Ore Deposit Knowledge – The Value of Continuous Improvement

"Many deposits have a geological model developed early in the project stages, which is not always reviewed or modified as the project matures and production commences. Conversely, ongoing pressures, due to a combination of declining head grades, a push for increased revenue and a multitude of other reasons, leads to processing plant modifications, with the primary aim being to increase production. Often, the ore deposit knowledge is not sustained or developed during the operational stages to the level carried out during the prefeasibility and feasibility study phases. This results in the variability within the deposit being poorly understood and a lack of data and knowledge being available to support (and ideally optimise) operations particularly in an environment where the flow sheet has changed and ore feed requirements are complex.INTRODUCTION This paper presents a case study of ore deposit knowledge development and corresponding process plant operating strategy at the Ladolam Gold Deposit, commonly referred to as the Lihir gold deposit in Papua New Guinea. The gold deposit is located in a tropical equatorial climate on the east side of Lihir Island in the New Ireland Province of Papua New Guinea. Gold mineralisation was discovered in 1982, and was followed by a major exploration campaign by a joint venture between Kennecott (Rio Tinto) and Nuigini Mining Limited. The first drillhole was drilled in 1983, and after an extensive period of drilling consisting of 343 holes for 83,500 m, the final Feasibility Study was completed in 1992. The feasibility study was based on a Reserve base of 37.9 Moz in refractory sulphide ore, with gold extraction proposed to occur via whole ore pressure oxidation due to the refractory nature of the mineralisation. The Lihir Special Mining Lease (SML) was granted in 1995 to a new PNG company – Lihir Gold Limited, and Rio Tinto established Lihir Management Company to develop and operate the mine on behalf of LGL. Mining and processing of the deposit commenced in 1997. Newcrest Mining Limited purchased Lihir Gold Limited in August 2010, and subsequently completed a major plant upgrade including the installation of additional grinding, autoclave and carbon-in-leach capacity. Post commissioning of the upgrade, Newcrest has continued to increase throughput and production. A reinvigorated ore body knowledge development program has significantly assisted this process in identifying operating strategies for the process plant and delivering recovery improvement projects to address declining head grade and recovery due to increased stockpile feed and flotation circuit use."