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By J. Krzyzanowska

Paper written on project work carried out in partial fulfilment of Bachelor of Engineering-Mining Venetia Mine, an open-pit diamond mining operation in the Limpopo Province of South Africa, currently has a mixed haul truck fleet consisting of Caterpillar 785B and C; 789C; modified 793D and 793D. Even in an ideal situation these trucks have different cycle times, which causes queuing at the loading area and their different speeds cause bunching on the ramps, leading to higher overall cycle times and lower productivity. This problem was identified but the root causes of the problem were not investigated and quantified. A time and motion study on the haul trucks was thus undertaken to measure actual cycle times and compare them to ideal cycle times as well as to observe any reasons for deviations. Ideal cycle times are partly evaluated on the basis of simulation and partly from production optimization expert input. Several areas that affect production were identified and these include: haul road conditions, the control room, dispatching programme and dispatching data management, as well as truck-shovel matching. The investigation was important in establishing control parameters for haul fleet operation since time spent queuing is production time lost, which defers waste tonnes to later in the life of mine, thus decreasing the tempo at which kimberlite is exposed.

Jan 1, 2007

This study of the tin-tungsten ore of the Shepherd and Murphy Mine, in central northern Tasmania, was originally undertaken at the request of the Moina Tungsten-Tin Mining Co., N.L., as part of the research programme of the Mineragraphic Investigations Section of the C.S.I.R.O. It is based on the examination of a suite of specimens supplied by the management, supplemented by a more extensive collection and observations made by the author during a short visit to the mine in October, 1956.The Shepherd and Murphy Mine is at Moina, 36 miles S.W. of Devonport and 22 miles from Sheffield, the nearest railway station. It was worked almost· continuously from 1893 to 1919, when a fire destroyed the mill; to that date it had produced concentrates to the value of £141,000. After a long period of idleness, the mine was re-opened by the present company, but it has been announced recently that unfavourable market conditions have again forced closure.GENERAL GEOLOGYThe mine is on a deeply dissected plateau, about 2,500 ft. above sea level; it lies between the Iris and the Forth Rivers, whose valleys are deep gorges cut to about 400 to 600 ft. above sea level. From Moina westwards to the Iris River, a limestone regarded as part of the Gordon River Group, of Ordovician age, conformably overlies a sandstone containing tubicolar casts which are circular in cross section, half an inch in diameter and up to two feet long, and which resemble marine worm burrows (Elliston, 1953).

Jan 1, 1958

By R. F. Shurtz

The problem of estimating the precision of systematic samples from a mineral deposit is attacked by interpolating the quality, or other attribute measured, by using Fourier approximation. Such approximation using trigonometric functions yields a particularly simple expression for the variance of the mean value of the attribute sampled. The increasing volume of publication in which the science of statistics has been applied to the problem of predicting the quality of an ore deposit from sets of samples taken from it might lead one to believe that engineering judgment can be replaced by statistics. There is, in fact, an implicit application of the principle of indifference or of "no advance knowledge" which has been discredited in modern statistical theory and practice. These pages will show that it is not always advantageous, efficient, or safe to apply this principle. This problem will be dealt with by using series of orthonormal functions to describe the distribution of the quality of ore in space as contrasted with the more commonly used distribution of quality as a frequency function. Mining engineers are rarely well acquainted with the use of such series or of the functions comprising them. These uses are commonplace in the fields of communication and information theory and it is not surprising that applications taken from these fields should be found appropriate for the analysis of the information contained in a set of samples from an ore deposit. It is hoped that presentation of the following basic, but incomplete, results will generate wider interest in this method and a fuller development of it as well as of the necessary computational techniques. FUNDAMENTAL PREMISES Random variables in the strictest sense are not very common in mine sampling. The sets of samples are almost always taken systematically and are, hence, not subject to all the laws governing random events. Therefore, unless there is indeed random experimental error in the determinations of quality, the treatment of systematic samples of n members as though they were random samples of n members often leads to calculation of confidence limits for the mean quality which are larger than they should be with the result that unnecessary additional sampling is done. The reason for this will emerge in the following discussion leading to Eq. 24 and its generalization. In order to inquire into such questions on a rigorous basis and at the same time avoid arithmetic complications that would obscure the concepts involved, a one dimensional distribution of quality will be assumed. The quality, Q, in suitable units is expressed as a function of the distance, x, along some straight traverse of the deposit. Such a function

Jan 1, 1967

By Peter Zhang

Pumpable cribs are being increasingly used in longwall tailgate entries and bleeders for roof support under abutment pressure. Their high peak capacity and confinement-controlled yield characteristics from reinforced-bags make them relatively safe and reliable standing supports for highly productive longwall panels. The pumpability of crib material over a long distance from the surface greatly reduces material handling and makes the underground installation more efficient and flexible. However, the performance of pumpable cribs is dependent upon crib properties, crib pattern, quality of installation, and geological and mining conditions. For proper crib selection and safe support design, it is critical to understand the basic technical requirements and performance of pumpable cribs in longwall tailgate entries and bleeders. Based on more than 10 years of experience using pumpable cribs for longwall standing support, the requirements and performance of pumpable cribs in longwall tailgate entries and bleeders under different mining conditions are presented. Experience shows that the load-displacement curve from full-scale lab testing is a good indicator of pumpable crib suitability for certain applications. Crib peak capacity, stiffness, and residual characteristics define its applicability to certain gate entries and bleeders under different cover depth. Crib pattern and spacing can be determined by abutment pressure level, roof, floor, and rib conditions, local roof stability, and ventilation requirements. To achieve proper in-situ performance, quality control of crib installation is also important.

Jan 1, 2012

By P. A. Plunkert, D. E. Morse, L. McCartan, J. F. Papp

The mineral sector is a fundamental part of the U.S. economy. It contributes to the real gross domestic product (GDP) at several levels — basic (mining), intermediate processing, manufacturing of finished goods and construction. The real GDP during 2004 increased by 4.4 percent. The nominal GDP was about $11.7 trillion. Housing starts were up by slightly more than 4 percent for the year. And the nation’s unemployment rate decreased to5.5 percent in 2004 from 6 percent in 2003. Interest rates continued to be low (prime rate was 5.25 percent at the end of 2004) but have risen gradually, following rising inflation.

Jan 1, 2005

By V. L. Franzen, Z. J. Hladysz, C. A. Kliche

The Wharf Resources mine, located in the Bald Mountain Mining District approximately 6.4 km (4miles) west of Lead, South Dakota, has operated a surface gold and silver mine and heap leaching processing facility since 1983. Wharf Resources intends to mine and process gold and silver ore from the Wharf Expansion area which is located on the eastern flank of the currently permitted Foley Ridge Mine. The Trojan Pit for the Wharf Expansion area was initially designed with an overall highwall slope angle of 45o. During mine permit presubmission meetings with personnel from the SD Department of Environment and Natural Resources (SD DENR), the question arose as to whether a detailed slope stability analysis of the proposed Trojan Pit highwalls was completed to justify the 45o slope. Wharf’s response was that the highwall design was based, in part, upon studies completed in1987 on the Annie Creek and Foley Ridge Mines; and, in part, upon subsequent slope stability analyses conducted by Wharf mine personnel through 1996. It was suggested by the SD DENR that the stability study be updated to reflect structural geological conditions in the Wharf Expansion area.

Jan 1, 2000

The Tennant Creek goldfield is situated in the Northern Territory, 360 miles north of Alice Springs, or a tot~l distance of 1,300 miles north of Adelaide, and 600 miles south of Darwin. The auriferous area extends 20 miles north and south by 50 miles east and west. The overland telegraph line and the AIice Springs-Darwin road pass through the centre of the field.HISTORY, PRODUCTIONThe country comprising the goldfield was traversed by J. MacDouall Stuart between 1859 and 1861 in the course of his last three exploring expeditions, which terminated respectively at Attack Creek, Newcastle Waters and at the mouth of the Adelaide River. The explorer named Tennant Creek and also Mount Samuel, on which mining operations are now in progress. The overland telegraph line was completed in 1872 and a relaying station established eight miles north of the site of the present township. There was no other settlement in the adjacent country prior to the opening up of the goldfield.Gold was discovered in 1926 on what is known as the Great Northern lease, three miles north of the township. The field was remote; the nearest plant at which gold ore could be treated was at Peterborough, in South Australia, 1,186 miles distant, and it was not until 1932 that the development of the field actively commenced.The production of the field from its inception to December 31, 1939, was 57,895 QZ. of gold, valued at £522,000, recovered from 61,793 long tons of ore, won from 98 mines. In 1940 seven of these mines had reached depths between 100 ft. and 230 ft., the workings of the majority being less than 60 ft. below surface.TOPOGRAPHY, WATERThe country is traversed by parallel and sub-parallel lines of hills trending east and west and rising to altitudes varying from 50 ft. to 100 ft. above the intervening valleys. The low ranges and isolated hills owe their survival to the resistance offered by their indurated, harder rocks to erosion which has removed the softer intervening formations. Their elevation and area depend to a considerable extent upon the presence of; and, the size of, the more or less exposed haematite formations, or are due to the influence of extensive siliceous dykes which traverse the locality.Watercourses head from the hills and either flood out on the flats within a short distance, or in a few cases follow longer courses to the northward. In the channels of the larger creeks billaoongs, which form important water storages for a considerable part of the year, -are to be found. Tennant...

Jan 1, 1942

By M. L. Smith, G. Karunatillake

Lead-zinc production at MIM, Mount Isa includes three mines, a lead concentrator, zinc filter plant and lead refinery. Lead production is vertically integrated with lead-silver bullion shipped from Australia to London for refining. Zinc is sold as a concentrate. All three mines have reached varying states of maturity mining a multitude of orebodies having significant variation in grades and metallurgical recovery for three metals. Based on current levels of measured resources, the remaining project life is at least ten years. The objective is to schedule production over the life of all three mines so as to maximize the present value of the complex. Additional scheduling complexity arises out of the implementation of long-term schedules, capital expansion projects for both mining and processing, the presence of substantial inferred reserves and interactions with MIM copper production. A large-scale, time-dynamic, life-of-complex Mixed Integer Program (MIP) production schedule was formulated to optimize lead/zinc cash flow based on a detailed life of project production scheduling study. The requirements for such a study are detailed herein. The operational feasibility of the MIP solution is compared against a non-optimal approach to strategic life-of-mine scheduling. The strategic planning emphasis placed on the MIP is compared to the implementation of a life-of-mine schedules at Mount Isa using spreadsheets and other popular commercial mine schedulers.

Jan 1, 2003

By Y R Fu, D R. Xu, C J. Wu, G C. Hu, H Chen

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Hainan Province (Hainan Island) in South China hosts numerous Mo-polymetallic ore deposits that are genetically related to Cretaceous granitoid intrusions. Laser ablation inductively coupled mass spectrometry (LA-ICP-MS) zircon U-Pb dating and molybdenite Re-Os dating reveal three metallogenic episodes: the late Early Cretaceous (ca 112 Ma), the late Early to Late Cretaceous (ca 95–106 Ma) and the Late Cretaceous (ca 72–89 Ma). The third mineralising episode might represent the youngest Mo mineralising event in East China. Results from this study demonstrate that Mo mineralisation on Hainan Island occurred under an extensional setting that was prevailing in the late Mesozoic (ca 180–67 Ma) in South China, which was likely due to the slab rollback of the subducted palaeo-Pacific plate beneath the South China continent.CITATION:Xu, D R, Hu, G C, Wu, C J, Fu, Y R and Chen, H, 2015. Geology and geochronology of the Mo-polymetallic ore deposits in Hainan Island, South China, in Proceedings PACRIM 2015 Congress, pp 645–648 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

CONTENTS.IntroductionAcknowledgementsDescription of MineVentilation of MineOrganisation of Fire Fighting SquadsTraining of Fire Fighting SquadsRescue WorkFire Fighting and Rescue EquipmentFire AlarmsConclusionINTRODUCTION.This paper should be read in conjunction with that by R. P. Hooper, entitled "Underground Mine Fire Prevention at the South Mine," Broken Hill. Contents of the paper have been arranged similarly for easy reference. The methods used in educating employees in the use of Proto apparatus remain basically the same, but many changes in the methods and equipment used in subjugating fires have been brought about by the practical experiences gained by officers of the company in extinguishing the outbreaks which occurred in the latter half of 1944.Three fires took place during this period, the first in July, on M.L. 11 in openings leading to timbered workings previously worked and subsequently abandoned by...

Jan 1, 1946

By M Begbie, R J. Norris, D J. MacKenzie

The Otago Schist is crossed by numerous deformation zones that formed in the latter stages of metamorphism and uplift of the metamorphic belt. These deformation zones are long (tens of km) linear features at the regional scale, and are generally narrow (km scale or less). Many of these structural zones separate schist domains with different rock types and structural/metamorphic histories. The Hyde-Macraes Shear Zone is one such deformation zone, and this zone hosts the active Macraes gold mine. The Rise & Shine Shear Zone, 80 km NW of Macraes, is also enriched in gold and has been mined historically. Mineralisation in both these shear zones occurred during the transition from ductile to brittle deformation as the schist belt was uplifted from greenschist facies metamorphic conditions. Recrystallisation of quartz and micas in the early stages was overprinted by cataclasis, with sulfide and gold precipitation throughout. Many of the other late metamorphic deformation zones formed under similar greenschist to sub-greenschist facies conditions, with similar overprinting of recrystallisation textures and folds by more brittle textures such as breccias. Under these conditions, originally regionally pervasive deformation at the highest metamorphic grades was evolving towards more focussed high strain zones at lower temperatures and pressures. Shear zones initially focussed fluid flow along microshears and mineral grain boundaries, resulting in 1 to 100 m scale alteration and replacement in the host schist, with only local development of quartz veins. Fluid flow was not controlled by open fractures, and the rate of fluid movement was probably slow and pervasive. After uplift into the brittle regime, the schist belt underwent tectonic extension. Extension was accompanied by development of swarms of steeply dipping veins, with localised mineralised normal faults. Hydrothermal fluid flow throughout this uplift history was a normal consequence of late stage devolatilisation of the metamorphic belt. Hence, all late metamorphic deformation zones should be considered prospective for gold accumulation.

Jan 1, 2005

Editor’s note: As usual, the June issue features an industrial minerals review. And some thanks are in order. Thank you to the industrial minerals annual-review editor, to the technical committees chair and vice chairs and to the authors of the individual commodity profiles. Jim Norman of GeoTrans Inc. is the industrial minerals annual-review editor. William Langer, U.S. Geological Survey, is the chair of the SME industrial minerals technical committees and the vice chair of the technical committee for construction materials. Other technical committee vice chairs include: •Lucy McCartan, U.S. Geological Survey, agricultural minerals. •Steve Herron, Oglebay Norton Performance Minerals, ceramics and refractory materials. •Srinivas Veeramasuneni, U.S. Gypsum, chemical raw materials. •Ismail Yildirim, Imerys, fillers and pigments. •Charles Landis, BPM Minerals, sorbents, filters and process aids. •Ray Harris, Wyoming Geological Survey, specialty minerals. Their help makes possible this June industrial minerals issue. On behalf of the readers, the editors thank them

Jan 1, 2004

The sulphide ores of the principal lodes of the Boulder Mines are mainly composed of a schistose guess with a varying proportion of silica and lime, containing tellurides of gold, silver and mercury, associated with iron pyrites. It is a great difficultyto obtain pure and homogeneous samples of the tellurides for analysis, and from a number of tests made with excellent specimens it was found hardly possible to procure two to agree in analysis, the precious metals being found to be combinedwith tellurium in most varying proportions indeed, a close inspection of a partially crushed specimen will reveal, even to the naked eye, the various shades of colour characteristic...

Jan 1, 1901

By Lynch A. J

A method has been developed for the prediction of the performance of multi-stage grinding-cyclone classification circuits of any degree of complexity on any ore for a wide range of operating conditions. The method involves the simulation of the circuit on a digital computer by means of. mathematical models of the individual units. At present, to establish the characteristics of the ore and the machines in mathematical terms, it is necessary to know the performance of a simple system on the ore for one known feed rate and feed sizing analysis.Further work on the separate identification of the terms defining the characteristics of the ore and the machines may permit the method to be applied directly to the data derived from small scale tests on ores.INTRODUCTIONThe cost of preparing metalliferous ores for concentration processes by, grinding and classification frequently represents a major portion of the cost of treating such ores, and it is necessary both from an economic and a metallurgical point of view that grinding and classification circuits should be operated at their optimum efficiency. It will be realized that the processes carried out in all units in such circuits behave according to physical laws and, if a mathematical representation of the laws applying to each unit could be derived, optimization of the overall process for any given conditions of feed or product may not be difficult.The physical processes in both tumbling mills and hydraulic classifiers are extremely complex and do not appear at present to be amenable to a rigorous mathematical analysis. However, empirical mathematical models of grinding units which have been presented previously (Callcottand Lynch, 1963; Lynch and Moore, 1963) may be used to discuss the operation of the grinding units in multi-stage circuits. Another type of model, which leads to a reasonable...

Jan 1, 1965

By J. A. Hudson, D. L. Millar

Paper presented at a meeting on: Artificial intelligence in the minerals sector, held in Nottingham, UK, 20 April 1993 (original title: Rock engineering system performance monitoring using neural networks.) Synthetic and analytical approaches to objective-based design of rock engineering projects are discussed. Rock masses are considered as complex dynamic systems with components that concurrently interact with each other and their environment. The existence of a rock engineering system canon (i.e. a set of systems governing rules) is proposed. Its possible components are highlighted and an application is demonstrated using a "rock mass automaton" designed to simulate dynamic heat distribution in rock. In the example given, the canon implements the basic result from probability theory applied to the thermodynamics of solids. Rock engineering system performance is reduced to the mapping of the output of a rockmass to varying input (design) options, within the state space of the systems model. The Kohonen Self-Organising Map provides an extremely useful analytical tool to reduce the hyper-dimensionality of rock engineering system behaviour. Further, the hyper-dimensional state vector is mapped "quasiconformally" such that the neural map tends to spatially organise similar input state vectors, facilitating interpretation of rock engineering system behaviour (performance monitoring). Work is reported on the development and validation of the automation as a basis for an internal representation of the rock mass bahaviour. The results are reported of simulations compensating for the uncertainty of the exact mechanisms operating within the rock mass, using additive noise with the input state vector in the training stages of the self-organising map implementation. Initial work on adopting Grossberg's Adaptive Resonance Theory neural network architecture for classification of rock engineering systems behaviour is also presented

Apr 1, 1994

By E. Pardo-Igúzquiza, R. A. Olea

The bootstrap is a computer-intensive resampling method for estimating the uncertainty of complex statistical models. We expand on an application of the bootstrap for inferring semivariogram parameters and their uncertainty. The model fitted to the median of the bootstrap distribution of the experimental semivariogram is proposed as an estimator of the semivariogram. The proposed application is not restricted to normal data and the estimator is resistant to outliers. Improvements are more significant for data-sets with less than 100 observations, which are those for which semivariogram model inference is the most difficult. The application is illustrated by using it to characterize a synthetic random field for which the true semivariogram type and parameters are known.

Jan 1, 2015

By Michael Day, Paul Kos, Scott Brinton

A hydrogeologic characterization and impact analysis was performed for a proposed quarry at the Hitch Rack Ranch located in the Little Turkey Creek watershed southwest of Colorado Springs, Colorado. Continuous multiple channel tubing, nested piezometers, stream flow measurements, and mapping of known seeps were used to define the three-dimensional potentiometric distribution and areas of groundwater recharge and discharge. Water balance considerations, mass balance calculations, and potentiometric response to earth tides and barometric fluctuations confirmed that the granite fracture system in the ridge area of the proposed quarry has an extremely low bulk hydraulic conductivity resulting in minimal groundwater discharge to sustain the baseflow of Little Turkey Creek. The Little Turkey Creek valley forms the major conduit for groundwater flow exiting from the upper part of watershed underlain by granite. This conclusion has significant implications with respect to mine planning to minimize projected impacts to the hydrologic system and preserve this recharge component to downgradient Denver Basin sedimentary deposits.

This study explores two evolving 3D surveying technologies, photogrammetry and laser scanning, and applies them to deformation monitoring of rock faces and mine highwalls. A quantitative analysis focused on 3D coordinate determination is performed. Furthermore, a qualitative assessment directed at the practicality and viability of each system operating near a rock face or in a mining operation is undertaken to reveal one systemÆs deficiencies over the other. Two photogrammetric and four laser scanning surveys aimed at optimising accuracy and precision within a short period of data acquisition are conducted on the rock face at Organ Pipes National Park, Keilor, Victoria. The accuracy and repeatability of each survey is determined using a combination of iWitness photogrammetric, and Cyclone laser scanning software. The 3D coordinates of targets placed on the rock face are determined by triangulation and resection principles within a bundle adjustment. The coordinates determined by each system are then compared in a 3D transformation. Controlled deformation conditions are established to determine the precision to which each system can detect movement in the rock face. An object of known dimensions is placed on the rock face to simulate deformation. The relative orientation of images taken for the pre- and post-deformation photogrammetric surveys provide an overall 3D point accuracy of 1.255 mm and 1.804 mm respectively. A 3D transformation shows discrepancies of less than ¦22 mm (RMS) between the geometry of the photogrammetric and laser scanning models. Both systems are able to detect the simulated deformation to a precision of 50 mm. This work also identifies how to obtain millimetre accuracy for 3D coordinate determination of rock faces, thereby providing a quality data set for surveyors, geotechnical engineers and mine geologists. Photogrammetry is shown to be a mobile, time and cost-effective technique that is more amenable to mining operations than terrestrial laser scanning. However, both systems demonstrate that they are capable of detecting movements that may lead to failures in the rock face, and possibly endangering human life. The implications are significant for surveyors, geotechnical engineers and mine geologists working in mining operations where enhanced safety conditions, increased productivity and lower operational costs are important considerations.

Jan 1, 2009

By P. J. Sylvester, D. H. C. Wilton, R. I. Wheeler, M. A. E. Huminicki, D. Evans-Lamswood

"Systematic characterization of the mineralogy of massive sulfide ore deposits can provide valuable insights into ore genesis and metallurgical processing that would not be apparent otherwise. We describe a method wherein (1) normative mineral abundances are calculated from whole-rock chemical assays using an algorithm, (2) the results are cast in block models, (3) the results are then verified with automated image analysis of a subset of samples prepared as grain mounts by backscattered electron imaging and X-ray mapping on a scanning electron microscope, and (4) those verified results are integrated with textural data determined by optical microscopy.The technique is applied to the magmatic Ni-Cu-Co sulfides of the Ovoid orebody, based on geochemical assays of 3175 whole-rock samples. Three principal ore zones are defined in the Ovoid. Type I ore occurs in the center of the deposit; it is magnetite-rich and pyrrhotite-poor with intermediate contents of pentlandite and chalcopyrite. Type II ore surrounds Type I ore and is pentlanditechalcopyrite- rich with intermediate contents of pyrrhotite and magnetite. Type III ore occurs at the base and along the outer periphery of the northern part of the orebody; it is pyrrhotite-rich and chalcopyrite- poor with an intermediate content of pentlandite, and a low-to-intermediate content of magnetite. La caractérisation systématique de la minéralogie des gîtes de sulfures massifs peut fournir des indications précieuses sur la genèse des minerais et le traitement métallurgique qui ne seraient pas disponibles par d’autres méthodes. Nous décrivons un procédé par lequel (1) un algorithme est utilisé pour calculer l’abondance de minéraux normatifs à partir d’analyses lithogéochimiques, (2) les résultats sont exprimés dans des blocs diagrammes, (3) les résultats sont par la suite validés par analyse d’image automatisée sur un microscope électronique à balayage en électrons rétrodiffusés et par cartographie en rayons X sur des échantillons constitués de grains montés en résine, et (4) les résultats de cette validation sont combinés aux données texturales obtenues par microscopie optique.Cette technique est appliquée aux sulfures magmatiques de Ni-Cu-Co du gisement Ovoïde, en utilisant les analyses géochimiques de 3175 échantillons de roche totale. L’Ovoïde comprend trois types de minerai. Le type I est situé au centre du gisement; il est riche en magnétite et pauvre en pyrrhotite avec des quantités intermédiaires de pentlandite et de chalcopyrite. Le minerai de type II entoure le minerai de type I et est riche en pentlandite et en chalcopyrite avec des quantités intermédiaires de pyrrhotite et de magnétite. Le minerai de type III se trouve à la base ainsi qu’à bordure externe de la partie nord du gisement; il est riche en pyrrhotite et pauvre en chalcopyrite, avec un contenu intermédiaire en pentlandite et une quantité faible à moyenne de magnétite."

Jan 1, 2012

By Will Jansen

When Enron rocked the United States with its Titanic-sized financial accounting scandal, miners and metallurgists were probably too busy on the mine sites in remote locations to wonder about its ripple effect. But then Enron sank, Arthur Andersen tanked and the list of scandals, costing billions of dollars, continued to ripple. Followed by the Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley), the recent credit crunch and weak economy, the currents from Enron?s collapse eventually washed right into the mine and the mill. These events placed intense scrutiny on metals production accounting processes as traditional semi-qualitative metal accounting practices provided insufficient credibility and transparency. ?There is growing intolerance of organizations that are unsure about the location of thousands of tonnes of ore, which will typically lose 10 to 15% of their notional value on the way to the concentrator,? Rob Morrison wrote in the opening chapter to An Introduction to Metal Accounting and Balancing. ?If the measurement and forecasts also contain qualitative (fudge) factors, a very real suspicion might emerge about just how much metal might disappear (by theft or misplacement) before detection becomes likely.? Metallurgical accounting, put simply, is the tracking and reporting of the quantity and quality (tonnage and grade, usually) of materials entering or leaving each stage from source to product for a specified accounting period. Lacking an accounting standard, metals accounting in precious metal operations has been performed in an ad-hoc, informal manner, leading to numerous errors and unidentified potentially significant inefficiencies and financial losses. As a result, mining companies are beginning to examine the quality of their metals accounting systems since they form the basis of mining company?s financial accounts and reports. As part of an effort to create that accounting standard in the mineral industry, University of Queensland?s Julius Kruttschnitt Mineral Research Centre published the textbook An Introduction to Metal Accounting and Balancing in 2009. While development of a textbook and standard are significant steps forward, the challenge in the precious metals industry is in the application of some of these suggested practices. Though improving process transparency and precious metals accounting reporting accuracy is a key driver for change from the financial side, perhaps even more important is the potential benefit to operational performance that comes with better measurement, accounting and reconciliation systems. Loss of precious metals, processing of waste and inefficient mining and processing systems are all problems that are faced in an operation on a daily basis that can help be resolved through improvements in metal accounting and reconciliation. The financial consequences of such operational inefficiencies and bad decisions based on poor information are arguably greater than consequences of fraudulent accounting. Large discrepancies between mine and mill measurement systems that measure the quantity and quality of valuable material currently exist. Some of these are expected because of statistical variation, but inherent random measurement variation is sometimes an insufficient explanation. Though the mill can usually make much better production estimates through their measurement systems (that is, less variation), this knowledge rarely benefits the mine. 3 Moreover, even if the mine does a reasonably good job of estimating expected production at the grade control level (in situ), issues such as blast movement, poor mining practice and inefficient ore/waste classification make for a disconnect between the in situ estimates of the mine and the estimates from the concentrator. This inhibits effective evaluation of the reserve and grade control models using concentrator estimates. Linking the two ends, mining and concentration, is a neglected area sorely in need of an overhaul. Hence the need for improved mine to mill reconciliation ? the area of comparing, balancing and adjusting production estimates between mine and mill for consistency in reporting.

Jan 1, 2009