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By L Lorenzen

The selection of samples for metallurgical test work is generally focused on providing geologically representative samples. One of the major problems experienced with metallurgical test work using drill hole data, is the small sample sets selected for metallurgical testing. Major process and financial decisions are being made from results obtained using snapshot samples. Snapshot samples means that samples are basically selected only by grade and spatial location with the assumption that the rest of the orebody or portion of orebody is similar and will respond metallurgically the same way – ie the assumption is that the mineralogy and lithology are basically the same as the test sample. From the test work, algorithms were usually developed and used to describe throughput and recovery using some explanatory variables including grade (mineral chemistry) and ore hardness. These algorithms were then used in the recovery models to determine tonnes produced and plant throughput. However, the metallurgical parameters are a function of many geological factors including grade, lithology, alteration, mineralogy, spatial relationships and SG. In previous years, the limited mineralogical information available was deemed enough for the metallurgist to make decisions as to how many samples are needed to evaluate the metallurgical performance of the ore during processing, and subsequently the basis for the plant design. If the orebody is consistent and not complex or refractory (thus, relative simple lithology), then only spatial and grade samples will be needed to evaluate the throughput and recovery, so limited mineralogical information may be acceptable. There is now, however, an increasing realisation that the mineralogy and geology change, as do the metallurgical characteristics of the orebody, so limited samples may not be sufficient for effective metallurgical test work.It is the purpose of this paper to discuss the effect correct mineralogical information has on the subsequent metallurgical test work program and process selection using a case study. Factors such as type of rock, rainfall and topography are thought to influence the minerals that ultimately form in various orebodies, with the result that different orebodies often react differently during metallurgical test work programs. It is therefore important to obtain accurate mineralogical and elemental deportment data, which will also indicate where the valuable metal containing minerals are located within the orebody. The better you plan and execute your metallurgical test work program during the early phases, the more accurate the decision-making process will be during the selection phase. Improved integration between geology and metallurgy data gathering (geometallurgy) during early phases will result in more accurate predictions with regard to throughput and recovery during modelling and process. Equipment selection will be considerably simpler in later phases with early planning, with improved mine and process scheduling and subsequent net present value (NPV).

Sep 5, 2011

By M J. Newton

As part of the AMIRA P843 project Keeney and Walters (2008) describe how the principal components analysis (PCA) method can be used to identify classes of samples with similar metallurgical characteristics. However PCA does not take account of the location of each sample in 3D space. This paper describes a study to analyse the spatial distributions of the classes and determine appropriate modelling methods to control the estimation of the comminution parameters and mill performance indices into a 3D block model. This includes but is not restricted to geostatistical techniques that are used for grade modelling. The starting point for the study is the class definitions and the regression models for estimating the comminution parameters and performance indices. Each sample is assigned a class and the spatial distribution of each class has been analysed using different techniques including the calculation of variograms. This establishes whether the classes can be used as domain control for estimation into the block model – a procedure similar to using geological rock type domains for controlling the estimation of grades for a resource model. However, standard geostatistical estimation methods such as ordinary kriging assume that the variable being estimated is additive or linear. This assumption is valid for variables such as grade but this is not necessarily the case for the comminution parameters or the performance indices. Therefore the estimation procedure must either use variables that are definitely additive or the effect of potential non-additivity must be tested and accounted for where possible.The results of the study show how performance indices such as recovery, throughput and specific power can be estimated into the block model. This model is then combined with the geological model to provide a multi-parametric model that is used to optimise the mine planning and scheduling activities which can lead to significant improvements in NPV.

Sep 5, 2011

By M J. Nugus

The structural models developed by exploration and mining geologists are most commonly concerned with the ‘main structures’ or key constituents that pertain to the associated mineralisation. To this end, it is recognised that the geological and exploration models, which are developed, are essentially ‘fit for task’ and the scale-related variances are not always realised at an early stage. In fact, in many cases anomalous intercepts along different trends and of variable apparent continuity have often been neglected as ‘back scatter’ and not important. Recognition of the importance of subordinate structures as mineralising hosts suggests that additional opportunities exist outside the primary and main structures. History shows that opportunities are often not realised where gold is hosted in orientations not parallel to the predominant trend of the schistosity, main fault or shear zone.Another reason for the importance of subordinate structures can be understood from their roles in a percolation network. Subordinate structures can access the large fluid fluxes provided by backbone elements, but, as dangling elements, they provide greater opportunities for gold precipitation mechanisms and hence may constitute essential parts of the resource. Therefore, the role, understanding and consideration of the smaller-scale and orthogonal structures should be considered during all facets of exploration, resource development, delineation and mining.

Aug 22, 2011

By O Rojas

The Telégrafo copper – gold deposit is located in the Centinela district of the Antofagasta region in northern Chile. Telégrafo is a porphyry copper deposit of Eocene – Oligocene age which has a total mineral resource in measured, indicated and inferred categories equal to 2.6 billion tonnes with an average grade of 0.38 per cent copper.Currently the project is in the prefeasibility study phase, including an infill drilling campaign to improve the knowledge of the deposit that should result in an improvement of the mineral resource classification. In this context was decided to review the classification criteria in order to optimise the drill hole density necessary to support the project.This paper presents an application of conditional simulation to evaluate the risk related to drill hole spacing, using a geostatistical approach that mimics the process of evaluation of resources from the perspective of geological modelling and grade estimation. The first step of the approach is the generation of conditional simulations using the available samples to generate several plausible scenarios of the deposit in terms of copper grades and geological units. These scenarios are considered as the unknown reality of the deposit and sampled by synthetic drill holes in order to replicate the geological model process and copper resource estimation. In this way it is possible to establish differences between the possible scenarios and the generated resource estimation models for several simulated drill hole spacing alternatives. These differences or errors can then be quantified in terms of estimated mean, metal content and tonnage over different production volumes.The resulting errors were useful in assisting the decision making process related to the design of drill hole spacing for each category of mineral resource in the Telégrafo project, and to redistribute the budget associated to the drill campaigns for the next stage of the project.

Aug 22, 2011

By D A. Sketchley

The Merlin Zone, a 2008 high-grade Mo-Re discovery, is a part of the Mount Dore Deposit in the Eastern Succession of the Mount Isa Inlier in Queensland, Australia. Hosted by carbonaceous metapelites and phyllites, the Merlin mineralisation comprises molybdenite veins, breccia infillings, stylolitic fracture fillings, and disseminations. Because rhenium is geochemically similar to molybdenum and commonly associated with it, global production of rhenium has been mostly a by-product of molybdenum refining. The high-grade rhenium in the Merlin Zone is an exciting discovery that is expected to become a direct source of rhenium. At the time of discovery, quality assurance (QA) procedures for rhenium were not in place at the Merlin Zone; therefore, they needed to be developed.The Merlin Zone was discovered using reverse circulation drilling, which led to concerns about molybdenite loss due to poor sample recovery. The twinning of the discovery hole with diamond core demonstrated a two-fold increase in molybdenum grade over several tens of metres. Consequently, the resources of the Merlin Zone were defined using assays from diamond drill core.Early analytical work, which was initially done only for molybdenum, comprised geochemical analysis with an aqua regia digestion, which have poor precision and can be biased low. Although initial testing for rhenium used similar procedures to those for molybdenum, a scarcity of commercial rhenium reference materials led to a validation process using neutron activation analyses and different digestions. This resulted in introduction of four-acid digestion assays, development of matrix-matched reference materials, and improvements to the quality of molybdenum and rhenium assays for reporting resources. Coarse and pulp duplicates were used to check for sampling bias and to ensure that levels of precision were adequate for the style of mineralisation and analytical methods. In addition, the direct and consistent geochemical correlation between molybdenum and rhenium provided another method for checking analyses.

Aug 22, 2011

By R H. Sibson

Magmatic and/or hydrothermal fluid systems in island or mountain arcs self-organise to critical states subject to perturbation by changes in the regional stress, which plays a controlling role in the containment of overpressured fluids. Whether the magmatic arc is under compression (eg Andes, northern Honshu) or extension (eg Taupo Volcanic Zone, New Zealand) is a key factor controlling the ease of magmatic or hydrothermal fluid ascent. Abrupt changes in the stress regime have the potential to induce major episodes of fluid redistribution. Large earthquake ruptures along plate boundaries may induce such changes over broad areas, also contributing to fluid redistribution by renewing fault permeability along the causative rupture zone or reactivating distant fault-fracture permeability by shaking from radiated waves. High-resolution geophysical investigations of active arc systems and the subduction thrust interface underlying their fore-arcs reveal repositories of overpressured hydrothermal fluids. In active magmatic arcs under compression such as NE Honshu or Cascadia, there is evidence for a heterogeneous distribution of overpressured hydrothermal fluids in the middle-to-lower crust trapped around the base of the upper crustal seismogenic zone. Investigations of the subduction thrust interface responsible for great (Mw = 8.0) ‘megathrust’ earthquake ruptures has revealed in some instances (Cascadia, SW Japan) the existence of a belt of non-volcanic tremor (NVT) with accompanying slow slip episodes defining the base of the megathrust interface at 40 ± 5 km and 350°C??-??550°C. Aqueous fluid at these depths is likely derived from dehydration reactions accompanying the basalt-eclogite transition in subducted oceanic crust. NVT sequences in the hanging-wall above the interface may be defining migration pathways into the overlying crust.The potential for eruptive episodes in magmatic arcs and redistribution of hydrothermal fluids is assessed in the light of the stress changes that followed the 2011 Mw9.0 Tohoku subduction thrust rupture which extended along strike for over 500 km and down-dip for over 150 km, with maximum slip of c 50 m.

Aug 22, 2011

By D Smith

The Broken Hill deposit is located in Australia in the far western region of New South Wales. The deposit was found in 1883 and has been mined continuously since its discovery. It is considered the largest lead, zinc, silver deposit that has been discovered in the world and originally contained around 340 Mt of ore at a grade of around 12 per cent lead, ten per cent zinc and 150 g/t silver. The material remaining in the deposit represents only a fraction (perhaps ten per cent) of the original resource. Several of the world’s largest mining companies can trace their origins to the Broken Hill Field. The remaining resources on the CML7 consist of two large lower grade resource lodes that have not been subject to mining, some scattered areas of zinc lode material and the pillars and remnants of the main lead lodes.The deposit occurs in metamorphic rocks of the Broken Hill Group a division of the Willyama Super Group contained within the Curnamona Craton. The Broken Hill Group rocks have undergone multiple phases of deformation. Metamorphism is granulite grade with major shears cutting through the deposit having been retrogressed to mica schists. The deposit lies in an antiform associated with the second phase of deformation.The resultant proposed mine is situated on Consolidated Mining Lease 7 (CML 7) which occupies a strike length of 3.6 km in the central part of the 7.8 km long footprint of the orebody. Underground mining on CML7 ceased in 1975 with surface mining of silver chlorides in the weathered zone continuing until 1991. CBH Resources has been continually working to define and evaluate the remaining resource since 2002. This work has included four surface drilling programs, two underground drilling programs, an exploration decline, enormous amounts of compilation of historical data and detailed three- dimensional (3D) modelling of historical mining and the resource lodes. It is currently planned to commence production at the Rasp Mine in late 2011. The operations will produce from previously unmined lodes and from remnants and pillars.This paper primarily aims to encapsulate the processes involved from information acquisition through to resource estimation and also to highlight some of the challenges encountered and the specific techniques and practices used to overcome them. Many of the experiences at Broken Hill are applicable to all brown field sites.

Aug 22, 2011

By C L. McIntosh

The west coast of New Zealand’s south island is host to a large number of placer goldfields that stretch from the Westport area in the north to Gillespies Beach in the south and inland to the foothills of the Southern Alps. This area is host to a large number of alluvial, glacial and strand line deposits ageing in range from Recent to Tertiary. In recent years exploration models have been developed for off shore placer deposits on the continental shelf.Gold mining on the west coast has exploited placer gold resources from the 1860s to present, and with the recent surge in the gold price the industry is currently undergoing a resurgence. The current increase in mining is dominated by small-scale mechanical operations usually involving one to two people at each site; a few larger operations also exist such as the Grey River Dredge.Mining methods range from using floating bucket dredges to small diggers. Some of the mining technologies used are similar to those employed during the great gold rushes of the 19th century. Exploration and grade control techniques can be very rudimentary often relying on previous sampling programs or wide spaced bulk sample drill holes. Some bulk sample drilling is used on the larger operations as a form of grade control, most of the small operations tend not to use any ore control sampling prior to mining. Extraction techniques relying on simple gravity based designs with riffle tables or spirals are the most commonly used. Environmental standards are very high within New Zealand and require operators to return mined areas to preagreed to landforms. The high rainfall experienced on the west coast causes challenges to operators in regard to water quality. Technical issues combined with often limited capital provide for challenges to the operations.

Aug 22, 2011

By C F. Stokes

The Trident Gold Deposit has been successfully developed by Alacer Gold (formerly Avoca Resources Limited) into a 1.3 Mt/a operation in the space of four years from discovery to first gold pour (2008). The current in situ Resource for Trident is estimated to be 5 900 000 t @ 5.0 g/t for 940 000 ounces at a cut-off of 1 g/t or 2 g/t depending on ore style. Production to date (Alacer and previous owners) is in excess of 500 000 ounces. The deposit lies towards the southern end of the Norseman-Wiluna Greenstone Belt in the Archaean Yilgarn Craton, where it is centred on the historical Higginsville Mining Centre, midway between the world class gold centres of St Ives (+15 Moz) and Norseman (+6.5 Moz). Trident is hosted primarily within a thick, weakly differentiated gabbro with subordinate mafic and ultramafic lithologies and comprises a series of north-northeast trending, shallowly north plunging ore zones. The deposit comprises two main mineralisation styles; large wallrock-hosted ore-zones comprising sigmoidal quartz tensional vein arrays and associated metasomatic wall rock alteration (Eastern Zone, Western Zone and Apollo) hosted exclusively within the gabbro; and thin, lode-style, nuggety laminated quartz veins (Athena and Artemis) that formed primarily at sheared lithological contacts between the various mafic and ultramafic lithologies. The initial interpretation of the Trident Deposit was based on steeply-dipping structures controlling the zones of mineralisation, with much of the targeting and drill-testing aimed at this style of orebody. Subsequent exposure of the orebodies has identified a series of shallow-east dipping mineralised systems (interpreted to be large reverse shears) that at their intersection with the steep-dipping structures cause significant gold enrichment. It is postulated that both orientations are primary fluid pathways with the intersection between the two resulting in zones with significantly high concentrations of gold mineralisation (in excess of 300 000 ounces). This new understanding on ore controls at Trident has identified that the thin lode-style shear-hosted laminated veins are continuous for over 1700 m along strike as they step en echelon down-plunge. In addition, a repetition and periodicity to the intersection between these steep dipping lode-style systems and the shallow-dipping mineralised zones (estimated to be 700 - 900 m down-plunge) has been identified which has considerably increased the down-plunge potential of the Trident Deposit.

Aug 22, 2011

By J Vann

The philosophical context of many activities in mine geology can be an important lever in adding value to operations. For mine geologists (including resource and grade control geologists) we argue that the tasks of problem formulation, observation and data collection, interpretation and modelling invoke various philosophical considerations whether the practitioner is aware of them or not.Constructing testable models to explain reality is the definitive aspect of any activity claiming to be ‘scientific’. A primary goal of mining geology is to build models that accurately predict reality to an acceptable degree and these include litho-structural, stratigraphic, grade control, resource or reconciliation models. What’s more, in mine geology we are often able collect additional drill samples or access new underground openings, for example, that can provide relatively rapid feedback on how predictive, and therefore useful, our models are. In this paper, we describe the key philosophical frameworks proposed for conducting scientific investigations, including falsification, the method of multiple working hypotheses and structural concepts of scientific theory. The strengths and weaknesses of these approaches are discussed and an attempt is made to relate them to activities undertaken by mine geologists. Common perceptions of what constitutes the scientific method have been dominated by how scientists do experimental physics and chemistry in particular. There are very important differences in the types of problem confronted in these experimental sciences compared to the ‘historical sciences’, such as geology, where the processes studied are unique and only evidential traces of past events are available. The philosophical implications of attempting to validate numerical geological models, such as resource estimates are also briefly considered.Some practical conclusions are drawn about how mine geology activities can be better implemented if practitioners are cognisant of the importance of philosophical considerations when attempting to gain new knowledge through a scientific investigation. We believe that the implications for creating additional value to a project or operation can be very significant when geology is applied by a practitioner with an understanding of the philosophical basis of the activities we think of as constituting a scientific investigation.Remember that all models are wrong; the practical question is how wrong do they have to be to not be useful? (Box and Draper, 1987, 74 p).The demand that theories be highly falsifiable has the attractive consequence that theories should be clearly stated and precise. If a theory is so vaguely stated that it is not exactly clear what it is claiming, then when tested by observation or experiment it can always be interpreted so as to be consistent with the results of the test. (Chalmers, 1999, 67 p).

Aug 22, 2011

By M Fitzgerald

Fimiston Open Pit is operated by Kalgoorlie Consolidated Gold Mines (KCGM) as a joint venture between Barrick Gold and Newmont Mining. Over 110 years of underground mining resulted in the development of nearly 3500 km of underground workings including backfilled and open stopes up to half a million tonnes in size. These voids significantly complicate blasting processes at KCGM, influencing blast movement direction and magnitude. Blast movement monitoring to improve mine reconciliations was identified as an improvement project in the business plan for the geology team in 2008. Following successful trials in 2008 to 2009, blast monitoring and translation of ore blocks were implemented as a permanent grade control program from late 2009 and is now part of the Management Operating System (MOS) of the mine. This paper presents a summary of results from the Blast Movement Monitoring (BMM®) data collected to date. Ore blocks at KCGM are translated primarily using BMM® data. This data is obtained from the BMM® system which measures the movement of a radio transmitter installed in a blast pattern from a preblast position to a post-blast position. The application of the data collected by the BMM® tends to be both mine site and blast specific. At KCGM, an average distance obtained from the BMM® data within a given shot is the primary method used for translation. In the case that BMM® data is unavailable, a theoretical movement vector established from Orica Shotplus with distances gained from the historical BMM® database is used. Data is presented in an ore loss and dilution exercise for a bench undertaken at KCGM to understand the potential effects on reconciliations. Improvements that have flowed from implementing blast monitoring include improved reconciliations when combined with other grade control improvement projects. The increase in liaison between the geology and blast personnel at KCGM has been a significant improvement gained from the implementation of the blast monitoring program. This has allowed a better understanding of blast movement and the effects on ore dilution and ore loss by the mine geology team. In addition, the discussion of blasting tie-in plans between geology and blasting personnel has been improved which leads to more favourable blasting practices that take ore movement into account.

Aug 22, 2011

By D Timms

The Kempfield deposit is located in the Hill End Trough, one of several intracratonic basins developed during Silurian–Devonian time, in the eastern province of the Lachlan Orogen, Eastern Australia.The deposit contains an oxide resource of 5.8 Mt @ 58 g/t Ag and a sulfide resource of 14.4 Mt @ 45 g/t Ag, 1.7 per cent Zn and 0.6 per cent Pb, classified and reported in compliance with the JORC Code. The deposit has been previously explored by a number of companies, including INCO, Shell, Jones Mining, Golden Cross Resources and recently Argent Minerals Ltd (Argent). Argent is currently completing a definitive feasibility study with a view to mining the deposit.The deposit is hosted at the boundary between the Molong High to the west, comprising Ordovician sediments and volcanic rocks and the Hill End Trough to the east, interpreted as a back-arc basin containing Silurian sediments and siliceous-feldspathic volcanic rocks. The boundary between these two strato tectonic units is an imbricate thrust fault zone known as the Copperhannia Thrust.The Kempfield deposit is hosted in felsic volcanic rocks known as the Kangaloolah Volcanics. These have been in-faulted and folded into the Middle Ordovician meta-sediments of the Coombing Formation of metasediments along the Copperhannia Thrust. The Kangaloolah Volcanics belong to the Late Silurian Mumbil Group, comprising submarine carbonate-shale facies interspersed with extensive felsic volcanic piles, which grade conformably upwards into turbiditic sandstone and siltstone sequences (interpreted to represent a deeper depositional environment). These turbiditic rocks are known as the Campbells Formation, comprising siltstone, sandstone and andesitic tuff. The rocks at Kempfield are metamorphosed to lower greenschist facies, reflected through the different type of schists.Silver, gold, lead, zinc mineralisation is hosted in barite-rich horizons, near the boundary to quartz-phyric tuffaceous rocks in submarine, immature, reworked felsic ash tuffs. Barite appears to be hosted in greatest concentrations by the coarser grained volcanoclastic sandstones and grits, whilst intercalated siltstones are volumetrically minor and tend to return low barite and silver. Mineralisation is hosted in stratiform and probably stratabound barite-rich horizons. A northeast-trending, steeply dipping, metamorphic cleavage (S1) occurs throughout the project area.

Aug 22, 2011

By J Coombes

The JORC Code lists the three core principles of Transparency, Materiality and Competency as fundamental to how mineral estimates are publicly reported. But where the principles of Transparency and Materiality can be considered conscious choices underlying decisions at the point of disclosure, Competency is a self-declared position statement based on one’s confidence to defend a technical position (as well as the functional pre-requisites of institute membership and a minimum of five years relevant experience).Developing competency in the mining industry is an ad hoc process, generally left to the individual to chart through a process of osmosis from personal work experiences that lead to a sufficient level of confidence. Companies that actually present professional development programs leading to reporting competency are rare. And even once a person has followed a program, there is no specific outline of what constitutes technical competence.No doubt, there are persons signing off on mineral statements who would benefit from developing and/or updating their technical skills (they may not even be aware of unmastered skills). Equally, there are technical practitioners who are sufficiently competent, but lack the confidence to step up and publicly report their estimates. Confidence in one’s own abilities plays a significant role in deciding when one is ready for the responsibility of submitting mineral estimates for public consumption. In addition, a person’s organisational support, such as the availability of suitable peers and professional development programs, and opportunities to learn from a variety of technical projects contribute to developing relevant experience. Increased exposure in both technical breadth and depth enhance confidence in one’s ability and competence.The mining industry provides numerous opportunities through direct and indirect means to develop the competency underpinning a stable reporting code. This paper examines a theoretical framework and associated processes that could be used to examine how the mining industry, companies and individuals collaborate to develop this vague principle of competency. This paper seeks to initiate research with the express purpose of enabling more effective and efficient development of reporting competency in our industry.

Aug 22, 2011

By M F. Gazley

The amphibolite-facies metabasaltic rocks of the Mine Mafic Package at Plutonic Gold Mine, Marymia Inlier, Western Australia, contain an estimated total endowment of 12.2 Moz of Au, which includes 4.71 Moz of past production and 2.77 Moz of reserves and resources; the remainder comprises lower-grade inventory. Over 65?000 multi-element analyses of whole-rock core and face channel samples from the underground workings of the deposit have been collected by portable X-ray fluorescence (pXRF) using a handheld Innov-X Omega pXRF unit. The analyses were performed on pulverised samples through paper bags, and were corrected using a pulverised, matrix-matched, reference standard. This method of data correction compares favourably with conventional XRF analyses performed on the same samples.A preliminary study based on pXRF analyses from a small number of drill holes found that a geochemical stratigraphy was evident in the pXRF data, and that this stratigraphy strongly controlled the location of Au mineralisation. The present study incorporates a much larger pXRF data set that samples a greater volume of diamond drill core and face channel samples and presents the data in a three-dimensional (3D) framework.This data set allows an investigation of the mineralogy of Au mineralisation with varying geochemical associations across the deposit. Historically, there has been a strong relationship identified between As and Au, which has caused issues with metallurgical performance, rendering some areas of the deposit only marginally economic. Utilising seamless data integration of the pXRF data set allows for recognition of the different styles of Au mineralisation using elemental concentrations and ratios from the multi-element analyses (Au:As, Au:As:Cu, As:Cu vs. K:V), and to visualise the distribution of these different mineralogical associations in 3D. The results of the 3D modelling and geochemical characterisation of the different styles of Au mineralisation are currently the focus of an extensive metallurgical testing program, the preliminary results of which are presented here.

Aug 22, 2011

By P Hodkiewicz

Recent structural interpretations based on historic stope shapes were used to develop a rapid and innovative method to domain and simulate structurally complex, high-grade gold veins at depth in the Edna May deposit. This involved ‘implicit’ modelling of drill hole data using Leapfrog software, which allows complex wireframe domains to be built and updated rapidly, compared to ‘explicit’ manual wireframing methods that are too subjective and time consuming. Conditional simulation was used for resource estimation, in order to simulate the highly variable gold grades associated with the veins. Similar modelling methods could be used to determine the mining potential of other historic gold deposits that are receiving renewed interest because of the high gold price.Gold at Edna May is hosted in the Edna May Gneiss, which is a WNW-striking tonalitic intrusion along a shear zone that dips approximately 45° towards the NNE. Gold occurs in multiple 0.5 - 5 m thick arcuate quartz veins that plunge steeply towards the west. Two phases of historic underground mining at Edna May (1911 to 1922 and 1935 to 1947) produced 360 000 ounces of gold at an average grade 19.5 g/t from seven ‘reefs’ to a depth of 240 m. This established Edna May as one of the highest grade gold mines in Western Australia at the time.Recent drilling by Catalpa Resources confirmed the potential for down-plunge continuity of high-grade veins. New structural interpretations, based on historic level maps and wireframe re-constructions of the arcuate stope shapes, were used as ‘structural trends’ in Leapfrog to model the mineralisation. The resulting wireframes capture the complex distribution of gold in the deposit and were used as domains for resource estimation.Conditional simulation using the Turning Bands method was used to simulate the expected variability of gold grades associated with this mineralisation style and the median of the 100 realisations was used to report an inferred resource. Results of this modelling method are being used to target vein extensions at depth, to consider different underground mining scenarios, and to assess the risks associated with developing and mining this high-grade and high-nugget gold deposit.

Aug 22, 2011

By M D. Goodz

MacPhersons Reward gold deposit is in a post-kinematic tonalite intrusion which is a setting different from many other deposits of the Coolgardie goldfield that are hosted in early Archaean tholeiitic sills or meta-sedimentary rocks. Gold mineralisation at MacPhersons Reward consists of auriferous quartz veins that are best developed in the tonalite but extend to the adjacent komatiitic rocks and along the lithological contact zones. The gold-related alteration halo is dominated by biotite-chlorite and pyrrhotite. Unlike many other Coolgardie deposits, the As concentrations are low.

Aug 22, 2011

By B Young

Variable bench heights, interaction with underground workings and a steeply dipping orebody are challenges faced daily by geologists at Xstrata Zinc’s Black Star Open Cut (BSOC) Zinc/Lead/Silver mine in Mount Isa, Queensland.BSOC has been in operation since late 2004 and was developed to extract the surface extents of the Zn/Pb/Ag mineralisation mined in the underground lead mine. To date many large scale stopes and extensive development drives have been intersected and successfully mined. The stratigraphically hosted orebodies strike in a north-north westerly direction, dipping ~75° west. Ore production from the pit is currently at 4.5 Mt/a.Historically, sampling was conducted using a multiple spear technique from blasthole cuttings. This method proved to be relatively reliable when blasting benches at a consistent height, but a requirement to vary bench heights to safely collapse and then mine through underground workings reduced sample representivity to unacceptable levels.The purchase and commissioning of a production rig which had been converted for reverse circulation (RC) has allowed for the flexibility of a small rig, with the capacity to easily drill 48 m holes while ensuring sample quality. Sample quality is not the only benefit of introducing RC grade control. By collecting grade control data well in advance, informed decisions can be made by planning, drill and blast and mining departments weeks beforehand, rather than hours before firing. Additionally, seeking operational value to offset higher drilling costs has proved positive with benefits including increased confidence in orebody wireframes, accurate tonnage and grade for proceeding five benches along with the ability to representatively test metallurgical response on a tight grid spacing.

Aug 22, 2011

By P Collier

From 1972 until 1989 when operations were suspended Bougainville Copper Limited (BCL, owned 53.58 per cent by Rio Tinto Limited) operated a large open pit mine and processing facility at Panguna on Bougainville Island, Papua New Guinea producing copper concentrate containing significant quantities of gold and silver.BCL has a stated vision of recommencing operations at Panguna. In 2008, Rio Tinto, on behalf of BCL, conducted a multi-disciplinary study to assess the technical and financial viability of redeveloping the Panguna operation. One of the key outputs of the study was a Joint Ore Reserves Committee (JORC) Code compliant mineral resource statement based on the existing block model and fundamental data, archived since mine closure. Historical data (including the resource block model and drill hole data) was recovered from computer archives by a former Panguna mine employee familiar with the various obsolete data formats, thus maintaining an unbroken chain of custody of the data by Rio Tinto since operations were suspended. No additional data were collected as part of this study.The extensive data and documentation archive facilitated a sufficiently detailed evaluation of the fundamental data and model to support an updated resource statement. Table 1 of the JORC Code was used to guide the model validation process.Reconciliation of blasthole and metallurgical plant data with the reserve model, indicated that the copper and gold drill hole composite database was significantly biased towards underestimation in several key domains due to a combination of the following: mineralisation loss during core loss, core loss (minor), vertical drill holes failing to intersect sufficient subvertical mineralised fractures and veins, drill hole spacing too wide, and variable diamond drill hole core size. The resource model evaluation was based on three material types (all previously mined at Panguna), that were defined based on cut-off grade and rock type parameters: direct feed ore – material for delivery directly to the plant, preconcentration and screening ore – subeconomic material beneficiated to produce fines of economic grade, and waste. Three pit shells and designs were generated based on three separate sets of economic parameters. These economic parameters were also used to assign material types to the block model. The three resulting models were then evaluated against the corresponding pit shells.Classification of the resource was approached conservatively due to the inherent bias in the drill hole data. Consequently only Indicated and Inferred resources were tabulated.The study highlighted the importance of maintaining detailed documentation pertaining to resource estimates and operational history, particularly reconciliation, and the value that can be added by a simple, low-cost data compilation exercise.

Aug 22, 2011

By V Pere

A geotechnical data management system has been developed to manage drillhole and mapping data generated from in house and consultant administered field programs. This system comprises a data collection interface with integrated validation, processing and reporting functionality. Development of the database required careful consideration of how and what geotechnical information is gathered in the field, a clear understanding of the interdependency of the parameters, and the outputs required to support geotechnical design.The acQuire Geoscientific Information Management System was selected as the preferred software to support the process because of its ability to easily manage data from capture in the field through to quality reviews and ultimately into reports. Initially only geotechnical logging of diamond core was considered, subsequently the system has been expanded to support additional geotechnical data sources such as laboratory test results, traverse and window mapping data. This paper focuses on the core logging data acquisition, validation, analysis and presentation of data.The acQuire Geoscientific Information Management System has proven to be a robust platform for the capture, interrogation, and reporting of geotechnical data. Data entry objects have been created to manage seven different areas of geotechnical data collection ranging from core logging to mapping to automated reports for falls of ground.

Aug 22, 2011

By S Juras

The terms measured resources and proven reserves denote the highest level of estimation confidence in all of the major classification schemes. But what do they really bring to today’s project or mine with respect to production planning and expectations? Initial reserve declaration does not need measured resources, just indicated resources. Economic viability of a project is assessed on total reserves with nary a bonus for the amount of proven reserves. Production plans are based on grade and tonnage goals that may only coincidently correspond to proven reserves. So are the measured and proven categories still relevant? Historically, and almost exclusively in underground mines, companies only allowed mining in areas of proven reserves. Some companies still follow that philosophy. But many others will mine a mixture of probable and proven reserves without hesitation. Also what of the undeveloped project in a new district – what is to be made of their declared measured resources and proven reserves? Measured resources are commonly set either by some type of proximity to data scheme or a matter of ‘feel’ based on the qualified person’s experience. The parameters for reserve conversion focus on the project as a whole and then a portion becomes classified as proven reserves almost solely based on whether the resource category is measured. So should the mining industry continue to use these categories of resource and reserve classification? This paper will present arguments about making these categories once again more relevant. A more disciplined usage of these categories may re-introduce their relevancy in public disclosures of resources and reserves. As well a more consistent usage in operations may lead to increased confidence in managing production targets and costs.

Aug 22, 2011