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The projection of operating costs for mining, processing, and other site operating costs is an exercise which can be fraught with considerable peril. Not only are the physical characteristics of each mineral property unique, but a range of other factors will influence the consultant's approach to compiling cash flow estimates. This paper details some of the techniques used in estimating operating costs for use in order-of-magnitude cost studies and feasibility studies, and describes how to avoid common areas of difficulty. A series of examples relating to open pit gold mining and processing cost estimates illustrate these problems, and various corrective methods are described. The mining and treatment processes, and their associated cost elements, are followed in sequence of operation from on-going ore delineation through to disposal of the product. In addition the problem of assigning management, administration and overhead costs along with taxation allowances is addressed. Of critical importance is the application or possible misapplication of accrual procedures to the cost elements. In many cases such misapplication can introduce more pronounced errors with projects of short duration, such as the typical open pit/C.I.P. gold operation commenced in the last decade. The importance of providing verification of estimates depending upon the standard of the cost study is also investigated, and opinion is provided upon the minimum levels of verification necessary at various stages. Finally, the amalgamation of the various individual cost elements into a coherent whole is reviewed.

Jan 1, 1990

By F K. Altuntov

The study presented in this paper is based on the Kiirunavaara underground mine located in the northern part of Sweden. The deposit is mined using the sublevel caving (SLC) mining method. This paper briefly reviews the alternative SLC layouts, as well as presents challenges for the application. In Kiirunavaara currently, the traditional SLC design is employed, however, continuous improvement of material transportation systems used in mines generates a need for investigation of the current and future production area layouts in sublevel caving mines. When identifying the potential benefits of the alternative production area layouts, the production targets and effects must be further investigated to understand the benefits and potential effects. In this study, several different layouts have been investigated and evaluated. The designs include different development configurations and orepass infrastructure moved further away from the orebody and still require further investigation.

Mar 29, 2023

By B Cope, Y Churi

Roxgold was a small exploration company when it discovered the Zone 55 orebody at the Yaramoko project in Burkina Faso in 2010. Since this time, it has actively progressed the project with the completion of a preliminary economic assessment in 2013, a feasibility study in early 2014 and obtained full permitting for construction in January 2015. With no other underground gold mine in Burkina Faso, developing a modern and productive modern gold mine in West Africa was considered a significant challenge as Roxgold moved from explorer to producer.To facilitate this development, Roxgold engaged an international underground mining contractor to partner this development. This has enabled Roxgold to successfully develop the mine over a relatively short time frame with construction commencing in April 2015, first gold being poured in May 2016 and commercial production being achieved in October 2016.This paper discusses key elements of the project development and highlights some of the challenges faced with operating in a remote poorly developed area with a limited mining culture. Furthermore, the authors highlight the key technical and operational aspects that make the Yaramoko project a very successful development project.CITATION:Cope, B and Churi, Y, 2017. The development of the Yaramoko gold project in Burkina Faso, West Africa, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 173–182 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By A F. D C Varajpo, R C. Weba, C Volkmer-Ribeiro, C A. C Varajpo, N S. Gomes

This study relates to the spongillite deposits from the region of Jopo Pinheiro, in the north-west of the State of Minas Gerais, south-eastern Brazil. The deposits occur in shallow ponds (with a maximum depth of 3.5 m) on a karstic planation surface developed on rocks of the Spo Francisco Neoproterozoic Supergroup. Cenozoic detritic covers are associated with this surface. The field study of spongillite deposits from the Preguita and Avipo deposits revealed sedimentological and pedological similarities between the different deposits. They have a lenticular shape and contain different layers of sedimentary spicules intercalated with layers of quartz sand and clay minerals. Representative samples from the different layers investigated by X-ray diffraction, differential and gravimetric thermal analysis and infrared spectroscopy showed a range from three to 80 per cent of amorphous silica (opal) corresponding mostly to the sponge spicules in the sediments. Optical microscopic investigation determined that the spicules predominantly belong to the sponge Metania spinata. This species is represented by smooth megascleres (alpha type), prickly megascleres (beta type) measuring 240 to 450 mm in length, as well as the spiny microscleres; whereby the smooth megascleres are larger and thinner. The morphological variation of the spicules as well as the presence of more fragmented spicules towards the base of the deposits, portray a variation in texture and in the state of their preservation along the profile, suggesting environmental variations at the time of their formation and deposition.

Jan 1, 2008

The creation of an accurate and precise enough database requires the collection of many representative samples, subsampling and assaying them without destroying their integrity. The selection and implementation of sampling protocols often lead to severe difficulties, making the unaware practitioner vulnerable to massive exploration, feasibility and operating failures. Therefore, there is no substitute for a good understanding of the Theory of Sampling (TOS). Either because of ignorance, or because of short-term economic reasons, failure to comply with many stringent conditions can be devastating for the validity of a feasibility study, leading to false evaluations, to the abandonment of a viable property, or to the exploitation of one that is not profitable. All these failures have something in common: insufficient duplicate sampling, subsampling and assaying were performed; very important, preliminary heterogeneity tests were never performed; for short-term economic reasons, poor sampling and subsampling protocols were selected, second-class sampling systems and weightometers were installed and poor preventive maintenance and cleaning were implemented;and sampling experts were called only when the project was obviously in trouble. The conclusion is clear: in due time, iterative auditing of sampling practices is an insurance policy against massive financial losses for the company involved. A complete, comprehensive 100 point checklist of sampling Quality Assurance and Quality Control is provided, so critically important details to ensure success are not forgotten.

Mar 1, 2010

By Pooley F. D

The coal measures of the South Wales coalfield contain at least 50 horizons at which coal seams are known, to occur. More than 300 samples of coal were collected from these coal measures and this paper outlines thefindings of an investigation of the pattern and distribution of 12 trace elements in South Wales coals. A comparison of trace element contents of the South Wales coals is made with trace element values found elsewhereand an attempt was made to establish the organic affinity of the elements in different seams and in the coalfield 'as a whole. An important function of such an analysis is to determine the order of abundance of trace elements and this was performed for individual seams and for the whole coalfield.The interrelationship of certain elements in some seams is also examined with a view to understanding the effectiveness of such an approach to seam correlation.Ranges of values are quoted together with the mean values of the various elements. Variations of elemental values within a seam section and over the coalfield as a whole are discussed.

Jan 1, 1977

LAKE MARGARET is situate high up on the West Coast Range of Tasmania, and lies in a roughly triangular valley formed by the ridge of Mount Sedgwick on the south, the ridge formed by Mounts Geikie and Tyndal on the west, amid a ridge connecting Mounts Geikie and Sedgwick on the east. Any description of this hydroelectric installation, however brief, naturally divides itself into the following sections:1. STORAGE BASIN, &c. 2. DAM. 3. PIPE LINES. 4. POWER STATION. 5. TRANSMISSION LINES. 6. SUBSTATION 7. VARIOUS WORKS utilizing the power.The Storage Basin used is the natural lake itself, which has a maximum length of 110 chains, a maximum width of 40 chains, and a mean arelj. of 300 acres. The water-level of the lake, which has been maintained by a natural dam, is 2143 ft. above sea-level. The approximate catchment area at present appropriated is 7 sq. miles, and the rainfall, on the average, about 144 in. per annum. It is possible to increase this catchment area by suitable races, &c. Dam.-The dam constructed is of very small dimensions, and is not a storage dam in the usual sense of the term. The natural storage ot-the lake itself was used by means of a channel cut through the natural dam and thence to the mouth of the lake, the lake level being thus temporarily lowered while the outlet pipes, screens, &c., were placed in position, and the channel was then closed again with a concrete wall in which the pipes and screens are set. This channel was cut partly through rock and partly through sand and conglomerate boulders for a total...

Jan 1, 1915

Recycling of Sludge from the Production of Manganese

Sep 13, 2010

Study on the Interaction Mechanism of Flotation Reagents and Rare-Earths-Bearing Phosphate Ore

Sep 13, 2010

By C Zhang, I Canbulat, G Fan, D Zhang, C Wang

A clear understanding of the intensity of coal and rock burst is the basis for future research on burst mechanism and control. There has been a wide variety in the description of coal and rock burst damage at different countries using multi-methods, which makes the common understanding even more challenging. Therefore, this paper presents a broad review on the quantifications of intensity of coal and rock burst and seismic risk around the world, considering critical factors including seismic energy, magnitude, peak particle velocity and ejection velocity. It is found that the seismic energy of coal and rock burst can widely range from 0.002 MJ to 60000 MJ, with equivalent Richter magnitude from -1 to 4. The daily seismic energies can be used for seismic risk potential assessment, with energy levels from 0.1 KJ to 10 MJ, which is much lower than the burst sources. The magnitude of the seismic events can be also estimated based on the weight of damaged coal mass and human senses of vibration and sound. For the seismic intensity represented by peak particle velocity (ppv), it keeps constant within fault radius and attenuates with a speed of 1/r4 and 1/r in near and far field respectively, thus it is possible for a small seismic event to induce considerable ppv causing severe damage if the epicentral distance is small enough. There has not been a strong correlation between the ejection velocity and ppv, as seismic energy is only one of the energy sources that contribute to the kinetic energy of burst damage. CITATION:Wang, C, Zhang, C, Canbulat, I, Zhang, D and Fan, G, 2018. Intensity quantification of coal and rock burst risk – a review, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 223–233 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By A Weston

Northparkes Mines is a joint venture between Rio Tinto and the Sumitomo group and is operated by Rio Tinto to produce copper concentrate from ore sourced from open cut and underground. Underground ore is mined with an owner operator workforce using the block cave method from the E26 deposit, with the first lift of the cave now completed. Development of the Lift 2 block cave commenced in March 2001 using a contract workforce. The Lift 2 Project required the mining of 14 700 m of decline and lateral development to establish a new mining horizon at the 9450 level and to develop two new conveyor declines. Also included in the scope was the excavation of a Crusher chamber to house the jaw-gyratory crusher. This paper describes the excavation of the hydroset chamber and orepass that sit immediately underneath the Lift 2 Crusher chamber. It includes risk assessment, planning, development of method statements and standard operating procedures, through to the excavation of the orepass and the installation of ground support in seismically active ground. There was a major ground failure in the backs of the conveyor feeder chamber during its excavation, which affected the excavation of the orepass due to its proximity to the breakthrough site.

Jan 1, 2005

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

By A De, B Palmer, rade, P Stowasser, A Fanning

Mining and tunnelling share many commonalities (eg confined working environments, excavation equipment and processes), but of significance is an overarching commitment to provide safe work conditions and environments. This includes reducing exposure to hazardous airborne contaminants such as dust and fumes, in particular Respirable Crystalline Silica (RCS) and Diesel Particulate Matter (DPM), with methods that are environmentally sustainable. In mining, wet methods are common to suppress airborne contaminants, however these methods are reliant on water availability, can be less effective for respirable dust, can have implications for environmental water contamination and can increase maintenance on mining equipment. In contrast, the use of dust scrubbers that provide filtration of airborne contaminants are well established in the tunnelling industry and frequently used to provide spot extraction (dust control at the source) and act often as a complement to the main ventilation system. This paper sought to learn more about the advancements in tunnelling that could be readily applied to mining to improve health outcomes. The paper includes a review of literature and legislation related to health and sustainability and interviews with three respected, and experienced managers from the global tunnel construction industry. It is from these interviews that the focus of the paper turns to Sydney’s WestConnex underground tunnel network and the success of stage 3A M4-M5 construction link. The findings position dust scrubbers as integral to the overall project success as they enabled a Tunnel Production Line (TPL), where multiple stages of construction could take place simultaneously by controlling high volumes of dust at the source. The findings also suggest efficiencies of using mobile scrubbers, both track mounted and hydraulic stepping systems, to accompany road headers and other equipment throughout the excavation process. The findings have transferable applications to underground mining processes in which workers are exposed to high volumes of dust (eg drill and blast) or situations in which dust control at the source, mobility and flexibility offer value (eg room and pillar mining).

Apr 16, 2024

By F Minz, P Lamberg, A Mwanga, C Lund, C Wanhainen, M Amiri Parian, J Rosenkranz

A geometallurgical model is currently built in two different ways. The first and the most common way relies on geometallurgical testing, where a large number of samples are analysed for metallurgical response using small-scale laboratory tests, eg Davis tube testing. The second, mineralogical approach focuses on collecting mineralogical information over the orebody and building the metallurgical model based on mineralogy. At Lules University of Technology, Sweden, the latter method has been adopted and taken further in four ongoing PhD studies. The geological model gives modal composition by the help of element-to-mineral conversion and Rietveld X-ray diffraction. Texturally, the orebody is divided into different archetypes, and liberation measurements for each of them are carried out in processing fineness using IncaMineral, a SEM-based technique. The grindability and liberation spectrum of any given geological unit (sample, ore block, domain) are extrapolated from the archetypes. The process model is taken into a liberation level by mass balancing selected metallurgical tests using the particle tracking technique. The approach is general and can be applied to any type of ores. Examples of ongoing studies on iron and massive sulfide ores are given.CITATION:Lamberg, P, Rosenkranz, J, Wanhainen, C, Lund, C, Minz, F, Mwanga, A and Amiri Parian, M, 2013. Building a geometallurgical model in iron ores using a mineralogical approach with liberation data, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 317-324 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By C A. Locke

Geophysical signatures of the Taranaki and Tongariro volcanoes reflect similarities in their age, composition and hydrothermal histories, but also reflect differences in host rock settings and edifice evolution. The Taranaki volcanoes have strong positive gravity anomalies showing that their edifices largely consist of dense andesite which reflects substantial lava production or dyke injection during construction and that large sub-edifice dyke/stock complexes occur. In contrast, the Tongariro volcanoes have strong negative gravity anomalies indicating low density edifices of volcaniclastic material; no sub-edifice intrusions can be identified, probably because of the lack of density contrast with host basement rocks. Strong positive magnetic anomalies over the younger cones can mainly be attributed to near-surface andesite lavas or dykes whereas subdued magnetic effects are associated with hydrothermally altered zones within both edifices and sub-edifice intrusions.  

Jan 1, 1995

By M Stewart

The structural framework for the major gold deposits of the Reefton Goldfield was largely established in the 1930s after a detailed regional geological mapping programme. Recent new mapping has now substantially modified the structural framework of the Globe Hill - Devils Creek area and the Waiuta area. Using bedding-cleavage vergence as a method of establishing fold limb facing, many new fold structures have been identified, some of which conflict with long-established structures such as the Globe Hill and Waiuta anticlines. In addition, the mapping of areas of west- versus east-facing limbs constrains the position of many faults. The mineralised Globe-Progress Shear is one such fault which graphically demonstrates major structural discordance of the folds in the hangingwall compared to the footwall. Recognition of the folding is establishing the structural framework for understanding of the origin of these productive gold mining areas.

Jan 1, 1996

By R J. Beazley, M C. Woods

"The International Cyanide Management Code (the Code) is a voluntary industry program for gold miners and associated cyanide transporters and cyanide producers. By becoming a signatory, a company commits to follow the CodeÆs principles and implement its standards of practice.Signatories are required to undergo an initial certification audit within three years and a recertification audit every subsequent three years. Recertification audits evaluate compliance over the preceding three-year period. This approach presents a number of challenges. Golder Associates has undertaken in excess of 75 initial certification audits and 25 recertification audits; more than any other audit firm. This paper outlines some of the challenges identified and lessons learnt from the recertification audit process. Central to the process is the challenge for organisations to maintain commitment to compliance over the full three-year period and effectively address deficiencies or non-conformances that may have occurred during that period in a prompt manner.The International Cyanide Management Institute (ICMI) provides guidance in evaluating deficiencies or non-conformances, which requires consideration of the æcauseÆ, ædurationÆ and æongoing compliance effortsÆ and an assessment of the concept of ægood faithÆ in response actions. Golder AssociatesÆ experience with the recertification process highlights some common deficiencies with Code compliance programs, such as: system breakdowns (leading to ineffective communication between departments or loss of information) exceedance of discharge limits inadequate inspections, maintenance activities and associated record-keeping.Such deficiencies can be attributed to: personnel changes organisational changes or structures management systems (eg integrated or standalone) awareness and interpretation of Code requirements transparency of management decisions with Code implications.We have identified that ongoing programed assessment is an effective strategy in maintaining Code compliance.CITATION:Beazley, R J and Woods, M C, 2013. Cyanide code recertification - the three-year challenge, in Proceedings World Gold 2013, pp 247-254 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 26, 2013

An Evaluation of Froth Recovery Measurement Techniques

Sep 13, 2010

By J Kwak

Driving sustainability concepts and practices into the heart of the design process is the key to achieving a successful, sustainable plant design. Engineering design practices, tools, systems and methodologies should be prepared around true eco-efficiency parameters, adopt wholesystems-thinking and consider life-cycle impacts for the design task. Experience dictates that the application of sustainable plant design practices is most likely to succeed if: The principles are well documented and explained. All stakeholders agree on what sustainability means. Sustainable plant design is treated as a core process. The principals of sustainable plant design are equally applicable in brownfield and Greenfield environments. Although brownfield situations provide the designer with less latitude for change, these types of projects do allow easier measurement and demonstration of relative impacts. This paper further develops the above points by drawing on case studies from HatchÆs repertoire.

Jan 1, 2004

By Harper F

This paper outlines the authors' views of the methodologies which can be employed to value mineral properties at different stages of development for the purposes of project financing, mergers and public floats. This paper discusses the key issues in Discounted Cash Flow (DCF) analysis including the importance of data verification and the shortcomings in DCF analysis. Stockmarket valuation measures and valuation methodology for exploration and pre development projects are examined through examples and pitfalls are identified. The use of valuations in corporate transactions and their strategic value is also discussed.

Jan 1, 1994