditioning)
Downhole surveying (incl. tool hire,
mobilisation/demobilisation of equipment)
Drilling consumables
Stream
Bulk sampling
Rock chip
Hydrogeochemistry
Community
Engagement
See Appendix 1a for further information
Other
-
Site preparation
Site rehabilitation
Field consumables
Sample freight
Other exploration activities may be eligible, subject to approval by the Department (at its absolute
discretion).
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Appendix 1a: Community Engagement Activities
As part of holistic exploration programs for which TARGET funding is sought, TARGET applicants are able to
apply for TARGET funding for community engagement activities which are beneficial and are additional to
those community engagement requirements under Licence conditions.
Minimum community engagement requirements, as required by the Licence
These activities are not eligible for TARGET (Round 2) funding.
Requirements for applicants seeking TARGET (Round 2) funding for specific community engagement
activities
If an applicant wishes to apply for TARGET co-funding for community engagement activities, its
proposed engagement activities will need to extend beyond the minimum requirements under the
Licence.
In proposing engagement activities for TARGET funding, applicants may consider activities such as:





Communicate a company’s full program of planned exploration methods and practices,
including providing feedback to stakeholders at the completion of activities.
Conduct open, inclusive and tailored engagement activities for local land holders and other
interested, proximal community groups.
Engage experienced practitioners to conduct any co-funded engagement activities, with
appropriate company representatives present at each activity.
Report on the engagement activities and key learnings as part of a milestone report prior to
receiving grant payments.
Ensure the safety of all participants in any engagement activities, including holding public
liability insurance.
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