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By G J. Delemontex, N J. Grigg

Pre-concentration of precious metal and base metal ore types is becoming more relevant with the discovery, development and operation of many lower grade deposits around the world. The fluctuations in metal prices expose many mines to risks especially dealing with low and variable ore grades.Pre-concentration, the process of concentrating the valuable metal into a smaller mass yield, effectively results in the introduction of higher feed grades to milling circuits. Gangue Rejection, the removal of lower S.G. waste rock from the circuit not only results in higher downstream grades but also potentially removes harder, non-valuable mineral, providing significant power savings within the circuit. The pre-concentration or ‘gangue rejection’ process offers a number of benefits when considering the treatment of marginal ore deposits, especially if it can be performed at a coarse crush size; these benefits include a reduction of the operating costs and the feed of more metal units to the mill.Gekko Systems has effectively utilized the Inline Pressure Jig (IPJ) to pre-concentrate the valuable metal, achieving high primary recoveries into a range of mass yields resulting in upgrade ratios between 2 and 10 times.This paper explores the benefits of pre-concentrating ‘marginal’ ore deposits prior to the milling circuit; the selective rejection of ore types that may affect either the recovery or comminution process, and also looks into the potential to effectively reduce the ‘cut-off’ grade when considering the mine planning process. Case studies of projects using the IPJ to pre-concentrate and reject gangue are also included.Pre-concentration and gangue rejection provide the potential to develop marginal ore deposits, thus providing higher grades, less gangue and more metal at a lower operating cost to producers.CITATION:Grigg, N J and Delemontex, G J, 2015. The pre-concentration of precious and base metal deposits using the Inline Pressure Jig – higher feed grades and more metal, in Proceedings MetPlant 2015, pp 296–310 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

Resonance re-emission from nickel vapour affords a convenient method for isolating the resonance lines at 3415A, 3515A, and 3524A. The vapour is generated by cathodic sputtering and is illuminated by light from a nickel atomic spectral lamp. The resonance lines thus isolated can be usefully employed for absorption measurements on mineral samples where the nickel concentration is too high for measurements with the more sensitive line at 2320A. A spectrophotometer employing a resonance lamp as monochromator possesses several advantages where a great number of determinations are made under routine conditions. The wavelength setting is stable under even the most rigorous conditions and with the provision for automatic setting of full scale deflection the instrument requires virtually no adjustment. The instrument has been used under routine conditions for the determination of nickel (in the range O· 05-2 per cent) in mineral samples.

Jan 1, 1968

By Aparup Chattopadhyay, Barun K. Gorain

"Porphyry copper deposits are the most important source of copper and also gold within the orogenic belts. These deposits are characterized by low grade copper ore (0.2% to 1% copper) and host precious metals like gold, silver and platinum. A characterization tool has been developed for complex porphyry type copper-gold deposits with an aim to quantify copper and precious metal deportment. This quantification is a challenging task due to low grades and also due to the presence of both visible and invisible precious metal content in different sulphide and non-sulphide phases. Studies were initiated on various complex ore deposits and also on samples representing various processing streams such as flotation and leach products. This paper presents the development of a systematic approach to diagnostic metallurgy using state-of-the-art optical and automated mineralogy, micro-probe, dynamic SIMS and TOF-SIMS analysis for quantification of invisible and visible precious metals content in various species. The relevance of this characterization to metallurgy will also be briefly discussed in this paper.INTRODUCTIONA novel characterization tool has been developed for double refractory gold ores and complex copper-gold ores using state-of-the-art technology for quantitative gold and copper deportment study. The characterization of these ores is a challenging task due to low copper and gold grades in ores, presence of both primary and secondary copper sulphide phases and variable proportion of visible and invisible gold in different sulphides phases (pyrite, chalcopyrite, chalcocite and bornite) and iron oxide phases (magnetite, hematite and goethite). A study was initiated on various ore deposits and also on samples representing various processing streams of pilot plant batches such as flotation concentrates and tailings. This paper attempts to discuss the deportment characterization methodology through presenting results from investigations on four samples from a flotation circuit viz, Feed, Final concentrate, Cleaner Scavenger Tail and Rougher Tail samples. These four samples represent the key streams for a typical copper-gold flotation flow sheet. The key objective of this investigation was to identify and quantify visible and invisible gold along with understanding the morphology and liberation of gold associated with various sulphides, Fe- Oxides and non-sulphide gangue species. In addition, the aim of this study was also to relate this mineralogical and gold deportment information to metallurgical performance."

Jan 1, 2013

By Turker L

The leaching of Tellness (Norway) ilmenite concentrate in hydrochloric acid and mixed aqueous HCl-alcohol solutions at boiling temperatures was investigated. It was found that the alcohols methanol, ethanol and ethylene glycol all substantially increased the leach rate and in the case of methanol and ethanol this was achieved at lower boiling temperatures compared with aqueous HC.

Jan 1, 1986

By Erich J. Jacob

In the past 15 years the enforced improvement of the public traffic systems caused a boom in urban tunnel construction. In 1961 the City of Paris started to build the Express-Metro. Of the 47 km long double-track line crossing the city center, nearly 45 km are in operation since 1971. Still missing is here only an about 2.6 km long connecting stretch, which is under construction now. From 1963 to 1969 the 21.8 km long Victoria Line was built in London as extension of the existing network,. A little later, in the years 1965 to 1973, the City of Hamburg supplemented its subway network by the construction of a 16.8 km long line between the Boroughs of Billstedt and Stellingen. Also in 1965 the City o Munich started to build a subway system of 54 km f length. Thereof a stretch of 16.2 km could be taken into operation in 1972 shortly before the Olympic Games. These are only some of the better known projectsas examples of the activities in European cities. In nearly all cities with more than about ½ million inhabitants subsurface traffic lines were begun or supplemented. Furthermore, numerous undercuts or other subsurface structures were built. The Ij Tunnel in Amsterdam and the new Elbe Tunnel in Hamburg may be mentioned, both structures finding international attention.

Jan 1, 1976

By L. D. Smith

"Those who submit competing proposals for projects seek to present senior management with complete and fully supported material that will not fail under questioning. Hopefully, misleading notions and omissions will have been minimized and there will have been testing of the assumptions regarding the economic, social and political environments. A capital project evaluation team can do management and itself a service by including a sound approach to the impact of inflation (and its twin problem, interest) on a project and a great disservice with an inappropriate approach to inflation.InflationHandled deftly, inflation can alter a project evaluation to show almost any result the handler desires. It must be a constant source of frustration for design people and cost estimators to spend weeks perfecting the technical aspects of a project in order to minimize costs, only to have all of their efforts set awash in a sea of financial and economic assumptions that submerge all of the detail. In all of this, inflation is perhaps the largest offender, with inflation criteria often being brought to bear at the last minute, almost as an afterthought. Perhaps this tardiness reflects the difficulty of the subject and the belief that senior management will take its own approach to the problems of inflation. Such a belief is unfair to senior management, for it is entitled to not being misled by omission. It is entitled to the full use of the skills of the evaluating team, including respectable assumptions of the impact of inflation.Working in a consulting context, one has the opportunity to participate in the evaluation of a large number of projects. Reflecting the observation of a wide range of views regarding the subject of inflation, this paper will-address the impact of five different approaches to inflation on the evaluation of a single Canadian mining project."

Jan 1, 1987

By Wawa Jaka Sungkawa, Slamet Rachman Jaka, Tom Dermody

Nowadays, with such a focus on environmental protection, surface mining activities have come under pressure to ensure their activities do not adversely affect the local surroundings. As part of the extractive process, blasting activities are an integral part of a mining company’s operational cycle. Consequently achieving beneficial blast results while complying with environmental requirements has become a key focus. This especially is the case when firing blasts within close proximity of residents where additional control measures need to be implemented to control vibration. One case where this occurs in Indonesia is in the Paringin Pit, one of the operational areas of the company's. The pit has complex geological conditions and is surrounded by several residential areas. Between 2014 to 2017 there were 12 cases of ground vibration exceedance due to blasting. As part of a continuous improvement project the company's targeted minimizing the vibration exceedance in this area. A project was undertaken to research and develop a method to confidently predict vibration. It was decided that the scaled distance formulas were not adequate to predict vibration when using non-electric detonators, as accurate wave propagation could not be achieved. The problem is how to manage of complex geology condition related with wave propagation in ground vibration control. Geological condition mapping with specific spatial range can and combine with Signature Hole Analysis be a solution to make wave propagation easier to accommodate in ground vibration control. With this new approach geological condition mapping with specific spatial range was produced that would minimize vibration while ensuring beneficial blast results. Introducing the new prediction produced nil cases of vibration exceedance in 2018 and beyond and proved that the Signature Hole Analysis in specific spatial range of geological condition is the preferred method to optimize blast result and maintain vibration control.

By Shaw-Shong Liew

This paper presents the processes of investigation, analysis, design, construction and monitoring of soil nail stabilisation work to facilitate a 14.5 m deep excavation at an uncontrolled fill ground. An extensive instrumentation programme had been implemented to monitor the performance of the stabilisation solution, to provide validation for the designed nail resistance and groundwater variation. From the monitoring results, it was proved that the soil nail stabilisation technique is effective for loose saturated fill provided that substantial care is taken during implementation. Construction difficulties, solutions to overcome the problems and lessons learned will be discussed in the paper.

Jan 1, 2006

By R. C. Warner, L. Mills, S. D. Botts, M. Marticorena

The Antamina Mine is located in the mountainous region of the Ancash Department of Peru at an elevation of approximately 4200m.The 120 km main access road crosses the headwaters of numerous high-value trout streams and is adjacent to pristine lakes, some of very high ecological and scenic value. In addition, the mine discharges mine water and tailings supernatant to the Antamina and Ayash watersheds. These streams provide the primary water supply for irrigation by local residents and provide excellent fishery habitat. The rock walls and earthen diversions constructed by historic and current indigenous residents of Peru are world-renowned and local residents continue this tradition, passed down from the Inca Civilization, for both agricultural purposes and water distribution. The key elements of sustainable development – economic, environmental and social development have been incorporated into Antamina’s sustainable development program through integration of indigenous knowledge and capabilities into enhanced storm water, erosion reduction and sediment control systems. Examples of incorporating indigenous technologies and knowledge into cost-effective and environmentally sound environmental controls are:(1) placement of rock walls on steep terrain to reduce slope length and erosion, (2) installation of rock walls (porous rock check dams) within elongated sediment ponds to increase detention time, (3) construction of rock-lined ditches to convey clean water (4)use of rock walls, with or without geotextile, to function as a seep berm, and (5) appropriate selection and usage of native Andean species for protection of canals and sediment ponds, and steep slopes.

Jan 1, 2004

A commonplace, sometimes overlooked or taken for granted, article of everyday existence is the tin can. Produced from thin gauge low carbon steel, and commonly coated with a mere 60 millionths of an inch of pure tin, the product is however strong and corrosion resistant. Tin-plate serves a myriad of purposes-the most important being to meet the requirements of the canning industry. Australia's newest steel product, tin-plate, was first produced on a commercial scale during the early part of August, 1957. The commissioning of the Hot Dip Tinning Plant (Fig. 1) of The Broken Hill Proprietary Co. Ltd. at Port Kembla, marked the culmination of a proposal dating back to 1939, the advent of World War II having caused its deferment to the present time.Cornish tin is known to have been exported as early as 300 B.C. to Syria and tinned vessels existed even in the year A.D. 23. The tin coating of plate could be described as an ancient art, believed to have had its origin in Bohemia in the thirteenth century. During the next 450 years, the process spread through Saxony to Pontypool in Monmouthshire, but it was a further half century before any measure of success was obtained.Perhaps the two greatest milestones in tin-plate manufacture were the rolling of iron plates first carried out in 1728, thereby outmoding the hammer formed sheet, and more recently, the development of the electro-deposition process. By the nineteenth century, several important changes had arisen; namely, the substitution of steam for water power, coke for charcoal in the production of the base metal, and...

Jan 1, 1958

By L C. Taylor, H U. Lesiste

This paper describes a method for estimating the density distribution in the soil cap as a function of distance from its top at the time of impact with the target. It provides an estimate of the density distribution in the soil on the center line of the soil cap at the time of target impact for a single depth of burial of the charge and two heights of target and shows that, for the heights of target and the depth of burial considered, the thickness of the soil cap first increases from the in situ value and then decreases. The distribution of soil density along the centerline of the soil cap changes significantly with distance from its original position. These results can be used for validating hydro-code computations and the soil models used in the computations.

Jan 1, 2011

By Z. T. Bieniawski, E. H. Skinner, R. A. Cummings, F. S. Kendorski

INTRODUCTION Caving Mine Drift Support Design The support of production drifts remains a high-cost item facing the developer or operator of an underground caving mine. Support costs are incurred well in advance of ore production, and there is a strong need to minimize these pre-production commitments of capital. Due to the extensive rock loads that normally develop during the caving process, the support used in caving mines is typically quite heavy and therefore costly. The process of designing this support increasingly makes use of basic tunneling principles, but is hindered by the still-incomplete state of knowledge of rock behavior in caving mines, and high variability of geological conditions in caving orebodies. Caving mines differ from tunnels in that the deformations and rock loads induced are transient and dynamic in occurrence, and are normally large in magnitude, often well in excess of rock mass strength. As opposed to tunnels, caving mine layouts are more intricate, and the methods and effects of construction ordinarily are not as closely monitored. Safety factors in mining tend to be lower and rock masses tend to he weaker. These aspects prevent strict application of tunnel design technology to caving mine drift support, with the result that mine drift supports are commonly designed chiefly on the basis of experience at other mines. Mining procedures at caving mines are evolved in response to site-specific requirements, to the extent that there are really as many caving methods as there are caving mines.

Jan 1, 1983

By OÆBrien R. T

A small static bed was used to study the thermal cycles required for the heat hardening of pellets based on synthetic magnetite concentrates and a naturally fine hematite. This apparatus can be employed to yield broad process data for the design of a recuperative strand system operating on the magnetite concentrates.Various alternatives are given for a process to heat harden the hematite ore but a preference is given to the production of a self fluxing pellet. Bond types and general mineralogical structures are interpreted against the optimum firing cycle necessary to produce a defined quality of pellet.INTRODUCTIONThe work reported in this paper extends that on the "Heat Hardening of Artificial Magnetite Pellets", which was described at the International Symposium on Agglomeration, sponsored by the American Institute of Mining, Metallurgical and Petroleum Engineers at Philadelphia, U.S.A. in April 1961. Whereas that work was of a more basic nature, serving to illustrate the suitability of artificial magnetites with various admixtures, to the application of heat hardened pellets, on this occasion the aim is to illustrate the procedures which were used to establish the dimensions of commercial recuperative strands for Australian raw materials.The nature of the pellet feed, Le. relatively uniform spheres of + i in.-Yi6 in. diameter, makes it possible to use small scale static pots for test work. By the use of a closed system and the measurement of suctions, gas flows...

Jan 1, 1963

By Kristen E. Coose

Concrete is a mixture of a fine aggregate (sand), a coarse aggregate (gravel), cement, and water. Cement itself is the most expensive of the ingredients but generally amounts to only about 10% of the concrete mixture. Cement raw materials include calcium, alumina, iron oxide, silica, and gypsum. They are heated and chemically changed into clinker "minerals," which are then ground and shipped as cement. Each of the four main clinker minerals-tricalcium silicate, dicalcium silicate, tricalcium aluminate, and tetracalcium aluminoferrite-impart specific strength and compositional properties to the final concrete product. During hydration of the cement, chemical changes produce new minerals that include calcium silicate hydrate gel (C-S-H, the main constituent of hydrated cement paste), calcium hydroxide, and calcium, sodium, potassium, and sulfate ions, among others. Two main reactions can occur that may be deleterious to concrete. Normal cement pore solutions, in a hydrated cement, contain sodium hydroxide and potassium hydroxide. If these alkali concentrations are too high, they can react with the siliceous aggregate (alkali-silica reaction, or ASR) to form an alkali-rich calcium silicate hydrate gel (C-N+K-S-H), which, upon prolonged contact with water, can expand to crack the concrete. The other deleterious reaction occurs when the mineral ettringite (Ca6A12(S04)3OH12. 26H20) forms after the concrete is hardened (delayed ettringite formation) and cracks the concrete. Many of the concrete bridges and structures built in New Mexico in the past 20 years are in need of replacement due to deterioration. Many others constructed very early on in the century are still sound. By collecting and analyzing samples of both old and new concrete and good and bad concrete, we compared their differences on both a microscopic and macroscopic scale. Samples taken from concrete sidewalks, parking lots, drainage canals, spillways, and a railroad-trestle foundation have construction dates that range from 1923 to 1997. They were analyzed by electron microprobe and by petrographic microscopy. Cracks, air voids, and aggregate alteration were primary locations for investigation and analysis. Using the electron microprobe, ettringite was found in voids of most of the samples, both in good and bad concrete. This leads us to believe that ettringite formation is not causing distress in the concrete. There was one exception in which ettringite was found lining a crack. In this instance, ettringite may have the ability to further the cracking and cause distress. No alkali-silica gel was identified with the microprobe. Using the petrographic microscope in cross-polarized light, a light-brown material was observed that lined some of the air voids and cracks; however, exact mineralogic identifications were not made. Although many instances of chalcedony and other deleterious quartz phases were found, no clear evidence of ASR-gel deterioration was present in our samples using these methods. However, positive identification of the ASR gel was made on an in-place concrete near one of our sample sites and in several sample cores using a newly developed chemical test for the soluble potassium ions associated with the gel. The chemical used in this test is sodium cobaltinitrite, Na3Co(NO2)6.

Jan 1, 1999

By J Pric, M Fulton, C Xia

A cyanidation study was conducted on a mild refractory gold ore sample from the Central zone of Clarence Stream Property, owned by Freewest Resources Canada, to develop a leaching strategy to extract gold. Gold, at a grade of 8.00 g/t, is present as native gold, electrum and aurostibite. The ore also contains 2.8 per cent pyrrhotite, together with several antimony minerals (0.8 per cent berthierite and gudmundite, 0.18 per cent native antimony and stibnite). It also exhibits weak preg-robbing properties with 0.16 per cent organic carbon. Aurostibite, a gold antimony compound, is particularly known to be insoluble in cyanide solution. The antimony dissolves in cyanide solution to form antimonates, which retards gold dissolution. Industrial practice of extracting gold from aurostibite generally consists of producing a flotation concentrate, which is leached in a pipe reactor at low alkalinity and high oxygen pressure with about 20 g/L cyanide. The proposed new approach is efficient and allows the extraction of gold directly from an ore at atmospheric pressure and a low cyanide concentration at pH 10.5. The effects of grinding, pretreatment, lead nitrate, kerosene and cyanide concentrations have been investigated. The maximum gold extraction obtained on the ore was 87.9 per cent using 800 ppm NaCN, 500 g/t lead nitrate, 30 g/t kerosene, DO 10 ppm and pH 10.5 in 168 hours. The associated cyanide consumption was 1.3 kg/t. The additions of lead nitrate and kerosene increased gold extraction. In comparison to a P80 of 74 ¦m, a P80 of 30 ¦m significantly increased gold extraction. Gold in solid solution in gudmundite and arsenopyrite was believed to be responsible for the unleached fraction until mineralogical analysis of hydroseparation concentrates of leach residues showed that most of the unleached gold occurs as aurostibite, either as locked grains in sulfides/sulfarsenides or as grains with passivation rims of an Au-Sb-O phase. Coarse gold was also found. Gold extraction was not sensitive to cyanide concentration from 250 ppm to 1200 ppm NaCN and high pH was detrimental. Decreasing the cyanide concentration reduced the cyanide consumption to 0.85 kg/t. The removal of coarse gold using a Knelson concentrator and a Mosley table prior to leaching increased the gold extraction to 90.4 per cent (leach residue at 0.77 g/t).

Jan 1, 2007

The U.S. Bureau of Mines, Department of Labor, and United States National Committee of the CIE hosted the TC4.10 Mine Lighting Committee Meeting and Second International CIE Mine Lighting conference at the MSHA Academy in Beckley, WV from October 12-16, 1981. This was the first time the meeting and conference had been held in the United States. The TC4.10 Mine Lighting Committee, chaired by Dr. Adam Peretiatkowicz of Poland, was attended by 15 committee members and six guests representing eight countries. Discussion during the meeting covered mine lighting instrumentation, open cast (surface mine) lighting, and lighting sources. The committee also reviewed a draft of proposed lighting terminology and suggested changes to make the definitions more acceptable to representatives of the nations present. The mine-lighting conference featured 20 papers presented by 18 speakers representing six countries. The papers covered all phases of mine lighting, including research, hardware development and application, personnel acceptance, and requirements for system maintenance. The conference attracted 126 attendees and also included displays by eight lighting hardware manufacturers and four mining machine manufacturers. Papers from the conference are being published by the Government Printing office, with copies presented to the conference attendees. Copies will be available to others interested through the NTIS. During the course of the TC4.10 meetings and conference, committee members toured three mining equipment assembly plants, and six of the foreign representatives visited a longwall installation in an underground mine. Planning and administrative services for the meeting and conference were handled by Bituminous Coal Research, Inc., under USBM Contract H0318038.

Jan 1, 1982

Using Positron Emission Particle Tracking (PEPT) to Investigate Industrial Systems

Sep 13, 2010

Barrick Gold plans to have four new gold mines in production by 2006. Together, the mines would increase the company’s output by 40 percent. The projects include Veladero in Argentina, Alto Chicama in Peru, Cowal in Australia and Tulawaka in Tanzania. All of them are scheduled to begin production between the first quarter of 2005 and the first quarter of 2006. They are expected to drive Barrick Gold’s growth profile to a target of 211.5 to 217.7 t (6.8 million to 7 mil-lion oz) of gold production in 2007. The company’s projected output for 2004 is 152.4 to 155.5 t (4.9 million to 5million oz) in 2004. Overall, higher production and lower costs are expected in the early years from the new mines.

Jan 1, 2004

By H. L. Barwood

Luminescence excited by electron bombardment, or cathodoluminescence (CL), is a very useful tool in petrographic examination of rocks, minerals and ores. Differences in luminescence colors and intensities allow detection and delineation of mineral species and composition zones difficult to separate visually by normal polarized light microscopy. The cold cathode CL chamber at Indiana University is used with a binocular microscope that has interchangeable attachments for a normal film camera, a digital camera and a fiber optic spectrometer. This allows imaging of the specimens as well as limited spectrographic analysis of the emitted luminescence. The chamber on this CL unit is large enough to accommodate several thin sections, polished mounts, grain mounts or rock slices at one time. Luminescence petrographic techniques were used to study alkali syenites and carbonatites from the Arkansas. Alkali feldspars in the syenites reveal a history of growth, fenitization and replacement through color and intensity differences. Primary orthoclase luminesces bright blue and is often zoned with a duller blue overgrowth of microcline. Fenitization of the feldspars is demonstrated by dull to bright red luminescence and replacement veins of albite often have a bright yellow green luminescence. Late microcline and perthites from the syenite pegmatites have a dull yellow to orange luminescence. Easily visible on this background of feldspars are grains of apatite (yellow), fluorite (violet), zircon (greenish), sodalite (orange) and mosandrite (green). Complex pseudoleucite syenites from Magnet Cove, Arkansas show similar minerals but also include xenolithic quartz (violet), manganwollastonite (bright orange), benitoite (intense blue) and lorenzenite (green). Carbonatites from Arkansas contain a wide variety of calcite textures and intensities of luminescence. Grains of carbonatite in well cuttings are easily distinguished from sedimentary calcites by their complex “flame” luminescence and the frequent presence of euhedral apatite grains (yellow). Apatite crystals separated from the Arkansas River Valley carbonatites by acid digestion show complex zoning. The cores of these apatites are yellow luminescing due to CL activation by Mn enrichment while the rims are violet luminescing due to REE enrichment. Complex zonation between the cores and rims is easily visible using CL.

Jan 1, 2001

The spatial distribution of copper grades at the Mansa Mina project is highly variable due to the presence of high grade copper/silver/arsenic breccia bodies. Copper grades within the breccia bodies tend to average about 4.5% copper while grades in the surrounding stockwork average about 1.0%. The breccia is known to occur in the vicinity of significant controlling structures, however, the outline and therefore the thickness of the bodies are far from regular. Due to the high grade of these bodies a significant proportion of the value of the project is derived from the breccia tonnages. The irregularity in the outlines/thickness translates into an uncertainty in the breccia tonnage and therefore in the value of the project. Acknowledging the economic importance of the breccia bodies and the risk associated with the breccia tonnage uncertainty, significant additional drilling has been proposed to both understand the spatial distribution of the breccias and reduce project risk. The costs associated with this additional drilling are not inconsequential; thus, a reasonable question is ‘what value is derived from this additional drilling’? To obtain an answer to this important question, a simulation approach is applied. First the deposit is simulated using the existing drilling and the uncertainty in the resource is defined. Next the proposed drilling program is simulated and the simulated data are added to the existing data. Using this expanded data set a second simulation of the deposit is created and once again the uncertainty in the resource is defined. Using this approach, the reduction in the uncertainty in the resource can be determined. To convert this reduction in uncertainty (or reduction in risk) in the stated resource into a dollar value, a method of defining the increase in the project rate of return necessary to account for risk is presented. Using the two different rates of return, the difference in project NPV and hence the value of additional drilling is determined.

Jan 1, 2003