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The South Mine, property of Broken Hill South Limited, is situated at Broken Hill, NSW, Australia, towards the southern end of the main lode. The leases (MLs 7 and 8) cover a length of 2400 feet along the lode outcrop and the workings extend, at this date, to a depth of 1940 feet below the collar of the original main shaft and to 825 feet below sea level. Mining operations have been continuous for about 58 years and during this period nearly 12.5 million tons of ore have been mined. The monthly tonnage extracted approximates 30 000 tons in normal times.The ore is a mixed sulphide containing galena and marmatite; the gangue minerals are principally calcite, rhodonite, quartz and garnet. A typical assay for a monthly period is 14.4 per cent Ph, 5.6 ozs Ag, and 11.6 per cent Zn. The whole of the ore is concentrated on the property by combined gravity and flotation methods. The lead and zinc concentrates produced are railed to other centres for the extraction of the contained metals.

Jan 1, 1994

By J B. Taylor

Geographic Information Systems (GIS) are being increasingly used by the mineral exploration industry in the search for new ore deposits. A mineral exploration GIS links geological and geophysical data by virtue of their geographic location in a digital map setting. Geological and geophysical data are categorised into a number of themes or layers within a mineral exploration GIS. These layers may include polygonal information such as rock type and tenements, line information such as faults and fold axes, point information such as mines and mineral occurences, and images such as gridded geochemistry and aeromagnetics. A mineral exploration GIS is a powerful tool to help the explorationist comprehend the spatial associations and interrelationships of his/her data. These spatial associations can be integrated with a mineral genesis model, to create a mineral prospectivity map to more effectively target exploration. Arguably a competent geologist who has a good understanding of the genesis of the local ore deposit types and knows their local geology backwards could intuitively derive a mineral prospectivity map. However, in an era of rapid data accumulation from many different disciplines, the ability to assimilate and understand is a huge task for any individual. A mineral exploration GIS enables the explorationist to spend more time analysing data and testing ideas, rather than finding and manipulating data into compatible formats.

Jan 1, 1994

By R L. Brathwaite, S E. Belliss

Linear and semi-circular features were mapped in the volcanic terrain of the southernCoromandel Peninsula, North Island, using JERS-1 synthetic aperture radar (SAR), Landsat-4 Thematic Mapper, and SPOT-2 multispectral satellite data, digital elevation models, and aeromagnetic data. The mapped features typically correspond to recognised physiographic features and are thus a useful aid to mapping the structural trends in the region. Major linear features exhibit a strong N-S to NNE-SSW alignment, and lesser NW-SE and NE-SW trends. All these are superimposed on pervasive, closely spaced, NNE-SSW and NNW-SSE lineaments present over most of the hilly parts of the map area. There are few major E-W aligned features. Some alignment trends correspond to strike directions of veins in the epithermal gold-silver deposits of the region, but none of the known mineralised structures were visible on the remote sensing data.   The volcanic rocks are Late Cenozoic in age and include a variety of rock types: andesite and dacite flows, domes and tuff breccias, rhyolite domes, tuffs and tephra, lacustrine siltstones, and ignimbrites. Mapping of different textures in the SAR image failed to provide additional information on rock types to that derived from the Landsat and SPOT images. A simple discrimination of rock units based on radar texture is apparently prevented by the complex volcanic geology, superimposed hydrothermal alteration, and long period of erosion.

Jan 1, 1994

By Selischop F, Tredoux M

The distribution of platinum-group elements (pGEs) has been investigated in matte and slag samples from Waterval Smelter (Rustenburg Platinum Mines). The study showed that a strong preference of PGEs for alloy phases in matte represents a concentration mechanism that commenced in the furnace but can be considered a continuum from natural processes. Metal losses to fayalite (converter) slag occur by matte entrainment due to the mechanical capture of liquid sulphide droplets from the matte layer, and the exsolution of dissolved metal sulphide resulting from changes in the oxidation state of the slag. The latter is comparable to immiscible sulphide in basic magmas. However, the observed distribution of PGEs shows enrichment in metal phases of the matte. A mechanism is proposed whereby naked PGEs in silicate melts coalesce to form clusters which are stabilised by surface attachment of sulphur atoms. This envelope acts to 'draw the cluster into sulphide melts. Small particle melting effects permit PGE clusters to remain as liquids at magmatic and smelter temperatures.

Jan 1, 1994

By Shatwell DO, Hayward SB, Leach TM

Following acquisition of the Woodlark Island tenement by Highlands Gold Limited, an exploration programme using extensive diamond drilling has confirmed that the style of gold mineralisation is similar to other SW Pacific Rim carbonate base metal gold systems. The two centres of gold mineralisation at Kulumadau and Boniavat-Busai are inferred to be related. to buried porphyry centres localised on NE trending major horst bounding structures. Individual prospects are localised on NW trending cross structures peripheral to the porphyry centres.Gold mineralisation has been derived from the mixing of hot saline magmatic fluids with cool dilute meteoric waters. While the bulk of mineralisation occurs in dilational tensional gash fractures, bonanza grades resulted from fluid quenching in feeder structures. Pre-mineralisation breccias created plumbing systems for hydrothermal fluids and similar paragenetic sequences are defined for Busai and the Kulumadau areas. These include early, distal porphyry, low sulphidation mineralisation, followed by base metal gold and carbonate deposition.

Jan 1, 1994

The Australian Mining Industry Council is the peak mining industry representative body in the country. It is wholly funded by its member companies which comprise all of the major Australian mining houses. AMIC represents companies invo

Jan 1, 1994

Misima Mines Pty Ltd (MMPL) operates a large open cut gold mine on Misima Island in the Louisiade Archipelago in Papua New Guinea. Misima Island lies approximately 600 km east-south-east of Port Moresby. The island is 40 km long by 10 km

Jan 1, 1994

The Joint' Venture Method is a procedure for assessing the value of exploration properties, particularly those for which resources have yet to be delineated. It aims to convert the terms of an actual or synthetic joint venture into the equivalence of an arms- lengths cash transaction between a willing seller and a willing buyer. This paper sets out one approach to achieving that conversion. It discusses both simple and complex cases and gives some examples from both public and private documents. It also includes some case studies in which the Joint Venture Method of valuation can be compared with values derived for the same project using other methodologies including actual cash deals. The Method has failings in both mathematics and logic. However because it does reflect or simulate an arms-length deal which takes into account past exploration effort and expenditure and an assessment of prospectivity at a particular point in time, it is felt that it can provide a reasonable approximation of trade value or asset value of a prospect, particularly if used in conjunction with other methods.

Jan 1, 1994

By Szwedzicki T

Uniaxial testing was performed on model pillars to determine the effect of width to height ratio on pillar and surrounding rock mass stability. Samples were modelled in a shape similar to that of dumbbell weights, with the centre representing

Jan 1, 1994

Intrusion related Cu/Au mineralisation is localised in Pacific Rim island arcs by arc parallel, termed accretionary structures; or arc normal, termed transfer structures. In Papua New Guinea, NE trending transfer structures, evident on Landsat imagery, represent deep crustal fractures which have facilitated dextral rotation of the mainland during oblique plate collision. Major structures localise intrusion centres, and by rotation, develop ore hosting dilational environ-ments in subsidiary structures. While transfer structures localise the Porgera, Wafi and Yandera porphyry centres, the Frieda Porphyry and associated Nena high sulphidation Cu/Au mineralisation are localised by accretionary structures. The Bulolo Graben, which hosts the Morobe Goldfield, developed during intra arc rifting aided by movement on transfer structures. Crustal thinning has initiated magmatism with which diatreme breccias and fracture controlled mineralisation are associated.

Jan 1, 1994

Equity finance provides the most suitable and frequently the only access to capital during the exploration and evaluation stages of resource projects when project risk is at its highest. Investors are prepared to provide equity funds in the knowledge that they are compensated for the higher risk they take on with higher potential returns or sufficient upside potential to justify the higher risk. The context of resource projects which determines the role of equity finance has changed considerably. Prior to the resurgence of the gold price and the development of new mining technology many resource projects were selectively mining orebodies by underground methods frequently with limited reserves proved up in advance of mining. The limited proved ore reserves base and the volatility of the gold price all contributed to a higher risk and higher return investment environment in which the use of equity finance was more appropriate and frequently the only option for capital raising. The financial risk of a resources project can be transferred to an underwriter who makes the commitment to distribute the financial risk between a number of investors. There is also the opportunity for financiers to use a mix of equity and debt finance to allow a company to proceed with the development stage where without such a mix the resource project would not proceed. By using a level of equity finance the project becomes robust enough in its ability to service the debt finance facility and the project proceeds with the equity participants receiving a suitable risk reward return. The liquidity from the establishment of a market for the company's securities enhances further capital raising and generally enables the company to satisfy its financial requirements on more favourable terms particularly during bull markets. The role of equity finance in the management of the financial risk during the exploration, evaluation, development and mining stages of resource projects is summarised in Table 1. In more detail the principal roles of equity finance and the ways in which equity finance impact on the risk management of resource projects will be considered in turn.

Jan 1, 1994

By T DePetris, B B. Beamish

There has been a gradual increase in the volume of internationally traded thermal and coking coal, with emphasis on blending of coals rather than single coal usage. New Zealand can take advantage of this situation, especially with its low ash and sulphur content coals. However, there is a need to clarify the thermal and coking behaviour of these coals as they relate to other market players, to benefit both the consumer and supplier. The high volatile matter contents of New Zealand coking coals are due to their high vitrinite content, which causes them to demonstrate stronger coking properties over a wider rank range than Gondwana coals. These same high vitrinite levels appear to correspond with lower initial softening temperatures than for Gondwana coals of similar rank. Preliminary results using thermogravimetric analysis also suggest that New Zealand high volatile bituminous coals can be used to substitute for higher rank Gondwana coals in combustion processes.

Jan 1, 1994

Quality Assurance has become a buzzword amongst governments and industry. Notwithstanding the world class work done by its committees in developing codes of ethics and of practice in field geological handbooks, mining cost estimation handbooks, and reserve estimation, the AusIMM could better prepare its membership for QA. MICA could provide a simple set of guidelines to enable consultant members to develop their own QA procedures manual conforming to AusIMM Codes and to IS09003, and AS3903.

Jan 1, 1994

One of the great attractions of academic life, for those who enjoy the opportunities of university teaching, is the continual contact with some of the most able young minds which each rising generation produces. So when I was asked to give a paper at t

Jan 1, 1994

By Champigny N, Grimley P. H

To a bank that granted his request for a loan, the late American humorist Robert Benchley responded, `I don't trust a bank that would lend money to such a poor risk'. This quotation is unlikely to be the norm among mining companies that secure project financing. However, a poor appreciation of one of the key risks of a mining project, the reserves, often results in disastrous financial consequences. This conclusion is the subject of the discussion and analyses presented in this paper.

Jan 1, 1994

By Muir D. M

Highly saline process water has a number of implications for the CIP process during the leaching, adsorption and recovery of gold. The reduced oxygen solubility in saline water can seriously reduce the rate of gold leaching, while dissolved oxygen meters do not necessarily reveal actual oxygen concentrations in saline water. High levels of magnesium in the ground water necessitate operation at lower pH (-9), with the potential for greater cyanide loss via HCN stripping. In addition increasing salinity renders viscosity modifiers largely ineffective.The adsorption capacity of aurocyanide onto activated carbon is improved with increasing salinity, but misleading results can be obtained in assessment of gold loading kinetics of plant carbon samples already loaded, or partially loaded, in saline water if subsequently tested in fresh water. Elevated chloride levels in the Zadra elution process can cause severe anode corrosion in the elecuowinning cell. The Anglo elution process is tolerant to only slight increases in water salinity, but elution times can be reduced by ethanol addition. Care is required in carbon regeneration, as salts can catalyse carbon decomposition as well as increase kiln corrosion.

Jan 1, 1994

By Maru Y

The use of mercury for amalgamation has been an integral part of the small-scale gold mining industry in developing countries owing to its low investment cost, simplicity of the technique and high gold recovery. However, its impact on health and environmental hazards have not been given the attention they deserve. In spite of the growing awareness and concerns over the mercury pollution problem by regul-atory authorities, precautionary measures such as bans on the use of mercury in some countries have been largely ineffective.This paper first reviews some of the mechanisms of mercury poll-ution, and mercury toxicity which varies according to its oxidation state. It then describes how mercury released to the atmosphere would go through the "Mercury Cycle". Compar-isons have also been made with previously measured mercury levels in small scale Papua New Guinean miners with their counterparts in other developing countries.

Jan 1, 1994

In 1953, Dr N Fisher of the Bureau of Mineral Resources, acting on behalf of the Society of Economic Geologists, which is considering the sponsoring of a uniform system of nomenclature for ore reserves, enquired from The Australasian Institute of Mining and Metallurgy whether it had ever considered this subject and particularly whether it had ever set up any standard definitions or specifications with regard to ore reserves.As this had not been done, but was thought to be desirable, the Council of The Institute appointed a Committee consisting of H H Dunkin, Associate Professor of Mining Engineering, University of Melbourne (Convenor); E A Rudd, Professor of Economic Geology, University of Adelaide; J D Campbell, Chief Geologist of Western Mining Corporation; and the writer, to consider the report on this subject.In December 1953, the Committee submitted its frrst report to the Council and this report (reproduced here as an Appendix) was widely circulated among member companies and engineers, with an invitation to comment on the proposals. A large number of replies was received and studied.After studying the replies the Committee issued a second report, in part as follows:From these replies we have learned that the suggestions made in the frrst report of the Committee are unacceptable to most of those interested, on one or all of the following grounds:a. number of categoriesb. defmition of categoriesc. nomenclature.It is also apparent that all alternatives suggested in the various replies would likewise be unacceptable to the majority of those replying.As a result, we have come to the conclusion that neither this Committee nor any other could at present and in the present state of opinion on the subject make recommendations regarding classification and nomenclature of ore reserves which would be acceptable to a sufficiently large proportion of members.It seems to us now that the objective of a widely applicable and acceptable system of classification and nomenclature, one that could be endorsed by The Institute and ultimately become standard practice in the industry, requires more than compromise between present conflicting views... it requires first a foundation of substantial agreement on the essential facts, implications and range of ore reserve estimation. This does not yet exist and it is evident that much additional analysis of present practice and opinion must be undertaken before any further systhesis is attempted.

Jan 1, 1994

The ""multiple of exploration expenditure"" method of mineral valuation is applicable to exploration properties from the earliest stage of exploration to a moderately advanced stage but for which no resources have been delineated. While not recommended as a primary valuation method by some workers, others believe it to be the most satisfactory method of valuing exploration properties until it is possible to employ a DCF technique. In many situations facing the professional valuer, the method may represent the only semi-quantitative option available and is frequently used. Significantly it often forms the starting point in discussions to farm-in on an exploration tenement. The paper briefly reviews the definition of value as applied to mineral valuation and in particular examines the relationship between fair value and market clearing price in ""fair"", bull and bear markets. The multiple of exploration expenditure method uses previous exploration expenditure and/or future committed exploration expenditure to derive a base value for the tenements. This base value is multiplied by a prospectivity enhancement multiplier (PEM) with adjustments for market premium or discount and consideration of the quality of the exploration team to derive a fair value for the tenements. The paper will demonstrate that there is no necessary nexus between fair value derived from the method and present book Values.

Jan 1, 1994

The large, low grade, Kidston Gold Mine in North Queensland has achieved outstanding economies of scale and profitability. The total mineable ore reserve including mined to-date (as at December 1993) was 70.75 million tonnes at 1.54 grams gold per tonne. After nine years of mining, grade control mine production routinely reconciles against mill production and ore reserves to within five per cent of contained gold. The grade control system developed at Kidston is examined in detail, with emphasis on the geological thinking behind the strategies, as well as the development and application of a computerised, graphical production control and reporting system. Reconciliation procedures and results are explained, illustrating the success of geostatistical methods, as a risk management tool, in both ore reserves and production grade control.

Jan 1, 1994