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By G H. Park, Y J. Jun, J H. Park

The carbon solubility of the CaO-Al2O3-FeO-SiO2-MgO slag, the main system formed in the Ruhrstahl-Heraeus (RH) vacuum degasser, was measured at 1873 K to understand the effect of slag compositions on the carbon contamination in the ultra-low carbon (ULC) steels. The stable form of carbon was demonstrated to be carbonate by plotting the log [(wt%C)/aC] ratio against the log p(O2) which ranged -11 < log p(O2,atm) < -9. The carbon solubility of the CaO-Al2O3-FeO-SiO2-MgO slag can be estimated using thermodynamic model. The distribution ratio of carbon increased with increasing concentration of FeO due to the FeO reduction reaction and increased basicity of slag. The carbonate capacity of the CaO-Al2O3-FeO-SiO2-MgO slag can be expressed as a linear function of the activity of lime and the optical basicity.

Jun 19, 2024

By C Itotoh, K O’Halloran, L Karlson

Global methods used to explore for minerals have progressed relatively slowly since the development of the first diamond core drill in 1863. Since then, key developments such as wireline geophysics (1920s), the tricone drill bit (1930s) and aeromagnetic surveys (1940s) all occurred in response to global events. In this project, BHP’s WAIO Geoscience operations team hypothesise that a global movement towards a greener future as well as an increasing intolerance for safety events will drive another step change in exploration methods. We have leveraged our relationships with exploration contractor partners and industry leaders to develop a realistic vision for 2033 and beyond, where drill rigs, earthworks and geophysical units are operated and maintained remotely; emissions of dust and waste are eliminated; hazardous energy sources are controlled; procurement is based on sustainability rather than cost and carbon emissions are tracked with the same rigour as production metrics. We have combined these visions into a series of graphical illustrations with the aim of inspiring ourselves, our vendors and our peers to collaborate further on producing a step change in our industry.

Sep 18, 2023

By S Morgan, L C Pagdalian, S Serdzeff, C Malaloy-on

It is widely accepted that mineral deposits are decreasing in metal grades. To remain profitable and meet market demand, mining companies are expanding their operations by increasing the tonnage treated. These expansions may include new concentrators with higher nameplate tonnages or upgrading the capacity of existing ‘brownfield’ operations. In many cases, the brownfield upgrade route is preferred as it is less capital intensive; however, brownfield upgrades are never straightforward and present many metallurgical and engineering challenges.For example, to increase feed throughput at a brownfield site, there will be a requirement to modify the mine development plan. This may result in the ore mineralogy varying beyond the current feed fluctuation range. To accommodate these ore variations, a combination of mineralogical analysis and small scale testwork can be used to develop a new process flow sheet to achieve the product recovery/concentrate grade requirements. In general, however, flow sheet development does not usually consider site specific layout constraints and equipment requirements. At sites where future expansions were never considered, taking this silo approach could lead to project delays and compromise the circuit design.Engaging an experienced technology partner ensures the nominated project team is involved throughout all stages and aspects of a given brownfield upgrade – from conceptual flow sheet development, through to detailed engineering, construction and commissioning. The recent Carmen Copper Corporation (Carmen Copper) circuit upgrade has been completed in technology partnership with Outotec. The circuit upgrade was extensive and included new equipment additions to the comminution, flotation and dewatering circuits. Carmen Copper’s intimate knowledge of the ore characteristics, in conjunction with a trusted, knowledgeable technology partner, facilitated a robust circuit design, and fast-tracked the project execution. This paper deals specifically with the flotation circuit upgrade and highlights the benefits to Carmen Copper of this holistic approach.CITATION:Morgan, S, Serdzeff, S, Malaloy-on, C and Pagdalian, L C, 2014. The benefits of technology partnerships during brownfield upgrades, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 471–476 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By A Teen

An open cast mine on the West Coast of the South Island of New Zealand proposes to remove up to 30 m of overburden to access an ore body neighbouring National Reserve land. Part of the conditions of the mining permit is that no material above natural discharge levels may be released over the Mining Lease boundary onto the adjacent land. In order to meet this requirement, the client has contracted the design and installation of over 2.6 km of high energy dynamic rockfall control barriers. This paper describes how the rockfall hazards were assessed and the rockfall barriers dimensioned. The design involved 2D modelling of over 3000 simulations. &nbsp; Modelling parameters were calibrated during field trials at a purpose built section of barrier. The resultant energies ranged from 500 to 3000 kJ. The construction phase of the project involved the drilling, anchoring, and installation of certified barriers up to 7 m high in a remote and inhospitable climate with limited machinery access. By exploring best practice in this specialized field of engineering, a novel rockfall hazard mitigation solution was identified.

Jan 1, 2007

By K Barns, H Law, T Whebell, P Scobie, T Perkins, J Siliezar, M Larson

With processing a variety of orebodies at Glencore’s Ernest Henry Mining (EHM) has come a changing mineralogy and more complex requirements for treatment in the concentrator. From mid-2013 and into 2014 the grind size required to achieve sufficient mineral liberation for production of a quality concentrate has reduced significantly. What was once a final P80 of 35–45 microns was forced to 20 microns. This has necessitated some creative changes to the flow sheet that previously had a 937?kW Vertimill regrinding a rougher concentrate to 40 microns. EHM is able to utilise an existing M10 000 3 MW IsaMill previously used for magnetite processing, to provide a quick convenient solution without large scale capital expenditures. Operating the Vertimill and IsaMill in parallel in closed circuit was successful at reducing the P80 of the regrind circuit to below 20 microns which increased the final concentrate grade by four per cent. This circuit and intermediate circuits used are discussed. Performance of the Vertimill and IsaMill is compared for efficiency optimisation to improve the overall circuit performance.CITATION:Siliezar, J, Whebell, T, Perkins, T, Law, H, Scobie, P, Larson, M and Barns, K, 2014. From magnetite to chalcopyrite – a story of versatility and efficiency at Glencore’s Ernest Henry mining?operation, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 85–92 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By D R. Seaman, Y Peng, F Burns, D J. Bradshaw

Telfer Gold Mine is a gold-copper mine in the eastern Pilbara of Western Australia, owned and operated by Newcrest Mining Limited. TelferÆs ores are processed by a dual train, 21 Mt/a, concentrator where gold is primarily recovered by gravity concentration and the flotation of a gold-bearing copper concentrate. A minor portion of TelferÆs gold is also recovered to a pyrite concentrate that undergoes treatment via carbon-in-leach (CIL) cyanidation. The gold recovery of the CIL circuit is below the industry standard and operates with a high reagent consumption rate.With a new fine-grinding facility, the Telfer process plant will have the ability to liberate copper and gold from the pyrite concentrate and recover these by flotation prior to the existing leaching circuit. This process will improve overall gold and copper extraction, while reducing reagent consumption in the CIL circuit.This article is an overview of the development of this methodology. Size-by-size analysis and mineralogical studies of monthly composites identified factors limiting the CIL gold recovery and the causes of high reagent consumption. Laboratory studies confirmed a relationship between the regrind product size and gold leach recovery. The addition of an intermediate flotation stage ensured that the regrind circuit will improve overall recovery while at the same time reducing operating costs. Without the addition of a flotation stage, the additional reagent consumption from regrinding alone would be prohibitive towards increasing recovery. Pilot scale studies confirmed the conditions required to selectively recover gold and copper from the pyrite concentrate as well as establishing the full scale regrinding energy requirements. Construction of this facility at Telfer is currently underway.CITATION:Burns, F, Seaman, D R, Peng, Y and Bradshaw, D J, 2012. Development of a pyrite regrind circuit at Telfer Gold Mine, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 45-52 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By J Seppelt

The Kanmantoo Copper Project is owned and operated by Hillgrove Resources Limited and is situated in the Adelaide Hills region in South Australia. Mining in the area has taken place off and on over the last 140 years to recover metal from both copper and lead-zinc ores. This paper focuses on the commissioning, ramp up and future outlook for the copper concentrator at the Kanmantoo Copper Project with major focus on issues encountered and operating performance achieved to date.CITATION:Seppelt, J, 2012. Commissioning of the Kanmantoo Copper Concentrator, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 127-136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By S Girard, L Rowland, V Lawson, Y Shields

Since 1948, ValeÆs Matte Separation Plant has been successfully using magnetic separation and froth flotation to separate the copper sulfide, nickel sulfide and Ni-Cu metallic alloy contained in Bessemer matte for downstream processing. Though some equipment upgrades have been performed over the years, the flow sheet has generally remained unchanged since the early 1970s. The need to improve metallurgical performance led to the trial of a scalping flotation column to produce a final copper concentrate ahead of the cleaner circuit feed to take advantage of a high degree of copper mineral liberation, reduce cleaner-recleaner circulating loads and decrease the associated loss of selectivity. Plant results indicated that 50 per cent of copper contained in the rougher concentrate could be recovered at final grade target. Results indicate that up to a 1.5 per cent increase in copper recovery to copper concentrate was achieved during the scalper trial due to a reduction in the generation of fine chalcocite which has historically been observed to report to flotation tailings due to surface contamination. Deficiencies are currently being addressed and a long-term trial is scheduled to confirm the benefits of copper scalping.CITATION:Girard, S, Rowland, L, Shields, Y and Lawson, V, 2012. Copper scalping at ValeÆs matte separation plant, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 299-308 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

This paper refers to the open cut mining practice developed at Western Mining Corporation&apos;s Kalgoorlie Gold Operations (K.G.O.). Mining activity was centred attwo areas, namely W.M.C.&apos;s Siberia "Sand King" and"Missouri" open cuts plus W.M.C.&apos;s "Great Boulder" and K.M.A.&apos;s "Horshoe" and "Morrison -Hannan&apos;s Star" open cuts in Fimiston.Kalgoorlie Gold Operations was set up initially to look after W.M.C.&apos;s open cut interests in and about the Kalgoorlie area. The first mine commenced was, the Sand King open cut, approx 75 km NW of Kalgoorlie. it was here that the requirement for a highly selective form of mining first became apparent.

Jan 1, 1984

By R Redden

"The Didipio Gold-Copper project in the Philippines has been a well-defined reasonably high gold grade porphyry for almost two decades. OceanaGold are now bringing the project into production in late 2012 and have recently reoptimised the project with the goal of combining the inherent high grades with higher through-put than previously proposed that will see strong initial metal production. The project was discovered and well defined by 1995, but has seen some obstacles to development, namely sovereign risk, capital cost and project funding. The project strengths over this time that have kept the flames alive are: strong grades large orebody with low stripping ratios a simple beneficiation process and a clean high-grade concentrate strong support from the Philippines government.The initial study in 1998 used Gold and Copper price assumptions of $325/oz and $0.95&nbsp;lb respectively. Today reserves are based on $950 and $2.85. So, being a porphyry with a large reducing grade halo, the deposit now lends itself to extraction on a much larger scale than before, without any significant capital expenditure as a larger open pit now dominates the project.Didipio is a game changer for OceanaGold, so it has been important to learn from history and to capitalise on a strong initial metal production profile. The project sits in a reasonably remote mountainous area of Luzon which sees annual typhoons and numerous short duration high intensity rainfall events and two rivers flowing through the project area, so it has not been without some innovative technical solutions.CITATION:Redden, R, 2012. Didipio - Learning the lessons, adapting and getting ready for production, in Proceedings Project Evaluation 2012, pp 67-76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By S Gomez-Hernandez, P D. Munro

Filtered dry stack tailing storage facilities offer many advantages over thickened tailing storage facilities and yet, most of the mining companies still prefer the latter.Some of the advantages of filtered dry stack tailing storage facilities are: increased structural integrity of the tailing storage facility, which is even more critical in areas of high seismicity, close to nearby communities or environmentally sensitive areas; maximised water recovery which is particularly important in arid environments where water is an extremely valuable resource and its supply is regulated; optimised recovery of valuable metals in the process water, avoiding high cyanide concentration going to detoxification (both aspects haven’t been emphasised enough in technical papers on this subject); optimised space to store the tailings in mountainous regions; minimised elevation of embankment height, providing a safe option to store the tailings in places where there is limited area available; simplified license approval to operate where the tailing facility is a big issue; and avoidance of potential problems with nearby communities.Filtered dry stack tailing storage facilities have some disadvantages such as: technology limitations in operations that process high throughputs (eg &gt;50 000 tpd) as they require many filters resulting in high maintenance and operating costs; higher capital cost; low efficiency in the filtration process, particularly in ores with high clay content increasing operating problems and capital cost; the new technology risk with possible debottlenecking issues and a longer time to achieve the design throughput; and the need to treat larger water flow rates when the water balance is negative.This paper analyses: the operating practices of Mexican gold and silver operations using filtered dry stacking storage facilities; implementation issues, advantages and disadvantages; quantifiable reductions in gold and silver losses and actual lower detoxification cost; and current trends to use filtered dry stacking storage facilities in new projects. The data gathered raises questions about (a) the need to collect data on tailings filterability, and; (b) reducing the current high operating cost of tailings filtration.CITATION:Espinosa-Gomez, R, Gomez-Hernandez, S and Munro, P D, 2018. Tailing filtration practices in Mexican gold and silver mines, in Proceedings 14th AusIMM Mill Operators&#39; Conference 2018, pp 275–282 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By B Putland, I Lovatt, D Schwann, A Cervillin

The Mount Carlton project in Queensland&#39;s North East sits on a high-sulphidation epithermal style deposit rich in gold, copper and silver. Mt Carlton is an open pit mining operation with ore processed using a primary crusher, single stage SAG mill and flotation to produce a concentrate for sale. Orway Mineral Consultants (OMC) was involved in the original design of the comminution circuit and the project was commissioned in late 2012, with first concentrate shipped in March 2013. When Evolution sought to optimise the project in 2015, OMC was invited to assist by undertaking a circuit review to identify opportunities for the optimisation. During 2016, the Mt Carlton site team implemented the optimisation strategies developed in conjunction with OMC. These included reconfiguring the SAG mill discharge arrangement, reducing the average ball diameter and allowing the mill to operate at higher speed and under more autogenous conditions. Cyclone operation was changed to constant pressure and the vortex finder size was decreased. The combined strategies improved energy efficiency and allowed higher SAG mill power utilisation. The additional power has been used to increase throughput by 2.4 per cent while achieving a 27&#181;m reduction in product size (P80) to gain downstream recovery improvements. The reduction in grind size has been achieved with only 6.8 per cent increase in specific energy consumption because of a 6.5 per cent increase in grinding efficiency. The circuit product size is also notably more consistent due to the improvements made to the cyclones, providing benefit to the downstream flotation circuit. A significant decrease in ball consumption was also gained, saving hundreds of thousands of dollars a year in operating cost.This paper will discuss the circuit design, start up and will detail the changes made during the optimisation and why these were successful.CITATION:Putland, B, Lovatt, I, Cervillin, A and Schwann, D, 2018. Mount Carlton comminution circuit design, start-up and optimisation, in Proceedings 14th AusIMM Mill Operators&#39; Conference 2018, pp 517–528 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

This paper discusses the recently com- pleted TBM-driven pressure tunnel at the Sand Bar Hydroelectric Power Project. The Sand Bar Project is a diversion scheme situated on the middle fork of the Stanislaus River in the Western Sierra Nevada, California, U.S.A. As part of the project, a 5.6 km long and 3.71 m diameter unlined pressure tunnel was bored by a Jarva TBM at the average rate of .37.5 m/ day. This report deals with construction aspects of the tunnel, including TBM performance, lining design, and remedial support measures. Correlations between TBM performance, geologic conditions, and rock properities are made, and the Contractor&apos;s mode of operations are discussed. Advance rate prediction, and the impact of these excellent advance rates attainable in hard rock using the new machines are discussed.

Jan 1, 1987

By K H. Esbensen

Optimisation of a real-time at-line monitoring system for control of industrial granule coating quality is presented. The system is based on a fluorescence imaging system, because fluorescence originates in the interiors of enzyme granules but is significantly quenched by a polymer coating (which is needed due to environmental precautions). We have developed an image analytical system for direct prediction of coating quality, which is based on application of the Angle Measure Technique (AMT) for image complexity characterisation; AMT is briefly described. The first part of the presentation addresses pixel sampling strategies within a digital industrial image, inherent in application of AMT, in which the unfolded image is regarded as a one-dimensional object in analogy with 1D process sampling in Theory of Sampling (TOS). The effects of random, stratified and systematic pixel selections in the unfolded image are evaluated. Also factors such as the fraction of image pixels and the effects of specific unfolding strategies (there are three principal strategies, termed æchopÆ, æsnakeÆ and æspiralÆ respectively) are investigated. It turns out that unsuspected artifacts are sometimes produced, related to the specifics of the unfolding procedure, which interferes with a straightforward 1D TOS process sampling analogy. These artifacts have a wider interest û among others, for 2D sampling û and therefore receive special attention in this presentation. The optimal pixel selection strategy for the AMT algorithm is found to be systematic or stratified sampling (not surprising according to TOS) of 500+ initiating points, but need to be unfolded in the novel spiral- or snake-wise fashions in order to effectively counteract these artifacts. This also has a general impact on various suggested standard schemes for 2D grid-sampling, among others, from the geoscience realms. The second part of the presentation is directed towards optimal image analytical sampling of a continuous series of fluorescent images (imaging of conveyor belts of æinfinite lengthÆ), ie optimisation of process image sampling. The minimum number of images needed to uphold a sufficiently good on-line estimate of the quality control (QC) parameter in question is found to correspond to the relatively high sampling rate of 15 - 20 per cent, which can be shown to be related to an intrinsic very high measurement error level (25 per cent) of a mandated analytical reference method.

Jan 1, 2005

By A H. Bagherieh, S Mesroghli, H Jorjani, S Chehreh Chelgani

The rare earth elements (REEs) assay and recovery in leaching processes is being determined using expensive analytical methods, ICP-AES, and ICP-MS. This paper presents a neural network model to predict the effects of operational variables on the lanthanum, cerium, yttrium, neodymium recovery in the leaching of apatite concentrate. The effects of leaching times: ten to 40 min, pulp densities: 30 to 50 per cent, acid concentrations: 20 to 60 per cent and agitation rates: 100 to 200 rpm were investigated and optimised on REEs recovery in laboratory at a leaching temperature of 60¦C. The obtained data, on the laboratory optimisation process were used for training and testing of a neural network. A feed-forward artificial neural network with 4-5-5-1 arrangement, was capable of estimating the REEs leaching recovery. Neural network predicted values were in good agreement with the experimental results. The correlations of R = 1 in training stages, and R = &nbsp;0.971, 0.952, 0.985 and 0.98 in testing stages were results for Ce, Nd, La and Y recovery predictions respectively and that theses values are considerably acceptable. It was shown that the proposed neural network model accurately reproduces all the effects of operation variables, and can be used in the simulation of a REEs leaching plant.

Jan 1, 2008

By D S. Collins, Z Hosseini, I Pinnock, Y Toya

Microseismic monitoring is regularly used in the mining and geotechnical industries to provide detailed information about rock mass response to operational activities. This paper implements a variable 3D velocity model (VM) at a North American hard rock mine with the aim of further improving the accuracy of seismic event locations. A collapsing method is also used to help analyse two individual seismic event clusters at another North American hard rock mine. In the first case study, the location accuracy of events is shown to improve by moving from a conventional single VM to a variable 3D VM that accounts for voids and different geological domains. The modal average for the event location accuracy improved from 14 m to 5 m when the 3D VM was used. Additionally, the single VM failed to locate 26 per cent of the seismic events that were located by the 3D VM. In the second case study, the distribution of seismic events was further enhanced by using a collapsing method that highlighted planar structures. The collapsing method was performed on two large event sequences that occurred in close proximity and identified different seismic event distributions. One aftershock sequence aligned along a plane, suggesting an activated structure, while the other large event sequence had a more 3D distribution of events, suggesting a complex stress redistribution on smaller structures.CITATION:Pinnock, I, Collins, D S, Toya, Y and Hosseini, Z, 2016. Large event sequence analysis and 3D velocity models for seismic event location accuracy, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 879–884 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By L Boczek

The term Engineer of Record (EoR) is commonly used in North America and South Africa to define the responsible person for the design, construction and operational phases of a tailings storage facility (TSF). Recently, this role has been elevated in prominence within Australia, but what does it really mean? Recent updates to international TSF guidelines suggests appointing an EoR is good practice, but where does the responsibilities of the EoR start and finish. Interestingly, both Samarco and Mount Polley failures had active EoR’s in place. This suggests that nominating an EoR alone, is not the full answer to mitigating the potential for a TSF failure. Appropriate construction and operational practices are key to the success of the design of TSFs, where all too often, operators ignore the operating plans developed by the designer. To be successful, a key consideration of the EoR role, is involvement in the operational phase of the TSF. This requires ‘buy-in’ from the mine managers and a change in the way TSFs are perceived by site. This paper explores how the roles and responsibilities of the EoR can assist in improving governance of TSFs if implemented effectively and what role the client has to ensure the success of the EoR.

Jul 1, 2021

By M G. Aylmore, L W. de Klerk

Roasting of refractory gold ores has been a commercial process for many years. Improvements in design of fluidised bed roasting technologies and low capital and operating costs compared with other refractory treatment processes can potentially make roasting a viable option.However, gold extraction from roasted ores carried out on laboratory scale equipment often invariably yields lower recoveries than other processes such as bio-oxidation or pressure oxidation. Non-optimal laboratory roasting conditions can incorrectly write roasting off as a process option.Low gold recoveries from the cyanidation of calcine products from roasting can often be attributed to roasting conditions not favouring gold liberation and agglomeration processes, particularly if lockups of elements such as arsenic are being pursued for environmental reasons.This paper reviews the conditions favoured for gold agglomeration and accessibility of gold to cyanide, test conditions to achieve gold liberation and agglomeration on laboratory scale and designs that incorporate staged decomposition and roasting to make roasting a more commercial option.CITATION:Aylmore, M G and de Klerk, L W, 2013. Conditions and design considerations for maximising recoverable gold in roasting of refractory gold ores, in Proceedings World Gold 2013 , pp 375-388 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By Ramsay WRH, Morand V

Structural, mineralogical, and textural data from the Tarnagulla Goldfield demonstrate that the area has undergone three significant phases of deformation. The first phase of deformation (Dl) predates the intrusion of the Tarnagulla pluton, which has been dated using K/Ar as 391 ¦ 5MY. We regard this pre-granite deformational event as the major regional deformation. Gold-bearing quartz veins have been deposited in dilational sites on west-dipping reverse faults. These sites demonstrate a geometry related both to faulting associated with Dl and the plunge of the Fl fold axes. This evidence, together with chronology of unmineralised ? D2 and D3 faults, the absence of quartz veining associated with D3 events, and the deformation of carbonate-quartz-biotite-sulphide aggregates within Sl by later S2, lead us to conclude that the bulk of the mineralisation was essentially syn- or late Dl. S&apos;80 values for fluids in equilibrium with vein quartz from Central Victoria have indicated equivocal support for either a magmatic or metamorphic origin. Our evidence supports a pre-magmatic origin for mineralisation at Tarnagulla and hence tends to favour a metamorphic fluid source.

Jan 1, 1995

By I Minniakhmetov, J Ashford

Orebodies constitute naturally occurring, commonly highly variable concentrations of minerals in the earth’s crust formed through varying and highly unpredictable processes. Orebody knowledge is a core foundation of a mining company’s asset base underpinning all decisions about Mineral Resource and Ore Reserves, future production, development and ultimately the profitability and competitiveness of a mining enterprise. The decision to invest in a mineral project is usually based upon a techno-economic evaluation of the project and having clear approval pathways to gain local community support and address social and environmental impacts. The main objective of the techno-economic evaluation is to determine the optimum development sequence for the particular orebody in question and to estimate the economic viability of the project and the future return on investment to its stakeholders, balancing the inherent value of the mineral in the ground against the costs of development and market pricing. With the exception of market-driven commodity prices, virtually all revenue and cost estimates fundamentally stem from the understanding and subsequent modelling of the orebody. A reliable estimate of the ore deposit grade and other geological value-drivers is the foundation upon which the business case for future mine development and operation is intricately dependent. Orebody knowledge is, therefore, the fundamental driver of the mineral project cycle, influencing the progression of studies and consequently, the resource company’s ability to declare Exploration Results, Mineral Resources or Ore Reserves which govern the source and cost of funding available to the project. Drilling provides a ‘vector’ to the true nature of the orebody and effectively buys time to manage the technical risk associated with the orebody. Despite its perceived high cost, in both time and money terms, drilling is the only available technology for acquiring the necessary orebody knowledge to support technical and economic studies and to minimise orebody-driven cash flow uncertainty and volatility. However, like all costs, pressure to minimise drilling budgets is ubiquitous across the minerals industry. Paired with inappropriate key performance indicators, drilling is often regarded as a cost to be minimised, rather than an investment to be optimised. Furthermore, as future deposits get deeper and more complex, the collection of orebody knowledge is increasingly on the critical path for project development. The increasing cost of data collection pertaining to these deposits increases the temptation to minimise orebody knowledge gathering at the cost of long-term value as the reduction or postponement of drilling results in greater orebody knowledge risk at all stages of the value chain. Indeed the true cost of the decision to drill less is rarely known until the mine is in operation, well after the mine project evaluation team has moved on. This paper aims to promote orebody knowledge as the fundamental source of endogenous project financial risk and, consequently, its critical importance in project financial evaluation. Furthermore, the report documents experimental research into the development of an econometric model for valuing orebody knowledge. Using the density of drilling data as a proxy measure of orebody knowledge, the proposed approach integrates well-established stochastic grade modelling techniques with the mathematical mechanics of Decoupled Net Present Value (DNPV) which, combined with stochastic grade modelling (conditional simulation), lends itself to the financial International Mining Geology Conference 2022 | Brisbane, Australia and Online | 22–23 March 2022 3 assessment of orebody knowledge risk. Based on this approach, a metric is formulated, representing the minimum value of the orebody knowledge added by additional drilling

Mar 22, 2022