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Outline of situations when valuations required - from capital raisings and takeovers, stamp duty, rates and capital gains tax, to probate and litigation between joint venture parties. Definition of types of exploration and mining properties as background to discussion on what methodologies to use (from grass roots to operating mine). Discussion on nature of alluvial deposits in New Zealand and how their characteristics and tonnage/grade uncertainties affect choice of methodology. Assessment of risk factors in New Zealand û technical, financial and socio-political (legislation, access, Maori land rights, environmental). Discussion of appropriate methodologies.

Jan 1, 1992

A forecast of energy demand in the non-commu- nist world to the year 1990 is presented with com- ments on the expected effectiveness of conservation efforts in achieving more efficient utilization of energy. A forecast of energy supply for the same period is presented showing the contribution of oil, gas, hydropower, coal, and nuclear fuels, with brief comments on the factors constraining the rate of growth of non-oil energy supplies. The role of `synthetic fuels', i.e. liquid or gaseous fuels produced from coal, oil shale, and tar sands, is reviewed with brief discussion of factors affecting the development of this industry. In somewhat greater details, the growth of demand for oil by geographic regions is analyzed. Particular attention is directed to the source of the oil supplies which will be required. The anticipated rate of discovery of new oil reserves is discussed with comments on lead times required in the development of new discoveries in hostile environments such as the Arctic and deep oceans. The continuing importance of oil supplied from countries which are members of the Organization of Petroleum Exporting Countries (OPEC) is illustrated. Oil will continue to be the marginal ('balancing') source of world energy supply throughout the forecast period and although it now appears that oil supplies will be sufficient to balance the energy equation during the 1980s, little flexi- bility will exist to cope with unexpected growth in demand or slippage in supply. Prudent energy re- source management will require major efforts to stimulate conservation and also to stimulate the rapid development of conventional and new forms of energy supplies and changes in energy consump- tion patterns to utilize the new supplies. Because of the long lead times and the massive capital require- ments involved, governmental policies are needed soon which will stimulate conservation and which will encourage businesses to move rapidly to assure the energy supplies the world will require in the 1990s.

Jan 1, 1978

By T Barto, D Thomson, T Norgate, C Doblin

Collaboration between CSIRO Minerals and SunSalt Pty Ltd, a salt producing company located in rural Victoria, has resulted in a commercial process to recover magnesium sulfate (commonly called Epsom salt) from the saline waters of the Murray Basin. The feed for this process is bittern; the liquor remaining after halite (common salt) has been harvested from the saline water by evaporation.SunSalt produces salt and bitterns from three locations, namely Hattah (Victoria), Mourquong (NSW) and Wakool (NSW). The small size and considerable distances between these operations makes it uneconomic to build a stationary processing plant to extract value-added products, in particular Epsom salt, from the bitterns of the three operations. This fact led SunSalt to build a containerised mobile plant that could be moved to each site to process the bitterns at the end of the salt harvesting period.Epsom salt is extracted from the bittern by further evaporation, refrigeration and recrystallisation. In this process the bittern is diluted with five per cent volume of fresh water to minimise precipitation of residual halite in the bittern. Cooling the diluted bittern to between -5 and -10¦C precipitates up to 70 per cent of the magnesium sulfate, which is recovered as 85 to 96 per cent purity Epsom salt by filtration. This product is marketed as an industrial grade Epsom salt. Higher purity (up to 99.9 per cent) Epsom salt (USP or BP grade refined product) is made from the industrial grade product (raw Epsom salt) by recrystallisation.The containerised mobile plant was commissioned in December 2002. The raw Epsom salt generated in the mobile plant is refined to a higher purity Epsom salt in a separate plant located in Mildura. The Mildura plant was commissioned in December 2003.The CSIRO-SunSalt collaboration has demonstrated that the saline waters can be processed into a useful resource, and in addition could create jobs and a new skill base in regional Australia. The production of Epsom salt locally in Australia, which is worth currently about $A600 per tonne, removes the need to import over 3000 tpa from overseas with a net positive impact of $A2 million on the balance of trade.

Jan 1, 2004

By P Minkkinen, J Lohilahti, T Korpela, B McPherson

Concentrator plants intake the ore from the mine and produce concentrates by extracting valuable minerals in a succession of process steps. Controlling the extraction process and detecting changes in the process requires updated information on a minute basis. Moreover, due to economical reasons, one must also collect metallurgical samples on a daily basis for monthly reporting.In this paper, we present how slurry samplers were installed in a Cu-Ni flotation plant to accomplish the aforementioned tasks. An on-stream elemental analyser at the plant is used for flotation process control by taking samples from selected process streams. Two process streams, the flotation feed and tail, are also equipped with metallurgical samplers. The metallurgical samplers were designed to have low head loss, be robust and easy to maintain and to collect slurry samples in a reliable way for the metallurgical accounting.Samples were collected by different sampler types and we discuss the uncertainty arising from sampling in the assays. Variographic analysis was carried out on the process data in order to find periodic components in the process, and estimate the correct number of shift sample increments and measurement error components. The metallurgical samplers were proven to be reliable devices with zero downtime and no sanding issues in the main process flows. In addition, we show that the tail measurement is the most important one for the plant recovery calculation, which emphasises the importance of the sampling accuracy in the tail stream.CITATION:Lohilahti, J, Korpela, T, Minkkinen, P and McPherson, B, 2014. Analysis of slurry sampling arrangements at a froth flotation plant, in Proceedings Sampling 2014 , pp 91–98 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By N Clarke, A Barros

Preconcentration of run-of-mine subgrade and marginal ore by screening has the potential to substantially improve the economics of mining, particularly for large, low-grade orebodies, and to reduce environmental impacts. It has recently been the subject of a major research effort by a joint public-private research body, CRCORE. Yet despite this, there appears to have been only one fully commercial installation, at Bougainville Copper Limited in the late 1980s. Two reasons for the limited application are that not all ores have suitable properties and the economics of all pre-concentration processes on low-grade materials are highly sensitive to the precise balance of mass and value recovery and to the pre-concentration process cost, including materials handling. These factors make it imperative to have good test data on the process response of feedstock across the orebody. Collecting that data presents major challenges, which differ for green and brownfields operations. This paper first discusses the approach to preliminary evaluation developed by CRCORE, which relies on testing of coarse rejects or drill chips available from exploration drilling programs. This method is an efficient first step in evaluating an orebody which is deemed geologically to be potentially amenable to screen upgrading, but it does have limitations and must be followed by larger scale work. A suite of methods have been developed by the authors as a result of test work since the 1990s on several projects, supplemented by published data, which aim to provide statistically robust data at lower cost than large scale bulk sampling tests. For greenfields projects, the upgrade response measured on material crushed to -53 mm has been found to correlate closely with ROM ore, with no scale-up required for material with upgrade responses in the range of commercial interest. Large diameter whole drill core, such as PQ, is expected to be suitable for this method. As drilling such core is costly, the aim should be to establish relationships between upgrade performance and proxy measurements such as multi-element chemical or hyperspectral analyses. This approach was successful at the Gramalote gold project in Colombia. The method is not applicable for ores with thick vein material comparable with the crush size, but such material is not suitable for upgrading by screening and would be eliminated by the preliminary testing. For brownfields projects where blasted material can be sampled, the upgrade response can be accurately measured by sampling only the finer fraction of the ore, selecting a top size which represents 30–50 per cent or more of the ROM size distribution. This is likely to be between 50 and 100 mm. The much finer size compared with the full ROM ore greatly reduces the sample mass required to achieve a given intrinsic sampling error and enables sample preparation to be undertaken with large-scale laboratory equipment rather than mobile crushing plant. The accuracy of the method can be improved by measuring the approximate mass of oversize rejected during sampling. Some ores do show a systematic deviation from the assumed model fit which results in this method slightly underestimating the upgrade response, and it would therefore still be recommended to take one or two full bulk samples to confirm results before a final investment decision.

Aug 24, 2022

By M F. Gazley

The amphibolite-facies metabasaltic rocks of the Mine Mafic Package at Plutonic Gold Mine, Marymia Inlier, Western Australia, contain an estimated total endowment of 12.2 Moz of Au, which includes 4.71 Moz of past production and 2.77 Moz of reserves and resources; the remainder comprises lower-grade inventory. Over 65?000 multi-element analyses of whole-rock core and face channel samples from the underground workings of the deposit have been collected by portable X-ray fluorescence (pXRF) using a handheld Innov-X Omega pXRF unit. The analyses were performed on pulverised samples through paper bags, and were corrected using a pulverised, matrix-matched, reference standard. This method of data correction compares favourably with conventional XRF analyses performed on the same samples.A preliminary study based on pXRF analyses from a small number of drill holes found that a geochemical stratigraphy was evident in the pXRF data, and that this stratigraphy strongly controlled the location of Au mineralisation. The present study incorporates a much larger pXRF data set that samples a greater volume of diamond drill core and face channel samples and presents the data in a three-dimensional (3D) framework.This data set allows an investigation of the mineralogy of Au mineralisation with varying geochemical associations across the deposit. Historically, there has been a strong relationship identified between As and Au, which has caused issues with metallurgical performance, rendering some areas of the deposit only marginally economic. Utilising seamless data integration of the pXRF data set allows for recognition of the different styles of Au mineralisation using elemental concentrations and ratios from the multi-element analyses (Au:As, Au:As:Cu, As:Cu vs. K:V), and to visualise the distribution of these different mineralogical associations in 3D. The results of the 3D modelling and geochemical characterisation of the different styles of Au mineralisation are currently the focus of an extensive metallurgical testing program, the preliminary results of which are presented here.

Aug 22, 2011

Many persons hold the opinion that the metal indus- ries are fortuitous and that the occupation is one of sordid toil, and altogether a kind of business requir- ing not so much skill as labour. But as for myself, when I reflect carefully upon its special points one by one, it appears to be far otherwise. So wrote Georgius Agricola in 1556. He could have been espousing the sentiments of an indus- trial archaeologist investigating mining sites in 1986. South Australia has a very rich legacy from its industrial past-especially in the area of its mining history. Industrial archaeology, which is part of the broad field of archaeology, is concerned with the material and documentary remains of this industrial past. This includes the products and processes of manufacturing, industrial, technolog- ical and engineering activity and their relation- ships to people and the environment. `Archaeology' immediately conjures up the image of excavations in Greece or Eygpt. Excavation however is only a part of archaeological methodology. Industrial archaeology utilizes documentary historical rec- ords combined with field survey techniques (both above and below ground) to create a composite picture of the past. Interest in our recent past has burgeoned in Australia in the last few years. This interest manifests itself in many ways-the unprecedented popularity of Australiana and col- lecting, the plethora of Australian historic films, the growth of the National Trust, local historical societies and genealogical research. Fortunately these trends have been reflected in academic and legislative circles. Various univers- ities, institutes of technology and colleges of advanced education run courses in aspects of cul- tural resource management and conservation of the historic environment. These courses are com- prised of archaeology, architecture, geography, his- tory, materials conservation, museum studies, and national parks management and planning.

Jan 1, 1987

By C McCracken, R Landers, B Hesse

Minnovare identified the potential to improve production drilling outcomes in underground long-hole stopes through the adaptation of new technology which was under ongoing development. An approach to Evolution Mining resulted in the companies agreeing to a collaborative agreement to further develop the technology for use on underground long-hole drilling equipment. During a period of six months in FY2018, a series of trials were conducted to compare drilling accuracy using two different methodologies and the subsequent impact this had on ore dilution. Testing was conducted at Cracow underground gold mine in Queensland, Australia. The drill rig’s existing setup/alignment process was compared to the new technology system with the following observations: • Using the existing process only 20% of holes surveyed recorded toe points within the +/ 300mm (11.8in) tolerance blast-hole deviation. • The new technology was proven to limit rig setup/alignment error, reducing average blasthole deviation and increasing the number of holes drilled within tolerance by 160%. The increased accuracy reduced stope dilution by reducing over-break of subgrade ore: • Stopes drilled using the new technology recorded 62.6% less average dilution. • This contributed to an overall reduction in dilution for the full year (FY18) of 5 percentage points compared to FY17 - from 22% to 17% (a net decrease of 22.7%). • With the system implemented as standard practice following results of the FY18 trial and continued success, overall dilution for full year FY19 showed continued reduction to 12% Evolution has continued use of the new technology at Cracow, where the improved accuracy has allowed the extraction of narrower stopes where drilling accuracy is critical. Evolution has also deployed the technology at the Mungari operation and has stipulated that the contractor use the technology at the Mt Carlton operation, which is currently under development. Future implementation of the Development Optimiser system should be verified by commencing additional trials to include a larger data base for validating the initial trial results.

Mar 15, 2021

By Greenwood-Smith R, Ellis W. K

A bulk analyser based on the gamma-ray resonance scattering process can be used to give a rapid and accurate measure of the percentage by weight of copper or nickel averaged over a large mass of sample, typi- cally 20 kg. It is shown that for a bulk sample containing about 3 wt.% Cu, crushing to -25 mm is the only sample preparation requited for analysis to within an error of about 0.06 wt.% Cu (errors quoted are one standard deviation). A comparison of bulk analyser and con- ventional assays on the same bulk samples can be used to estimate the sample preparation errors in the conventional methods. The squared deviations between bulk analyser and conventional assays are approximated by the sum of variances in sample preparation, conventional analysis, and bulk sample analy- sis. The sample preparation error was esti- mated as 0.26 wt.% Cu for samples crushed to -2 mm before splitting, 0.08 wt.% Cu for samples crushed to -0.35 mm before splitting, and 0.04 wt.% Cu for the average of 15 grab samples from bulk samples which had been crushed to -2 mm. The average copper grade for each group of samples was about 1.7 wt.%. Results are presented which show that

Jan 1, 1976

By L Manca, P B. Hills, D Tyler, N Pollington

This paper describes a collaborative project undertaken by Newcrest Mining Limited (Newcrest) and pitt&sherry to identify, develop and then implement global best practices to manage the exposure to inrush (dry and mud) hazards in underground mining operations. An extensive literature review was undertaken to identify past experience globally and the current state of knowledge and practice in managing inrush hazard. A key requirement of the literature review was the development of a list of guiding questions which would form a framework for approaching operators to discuss the topic, capture recent learnings and understand current operating practices to allow the development of a best practice solution. An initial cohort of 14 mines across four continents chose to contribute and detailed interviews were carried out by the project team. The outcome from the literature review, interviews with participating mines and various internal discussions was a comprehensive summary document detailing Basic versus Best Practice management of the inrush hazard. This document is being used as a gap analysis tool by Newcrest to assess and guide the management of inrush hazard at their existing and future operations. The summary document has also been provided to the participating mines for their consideration. The project is iterative and will continue to evolve as new experiences, knowledge and practices come to light.

Mar 15, 2021

As has been the case since the early Phoenician traders, the minerals used by modern man come from deposits scattered around the globe. The price received is more and more being set by worldwide supply and demand. Thus the price component in the profit equation:Profits = Material sold (units)x(Price/unit û Cost/unit) is largely determined by others. The recent price history for two of the major metals, copper and iron, are given in Figures 1 and 2, respectively. As can be seen there has been a steady decline in the prices (when expressed in constant dollars) over the 20 years which have lapsed since the first of the International Conferences on Mass Mining, æDesign and Operation of Caving and Sublevel Stoping MinesÆ was held. If one would look back over the entire 20th century this would also be the trend. Cost containment/reduction through efficient, safe and environmentally responsive mining practices is serious business today and will be even more important in the future with increasing mining depths and more stringent regulations. A failure to keep up is expressed very simply as: Profit This, needless to say, is unfavourable for all concerned (the employees, the company, and the country or nation). The mining companies have had to look at ways of reducing the expense part of the profit equation while maintaining safe, environmentally conscious operations. Table 1 summarises the rules for working in todayÆs economy.

Jan 1, 2000

By Waterhouse J. D, Harris B. M

This paper briefly describes the construction in 1979/80 of a 70m deep trial open pit coal mine near Bowmans S.A. and describes more fully the hydrogeological aspects of the exercise. The primary purpose of the Trial Pit was to provide a large sample (700 tonnes) of coal for combustion tests to be carried out in West Germany and the United States of America. Consideration was given to obtaining the sample of coal by drilling and by shaft sinking as alternatives to open pit methods. It was expected that economic mining of the deposit on an operational scale could only be achieved by open cut methods and it was recognised that major uncertainties existed in planning such a mine in the deep unconsolidated multi-aquifer deposit. It was therefore elected to obtain the bulk sample by constructing a trial open pit, which would be closely monitored to provide as much data as possible for future planning of a full scale mine. The dewatering of the Trial Pit was achieved using 26 deep pumping wells, assisted in the later stages by several hundred well points. This was probably the largest dewatering project currently in operation in Australia.

Jan 1, 1981

By D Baas, J Le, R Braun, R Chandramohan, K Hollis, G Lane

The Phu Kham Copper-Gold Operation (Phu Kham) is located in northern Laos, approximately 140 kilometres from the capital, Vientiane. The operation is a producing asset for Australian-based copper and gold producer, PanAust Limited (PanAust) and is operated by Lao-registered company, Phu Bia Mining Limited (Phu Bia Mining). PanAust holds a 90 % interest in Phu Bia Mining. The Government of Laos owns the remaining 10 %.The Phu Kham Operation has recently undergone a series of process improvements to treat the anticipated competent ores scheduled for 2017 and 2018. The operation’s comminution circuit, which comprises a semi-autogenous (SAG) mill and two ball mills, each with 13 megawatts (MW) of installed power, was expected to be SAG mill limited when treating competent basement rock. Ausenco Services Pty Ltd (Ausenco), was engaged to help optimise and enhance the productivity of the Phu Kham comminution circuit over an eight-month period. The work involved participating in and overseeing the redesign of the SAG mill liner systems and developing operational strategies for maximising throughput through to the end of mine life. Ausenco’s comminution optimisation tool, Ausgrind, was used to benchmark and analyse plant data with empirical models, predict circuit performance for varying ore characteristics and evaluate liner wear and predict the life for varying operating parameters. Variances between the actual and the predicted values were assessed in detail to identify missed opportunities, and guiding operating parameters were redefined to maximise throughput and productivity. In combination with the redesigned liner system, optimised process controls for varying ore competencies, and improved operational practices and troubleshooting strategies, increased Phu Kham overall production, exceeding the milling capacity when treating competent ores. CITATION:Chandramohan, R, Braun, R, Lane, G, Hollis, K, Le, J and Baas, D, 2018. SAG mill optimisation and increasing throughput at the Phu Kham Copper-Gold Operation – a success story, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 113–128 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By A Hatt

This paper presents a case study of characterisation work undertaken at a greenfield exploration project to provide engineering and OH&S inputs for the design of a ventilation system. The paper discusses how comprehensive early characterisation of the ambient surface and underground environment including aspects related to heat, dusts, strata gas, and geologic/mineralogical factors enables incorporation of the right ventilation and non-ventilation controls at a study level to mitigate the risks identified.

Oct 12, 2022

By S Padekar, C Tapia, D Likhachev, S Harlikar, D Sapkale

In the quest to access valuable critical minerals, humankind is expanding the frontier into extreme environments like space and deep-sea mining. These ambitious enterprises involve considerable costs and lengthy development cycles to ensure the robustness of mining systems in the face of the harshest conditions and unforeseen challenges. Unfortunately, obtaining information from these unexplored territories is complicated. Data is often scarce, incomplete or impossible to obtain until equipment is deployed, leaving engineers facing many uncertainties throughout the design, testing, production and preparation of such missions. Despite these challenges, these extreme environments operate under consistent physical and chemical principles that can be faithfully digitally replicated. However, unexplored areas and dynamic systems like weather and geology continue to carry uncertainties. While eliminating uncertainties remains elusive, Digital Twins offers a means of robust risk management tool. These virtual replicas can excel in simulating extreme conditions and unexpected events, helping optimise and validate mining system designs tailored for such hostile environments. This study takes inspiration from the Mars Science Laboratory (MSL) Curiosity Rover’s wheel damage rate to develop a Multiphysics Modelling and Virtual Motion Simulation (MMVMS) system. Using advanced Generative Design, this MMVMS system refines the MSL’s design, simulates component and system performance, and assesses the risk of premature damage while operating on Mars. Additionally, MMVMS integrates cutting-edge CAD design technologies from aerospace and manufacturing to realistically recreate the Martian environment and a detailed representation of MSL, allowing mobility verification and validation simulation to test different components in terms of materials, design, weight, power and, therefore, cost. The research highlights the precision of MMVMS in replicating extreme conditions, simulating and evaluating internal and external variables influencing the entire system (Rover) in real-time, and predicting movements, failures, and premature damage. This sophisticated Digital Twin technology, showcased in this research, holds promise not only for space missions but also to be adapted for terrestrial and deep-sea mining operations.

Sep 1, 2024

Conventional treatment of oxide and oxidised sulphide minerals by flotation involves the use of sodium sulphide for sulphidisation. Sodium sulphide is generally applied in a "slug" dosing fashion with manual regulation. However, it is recognised that "over addition" or "under addition" of sulphidising reagent can result in poor flotation recoveries. Thus, control of sodium sulphide additions is an important aspect of a sulphidisation circuit, both commercially and metallurgically. In any plant where the flotation feed is "constant" it is possible to operate at a constant rate of addition of sodium sulphide. In actual plant practice, however, it is difficult to maintain a truly constant feed for any reasonable duration because this implies not only a constant feed-rate, but also constant mineral composition and particle size range. These factors can vary significantly and ideally require corresponding variations in the additions of sodium sulphide to maintain optimum recoveries. To cope with variations in the feed, it is essential to have automatic rather than manual regulation of the sulphide reagent addition. The CPS process achieves this control by utilising a sulphide ion-selective electrode as a control instrument in sulphidisation. The CPS process which uses a selective electrode, enables the sulphide ion concentration in the flotation pulp to be monitored and controlled continuously throughout the stage of sulphidisation.

Jan 1, 1989

Solid Energy New Zealand Limited owns and operates the Ohai coal field (Wairaki Coal Mining Licence, CML) in western Southland. The Morley Stream passes directly through the middle of the CML and has required diversion in the past to enable open cast mining to proceed. Solid Energy is evaluating two new open cast pits at Ohai. Commissioning these new pits would necessitate further diversion of the Morley Stream. One of these potential new mines is adjacent to an abandoned State Coal Mines (State Coal) pit and there is an opportunity to substantially rehabilitate this old pit as a corollary to the new mine and the stream diversion project.   Past Morley Stream diversions were undertaken by State Coal and so they predated the Resource Management Act 1991 and the degree of community environmental awareness and involvement that has become the norm these days. Not surprisingly the design and construction of the historic stream diversions was based purely upon mining (operational) and engineering considerations. This led to the stream being diverted in a manner that achieved the clinical conveyance of design volumes of water from points A and B.   Solid Energy realised that the proposed new diversions need to adopt more holistic and environmentally sustainable design principles while also including appropriate mining and engineering constraints. This project involved the design of a 1.7 km diversion of the Morley Stream (median flow of about 1000 litres/second) that would enable progressive prestripping and development of the new mines and would also address final rehabilitation (of the stream), geotechnical risks, hydrological and ecological issues. To address all of these factors the project required a multidisciplinary approach. Moreover, it required a clear understanding of how the mining operational constraints could be integrated with the environmental considerations. A significant aspect of the project was how to take account of fishery instream habitat needs, the resource consent requirements and most of all, the involvement of key stakeholders such as the Fish & Game Council, Department of Conservation, the Iwi and local community in the design process. This was achieved through coordinated consultation and stakeholder involvement in a technical design workshop.

Jan 1, 2005

Gold has been known and mined in Australia for over 150 years. It occurs and is mined in all States and the Northern Territory. In the past 30 years approximately 8300 t of gold has been mined and gold exports have contributed over $106 billion to the Australian economy. In the first three quarters of the Australian financial year 2006 - 07 (ending 30 June 2007) gold exports were valued at $7.3 billion, which was 13 per cent of the value of all minerals exported and five per cent of AustraliaÆs total goods and services exports over the period. Clearly gold has been and remains a very important component of the Australian economy.

Jan 1, 2007

During the life of a mining project in Papua New Guinea (PNG), the greatest impact is on the people of the project area and the most intense, day-to-day contact is between these people and the project's field staff. Yet formal structures at present emphasise contact between much higher levels of national government and company personnel. Whilst understandable, this is unfortunate particularly since, given the nature of PNG politics, villagers do have a powerful influence on project success, as recent dramatic events on Bougainville have indicated. A greater role for local views and greater attention to such views by other parties is clearly required. But to achieve a successful marriage between informal village politics and the formal structures of investment procedures will require considerable patience and adjustment. This should be reflected in the cost of project development and be regarded as being as of a significance equal to that currently accorded to the technical aspects of project development.

Jan 1, 1990

By H Arvidson, J Vann

When only wide-spaced drilling is available, for example at concept, prefeasibility and feasibility stages, properly implemented linear estimation (including ordinary kriging) predicts grade tonnage relationships that are over-smoothed compared to final production estimates (and production). Non-linear estimation and conditional simulation are alternative geostatistical approaches that can provide more reliable estimates of the recoverable tonnage and grade from wide-spaced drilling. Non-linear estimation and conditional simulation have been rarely used on iron ore deposits. However, these techniques have had wide application in other commodities such as gold and base metals. Conditional simulation has been used in the iron ore industry (eg Guibal et al, 1997); however, its use here is outlined as a means of generating non-linear estimates, not just its use for variability and drill spacing analysis. As a rule, regardless of commodity, the decision to use non-linear geostatistics will necessitate increased skills and require more time. This decision must therefore be justified in terms of cost-benefit. Such cost-benefit analysis is not straightforward, and to help an approach for determining when linear estimates are inadequate is presented. Recommend in this paper is a well-established non-linear geostatistical approach, the global ædiscrete Gaussian modelÆ (DGM) of change of support, as a tool to establish whether moving from linear to non-linear estimates will materially improve estimate results. Also discussed is the additional use of DGM as a block model validation tool. One specific factor contributing to the lack of application of non-linear geostatistical methods in iron is the added difficulties that arise when conditional simulation and non-linear estimates are required to reproduce the numerous and often important correlations between variables in iron ore deposits. Consequently, presented in the paper is a synoptic review of non-linear estimation and simulation methodologies applicable to correlated variables.

Jan 1, 2007