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By Peverett N. F

The purpose of filtration in a gold reco- very plant is to separate the gold bearing liquid from the solids in the slurry. Some of the gold is inevitably lost due to incomplete separation. An investigation recently completed by the authors has brought to light a method of reducing such losses. In this investigation, the filtration pro- cess was represented by a steady-state mathema- tical model which took account of 14 indepen- dent variables and three parameters. One of the filters in the plant at West Driefontein Gold Mine in South Africa was isolated from the rest and fully instrumented. A computerized data acquisition system was installed close to the filter, and the data obtained from it served to test the model. Using the model together with an optimizing program, the optimum operating point for the filter as a function of throughput was found, and a control strategy developed to minimize the total gold losses in the filter plant.

Jan 1, 1977

By R F. G Phelps

The former Gwynfynydd gold mine is located within the heart of the Snowdonia National Park, North Wales, United Kingdom. The black shale-hosted quartz reefs have intermittently produced more than 50 000 ounces of gold since 1863. Its most recent period of operation by Welsh Gold PLC was between 1992 and 1999 when it extracted 10 000 tonnes annually from a total resource base of 180 000 tonnes. A historical mining grade of 15 grammes/tonne was recovered from the Chidlaw Reef on which all production was based. Erratically distributed gold pockets hosted in the footwall zone of a 3 - 6 m wide quartz reef characterise the mineralisation. The gold exhibits a high-nugget effect and as a consequence the accurate determination of tonnage and grade was difficult. Production was undertaken by overhand shrinkage stoping. Due to its location within a National Park certain environmental constraints were placed on the operators. The principal requirement of planning permission was that processing should take place above ground and not involve chemicals. As a result, an underground mill based on physical separation methods was constructed in response to these environmental constraints. Much of the mine discharge is related to the flow of rainwater through the workings from surface openings on the reefs. Discharge from the underground milling facility was enhanced in various metals, particularly zinc, though was reduced to legally acceptable levels using liming tanks prior to discharge into the River Mawddach. The company was required to monitor and treat all water discharged from the mine before it reached the river. The mine closed in 1999, since which time a tip re-processing has continued as part of an environmental remediation and gold supply program.

Jan 1, 2002

By Szymanski J

In the first part of this paper, the principal sources of dilution during underground evaluation and mining are discussed, then definitions of ore dilution currently in use are analysed. These definitions vary depending on the authors. Ten different analytical expressions of dilution percentage currently exist. It is demonstrated, with the help of a numerical example for a given mining condition, that dilution percentage results vary considerably and that they depend on the definition used. This situation makes it difficult to compare different results regarding the dilution problem, often because some of the terms used are contradictory. A new ore dilution evaluation methodology is proposed, replacing the ten different analytical expressions by only two: the planned dilution factor related to the stoping selectivity, done at the mine planning level, and the additional dilution factor related to the efficiency of the dilution control measures during stoping operations. The conclusion shows that the use of this methodology would be a definitive asset in planning, in stoping operations follow-up, and in future costs comparison studies between mining operations.

Jan 1, 1995

A mining operation can be identified as demonstrating prudent management when a number of vital characteristics are evident.All risks and opportunities that are critical to the on-going success of the operation have been identified and are being effectively managed. All significant tasks and events are plan driven. All levels of management visibly support the policies of the operation through their attitude, behaviour and actions as well as words. Supporting evidence for required activity and the outcomes is readily available. Improvement mechanisms are working to advance the key business processes. Everyone is working towards satisfying the needs of the stakeholders of the operation. When these characteristics are integrated with the satisfaction of all legislative requirements, all industry codes and optionally all relevant international management system standards then an operation is fulfilling all the requirements of a Due Diligence Process. The majority of mining operations do not show all of these characteristics and therefore unnecessarily suffer from missed profit opportunity and constant cost pressure, less than acceptable safety and health and environmental performance and consequent poor relations with employees, unions and regulators. In these operations the characteristics to be observed are quite different.Serious incidents are occurring with no sign of a rate decrease. The operation lurches from one panic ituation to another. Management are absent in their leadership, but very active in developing rules and enforcement methodologies. The operation has no history. Re-inventing the wheel with employees who come and go at an alarming rate seems to be forever occurring. All efforts are directed at controlling the business outputs with a strong emphasis on blame. Everyone is trying to look busy to avoid the ever-present cost reduction threats. To change to more prudent management utilising a Due Diligence Process is not theoretically difficult. However it does take clear direction, focussed efforts, supporting actions with appropriate tools and perhaps most importantly an internal desire and drive to become such an operation. A Due Diligence Process is about doing the important things that have to be done, providing the understanding of why they are important, demonstrating proof of activity and effectiveness, and leading the way through effective management.

Jan 1, 1998

By de Vries D, Wilson EG, Henderson GAM, Carter EK

Canberra is a planned city in which the natural environment, rather than existing development and land tenure, has until recent times at least, imposed the major constraints to development. Even redevelopment poses fewer problems than for most cities. Geological conditions have, therefore, played a significant role in determining its shape and layout. The Canberra experience has relevance for major new mining and engineering projects. The role of engineering geologists and geophysicists in Canberra's development is described, and the problems arising from the geological environment are illustrated by several case histories. Four aspects are addressed: pre-development urban geology; major engineering projects; resources evaluation, including groundwater; and post-development problem-solving. The Australian Capital Territory lies within the Palaeozoic Lachlan Fold Belt. Within the ACT the belt is composed of folded and faulted metasiltstones, metasandstones and acid volcanics, intruded by a major granitic pluton. Some limestone lenses occur. The region has been part of a land mass since Late Devonian times and landscape evolution has been very complex. Geological features of special geotechnical significance include deep but variable weathering, with slight to moderate weathering along faults to at least 70 metres depth in places, and consequential foundation problems; close jointing; weathered limestone lenses with solution cavities containing clay and water; confined aquifers containing artesian water in scree deposits flanking hills; the presence of pyrite; and poor quality and low volumes of groundwater.

Jan 1, 1986

To follow the development of the central crushing plant it is necessary briefly to outline the history of the Lake View and Star Limited. This Company, when first constituted, took over the properties of the Lake View Consols, Hannan's Star, and Chaffers Gold Mines.The Company then treated the ore won from these leases at two dry crushing, all-roasting plants, situated adjacent to each other on the site of the present Chaffers Treatment Plant that handles all the ore won by the Lake View and Star Ltd.SUbsequent to the initial union of the three companies mentioned, the Ivanhoe Gold Corporation and the Golden Horse Shoe Ltd. were absorbed. Still later, and after the original crushing plant was erected, the Associated Gold Mines of Australia were purchased.A very extensive development policy was adopted by the Company's management in the late 1920's, and as the underground programme progressed, it became eVident that a large treatment plant would be required. Wet milling of the ore, followed by flotation, was considered desirable, and the necessity of a central crushing plant capable of producing a feed that could be handled by the wet ball mills attached to it was obvious.At this time, each of the properties absorbed had its own crushing station, situated adjacent to the respective...

Jan 1, 1948

By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By Schofield D

The problem of production scheduling is sufficiently complex to negate the use of many conventional optimising techniques as there are numerous and diverse factors that must be considered when trying to produce an optimal schedule. These factors include: grade distribution, orebody geometry, production rate capacity, processing constraints and market price of the minerals amongst a variety of others. In addition it may be observed that many of these factors incorporate a degree of uncertainty and any schedule produced must inevitably consider risk as a primary consideration. The very nature of the problem has limited the use of conventional optimisers. Genetic algorithms use methods based upon evolution and natural selection to produce `optimal' solutions to complex system problems. They are extremely flexible and robust in their nature and it is these characteristics that are important in this particular problem domain. A particular strength of the genetic optimisation approach is the ability to handle the multiple and non-linear constraints that are typically encountered in mine scheduling problems. This paper concentrates on the development of a prototype application of a genetic algorithm to the problem of scheduling the output from multiple production points in an underground mining operation. In particular it.describes a system (GO-SCHED) that can be customised to handle a wide variety of underground scheduling problems. GO-SCHED, a Windows-based system, can interface with a variety of databases and spreadsheets for data input and output and provides a simple intuitive approach to the solution of the scheduling problem.

Jan 1, 1995

By J E. Everett

A block model of the orebody is used to plan a mine. The first requirement is to identify ore to be extracted, discarding waste, so as to meet target grade, generally in multiple analytes. Commonly, cut-off values are set for each analyte, so as to distinguish ore from waste. It will be shown that, if more than one analyte is important, this procedure is wasteful of ore and a composite cut-off function is preferable.A second requirement is to sequence the ore extraction so that the variability in ore grade is controlled: failure to do so will result either in low-quality ore being marketed, or excessive re-handling being required to blend the ore to reduce the grade variability.A third requirement is that the extraction sequence should be such as to control the amount of equipment movement required, enhancing the equipment productivity.The overall objective, to optimise the Net Present Value (NPV) of the mined ore, is simply stated but complex in realisation, since so many factors, such as target grade, grade variability, equipment choice, equipment movement, and downstream blending all have alternatives which can be traded off against each other, and all of which contribute to the costs and benefits making up the total NPV.There exist commercial packages for ore selection and mine planning. However, they are often of a ‘black box’ nature, and users are sometimes not fully aware of the criteria being applied. In particular, the treatment of quality as a multidimensional vector may be problematic. The purpose of this paper is to discuss some of the issues involved and to suggest an alternative set of approaches, which should complement existing commercial treatments.The discussion will be illustrated specifically by reference to the mining of iron ore, but the issues are relevant to a wide variety of mining situations

Sep 5, 2011

By Wooller R

The 3-D regular block model used for long term mine planning at Hamersley Iron did not fulfil the requirements for short term mine planning in terms of accurate representation of geological structures, contacts and boundaries in the orebodies. A computer model, based on zone plans, is being created as a single orebody model for all phases of mine planning. The zone plan is the primary interface between the geologists and mining engineers. It is essentially a bench plan at mid-bench height showing geological structure, material type boundaries, the grade and physical characteristics of ore blocks. The method allows for the dilution of ore zones by waste material. The stratiform nature of the orebodies allows zones of varying grade to be readily delineated on the plans. The Zone Plan Model (ZPM) is the interface between geological and mine planning computer systems. It is the basis of all mine planning with applications including long and short term mine plans, reconciliations, general ore reserve estimations, pit design and general model enquiries. The system was designed to be user driven. The user has complete control at all times as all computer generated data are fed back to the user who may then elect to override the computer. Various controls were built into the system to ensure model validity and integrity. The system has proved to be invaluable as a tool for users with little or no computing experience.

Jan 1, 1986

The Mt. Sisa Orebody on Misima Island, P.N.G., consists of gold-silver mineralization associated with massive carbonate and amor- phous iron-manganese oxides in fractures and breccia matrix. The orebody forms the north- ern extension of the Umuna deposit. The mineralization lies within the three kilometre strike length of a northwest trending, 300 metre wide, high angle fault zone. The fault zone structure is deeply oxidi- sed, with the manganiferous oxide material resulting from oxidation of carbonate. The wallrocks are metamorphosed basement psammopelites and basic volcanic rocks, exten- sively intruded by microgranodiorite. These are dominantly epidotized and sericitized. The precious metals are associated with anomalous Cu, Zn, Pb, Mn, As, Ba, Ga, Sb, and. Mo. Many of the features of the Mt.Sisa mineralization are characteristic of volcanic- hosted epithermal deposits of western North' America. Lithologic and textural gradation is ob- served between the carbonate hydrothermal breccia-fill at Mt. Sisa, and the quartz domi- nated dilational fracture-fill mineralization which forms most of the Umuna deposit to the south. This gradational relationship is ana- logous to that within the Amethyst-OH vein system at Creede, Colorado, where it is shown to be indicative of deposition from laterally migrating fluids.

Jan 1, 1987

Background BHP Iron Ore Pty Ltd is one of the major iron ore producers in the Pilbara Region of North Western Australia. The company manages three separate joint ventures; the Newman, Goldsworthy and Yandi joint ventures and two 100 per cent owned operations, Yampi and Jimblebar. The Newman operations constitute a mine site at Newman and a 426 km railroad to Port Hedland where there is an ore processing/port site. The Goldsworthy operations currently constitute a mine site at Shay Gap/Nimingarra, a developing mine site at Yarrie, a decommissioned mine site at Goldsworthy and an ore processing/port site at Finucane Island (Port Hedland). The Yandi operations include mining and processing facilities at site and a spur line to join the Newman Hedland railroad. Jimblebar operations are scree and bedrock mining near Newman and include mining, processing and a spur line to Newman where it joins the Newman-Hedland railroad. The Yampi operations constitute a mine/port site at Koolan Island (which is presently being decommissioned). The combined BHP Iron Ore operations produce approximately 46 Mtpa of iron ore. This paper will concentrate on the processes developed and applied for the decommissioning of the Goldsworthy site. The Goldsworthy site is on the northern boundary of the Pilbara Region and adjacent to the western extremity of the Great Sandy Desert. It is located approximately 110 km east of Port Hedland (see Figure 1). The area is generally of low relief with isolated low ranges. The mine site being within the Mount Goldsworthy range area. The geology of the area is essentially Archaean granite with Archaean banded iron formation becoming dominant within the ranges. The chief soils are hard alkaline red soils. The vegetation is essentially shrub steppe with the main hummock grass species being spinifex (Triodia sp). The climate for the region is semi arid tropical. The temperature ranges from a mean low of 15¦C in winter to a mean high of 40¦ in summer. Rainfall is episodic, occurring mainly throughout the summer as a result of tropical depressions or cyclonic activity. The average annual rainfall is approximately 300 mm and annual evaporation may exceed rainfall by up to 2500 mm. Goldsworthy Mining Ltd commissioned the Goldsworthy site in 1965/66. Goldsworthy was the first iron ore operation and associated town site in the Pilbara region. The mine development peaked in 1977 with the town population reaching 1400 people. In 1982 mining ceased and the mining operations were relocated to Shay Gap, 80 km east of Goldsworthy. The Goldsworthy town continued as the base for the railing operations between Finucane Island and Shay Gap. BHP Minerals acquired Goldsworthy Mining Limited in 1990. The population for the town of Goldsworthy at this stage was around 450 people. An assessment of the Goldsworthy site operations concluded that it was uneconomic to continue the operation of the site. The decision was made to transfer the base for railing operations to Port

Jan 1, 1994

By Gibbons S. L, Ritchie I. M, Murr D. M

Fundamental studies on the transformations of iron oxides have been carried out and related to the solution conditions in the Becher process. The results show that a number of iron oxide interconversion reactions occur in the aeration reactor with the products depending on the pH, temperature and oxidation potential of the aeration liquor. It is concluded that the lack of process control in the aeration reactor of the Becher process significantly hinders the ability to predict and produce high quality single phase iron oxides of a consistent colour.

Jan 1, 1990

By Callinan AN

Broken Hill Proprietary Company Limited have recently commissioned a 14 Megawatt power station adjacent to its underground coal mining operation at Appin NSW. The power station is fuelled by methane gas extracted from the coal seams 500 metres below the surface. The methane is compressed and cooled prior to its injection into the combustor of a single shaft gas turbine. The turbine is coupled through a reduction gearbox to an alternator. There is sufficient power generated to cover colliery load, with any excess being exported to Prospect County Council, which is the supply authority for the south western region of Sydney.

Jan 1, 1987

In order to fully understand why Amax Coal puts such extreme emphasis on the drilling and blasting programs at each of our mines, we must review the past. This paper will discuss the drilling and blasting techniques we used in the 1970s and their evolution to current practices. As time progressed, major changes influenced the surface mining of coal through new more restrictive governmental controls and local communities organising into groups with two goals in mind, one to shut down the mines and the second to try and get rich by making false and unjust damage suits against the mines. In virtually all of our midwest surface operations we have at one time or presently are facing litigation that has reached into the millions of dollars. Amax Coal has worked in co-operation with the United States Bureau of Mines in the areas of blast vibration, shot design, highwall safety, blast casting studies and many more. Today we are continuing to work with Dr David Siskind and his expert staff seeking answers to old and new problems addressing the blasting of overburden and parting seams.

Jan 1, 1995

By Adamiak Z. P, Nicol S. K

An exploratory study has been carried out on the applicability of pre-nucleated feed in pelletising operations. Measurements of the pellet quality parameters showed that iron ore pellets prepared in the above manner, generally meet the specifications required in international pellet traffic. Several potential economic advantages, such as reduced grinding power requirements, increased line productivity and shorter start-up periods, became apparent during the study.

Jan 1, 1974

By Reilly L, Worner H. K

The EnvIRONment process has been developed to treat steel works dust and organic wastes simultaneously. A pelletised feed is fed into a special DC electric furnace, the pellets becoming immersed in a molten slag above a carbon saturated bath. The iron oxide in the pellets is reduced and carburised whilst the organics are broken down to carbon monoxide, carbon dioxide, hydrogen and water vapour. Volatile metals are vapourised and collected in the baghouse. Over two years of trials in a 100 kg DC electric are furnace has brought the process to the stage where it is ready for commercialisation.

Jan 1, 1995

The Hail Creek coking coal deposits are situated in Central Queensland, inland from the port of Mackay. A joint venture of Australian and Japanese companies has been formed to examine the feasibility of developing these deposits for sale on the overseas markets. The project envisaged involves large scale mining operations and on site benefic- iation to wash the coal to marketable quality. Infrastructure items include a 140 kilometre railway to the coast, a port facility, and at Ilail Creek, power and water supplies, roads and communications, and accommodation for a substantial workforce. The need for town development and the responsibility for the development are established. The town planning implications of coal production at the rate of five million long tons of washed coal per annum from open cut and underground mines are considered. A procedure for estimating the size of the town is expounded and the town size is determined. The factors influencing site selection are explained and a site is suggested. A method of designing the town is described and comments are made on developmental aspects. Spaciousness and preservation featuring the natural environment will be the theme of the town development.

Jan 1, 1973

The Canada Centre for Mineral and Energy Technology (CANMET) /Calgary Coal Research Laboratory and the National Research Council in Ottawa established a joint working research group with industry to develop and test various computer models for application in surface coal mining operations in western Canada.The first part of the paper deals with the problems the group experienced during the past two years especially having model specification and requirements defined and understand site management practices.The second part of the paper deals with site specific development of general mine model for TransAlta Utilities' Highvale Mine in Alberta. Described here are the development of an interactive truck/shovel model for their three pit operation, selection and application of dragline model for tandem operation with the extended bench method, criteria for operational model of the five seams operation with selec-tive mining approach.

Jan 1, 1985

By Fukuda M, Kurita K

A mathematical model for estimating the liquid level in the hearth is presented. The analytical result was checked on a cold two-dimensional model and an additional boundary condition for the fundamental equation resulted. The applicability of the resultant equation was investigated on a cold model and a regression equation obtained for the average liquid level for Kashima No. 1 BF. Comparison of calculated and observed results were in fairly good agreement. It is concluded that the liquid level in the commercial furnace can be calculated from the measured values of pressure in the bosh and operating conditions.

Jan 1, 1975