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By A Giblett, R Dunne, D Appelhans

There are a number of hurdles that must be negotiated in order to design an effective gold ore treatment facility such that the expectations forming the basis of project economics are valid and can be achieved in practice. Selecting samples based on geometallurgical context, performing and interpreting testwork relevant to the selected process flowsheet are essential considerations towards achieving this aim. This paper discusses recent experiences in process development for free milling gold ores giving consideration to frequently encountered challenges of this nature.CITATION:Giblett, A, Appelhans, D and Dunne, R, 2013. Considerations for effective gold process development, in Proceedings MetPlant 2013 , pp 445-454 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

By C Johnstone

Project management is not a task to be undertaken lightly. Mining projects generally present even more challenges due to ChinaÆs remoteness and complexity. Having experiences in project management in the West is certainly an asset, but China can present the uninitiated with any number of headaches. To undertake a project there can have many problems that are unique to China. For the last 15 years, China has seen an increasing number of foreign capital investment projects in the mining industry. Practices involved in mining project development have experienced/are experiencing an evolution. Since 1996, Sino Gold Mining Ltd has delivered three mines in China, ie Jianchaling Gold Mine, Jinfeng Gold Mine and White Mountain Gold Mine. Through the work, Sino Gold has established a solid knowledge base and a capable and skilful workforce in effectively undertaking mining projects in China. This paper is concerned with the experiences accumulated so far by Sino Gold in project management in China. An overall review is conducted regarding the reform of the mining project development in China. Opportunities and challenges are highlighted within the political, economic and culture context. Brief summaries of the development of the three gold mines are presented.

Jan 1, 2009

By Urie R. W

Fluidized bed roasting of copper concentrates from Mt. Morgan, Mt. Lyell, Mt. Isa, and Peko was performed in a 3 ft 6 in diameter, slurry fed, pilot plant roaster operated under autogenous conditions to produce calcines with desirable leaching properties. A 12 in. diameter, externally heated roaster, provided with a dry feed system, was also used.An account is given of important factors which influence roaster behaviour and performance, and the effects of operating variables on calcine composition and leaching properties are described. Due to copper ferrite formation, a maximum of approximately 50 per cent of the copper in the calcines may be in the form of CuO before the copper leach efficiency falls significantly below lOO' per cent. Recovery of gold by cyanidation of leach residues was consistently high and independent of roasting conditions.INTRODUCTIONIn traditional practice copper is produced by pyrometallurgical techniques when the ,copper minerals in the ore or concentrate are predominantly sulphides, and by hydrometallurgy when the minerals are oxidized. Copper smelting is most suited to large scale operations, and for many years small to medium size mines with sulphide orebodies have been interested ill; alternative processes.Since hydrometallurgical plants (ie. leaching and electrowinning plants) are essentially unitized, they may be scaled down in output without much loss in efficiency or increase in processing cost, and many proposals have been made for the application of this type of process following roasting of the sulphides to render the copper soluble. However, until the advent of fluidized roasting, it was not possible to control the roasting operations sufficiently precisely to produce calcines consistently of the required leaching characteristics.

Jan 1, 1961

By G Dunstan

The Ridgeway gold mine has been an enigma of the international underground hard rock community for nearly 20 years. It nearly didn’t eventuate as it was more than 500 m below a farmer’s paddock in Central New South Wales when the exploration team, looking for open pit deposits, got a sniff on its last attempt and then drilled the high-grade discovery hole. It took separate studies to find an economic mining approach. Newcrest, then a mid-tier mining company, took the venture that set it on a path of growth and built what was to become the backbone of the company for the next 15 years.The initial mining method was sublevel caving (SLC) for the upper 300 m of the orebody. The nameplate production rate for the SLC was 4 Mt/a, which was reached in June 2002 shortly after the commissioning of the materials handling system. The ultimate production rate was subsequently lifted to around 6 Mt/a through a series of innovative and efficiency initiatives. In June 2007, approval was granted for the development of a block cave (BC) operation to extract the ore reserve situated immediately below the existing SLC operations, Ridgeway Deeps. The BC was designed at approximately 6 Mt/a to match the concentrator and a systematic improvement process through the entire underground system again saw delivery rates consistently around 10 Mt/a.In line with the production rate increases, Newcrest was also committed to advancing caving knowledge through a number of targeted research and development experiments and new processes. These were primarily related to improving cave ore recovery through systematic draw marker trials, cave propagation through preconditioning techniques with associated monitoring systems. New technologies were also developed to improve the safety and efficiency of the mine through data collection, cave establishment techniques, production dispatching and autonomous loading.CITATION:Dunstan, G, 2016. The truth is stranger than fiction – the story of Ridgeway gold mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 19–30 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

CONTENTS:1. Introduct'iona. Previous Accountsb. Summary of Geologyc. Physiography2. Morgan Groupa. Lithologyb. Structurec. Faulting3. The Mineral Deposita. Descriptioni. Size and Shapeii. Compositioniii. Effects of Oxidationb. Relationship to Structurec. Genesis of Ored. Mount Morgan Orebodye. Sugarloaf Orebody4. Granitea. Mount Morgan Graniteb. Town Granite'c. Moonmera Granite5. Calliungal Beds6. Razorback Beds7. Acknowledgments8. References

Jan 1, 1952

The 8 ft by 91/2 ft drive which joined No. 7 Shaft with Browne Shaft on the 1,480 ft level was extended from both ends and met at a point approximately 12,000 ft from No. 7 (2,000 ft from Browne).The surveying required for this 2 1/2 mile haulage drive called for greater accuracy than was obtainable from South Mine standard methods. Procedures and devices from published information were tried and modified as required to suit local conditions. Several new methods were applied and improved as the drive advanced. The control of angular, linear and level measurements was perhaps considerably in excess of the requirements, but this was offset by abnormally large discrepancies resulting from shaft plumbing. The accuracy of the final breakthrough, although not to the standard desired, was sufficient to complete the connection without inconvenience and added cost.INTRODUCTIONThe acquisition of the Browne Shaft leases in January 1962 presented the management of Broken Hill South Limited with the problem of transporting ore from these leases to its mill. It was eventually decided that diesel locomotivehaulage through a 2t mile drive on the 1,480 ft level between the two mines was the best solution. The drive was advanced from both ends after Browne Shaft was deepened by 80 ft to reach the 1,480 ft level horizon. Each end advancedabout 15 ft/day with the miners working three 7 hr shifts. Blasting was restricted to the end of the shift.The survey work involved five shaft plumbings and 78 theodolite stations in a traverse, underground and surface,of more than 5 miles. Because of the exceptional length of the drive, an unusually high degree of reliability was required.The aim was for a maximum error at breakthrough of 1 ft 1 in 30,000, and to secure this, precise methods of linear measurement were necessary. Shaft plumbing in particular posed special difficulties.

Jan 1, 1965

By N A. Sikwa, L M. van Niekerk, G N. Ndlovu

In June 2012, Lucara Diamond Corporation officially commissioned its Karowe Diamond Mine in Letlhakane, Botswana. The processing plant circuit incorporates variable speed autogeneous milling, a first for African diamond processing - only previously practiced in Russia. The paper discusses the basis for the selection of milling against the more traditional circuits incorporating crushing and scrubbing. It covers early commissioning challenges of operating a mill in an æalien environmentÆ with no immediate reference plant to look up to for bench-marking.The paper describes how these challenges were overcome and learnings quickly incorporated into the mill operating philosophy for maximum diamond liberation and minimum product damage. The plant was commissioned in three months and by August 2012 the production ramp up had reached name-plate capacity. The feed to the mill has varied from highly weathered material to extremely hard kimberlite and the operating philosophy had to be optimised for the full range of ore types. While more work is required to stretch the mill operating envelope coupled with other circuit additions to improve liberation of fine diamonds at minimum capital expenditure, the mill has, to date, performed to its billing.CITATION:van Niekerk, L M, Ndlovu, G N and Sikwa, N A, 2013. Commissioning and operating an autogeneous mill at Karowe Diamond Mine, in Proceedings MetPlant 2013 , pp 215-228 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

Interest in those physical properties of minerals which might be used to good effect in prospecting is not new. Early in the nineteenth century attempts were made in th'e Cornish mines to measure the natural electric potentials set up by chemical changes proceeding in the lodes. The distortion of the earth's magnetic field by bodies of strongly magnetic iron ore received early recognition in Sweden. Treasure-finders, working on the principle of electrical induction, appear to have been invented about eighty years ago, though were probably not then applied to mineral exploration. By the end of the nineteenth century Eotvos, a Hungarian physicist, had constructed a highly sensitive type of torsion balance capable of measuring the minute distortions in the earth's field of gravitation resulting from variations in the density of the materials composing the crust. During the first decade of this century he demonstrated its value in tracing rock-salt deposits in virtue of their low density compared with the surrounding rocks. Geophysical prospecting began to be recognised as having a very definite value and its development gathered momentum. Its great expansion took place after the 1914-18 war, when its value in oil exploration was amply demonstrated, and this expansion has continued to the present time and shows no signs of abating.Divisions of Applied Geophysics.The four main divisions of applied geophysics are electrical, magnetic gravitational and seismic. With the importance of ores of radio-active metals, one might add to these a radio-active division. The first two are more important to the field of mining, but techniques based on gravitational attraction have their uses in particular cases. Seismic methods are not generally suited to the exploration of metallic ores, but have proved of enormous value in the search for petroleum. With vast quantities of oil as the prize, more money has been lavished on the deve10pment and practice of these methods than on all the others put together.Geophysical Prospecting Methods.Geophysical prospecting methods may be used to detect a mineral deposit directly in virtue of differences in the intensity of some physical attribute common to it and the enclosing country rock. Examples of this are the detection of rock-salt by gravity measurements, or of iron ore by magnetic methods. Of much wider application, however, is the indireot approach in which the aim is to determine, by geophysical means, the geological structures controlling the disposition of mineral deposits. These structures may be partly known from geological work, in which case geophysical methods are useful adjuncts. Where, because of an 'unbroken cover of overburden, no useful geological information presents itself, scout drilling or geophysical prospecting are the only alternatives. Overburden is here intended to mean any covering material not, involved in the structures controlling the mineral deposits. Prospecting for petroleum amounts to the detecting of favourable reservoir structures, and as the chief types of such are the same the world over...

Jan 1, 1950

By Arthur A. F, MacKenzie I. H

Copper in zinc/lead sinter charged to the Imperial Smelting Furnace operated by Sulphide Corporation Pty Limited at Cockle Creek, New South Wales, concentrates in a complex lead dross which forms as the bullion is cooled to around 400°C. The 0.35 mm portion of this dross, containing approximatelY 67 per cent of the total copper, is treated via a hydrometallurgical route to produce 5000 tonne/yr of CuSO4 5H2O crystal.Around 3000 tonne/yr of copper-lead dross containing 49 per cent copper is leached at 55°C in continuous leach reactors with ammoniacal ammonium carbonate leach liquors to convert copper to soluble copper amine complexes. Leach ettlciencies of 80-85 per cent are obtained. Leach residues are repulped with ammoniacal liquid diluents from the plant and heated in a four stage steam distillation unit to reduce ammonia levels to between 0.5 and 1.0 g/Iitre. The resultant slurry is directed to an effluent treatment plant for final treatment, and separation and return of solids to the sinter plant.Copper is extracted from leach liquor by solvent extraction techniques based on the use of L1X 54 diluted 3:1 with Shellsol 2046 to give a nominal copper loading of 30 g/litre. The loaded organic is contacted with a sulfuric acid solution of pH 5 to remove the bulk of ammonia and zinc, then stripped at 55°C with a 60 g/Iitre H2SO4 95 g/Iitre copper solution to yield a 15 g/Iitre H2SO4 125 g/Iitre copper solution.This liquor is fed to an adiabatic vacuum crvstalliser operating at 35°C and 5 kPa vacuum where crystals of CuSO4 5H2O are formed. Crystals are separated from mother liquor and washed in a two stage pusher centrifuge, then dried in a hot air rotary drier. The crystal product obtained is of a high chemical purity and readily conforms to both Australian and overseas standards.

Jan 1, 1983

By Sofoulis J

In the Archaean of the Kalgoorlie-Norseman area, the layered rocks have been subdivided into two sequences, both containing basic igneous rocks and sediments. The lower sequence is distinguished by the presence of acid volcanic flows and large acid sills. The upper sequence is unconformable on the lower one.In some areas, clastic sediments become coarser and pass into conglomerates. Th:s passage is accompanied by thinning of the beds.These features and their distribution suggest a basin of subsidence flanked by areas of shore-line conditions.Repeated igneous activity, including vulcanism, has occurred along the flanks of this basin. These different igneous and sedimentary environments have played an important part in the primary distribution of metals.A chronology of all basic and acid igneous activity, as well as sedimentat:on, has been established for the Precambrian of this area.INTRODUCTIONThe subdivision of Archaean rocks into those of basic igneous or of sedimentary origin has formed the basis for the nomenclature appearing in past literature. These subdivisions were distinguished as greenstones (predominantly basic igneous rocks) and whitestones (predominantly sediments), and it was generally accepted that the greenstones were stratigraphically lower in the sequence than the whitestones.Recent studies show that, between Kalgoorlie and Norseman, basic igneous rocks interfinger with and pass laterally to sediments, and that basic volcanic rocks occur at different stratigraphic levels. Younger Precambrian. units are also...

Jan 1, 1965

THE power requirements of the Mount Lyell Mining and Railway Company at Queenstown, Tasmania, have, since the inception of smelting operations in June) 1896, been derived continuously from the extensive forests in the watershed of the Queen River, adjacent to the works, the fuewoodbeing of good quality, mainly composed of myrtle or beech (Fagus Ounninghami), eucalypts, and manuka (Leptospermum ericoides). The country is very rugged and mountainous, indented by numerous ravines and gullies, and intersected by, many creeks, which are subject to periodical floods, under the influence of a heavy and persistent rainfall, which averages about 110 in per annum. The areas so far exploited aggregate a total of about42 square miles, and this denuded country gives promise of ultimately becoming very valuable pastoral ground for cattle-raising. The tonnage of wood yielded per acre varies from 40 to 100 tons on stack measurement of 80 cubic feet per ton, 60 tons per acre being considered a good average yield. The gross amount...

Jan 1, 1910

The study of gas emitted from face coal samples at the coal face is part of an investigation of instantaneous outbursts of coal and gas. Normally, seam gas essentially comprises methane of which the origin in the metamorphism of coal is undoubted. The origin of other gases sometimes occurring in high proportion in seam gas, particularly carbon dioxide, is more controversial. A simple meter for rapidly assessing gas in coal was developed. Tests with the meter enabled comparisons of seam gas in face coal at some outbursting and nonoutbursting mines, and under various working conditions. The varying results of widespread testing suggest certain trends, including some prospect of recognising outbursting potential at the coal face.INTRODUCTIONThe aim of this work is identification of differences in gas condition between coals subject to instantaneous outbursts and coals which have not outburst, and between faces of coals which will and which will not subsequently outburst. Any comparative test should be conducted right at the coal face on coal about to be worked and the results of testing should be available after a short period. Moreover, the method and the comparison of results should require no special skill, and be well within the capacity of junior mine officials. Any consistent relation between gas condition and subsequent mining conditions - outbursting or not might be valuable in prediction of outbursts.INSTANTANEOUS OUTBURSTSInstantaneous outbursts (Hargraves, 1958) , are largely unpredictable and unaccountable ejections of coal (up to 5,000 tons) and gas (up to 5,000,000 cu.ft.) from a standing coal face. Usually the gas is essentially methane (CH4 ) but may be essentially carbon dioxide (C02 ), or an intermediatemixture...

Jan 1, 1962

By R L. Brathwaite

As part of an investigation of the deep structure of the Waihi Basin, an extensive set of resistivity measurements was recently collected by DSIR Geology & Geophysics. The objective of this work is to map deep resistivity changes throughout the Waihi area in order to contribute to a better understanding of the regional geophysical structure. This research is also aimed at improving techniques for locating 'deposits of epithermal mineral resources, and helping to establish their origin and genetic relationship to fossil geothermal systems.   The results indicate that the basin south of Waihi is underlain by an extensive layer of low resistivity, modelled as a 5ohm-m layer several hundred metres thick. Lake sediments (mudstones), as exposed in the south western part of the basin, near Waitawheta, are the most likely source of this low resistivity layer, although hydrothermally altered clays and/or elevated temperatures are other possible causes. Strong northeast trending anisotropy is also observed, implying structural links from Waitawheta through to Golden Valley. The observed resistivity pattern is consistent with a æburied calderaÆ or æfaulted depressionÆ structural model for the basin, as inferred from gravity and magnetic data.

Jan 1, 1991

IT is not intended that this paper should be regarded as an account of the geology of the Lyell district. It is merely a synopsis of some of the conclusions recently arrived at in regard to the stratigraphic and structural geology, compiled to act as a guide to those members of the Australasian Institute of Mining and Metallurgy attending the Queenstown meeting who are interested in economic geology. The attempt has been made to present certain salient features, omitting a mass of detail, which, although important in the complete investigation and understanding of the economic geology, yet would be confusing to a group of geologists making a short visit. The location of some of the significant occurrences bearing on the main problems and conclusions are indicated in the text in order to enable members to plan the location and direction of their excursions...

Jan 1, 1927

Northern Iron Ltd (NIL) is an Australian listed company that recently brought the historic Sydvaranger open pit Magnetite Mine (the Project) in Northern Norway successfully back into production. NIL made the decision to operate the Project on an owner mining basis, due to limited large scale mining expertise amongst Norwegian mining contractors, a long mine life, a limited range in planned mining rate and to minimise costs. As a new mine operator in a country where labour practices are strictly regulated, there was the desire to reduce the risk associated employing and managing skilled personnel. This was achieved by coupling the purchase of the required mining equipment from the original equipment manufacturer's (OEM) regional dealers with OEM supported Maintenance and Repair Contracts (MARC). This paper examines the process that was followed to implement an owner mining operation in a short time frame; approximately 12 months from the initial requests for quotation to actual delivery of mining equipment to site, and some of the challenges faced. By following a formal and well-tested process, not only was the implementation achieved in the set time frame, but significant value was added through the cost savings achieved in the equipment purchase price and MARC rates that were negotiated through this process.

May 1, 2010

By J Williamson, M Griessmann

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Watershed tungsten deposit is located in the Hodgkinson Province of north Queensland, Australia. The deposit is hosted by Siluro-Devonian flysch-type meta-sediments of the Hodgkinson Formation, which were subjected to four major deformation events. Mineralisation has occurred syn- to post-D4 and is related to the intrusion of S-type granitoids of the Permian Whypalla Supersuite.Watershed is located within a regional NW–SE-striking melange zone composed of brecciated and intermixed arenites and shales. The major NW–SE-striking Tullah fault zone is situated in close proximity to the east of the deposit.The Watershed deposit occurs within a tightly folded upright anticline with NW-plunging fold axis. The anticline contains a major package of coarse-grained to conglomeratic arenite, which harbours the Watershed mineralisation. Several alteration styles occur within the arenites, of which Fe-poor calc-silicate alteration dominated by clinozoisite/epidote is the most significant. Less widespread but locally important alteration styles comprise garnet-dominated calc-silicate alteration, albitisation and sericitisation. The arenites are enveloped by unmineralised carbonaceous shales and shale breccias.Tungsten mineralisation occurs solely as molybdenum-poor scheelite and can be found as three styles: disseminated mineralisation in calc-silicate altered arenites, vein-style mineralisation with quartz-albite-scheelite veins and minor but high-grade mineralisation in albitised felsic dykes.Contact metamorphic rocks and geophysical data indicate the proximity of an underlying granitic body. It is believed that this granitic body was the main driver of the hydrothermal system generating the Watershed deposit. An early mineralisation stage caused the selective calc-silicate alteration of the arenites, while a second stage caused the vein-style high-grade mineralisation. The folded shales enveloping the arenites worked as an effective barrier that kept the mineralising fluids in a confined rock volume.The scheelite mineralisation at Watershed is open to depth, with a granite-hosted porphyry or greisen-style mineralisation anticipated below the current resource.CITATION:Griessmann, M and Williamson, J, 2015. The calc-silicate-hosted Watershed tungsten deposit, far north Queensland, Australia , in Proceedings PACRIM 2015 Congress, pp 545–550 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By P Williams, S Flynn, R Birchfield, R Simcock, R Toft, P Comeskey

Direct transfer, or community translocation, comprises salvage and replacement of intact æsodsÆ of vegetation together with underlying soil. It has been applied to New Zealand mine sites restoration of native grasslands, wetlands, scrub lands, and forest. It is an equivalent technique to æinstant lawn or tree gardenÆ, commonly used in urban landscaping. Two to six m2 scoops of vegetation, with up to 0.7 m of soil attached, and including root plates of trees and shrubs, are relocated from stripped areas ahead of mining to sites prepared for restoration. Direct transfer uses hydraulic excavators or face shovels and dump trucks, possibly with the aid of bulldozers and other earthmoving machinery. The main advantages of direct transfer, compared with sowing or planting systems for mine site restoration, are the recycling of plant and soil materials which were often wasted by burying under overburden materials, a significantly faster revegetation process, and restoration of the whole ecosystem (plants, animals, birds, invertebrates, and microbes). The main disadvantages are higher costs of stripping and dumping, a greater degree of machine operator skill required, and scheduling becomes critically important. To illustrate the key principles, this paper gives examples of successes and failures of the technique for a variety of New Zealand mining situations. Direct transfer has been successful for a range of communities, from fern wetland and sub-alpine tussock grasslands to 5 m-tall beech forest under storey and seral shrub land, and from temperate to sub-alpine climates. Successful examples show both rapid recovery of indigenous vegetative cover and conservation of habitat for birds and invertebrates. Failures have resulted from excessive death of plants because of inadequate soil salvage depths, acidic leachates, inappropriate handling of stripped sods by inexperienced machinery operators, or prolonged drought conditions immediately following relocation. Change in plant species composition has occurred where clumps of vegetation are too far apart, or shifted plants were too small - in both cases invasive weeds have smothered the original vegetation. Changes in hydrology can also have significant impacts. Our experience indicates that the advantages of direct transfer far outweigh the disadvantages and is now used as the preferred restoration method, where practicable, at mines where it has been trialled.

Jan 1, 2000

By S Vianna, K Caldwell, R Silva, T Olson, D Bell

Studies to enhance the FLSmidth forced air machine through changes in the design, showed important improvements through changes in the number of Rotor blades, stator designs, rotor air distribution and other designs features. The main outcomes from this study highlighted that increasing the number of rotor blades increased the selectivity while decreasing power requirements while stators with slots have better results in terms of recovery, flotation efficiency and selectivity than without slots.Also the rotor air distribution makes a difference in the design when comparing different distribution criteria whilst keeping all features of shape and number of blades etc constant. At the most efficient rotor air distribution design, copper recovery reached one of the highest values while keeping good selectivity. The possible explanation for that is the increase in the pump capacity indicated by the increase in the specific power.It was seen as significant that reduction in specific power for some designs tested compared with the then current standard design had an average of 30% less power consumption.As a result, FLSmidth was able to identify new designs that decreased power and improved recovery, as well as, identifying some designs that specifically improved fine and/or coarse particle recovery.CITATION:Silva, R, Caldwell, K, Bell, D, Olson, T and Vianna, S, 2013. FLSmidth flotation developments - Dorr Oliver machines, in Proceedings MetPlant 2013 , pp 413-430 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 15, 2013

In setting out to describe the methods and machinery employed at Iron Knob the writer does not attempt to give any information as to the situation, topography or geological features of the locality. This, together with estimates of the quantities of ore still available, has been carried out in a most thorough manner by R. L. Jackr and F. R. Hockey. This essay is intended to deal with working methods as they exist to-day, beginning with drilling, blasting, quarry traction, etc., and touching on such details as the supplyof electricity, water and compressed air.At the present time almost the entire output of ore is won from the hill known as Iron Monarch. The form of the hill, a smooth, rounded dome, rising some 640 ft. above the plain and having a base diameter of n miles, lends itself ideally to the "bench" system of open-cut quarrying.Fig. 1 shows the relationship of the benches "A," "B" and "E" in their order of development. Bench "E" is at present the principal working, but, as the greater part of the ore above this level has now been removed, bench "A," some...

Jan 1, 1936

By M Stewart

In January 1994, Macraes Mining Company started a new phase of exploration to find additional resources along strike and down dip of identified resources for a mill that was being expanded from 2.1 Mtpa to 3.2 Mtpa. At 30th June 1997 a total of 456,784 m in 3,627 holes had been drilled at the Macraes Gold Project with approximately 325,000 m in 2,100 holes drilled in the latest phase of exploration. This necessitated the construction of resource estimates on a more frequent basis and resulted in the formation of a resource modelling team, assisted by Snowden of Perth. Since April 1995, 14 separate resource estimates have been completed. At Macraes, resource estimates are built using Medsystem/Minesight software. The geological interpretation is converted into a set of three dimensional wireframed solid models which are used to code drillhole composites and blocks in a block model. The interpolation method of indicator kriging is used to interpolate grade into the blocks. Classification into measured, indicated and inferred categories is on the basis of geological confidence and drill spacing. The resource estimate is reconciled against grade control polygonal estimates on a bench by bench basis and on a monthly basis. Grade control estimates are reconciled monthly to mill production. For the period 30 June 1995 to 30 June 1997, the resource estimates have under predicted tonnes by 4% and grade by 1% to under predict ounces by 5% at a 0.5g/t cut off. At ROM sulphide cutoff grade, the models have over predicted tonnes by 5%, under predicted grade by 5% to over predict ounces by 1%.

Jan 1, 1997