Search Documents

By Kevin Connor

There was little change during 1988 in the production of minerals in Burundi. The Government of Burundi, which banned all commercial mining operations in the country in 1979, lifted the ban on mining of alluvial gold deposits and started a program of small-scale artisan gold mining in October. Along with the legal mining of gold, licensed gold trading counters were established. Other mineral commodities produced were kaolin clay, lime, and peat. In compliance with the Government ban, the only mineral wealth exploited for commercial sale and export was alluvial gold. Through financial assistance from the International Bank for Reconstruction and Development (World Bank) and the United Nations Development Program (UNDP), a study to inventory the country's mineral resources continued throughout the year. As part of this study, during the year, a West German company undertook a drilling program to further outline the nickel reserves of the Musongati area in central Burundi. Results of the work as of yearend were disappointing, with only 12 million tons of ore identified with better than 2% nickel content proven. Investigations also continued during the year regarding the centrally located deposits of vanadium-bearing titaniferous magnetite. A Norwegian company contracted to prepare a prefeasibility study for developing the deposit. The British Sulphur Corp. Ltd. was nearing completion of its $1.2 million2 study of the phosphatic limestone deposit at Matongo-Bandaga at yearend. Ore reserves of about 17 million tons grading 11% phosphorus pentoxide (P2O3) had been identified. The phosphate zone overlies a carbonatite rock, which could provide the basis for a cement industry. Additional drilling was planned for 1984. Exploration for gold was underway in 19S3 in northern Burundi through UNDP funding. Several primary deposits of shallow semimassive sulfides with gold values ranging from traces to 11 grams per ton had been discovered. With assistance from the Federal Republic of Germany, bastnasite reserves of 5,400 tons, with associated high europium oxide and cerium content, were verified, and the prospects for finding

Jan 1, 1985

By D. Lindeman, R. M. Nendick

"From a technologist's point of view, there have been few fundamental 'breakthroughs' in the process of gold extraction since the turn of the century. However, the industry has made a great deal of progress in its response to the problems that have arisen: a changing demand for products, lower grade and more refractory ores, inflated labour and materials cost and the increasing control of governmental legislation. The trend in North America and South Africa to alleviate these problems has been to adopt a common policy to process larger tonnages of lowgrade ore through more efficient milling circuits. Here, however, is where the similarity ends.The purpose of this paper is to emphasise the different principles of practice employed by extraction plants in North America and South Africa to achieve the same common goal, namely gold bullion.2.0 INTRODUCTIONTwo very important aspects of extraction metallurgy for which the metallurgical engineer is responsible are plant design and plant commissioning.In North America and South Africa the importance of these aspects is due to the fact that both are related to the financial success of the project of which they form part. Good design is imperative if the capital invested in both the plant and the whole mining undertaking is to reap maximum profit. Furthermore, good design leads to a carefully planned and well executed start-up procedure resulting in bringing the plant into production on time, at designed efficiency and within budget.Due to the competent nature of the quartz pebble conglomerate and quartzite ore on the South African Witwatersrand, the characteristics of the ore type are not much different from one mine to the other. Thus a significant operating knowledge and experience has been built up over the years and there is considerably less risk in selecting a gold extraction process route."

Jan 1, 1992

By Mohammed Y. Fattah, Wissam H. S. Al-Sudani

"During installation of pile, a soil column is formed inside the pile. For small depths, the height of the soil column typically equals to the penetration depth (full coring state). As the penetration depth increases, the developed internal shear stresses become larger and reduce the amount of soil to penetrate. At the same time, the soil in pile at the bottom is compacted. This will continue until at a given moment, the soil column is a soil plug, and does not stop moving relative to the pile. This is because the shear stresses developed in the interior of the pile are greater than the load-bearing capacity of the ground.This paper presents the results obtained from 40 model pile tests carried out to assess the effect of soil plug on the model pile capacity. The piles are embedded in sand of different densities with different lengths of piles and types of pile-ends. The model tests are divided into two parts according to the type of end of the pipe pile used in the model pile test. The first part consists of 32 model open-ended piles with different lengths of soil plug inside the pile. The second part consists of 8 model closed-ended piles.It was concluded that open-ended pipe piles behave as a closed-ended if the soil plug formed inside piles in state partial plug or full plug. Length of soil plug depends on the type of installation and relative density. The pile load carrying capacity in dense sand is several times greater than those in medium sands especially in cases of closed ended piles or open-ended since the pipe pile can produce external and internal skin friction in addition to end bearing resistance that makes the total pile capacity close to that of closed-ended pile. Whether open-ended piles are driven or pressed in the fully coring - fully unplugged mode or in the partially plugged mode, the plug does contribute to static pile base capacity."

Jan 1, 2014

The notes from which this paper has been prepared were set down at the time of the author's departure from Australia in 1935. Mr. Frank Forman, Government Geologist of Western Australia, who has very kindly read the paper in manuscript, affirms that the views here set forth are now accepted by most geologists. Thus, Forman's recent presidential address before the Royal Society of Western Australia (1937) mentions sediments in the Kalgoorlie Series "including banded jaspers and jaspilites."While it may, therefore, be superfluous to belabour the question further at this time, Mr. Forman has encouraged the author to publish this paper as a summary or both past and present views.To those specially interested in the subject of the paper, a study of pertinent Plates attached to Western Australian Geological Survey Bulletin No. 71, 1917, is suggested.The type of rock which is variously called "jasper bar," jaspilite, or "ferruginous quartzite" is familiar to all mining men who have worked in the West Australian goldfields.In its typical form it is a "striped" rock consisting of alternate layers of white or pinkish silica with red to brown bands of iron-bearing silica.In the course of geological work in many parts of Western Australia I studied exposures of jasper bar and was repeatedly impressed with the similarity of much of the material to the sedimentary "banded iron formation" of Canada. It was, therefore, a surprise to learn that the jasper bars were not generally regarded in Australia as sedimentary horizons. It is true that Honman offered convincing evidence of the sedimentary origin of the jaspers...

Jan 1, 1939

Remote sensing, in general, is the recording of light and heat from a planet's surface within a certain range of the electromagnetic spectrum. For the Earth, systems capable of this recording are the MultiSpectral Scanner (MSS) and SLAR. The former is the recording system used in satellite and will be discussed in the next section. SLAR stands for Side Looking Airborne Radar. This device sends invisible radar waves which illuminate the Earth's surface. The reflected waves are subsequently recorded as images. The system can operate through darkness and dense cloud cover, and is particularly suited for the study of geological structures at both large and small scale (Wayland 1976). Remote sensing techniques are now widely being made use of in mineral exploration, especially for those last remote 'sanctuaries' where geological data are meagre or non-existent. For places like Borneo, West Irian, the Amazon Basin etc. remote sensing, in the form of both satellite imagery and SLAR, is of considerable help, in fact more often than not the only help, to delineate geological provinces, geotectonic domains and meaningful lineaments. In the case of New Zealand, well made geological maps at scale 1:250 000 by the Geological Survey are available to the public and these provide useful preliminary grounds for the selection of target areas. However, even in this case LANDSAT imagery can be of aid as will be shown later.

Jan 1, 1977

By Paul Morrison

The paper describes the design process, trial testing and contract pile installation of 772 pre­cast concrete piles at a site in Surrey, South East England. Recommendations on how to improve the design, construction trials and main contract piling phases of the project are made. The building layout is shown in Figure 1 and is comprised of a central circulation area with five office wings radiating out from its southern side (only three of these wings were constructed in Phase 1 of the project). Approximately 60% of the circulation area and one office wing were built with a single level basement. The basement was constructed "bottom-up" in open cut with the void between the basement walls and the cut slope being back-filled with compacted site won soil above a perimeter drainage system at basement slab level. The building has up to 3 stories above basement level and is a reinforced concrete structure. The client for the project is Pfizer Ltd. Pfizer Ltd was represented on site by Laing Project Management (Laing). The consulting engineer was Ove Arup and Partners (Arup) while the piling contractor was Roger Bullivant Ltd (RBL).

Jan 1, 2000

By A. G. Mayton

Vehicle vibration exposure has been linked to chronic back pain and low back symptoms among agricultural tractor drivers. The objectives of this study by the National Institute for Occupational Safety and Health (NIOSH) were to assess driver whole body vibration (WBV) exposures and recommend interventions to reduce the risk of back related injuries, particularly relative to vehicle jarring/jolting (the transient mechanical shock components of WBV). The methodology included collecting, from two independent samples, ?eld data and health and work history data of farm equipment operators. Data were collected during mowing, raking, baling, chiseling, tilling, and road travel for different model tractors. Spraying using a sprayer and shrub removal with a skid steer loader were also included. Based on ISO 2631 (1985), the American Conference of Governmental Industrial Hygienists, threshold limit values, presents 0.5 m/s2 as the action level recommended by the Commission of European Communities for overall weighted total RMS acceleration (vector sum for axes x, y, and z) [ACGIH, 2006. Threshold limit values and biological exposure indices. Cincinnati, OH]. WBV measured at the operator/seat interface exceeded this action level. The roughest rides and highest vector sum accelerations occurred with small utility tractor mowers (3.3 and 2.8 m/s2) and a skid steer loader (1.7 m/s2). Major ?ndings from health and work history data showed 96% of participants reported having to bend or twist their necks, although 24% reported neck symptoms. Sixty four percent of participating operators reported experiencing back symptoms (e.g., pain, aching, stiffness, etc.). Recommendations included: specifying a seat that ??better?? isolates operators from jars/jolts with new tractor purchases; maintaining the seat/seat suspension and replacing worn or damaged cushions with NIOSH tested viscoelastic foam padding; using larger diameter tires with radial ply instead of bias ply construction, particularly on small utility tractor mowers, to aid in attenuating ride ??roughness??; using a swivel seat to reduce the stress on the neck from bending or twisting; and improving efforts to educate owner/operators of the adverse effects of WBV exposures. Since the data presented in this paper were collected from two independent samples, the authors were unable to draw any correlations or etiological inferences from the study. However, results were compared and contrasted with other studies which included similar vibration measurements in agriculture.

Jan 1, 2008

By Adrian Moore, Alan Richards, Andrew Brodbeck

Structural blast vibration limits should be based on the strength of the structure, the stress induced by blasting, and a responsible factor of safety. In this paper a methodology that uses direct strain measurements to determine the stress induced by blasting is described. The methodology has been used to measure strain resulting from blasting, and establish appropriate blast vibration limits on a brick sewer tunnel, an underground mine heading, brick veneer houses, a water pipeline, and transmission tower foundations. An outline is given of the use of the methodology to establish limits for the main entry heading of an underground coal mine, and transmission tower footings. The methodology that is described has reduced uncertainty factors, and permitted the specification of higher blast vibration limits than had been previously used.

By S Hapugoda, J R. Manuel, M J. Peterson

Microindentation testing using the square–pyramid–shaped Vickers indenter is a well-established technique to determine the microhardness of minerals and materials. However there is a paucity of published microhardness data from Fe ore samples. It is acknowledged that an iron ore’s particle mineralogy and texture is critical to its processing properties, and it is therefore considered that the microhardness of different mineralogical/textural types may also relate to these properties. Mineral microhardness potentially provides inputs to the modelling of breakage characteristics during comminution, as well as the relationship between mineral chemistry and microhardness, and mineral microporosity and microhardness. Microhardness can be determined as single crystal microhardness, for more coarsely microcrystalline samples, or as ‘aggregate microhardness’ for cryptocrystalline or finely microcrystalline samples.Variations in the texture and mineral chemistry of common Fe ore minerals (eg martite and microplaty hematite, ochreous and vitreous goethite etc) are well established and this study provides microhardness data on different textural forms of Fe (oxyhydr)oxides from a variety of different Fe ore deposits. The data indicated that in general, the mineral grain size, microporosity and texture were the main influences on Fe (oxyhydr)oxide microhardness. There were no apparent systematic variations between microhardness and minor element mineral chemistry, with the possible exception of Al content in goethite (for goethites with Al content >0.5 wt per cent), and for goethite total element contents >90 wt per cent (determined by electron probe microanalysis, EPMA). Higher Al concentrations and lower total element concentrations in goethite EPMA analyses correlated with lower goethite microhardness. Microporosity and grain size were more important than texture to hematite microhardness. Different textural forms of dense hematite (eg martite, recrystallised interlocking hematite and specular hematite) with similar grain size exhibited comparable microhardness. Microhardness values for hematite and hydrohematite with little or no evident microporosity were also similar, whereas more porous forms of martite, microplaty hematite or hydrohematite exhibited lower microhardness.CITATION:Peterson, M J, Manuel, J R and Hapugoda, S, 2017. Microhardness testing of hematite-goethite Fe ores – implications for their textural characterisation and geometallurgy, in Proceedings Iron Ore 2017, pp 319–330 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By Chikaosa Tanimoto

INTRODUCTION Bratislava is located at the intersection of important traffic routes, including motor-ways, roads, railways, air traffic, trading, and inland waterway with an important harbour. The construction of the D2 Motorway Bratislava, Lamacska cesta Stare grunty was the last missing section of D2 Motorway and its completion linked the Czech Republic through Bratislava to the Hungarian Republic. Traffic was obliged until its completion to use the Lamacska Road and Mlynska Dolina, which were the most heavily trafficked roads in the city. The section of D2 Motorway to be completed in 2006 was 3,300m in length, of which the SITINA Tunnel was approximately half the length. After putting into operation the transit traffic(motorway) and urban traffic was separated. Transit traffic by passing the town was eased. The junctions D2 with Lamacska Road (Harmincova) and Mlynska Dolina also allowed better use of the motorway for the urban traffic The tunnel construction was specified by the features with the highly weathered and thermally altered granitic rock formation with the overburden of Quaternary sediment of 2?4 m thick, very thin overburden, severely controlled deformation limit and environmental protection. The tunnel had to be excavated beneath and nearby the academic complex area and the zoo, where sensitive facilities exist and animals live in. The tunnel consisted of two tunnels (Tunnel A and B) with the length of 1,415 and 1,440 m, respectively. The overburden thickness was in the range from 10?30 m. The standard cross-section and the one with invert arch were 79.5?81.5 m2 and 92.1?93.3 m2. The excavation took 21 months from September 2003 to May 2005. The construction was based on the concept of NATM. The SITINA Tunnel was the third application of NATM in Slovakia, following the BRANKISKO Tunnel (commenced in July 2003) as the first and the HORELICA Tunnel (in October 2004) as the second NATM practice. To protect the surrounding structures and citizens from tunneling operations, seismic monitoring was performed in association with blasting. The allowable limit of blasting vibration was fixed to be under the particle velocity of 15 mm/sec. The tunnel excavation cleared this limit as expected before construction. In driving through the difficult geological situation the excavation work hit 49 faults, and some of them occasionally caused serious face instability. In principle, the rock formation has been affected by the high hydrothermal effect and the resultant clay filing along faults and joints. The auxiliary reinforcement with the 4?8 m long pipe roofing was needed to protect the vicinity of mining face area. This operation extraordinarily required additional works and time which had not been expected before construction.

By A. Kale

A chlorination pilot plant having capacity to produce 5?10 kg/hr of titanium tetrachloride is in operation at the chlorination facility in Mintek. The bubbling fluid bed chlorination plant can be operated in batch and/or continuous process to study the chlorination kinetics of various feedstocks. The chlorination of titaniferrous ores to produce titanium tetrachloride (TiCl4) was carried out during the commissioning of the pilot plant and also as part of the titanium programme carried out at Mintek. TiCl4 is a basic raw material for producing commercial titanium dioxide pigment and titanium metal. This paper discusses the challenges faced during the commissioning and operation of the chlorination pilot plant. It also discusses the effect on the auxiliary facilities and instrumentation as a result of the harsh operating conditions of +1000°C and use of corrosive gases like chlorine and titanium tetrachloride. It discusses the effect of physico-chemical properties of the titanium tetrachloride and iron chlorides. The effect on the chlorinator refractory lining due to heating and cooling of the chlorinator is also discussed. Besides the special provisions made during the design of the chlorinator, this paper also discusses the operational experience and possible solutions to be implemented in future. Keywords Fluid bed chlorination, titanium ore chlorination, titanium tetrachloride (TiCl4) production using fluid bed technology.

Jan 1, 2011

By Orr C. W

In previous papers (1, 2), the influence on the creep resistance of elements normally found in commercial lead has been recorded. The results in the present paper refer to the influence of calcium, an element which is not found naturally in lead, but which has been used commercially in the form of alloys. It was realised that calcium would act as a deoxidising agent for lead-and in fact it was with this feature in view that both calcium and magnesium were used as additions. Subsequent work (including the results given in the present paper) has tended to diminish the importance which at first seemed to be associated with the presence of oxygen in lead. The structure of the dilute calcium lead alloys has been worked out in detail (S) and the phase diagram shows the existence of limited solid solubility and a compound CaPbs.

Jan 1, 1938

By R A. Lynch

The state-of-the-art in cave seismic monitoring is reviewed, with the latest developments in active seismic monitoring included. Seismic monitoring systems are routinely used by most of the world’s block and panel caving mines to track the cave initiation and progression. The current best practice is to use the cloud of seismic event locations as a proxy for cave growth somewhere below. Problems with event location reliability due to seismic ray bending around the (unknown) cave are side-stepped by using sensors installed above the cave. However, the aseismic gap – the (unknown) distance between actual cave back and seismic event cloud – currently hinders reliable estimation of cave geometry.Velocity inversions using the passive seismic data are inexpensive and should be undertaken more routinely. The straight-ray methods should be used with caution, as the underlying assumptions are invalid in caving environments. The double-difference method is more correct for the caving situation, and there have been some promising results published. Constrained geometric inversions make a lot of sense, but have yet to be demonstrated successfully.Two active seismic source have recently been developed for use in the caving environment: a piezoelectric source for ranges up to a few hundred metres and a pneumatically-powered source for ranges up to a kilometre. These sources produce signals on standard mine seismic sensors that can be used to measure seismic velocity variations down to 0.01 per cent resolution. This allows the cave progression to be monitored by measuring tiny changes to seismic velocities as the rock above the cave is fractured and destressed.CITATION:Lynch, R A, 2016. Active and passive seismic monitoring of cave front evolution, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 217–224 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By D Reddy Chinnasane

Outline Location of BirchtreeMine and Layout of 124 OB Cut and Fill Mining Background Purpose of the Studies Methodology Results and Analysis Conclusions and Recommendations

Oct 1, 2010

The Hyde Macraes Shear Zone (HMSZ) is an extensive low angle semibrittle mineralised structure in the Otago Schist Belt, New Zealand. The shear zone is located on the lower limb of a late metamorphic recumbent fold. Structural observations suggests that the shear zone initiated as a high strain mylonite zone and transgressed the ductile/brittle boundary (D4) later in its development. A surge zone at Round Hill is bounded to the south by a NE-SW striking lateral ramp which displaces the hanging wall shear (HWS) by 50 m. Oblique strike slip displacement during surge zone propagation created space for deposition of the sheeted vein complex or stockwork. Quartz recrystallisation in stockwork veins suggests that the veins were deformed in a ductile manner and implies that surge zone propagation may have occurred during late D3 deformation. A macroantiform was produced during D3/D4 shortening below the HWS. Over tightening of the antiform hinge created SW and NE-dipping ramp thrusts. Continued strike slip displacement along the lateral ramp rotated the antiform and associated ramps into a south plunging drag fold. Post-mineralisation (D5) structures include NE-dipping nonna! faults below the HWS and SW-dipping low angle imbricate thrusts above the HWS. The development of these structures was kinematically compatible with normal movement on the HMSZ and is related to mid Cretaceous break up of Gondwanaland in the SW Pacific.

Jan 1, 1992

By Aleksandar D. Bugarski

Despite extensive research efforts conducted in the past decades, occupational health risks associated with exposure to nano and ultrafine aerosols emitted by diesel power equipment are still not completely understood. The complexity of physical and chemical properties of diesel aerosols, constantly changing with the implementation of advanced diesel emissions control technologies, make this task rather challenging. The objective of this paper is to identify and characterize nanometer and ultrafine aerosols emitted by diesel engines in the underground environment and evaluate the effects of selected contemporary control technologies on physical properties, chemical composition, and in-vitro toxicology of diesel aerosols. The physical and chemical properties of the nanometer and ultrafine diesel aerosols are to be characterized through a test series in the NIOSH Lake Lynn Laboratory experimental mine. The crucial part of the study has been development of a facility that allows researchers to generate field results with precision and accuracy characteristics of a laboratory environment. The knowledge obtained from this study should strengthen our understanding of the health implications related to exposure to diesel particulate matter and aid in assessing the potential of various control technologies for reducing this exposure.

May 1, 2007

By K. Lang

A case study is provided that highlights the successful use of high efficiency electrical submersible pumps (ESPs) adapted from the oil and gas industry for a large scale, open pit mine dewatering operation. In this case, the mine is Goldcorp?s Peñasquito Mine, Peñasco and Chile Colorado open pit development areas in Zacatecas, Mexico. At the time of publication (July 2012), there were 18 vertical bedrock dewatering wells producing an average flow rate of 350 liters per second (lps) from the Peñasco and Chile Colorado development areas. Average pumping rate per well was 18 lps, with a maximum of 44 lps. The depth of wells varies from 330 m to 500m, and includes both in-pit and perimeter (ex-pit) pumping centers. A network of 50 piezometers was used to monitor the response of groundwater levels to pumping. Since dewatering operations were initiated in 2007, groundwater elevations decreased overall, from approximately 1950 m above sea level (masl) to around 1625 masl, for a total of 340 m of drawdown. The pit floor elevation was approximately 1655 masl. All of the producing wells were constructed with 16-inch boreholes, completed with 10-inch diameter blank casing and louvered screen sections and equipped with ESPs. The application of ESPs has proven to be highly effective in the case of Peñasquito?s dewatering operations. Noted advantages include the following: ? Small diameter pump allows use of smaller diameter boreholes (16 inches) and casing / screens (10 inches) reducing well drilling and construction costs ? Greater application range for flow rate and total dynamic head ? Variable speed drive systems for greater energy efficiency and flow rate optimization ? Integration of downhole instrumentation into the motor and pump assembly The advantages and benefits of using high efficiency ESPs revolutionized the dewatering program at Peñasquito open pit mine as evidenced by the number of deep vertical well installations and high dewatering flow rates and total dynamic head requirements.

Feb 27, 2013

By S Thomson, M Lovitt, T Purvis, C te Kloot, T Nguyen, Z Liu

Ernest Henry Mine (EHM), located in north-western Queensland, is an underground copper/gold sublevel caving operation currently producing over 6 Mt/a of ore. The mass mining method of sublevel caving (SLC) used at EHM involves systematically blasting a series of uphole rings in parallel ore drives and drawing the broken ore using a top-down approach. Each ore drive contains multiple precharged rings to prevent having to charge in close proximity to the brow of the previously fired ring; however, the current initiation system still involves ‘hooking up’ all detonator lead cords of the first precharged ring. The unstable nature of a rill and working close to a brow presents hazards to personnel completing the hook-up process. There is also a business risk of ore loss when damaged ground support completely prevents access to the next precharged ring. If the hook-up step could be eliminated, the risk to personnel and the business would be significantly reduced.EHM engaged Orica Mining Services in 2016 to trial their WebGenTM 100 – wireless electronic blasting system (WEBSTM) for the first time in an underground mining environment. Having successfully signal-tested the equipment, two test holes were initiated, followed by a single production ring and then multiple production rings. In total, 30 production rings were successfully fired underground at EHM in 2017. To do this, WEBSTM was successfully integrated into EHM’s current charging and firing process, resulting in no business delays or loss to production. None of the 30 rings required hooking up and all were initiated from the surface with no personnel underground. A high level of ownership from all personnel involved ensured the trial was a success, and provided scope for wireless detonators to be used successfully on a large scale – both at EHM and other sublevel caving operations. WEBSTM is now a proven example of technology that can be used to improve safety in the mining industry, through eliminating the need for personnel to work in hazardous areas.CITATION:te Kloot, C, Liu, Z, Purvis, T, Thomson, S, Lovitt, M and Nguyen, T, 2017. Improving safety through technology – Orica wireless electronic blasting system trials at Ernest Henry Mine, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 39–50 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By G. R. Lane

A large opencast gold mining company in Africa had just completed a feasibility study for an expansion of the operations. A traditional net present value project valuation methodology had been used that showed a very positive net present value (NPV). The project team had conducted a qualitative risk assessment that identified and logged all potential project risks and had subjectively incorporated 'risk' via the discount rate and other assumption contingencies around gold price expectations, operating parameters, etc. Management requested that an independent quantitative risk modelling approach be adopted to obtain a better understanding of the impact of risk on the overall project valuation and confidence level in the final valuation. A detailed project valuation model was configured in the Cyest Carbon Modelling Technology platform, and the stochastic modelling module used to perform the Monte Carlo simulations. Analysis of historical operational performance data relating to actual achievements versus planned and budget determined the historical variability of the underlying parameters as well as variance to budget. This was done at a detailed level for mining rates and costs, processing rate, costs and recovery, and other operational efficiency measures. External market assumptions relating to gold price, exchange rate, and inflation were modelled and the dependency between them modelled using a copula. This case study will demonstrate the approach taken to building and populating the quantitative risk model and the overall results of the Monte Carlo simulation. The final valuation demonstrated that the project had a 44 percent probability of an NPV less than zero i.e. a 44 percent chance of project finance loss.

Jan 1, 2013

The Central Andes in Peru, Chile, Bolivia, and Argentina , contain two contiguous terranes which were accreted to Gondwanaland between the end of the Devonian and the end of the Triassic. These terranes, Arequipa in the north, and Chilenia in the south, differ from each other in the timing and style of their metallogenic development. However, they contain over 90% of the Central Andean porphyry copper resource. The copper porphyries in the Arequipa terrane are Paleocene to lower Oligocene in age, whereas the Chilenia deposits are mid-upper Cretaceous and mid-upper Miocene. Porphyry copper deposits occur outside these terranes, but are all Miocene in age. Miocene porphyry-style mineralisation also exists in the Arequipa terrane, but is copper-deficient and gold-rich. The accreted terranes may have favoured porphyry and other styles of copper mineralisation because they possessed relatively thin continental crust compared to adjacent parts of the Andes. Crustal thickening which commenced at about 30 Ma in the Arequipa terrane coincided with a major change to polymetallic, precious metal mineralisation which commonly displays high sulfidation characteristics.

Jan 1, 1995