L I M I T E D
ASX ANNOUNCEMENT 3 SEPTEMBER 2012ABN 55 095 006 090
Geodynamics and Gulkula Mining Company announce Joint Venture to undertake geothermal exploration in the Gove Peninsula
Geodynamics Limited (ASX: GDY) is pleased to announce today
that it has signed a Heads of Agreement (HoA) with Gulkula
Mining Company Pty Ltd (Gulkula Mining) to enter into a Joint
Venture (JV) to investigate the potential for a direct heat
geothermal project within Geothermal Exploration Permit (GEP)
28310 on the Gove Peninsula, Northern Territory.
Gulkula Mining Company is a wholly owned subsidiary of Gumatj
Corporation Ltd which is the commercial arm of the Gumatj
clan, who are the traditional owners of land within GEP
28310.
Under the terms of the HoA, Geodynamics and Gulkula Mining
will form a 50 / 50 joint venture with Geodynamics as the
operator of the JV. The JV will investigate the potential to
deliver heat to the Rio Tinto owned Pacific Aluminium alumina
refinery, focusing on Gumatj land that is adjacent to the
refinery. The use of geothermal generated direct heat would
allow Pacific Aluminium to reduce fuel oil consumption and
carbon emissions and has potential to deliver improved long
term operating cost and enhanced sustainability for the
bauxite refinery at Gove.
Initial exploration studies have identified the presence of
potentially high heat producing granite formations on the
Gove Peninsula that may host a commercially viable large
scale direct heat resource. These granites are shallower and
lower temperature than the granite formations Geodynamics has
been developing at Innamincka in the Cooper Basin, South
Australia, but will allow Geodynamics to apply the skills and
leverage experience gained from the Company's Enhanced
Geothermal Systems (EGS) geothermal project to this new
opportunity.
The exploration work program for the Gove Peninsula
Geothermal Project will begin with preliminary surface
studies, comprising geological field work and temperature
gradient measurements prior to an initial exploration
drilling program to assess the viability of geothermal heat
supply from within Geothermal Exploration Permit (GEP) 28310
(Gove).
Commenting on the agreement, Geodynamics' Managing Director
and Chief Executive Officer, Mr Geoff Ward today said: "We
are delighted to have reached this agreement with Gulkula
Mining. This is an excellent opportunity for both Geodynamics
and Gulkula Mining to explore the prospect of developing a
commercial geothermal project consistent with the aims for
sustainable development in the region."
"This joint venture will combine the strengths of the two
companies including Gulkula Mining's experience in the
operation of businesses and community development around Gove
and Geodynamics' expertise in geothermal resource exploration
and EGS technology development. We are working together to
establish a clear strategy and program that ensures there is
alignment between the local community and joint venture from
inception."
Gumatj clan leader and former Australian of the Year,
Galarrwuy Yunupingu AM for Gulkula Mining, said: "This
agreement is a good example of a new style of relationship
between traditional owners and resource companies.
Traditional owners no longer seek to just
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info@geodynamics.com.au
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negotiate royalties and rents - we seek partnerships that
give us ownership and an interest in every aspect of the
business; we want in on the economic world."
"The supply of affordable energy heat as well as power, is a
challenge in remote areas in Australia like Gove that are
reliant on imported liquid fuels. We have recognised
geothermal energy as a potential sustainable alternative to
existing fossil fuel energy sources that can support the long
term future for businesses in this region. Geodynamics is at
the forefront of geothermal development in Australia and we
look forward to a successful partnership."
For further information, please check our website
(www.geodynamics.com.au) or contact Mr Geoff Ward on + 61 7
3721 7500. Media and investor inquiries may also be directed
to Meredith Bird, Corporate Affairs Manager on +61 7 3721
7581.
Geodynamics Limited is the leading Australian geothermal exploration and development company. Geodynamics possesses some of the best geothermal resources in the world and is rapidly
developing technology to exploit the resource. Geothermal energy has the potential to be a critical
element of Australia's future power generation and Geodynamics is at the forefront of development.
About Gulkula MiningGulkula Mining Company Pty Ltd is a wholly indigenous owned exploration and mining company based in North East Arnhem Land in the Northern Territory that has been created to pursue
commercial mining an energy related opportunities on behalf of the traditional owners in the areas of their traditional lands.
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