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The Lennard Shelf Operations owned by Western Metals Ltd evolved from the Cadjebut Zinc Lead Mine (BHP) in August 1994. Original production of 0.5 mtpa will rise to 2.0 mtpa at the end of 1998. Employees work a multiple of fly-in/fly-out (FIFO) rosters from the Kimberley region and the WA Capital. The three underground mines, treatment and services departments will employ approximately 300 people by the end of 1998. The expansion of the Lennard Shelf Operations as a remote mining location was based on a fresh look at management systems and employee rosters which were generated from many years of mining experience. This paper will endeavour to summarise these experiences and analyse some of their outcomes. Dealing with several mining methods, engineering difficulties, logistical problems and climate extremes, the Lennard Shelf Operations has managed social/employee issues with excellent results. Much time has been spent to get this correct for the Lennard ShelfÆs own set of circumstances. Employees and associated companies must expect continuing changes and improvement as Western Metals strives to continually improve its management systems and employee rosters.

Jan 1, 1998

By R J. Goldie

The Monty Copper Gold Deposit is an ultra-high grade mine in Sandfire Resource’s Doolgunna region which was completely drilled out and developed within two years of commencing mine development. During this period, a total of 986 grade control diamond drill holes were completed, assayed, and validated, 15 levels developed, and 3136 faces mapped. The aggressive schedule meant a high flow of geological data was produced, validated, and incorporated into regular geological model updates. To process this data at a rate which allowed for timely use, more robust data processing methodologies needed to be generated. A new validation system was implemented which required two levels of validation being applied to any diamond drilling update. Step one was the validation of initial physical data including survey pick-ups and logging. This was done prior to new drill data being added to the geological model. Step two was the validation of assay data which was required prior to resource estimation. The implementation of Seequent’s Leapfrog Geo modelling software also allowed for a more seamless and efficient modelling workflow. The use of the Leapfrog Geo vein systems allowed for more rapid generation of geological models which then afforded more time for stringent assessment of the mineralisation system. An example of this was the introduction of cross-shift peer reviews in which opposing rosters of geologists would rigorously evaluate the previous rosters work prior to reporting. This additional level of validation resulted in more robust geological models and the identification of new ore trends. This presentation will detail the evolution of the Monty Geological model from a simple tabular indicated resource into a complex highly refined measured resource. Themes will include how the model was produced using workflows developed and optimised to meet key deliverables.

Mar 22, 2022

By D Thomas

Geochemical data related to AMD for the West Coast and Southland regions have been collated into a relational database and GIS system. The types of information include; rock geochemical data, water chemistry data and aquatic macro-invertebrate abundance data. This information will be combined with eco-toxicology experiments to determine impact thresholds on aquatic ecosystems. Ultimately these datasets will be combined with remediation investigations to produce a Framework to assist decision making related to mine planning, consent and compliance.   Current geochemical research examines the controls on As concentrations downstream of gold mining areas and the variability of AMD from Brunner Coal Measure rocks. Assessment of factors that control the chemistry of Brunner Coal Measure AMD such as mine type, hydrogeology, geology, geochemistry and climate is in progress. Minerals that control the concentration of aluminium downstream of AMD point sources include alunite, jurbanite and various forms of Al(OH)3.

Jan 1, 2005

By X Dahe

SLon vertical ring and pulsating high gradient magnetic separators (VPHGMS) possess the advantages of high efficiency and high reliability in beneficiating weakly magnetic minerals. In recent years, models SLon-2250, SLon-2500, SLon-3000 and SLon-4000 have been developed. This paper gives several examples of their applications in oxidised iron ore and ilmenite processing flow sheets to improve iron and ilmenite recoveries.CITATION:Dahe, X, 2017. Recent development and application of SLon vertical ring and pulsating high gradient magnetic separators in the iron ore and ilmenite processing industries, in Proceedings Iron Ore 2017, pp 461–466 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By J E. Wheeler, S B. Valine, L G. Albuquerque

It has long been known that closed circuit grinding with a classifier improves grinding efficiency, reduces unit specific power consumption, and reduces over grinding. The classification device removes material from the circuit that has reached the desired size and returns coarse material back to the mill for further grinding. The efficiency of the classifier is an important factor in the overall performance of a grinding circuit. The classifier affects the capacity of the grinding circuit and the metallurgical performance of downstream operations. A review of historical research and modern case studies is used to demonstrate the benefits of high frequency screens for classification in grinding circuits.CITATION:Valine, S B, Wheeler, J E and Albuquerque, L G, 2012. Applications of fine screens in grinding circuits, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 389-394 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

New Zealand has often been quoted by metallurgists and others as one of the countries in which Tellurium is found, and locally it has been recorded that appreciable quantities of tellurium have been met with in the Thames and surroundingdistricts. However, specimens containing tellurium which have been obtained on this field have not been preserved and their scarcity today points to the fact that tellurium is not here abundant.To ascertain its distribution, analyses and assays have been made by the author on a large number of ores, the results of several of which are given below.The presence of any considerable percentage of tellurium has an important bearing on the metallurgical treatment of ores in which it is found.

Jan 1, 1901

By R B. Evans, M G. Townsend

In Northland, New Zealand, localised large deposits of halloysite clay have been produced by in-situ alteration of rhyolite volcanics of Pliocene or Pleistocene age, which were erupted through pre-Pliocene sedimentary strata and locally through Pleistocene basalt; and which were subsequently onlapped by further basalt flows. Alteration to clay has been a result of both hydrothermal and of meteoric processes, and decreases in intensity of alteration with increasing depth. The raw material is crushed and fractionated to produce a product of less than two micron particle size, which is of exceptional whiteness and brightness. The unique properties of the clays render them highly desirable for specialised ceramic purposes.

Jan 1, 1990

Bacterial Leaching of Complex Polymetallic Sulfide Ore The work described here concerned the study on bacterial leaching of complex sulfide minerals and polymetallic ores operated in shaken flasks and small-scale columns. The bioleaching of jamesonite was not accessible. The iron extraction in pyrrhotite leaching reached 98.2 per cent after 23 days. After 26 days, the zinc extraction of marmatite reached 92.3 per cent while the iron extraction only reached 13.6 per cent. The pulp density had effect on the metal extraction of pyrrhppite and marmatite. For complex polymetallic sulfide ores, after 10 days in shaken flasks, 97.1 per cent zinc extraction was achieved. While after 60 days in small-scale column, the zinc extraction only proceeded to 7.8 per cent; By SEM and EDXA of experimental samples and their leaching residuum, the bioleaching mechanism was discussed.

Sep 13, 2010

By M L. Muller, A R. O’Donnell

The Mount Isa Mines (MIM) Copper Concentrator has an extensive history of reagent trials, with different reagents coming in and out of favour over the years. The research and use of carbon depressants is particularly prevalent, as carbonaceous pyrite is a major source of concentrate dilution. Years of research led to the use of naphthalene sulphonate due to its excellent carbon depression properties. However, due to rising reagent costs carbon depression ceased in the late 1990s. This led to the loss of knowledge about the use and value of naphthalene sulphonate. Cyanide is used at the Copper Concentrator for the sole purpose of pyrite depression and over the years multiple projects have been devoted to finding alternatives to it. In 2012 the neighbouring MIM Lead-Zinc Concentrator replaced cyanide with naphthalene sulphonate which resulted in cost savings and the elimination of a hazardous reagent. In 2013, plant trials were conducted at the Copper Concentrator in hopes to replicate the outcomes obtained at the Lead-Zinc Concentrator. The results of the trials conducted at the Copper Concentrator showed that naphthalene sulphonate could not replace cyanide and this work was set aside to pursue more promising projects. Further research conducted in 2014 found that mineralogy and a better understanding of the depressing mechanism of naphthalene sulphonate held the key to improved pyrite depression at the Copper Concentrator. The findings showed that Mount Isa copper ore contains two forms of pyrite; euhedral pyrite (cubic pyrite) and framboidal pyrite (carbon rimmed spheres of pyrite), both of which require different reagents to sufficiently depress them. Naphthalene sulphonate was found to be an excellent carbon depressant, suitable for depressing graphite and framboidal pyrite, whilst cyanide specifically targets euhedral pyrite.In 2015 laboratory test work was conducted to examine the use of naphthalene sulphonate in conjunction with cyanide to selectively target both forms of pyrite. This work led to a full plant trial, the results of which showed a significant increase in plant performance, with higher copper concentrate grades and recoveries being achieved. This paper aims to focus on the benefits and importance of understanding past work and linking a detailed knowledge of feed mineralogy to reagent selection for improved plant outcomes.CITATION:O’Donnell, A R and Muller, M L, 2018. Selectively targeting hydrophobic gangue minerals at the Mount Isa Mines Copper Concentrator, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 413–421 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By P K. Smith, N G. Corner, R J. Ryan, D C. Arne, F P. Bierlein

The Reefton Goldfield has produced 67 t of gold from mesothermal vein gold deposits in metasedimentary rocks of the Greenland Group (Cambrian-Ordovician). The Globe-Progress deposit contributed 13.2 t (418,000 oz) of this total, predominantly from quartz veins. Recently a resource of 14 Mt at 1.96 g/t Au (27.5 t or 882,300 oz of contained gold) has been delineated at Globe-Progress in quartz vein remnants and disseminated within adjacent sedimentary rock, much of which has been locally brecciated. The breccias consist of quartz vein and sedimentary wall rock fragments set in a matrix of clay ærock flourÆ and sulphide (arsenopyrite plus minor pyrite and stibnite). Gold, closely associated with sulphide, is disseminated within the breccia. Disseminated gold also occurs in massive siltstone and sandstone adjacent to the quartz veins and breccias. Exploration drilling at Globe-Pogress, and several other Reefton prospects (e.g. Capleston, Merrijigs, Big River and Alexander River), has intersected zones of disseminated arsenopyrite carrying up to 20 g/t more gold. These mineralised sediments commonly have little or no megascopic quartz and or carbonate veining. There is little visible indication of former primary or secondary permeability for the passage of hydrothermal fluid and deposition of gold. However, porosity and permeability were formerly present in inter-granular pore spaces and microveinlets now filled with quartz, carbonate and K-mica. The Fosterville gold deposit in Victoria bears many similarities to the Globe-Progress deposit at Reefton, in terms of age, host rocks, hydrothermal alteration and mineralisation style. Many ofthe disseminated deposits in Nova Scotia, including deposits at North Brookfield and Moose River (Touquoy Zone), have similar characteristics to the Reefton disseminated mineralisation, but commonly have abundant pyrrhotite and some deposits have disseminated metal alloy grains of complex metallurgy.

Jan 1, 2000

Heap leaching for the recovery of precious metals is a comparatively new and rapidly expanding technology. The practical aspects of heap leaching are described and environmental and economic implications discussed.

Jan 1, 1984

The Fraser Range is composed dominantly of basic pyroxene granulites derived from basalts, many of which appear to have been vesicular and pillowed. Acidic and basic garnet-bearing granulites are important in the west, and acidic granulites and narrow anorthosite layers are dominant in some regions east of the Fraser Range. An extensive flat-lying olivine gabbro sheet cuts the granulites, and in places has been converted to spineI-bearingmeta-gabbros and pyroxene granulites. The granulites of the Fraser Range (Proterozoic) are separated from the gneisses and schists of the goldfields regions (Archaean) by the Fraser Fault, over which there is a large gravity anomaly (gradient 20 milligals per mile). Some of the problems associated with the concentration of Cu, and Ni liberated from mineral lattices during metamorphism, and other principles of metal concentration in granulite terranes, are discussed. The recognition of vesicular and pillowed zones, even though highly metamorphosed, is of fundamental importance.

Jan 1, 1969

By Moylan T, Stewart D

A case study examining the procedures and financial benefits of introducing dump leaching to augment the Mt Gibson Gold Project CIP operations is discussed. Metallurgical testwork, followed by pilot dump leach operations, confirmed that gold recoveries of greater than 60 per cent could be achieved by dump leaching Mt Gibson laterite ore. Capital and operating costs were determined. Pit optimisation using the Whittle FOUR-D optimisation program calculated an optimum cutover grade between CIP and dump leaching for one orebody. The resultant recalculation of reserves based on CIP and dump leach operating costs showed that reserves for that orebody could be increased from 329 000 tonnes at 1.9 g/t An, to 1 488 000 tonnes at 1.2 gh An. NPV for the CIP only option of $1.4 m, was increased to $4.0 m for the combined CIP/dump leach option. This technique can be applied to existing gold projects and to new Developments.

Jan 1, 1992

Just as geophysics, in the form of 3D seismic and wireline logging, plays a key role in petroleum reservoir management, so too will geophysics play an important role in mining of coal, metals, and minerals in the 21 st century. The commercial and social imperatives driving greater use of geophysics are reduced costs, increased revenues, and enhanced safety. In short, superior utilisation of capital and management of risks. In relatively undeformed sedimentary environments it is possible to adapt petroleum-style 3D reflection seismic to image mines. This has been demonstrated most impressively in the Witwatersrand. Anglo-American, for example, completed a $1 million 3D seismic survey at Western Deeps in order to site a new $300 million shaft with confidence. Likewise, 3D seismic has gained rapid acceptance at Australian coal mines in recent years. Encouraged by these successes, metalliferous mining companies are supporting research in Canada and Australia, as well as South Africa, to adapt 3D seismic for more highly structured, metamorphic terranes. Because the mining industry is far more diverse than the petroleum industry in terms of commodities and geological environments, 3D seismic is not always cost-effective. A plethora of other geophysical techniques can be applied, many of which are employed in mineral exploration. Mine applications of geophysics differ from traditional exploration applications in two main ways: time scales and length scales are shorter, and boreholes are more plentiful. Borehole geophysical techniques therefore play a more significant role, both for logging and imaging. Logging systems detail the variations of in situ physical properties down the borehole at scales measured in centimetres, while geophysical imaging techniques can map features located tens or even hundreds of metres from the sensors. While geologists tend to think of boreholes in terms of chips and core, geophysicists perceive them first and foremost as access paths for instruments. Borehole logging has been employed at iron and coal mines for decades, mainly to accurately define ore boundaries in delineation holes. In base metal mines, Outokumpu implemented logging widely for orebody delineation in percussion holes in the 1980s. The benefit was a direct cost-saving, arising from substitution of core drilling with percussion drilling plus borehole logging. The practice has since spread to other companies. INCO, for example, defines nickel boundaries in blast holes at Sudbury using conductivity logs. The benefits are in the form of reduced dilution and enhanced ore recovery, flowing from a more accurate mine model. Density, natural gamma radiation, magnetic susceptibility, and conductivity are the principal metalliferous mine logging parameters because they can be recorded in both dry and water-filled holes. Sonic velocity is the premier geotechnical logging parameter, given its sensitivity to rock strength, stress, porosity, and degree of fracturing. Sonic is recorded routinely in exploration and geotechnical holes at coal mines. With the advent of slimline dipmeter, full waveform sonic, and optical and acoustic scanner tools, the role of borehole logging in geotechnical evaluations is expanding. Monitoring of strain and micro-seismic activity enhances safety during mine production. While qualitative interpretation of logs is adequate for stratigraphic identification or definition of boundaries, a wealth of quantitative information, eg density, can be derived from properly calibrated, repeatable geophysical logs. Moreover, geophysical logs can sometimes serve as surrogates for geochemical assays, and not only for magnetite and uranium. At OutokumpuÆs Kemi chromite mine, for example, gamma-gamma logging provides the basis for grade control. By reducing reliance on assaying, three benefits can be realised: reduced reliance on core drilling; lower core handling and assaying costs; and shorter turn-around times. Conventional downhole EM and borehole magnetics are used for near-mine exploration, and for ground sterilisation. Inco has enjoyed considerable success with borehole UTEM in the Sudbury Basin, for example, and Geopeko has applied three-component borehole magnetics successfully in the Tennant Creek area. Electrical techniques such as applied potential and magnetometric resistivity (MMR) are also finding application at mines. For higher resolution, borehole seismic, radio imaging, and radar have been invoked, with varying degrees of success, to delineate orebodies and map structures, or to geotechnically characterise the rock mass and identify hazards. Success mapping nickel sulphide shoots with borehole radar has been reported by WMC at Kambalda. There are no universal geophysical panaceas, and each mine imposes different geological, logistical, and economic constraints. Geophysics will not always be cost-effective. However, the greatest single impediment to expanded use of geophysics at mines has been the low level of awareness of geophysics on the part of most mine geologists, engineers, and managers and, equally, the limited understanding of mine geology and engineering exhibited by the majority of geophysicists. This myopia will be remembered as a 20th century affliction! Blue Sky areas for mine geophysics in the next ten years include integration of geophysical data acquisition with drilling, enhanced grade estimation and rock mass characterisation, and the incorporation of geophysical information into mine models using geostatistical techniques. All these advances will be predicated on an expansion of petrophysical knowledge.

Jan 1, 2000

By M Edhammer

In 2007, Atlas Copco introduced an integrated tunnel scanner/profiler. The tunnel scanner, which is integrated into the control system, is mounted on the drill rigs, and replaces the previous variants of non-integrated scanner equipment. The Atlas Copco Tunnel Profiler, which is the name of this system, is currently being used by several contractors and mines on various projects in Scandinavia, Finland and Australia. Atlas Copco Tunnel Profiler can scan a tunnel of 65 m2 in just five minutes and is integrated with the computerised control system for the drill rig. This integration means that the results of scanning are immediately available for analysis on the computer screen both in the drill rig and in Tunnel Manager; a software for tunnel and drift planning.In 2008, a method was introduced for locating the drill rig with a total station navigation (TSN) system, integrated into the control system. TSN systems are used by a number of contractors in Scandinavia and Finland, as well as elsewhere in the world. Using a TSN for navigation is in itself not new, but when this is integrated with the control system it provides the opportunity for individual drill rig operators to use this method, without the direct assistance of a surveyor. TSN gives a very precise indication of the drill rig’s position in relation to the tunnel design. An accuracy of ±1 cm compared with the ±10 cm which is normally obtained with the traditional method using tunnel laser and sight plates on the drill rig’s feeder. The closer a tunnel is blasted to its planned profile, potentially the more is saved in terms of less shotcreting, extra rock bolting and other corrective work. A better quality tunnel is the key to better overall economy and today’s technology makes it possible to achieve that goal in every type of tunnelling and mining project.In addition to total station’s ­navigation and Tunnel Profiler, the concept of ‘high precision tunnelling’ also includes:•Software tunnel planning: Tunnel Manager, Tunnel Manager Pro and Tunnel Manager Measure while drilling.•Measurement While Drilling (MWD)collects the various drilling data and the interpretation of these for the early identification of variations in the rock.•Rig Remote Access (RRA) is a support for wireless or wired communication between drill rig and planning office. The result is being able to send planning data to the drill rig and to simultaneously have the facility for logged files to be sent from the rig to the office. There is an option of an external computer logging in to the drill rig’s control system to view menu screens and settings, and remotely troubleshoot and plan appropriate action.

Mar 21, 2011

By A Harburg, A Dendys, G Green

Dugald River Mine (DRM) is located approximately 85 km north-east of Mount Isa, and 65 km northwest of Cloncurry, in the north-west Queensland Minerals Province of Australia. DRM is an underground operation and includes an above ground processing area, a 200 ha tailings facility, two waste rock dumps and associated infrastructure. The mining method is conventional underground longhole open stoping and downhole benching of a lead/zinc deposit within a black slate environment. The deposit is estimated to contain ~53 Mt of zinc and lead, which will be mined over a 30-year period. During operations, waste rock is segregated into either Potentially Acid Forming (PAF) or Non-Acid Forming (NAF) based primarily on the sulfide concentration of the rock. In particular, the NAF waste rock is an asset and is used for various small construction projects during operation; however, its primary use is for rehabilitation work at closure. Since beginning operations in 2017, DRM has generated more NAF than was originally anticipated. Whilst this is an excellent asset to DRM, it did pose a logistical problem of where to store the additional NAF for the life-of-mine and how to manage the run-off. DRM experiences distinct wet and dry seasons with hot conditions and periods of rainfall between November to April, and relatively dry and mild conditions between May to October. Majority of rainfall is received between January and February with an annual average rainfall of 501.1 mm. Short and intense rainfall events are common. DRM’s above ground infrastructure is land-locked between two large ephemeral watercourses, making the significant expansion of any assets challenging from a permitting/regulation and cost perspective. MMG is also a member of the International Council on Mining and Metals (ICMM) and is committed to adapting to a changing climate through operations and closure. Following extensive studies DRM opted to store the additional NAF material into the adjoining NAF Dam and concurrently upgrade a previously minor sediment basin into a highly engineered sediment basin which relies on automatic flocculant dosing to meet the required discharge quality limits. This basin is climate-resilient in that the dosing system can be adjusted to counter high intensity extended rainfall events which produce highly variable inflow water quality. This abstract broadly describes how DRM designed and implemented an engineering innovation to enable the site to meet the changing climatic challenges. The abstract then describes the process to design the sediment basin and how the dosing rate was established and validated. Finally, the abstract comments on the effectiveness of the sediment basin and how it has revolutionised DRM’s approach to water treatment and management; all whilst minimising the disturbance footprint of the operation

Aug 2, 2023

The optimisation of a mining operation requires precise ore grade control, metallurgical accounting, and laboratory sampling protocols, which are implemented by using accurate and flawless sampling systems. Good sampling practices, and sampling technologies in these fields have been historically poor and too many existing sampling systems available on the market are flawed in many ways. This is mainly the result of a poor understanding of the Sampling Theory, and the natural result of international standards on sampling that fail to present the Sampling Theory in a logical way, that still promote non-probabilistic sampling, and that fail to address the important details that make a correct sampling system. Many standards barely mention the Sampling Theory in appendices when it should be clearly the main body of a reliable standard on sampling. As a result, many standards show only little expertise in the Sampling Theory. Conventional statistics should only be a scientific tool for the Sampling Theory to reach its height, which has always been well understood by its creators. Conventional statistics can indeed be addressed in appendices of standards in sampling, but not the other way around. Until the Sampling Theory is recognised as the main body of a standard on sampling, incorrect sampling technologies will plague the market, and make it impossible for mining operations to optimise their mining and metallurgical processes. This paper makes a short list of correct new sampling technologies that have been created with respect to the principles taught in the Sampling Theory. Also, suggestions are presented to create better international standards on sampling, which would provide a stronger incentive for manufacturers to build correct sampling systems, and for engineering firms to install only sampling systems that respect the rules of sampling correctness listed in the Sampling Theory.

Jan 1, 2004

By L Abrahamsson

The aim with this paper is to discuss experiences from the ongoing research project ‘Attract: A roadmap to attractive, inclusive, and safe mining workplaces’. The project’s aim is to analyse possibilities, effects, and consequences of the green and digital transformation in the Swedish mining industry from workplace, socio-technical and gender equality perspectives. The research project (2022–2025) at Human Work Science at Luleå University of Technology is financed by the strategic innovation program Swedish Mining Innovation (a joint venture by the national research funds Vinnova, Formas and the Swedish Energy Agency). The project includes a multidisciplinary research group of five senior researchers and five PhDstudents and a broad repertoire of methods, eg literature reviews, qualitative interviews with both managers and workers, workplace observations, workshops, surveys, and project seminars where the researchers and the company representatives together analyse the results. One important part of the project is the applied approach where the researchers work together with two mining companies and one subcontractor company. The project has two parallel main subprojects.

Sep 1, 2024

Being a geologist I intend describing the renaissance of the gold industry in Australia within its geologic framework; there is a geological pattern to the numerous gold projects which have been brought on stream over the past decade. We are now about midway through our third and largest gold boom which, at a peak of 7.5 million ounces is about twice the production peaks achieved in the preceding booms. From discovery in 1851 through 1870 we saw the first boom largely based on alluvial production in NSW and in Victoria at the great Ballarat and Bendigo Goldfields. The discovery of the Golden Mile in Kalgoorlie, Western Australia, underpinned the second gold boom in the period 1895 - 1915. On that basis the present boom should last through the next decade.   It has been a golden decade for Australian gold production. From less than ten mines in 1980 with production over 10 000 ounces and the largest, Telfer, with output of about 130 000 ounces we now find over 130 deposits being worked around the country today that produce over 10 000 ounces with the largest, Boddington, having an output of over 400 000 ounces. In total these mines produced an estimated 210 tonnes of gold in 1989 and we expect this year, 1990, that a new record production of between 240 and 250 tonnes will be set. This positions Australia in third place in the Western World behind South Africa #1 and the USA #2 and fourth in the world with the Russians holding second place overall behind the South Africans.

Jan 1, 1990

By R Wolff

One critical factor in open pit mining projects is the estimation of the recoverable reserves. The reason for this is that at the valuation stage there is a lack of information about future metal prices and production costs. Consequently, the estimation of the recoverable reserves needs to be done based on a fixed break-even cut-off grade (BECG), in which fixed expected metal prices and production costs are assumed throughout the operating life of the mine (OLM). In this paper, an alternative technique for estimating the recoverable reserves of an open pit mining project is presented and explained in detail. The main characteristic of this technique is that it estimates the recoverable reserves of the project using mining costs as reference: this is done due to the fact that mining costs are easier to model than metal prices. Another important characteristic of this technique is that it uses the uncertainty of the geology of the orebody, given by simulations of the deposit, to make final strategic decisions, such as the selection of the operating life of the mine and the optimal production rate, which minimise the risk of not achieving future production targets while maximising the upside potential of future rewards. As it will be shown, the final outcome of the proposed technique is the generation of a robust open pit design, that include cutbacks and ultimate pit limits, called the marginal open pit mine design (MOPMD). One characteristic of the MOPMD is that, at each production period, it will be characterised by their respective geological uncertainty, given as probability distributions of ore, waste and metal quantities, and by marginal economical project indicators, such as cut-off grades and metal prices, among others. The details follow in the paper.

Jan 1, 2006