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By M P. Murphy, C M. D Barton

When developing a new underground mine, the geological interpretation that guides the mineral resource is crucial to the preparation of a reliable ore reserve. In preparing a robust geological model to underpin a resource estimate, practitioners must weigh the comparative risk of accepting a relatively wide-spaced drill hole pattern, versus a more close-spaced pattern that ensures a high local geological confidence for mine planning but may have an exponentially increased time and monetary cost. This paper details the authors’ investigations into the geological uncertainty of IGO’s Odysseus Deposit, which is approximately 645 km north-east of Perth, Western Australia. At Odysseus, the komatiitic nickel sulfide mineralisation is irregularly cross-cut by nickel-barren pegmatites that have intruded and offset its thick ultramafic orebodies. These pegmatites generate significant uncertainty in the precision of Odysseus’ resource volume and tonnage estimates, as well as the subsequent quantification of pegmatite mining dilution in its ore reserve. To quantify the geological uncertainty in the pegmatite interpretations, IGO’s mineral resource practitioners prepared several geological risk studies over the Odysseus North lode, which is the lode most affected by the pegmatites. These studies included categorical conditional simulation of the pegmatites, preparing implicit geological models with alternative algorithms, trialling a machine learning application to prepare a maximum likelihood geological model, and finally assessing the early results of the pre-production close-spaced drilling to these different models. To assess the precision of the different single-outcome models, the authors’ compared the estimated pegmatite content of each model to the range of possibilities modelled by categorical conditional simulation within the planned stopes at Odysseus North. An estimation confidence score for each modelling method was then prepared for each alternative single-outcome modelling method. From these studies IGO concluded that a close-spaced drill pattern is essential at Odysseus, supporting the view of the Competent Person in 2017 who proposed a 25 m drill spacing in areas affected by pegmatite which had been partially classified as Inferred.

May 24, 2023

By R C. Schodde

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Over the last decade (2005–2014), a total of 439 significant deposits of gold and base metals were found in the world. Twenty (or 4.6 per cent) of these deposits were in the Pacific/South-East Asia (Pacific/SE Asia) region. In terms of contained metal, the region accounted for 1.6 per cent of gold and 13.8 per cent of copper found in the world. With regard to nickel and zinc/lead, the region’s contributions were insignificant.Over the same period, the Pacific/SE Asia region accounted for 6.6 per cent and 12.6 per cent of all gold and copper exploration expenditures in the world respectively. After adjusting for by-product credits, unreported discoveries and likely growth in resource, the unit discovery cost for the region was US$199/oz (compared to a world average of US$50/oz). For comparison, the unit discovery costs for the previous decade were US$55/oz and US$25/oz respectively. The region’s unit discovery cost for copper was US$0.036/lb (versus a world average of US$0.040). For comparison, the unit discovery costs for the previous decade were US$0.026/lb and US$0.008/lb Cu respectively.The region’s mediocre discovery performance doesn’t reflect its distribution of known mineralisation. Some countries within the region have a very good endowment per square kilometre.It is noted that the intensity of exploration (and resulting success) would be boosted if governments provided a more mining- and investment-friendly business environment and generated better precompetitive geological data sets (to identify new exploration targets and boost the country’s perceived mineral prospectivity). A multivariable regression analysis of a decade of data from the Fraser Institute’s mining company surveys found that a ten point increase in the Policy Perception Index or a 0.1 point increase in the Mineral Potential Index could boost (in the short term) exploration expenditures by 1.9 per cent and 2.7 per cent respectively. The resulting economic benefits of an expanded mining sector would be significant. The same story applies elsewhere in the world.CITATION:Schodde, R C, 2015. Discovery performance for gold and base metals in the Pacific/South-East Asia – 2005–2014, in Proceedings PACRIM 2015 Congress, pp 25–34 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By J V. Mehrabani, A R. Sayadi

Adequate estimation of equipment costs is a key factor in a feasibility study and in evaluation of design alternatives for mining and mineral processing projects. Inaccurate early cost estimation could lead to the elimination of investment benefits. However, this estimation is complex and time consuming because of data accessibility problems and consequently access to a rapid, up-to-date and accurate tool is desirable for carrying out cost estimations.This paper describes the development of models for estimating capital and operating costs for a jaw crusher, which is used as the primary crusher for a wide variety of mineral beneficiation plants, applying single and multivariate regression analyses, together with the design of experiment approach, based on principal component analysis. Explanatory variables include gape size, length of feed opening and power as numeric (quantitative) variables and toggle type (single or double) and the existence of extra heavy duty construction as categorical (qualitative) variables. The performance of each model has been investigated and comparing the estimated R-squared (R2) of each model, the best was selected and its validity examined. The cost models include the capital and operating costs along with the operating cost components. The results indicate that the suggested best cost model is sufficiently accurate for use in feasibility studies.

Sep 26, 2011

By R J. Longbottom

In this study the bonding within reduced titanomagnetite-coal compacts was investigated. The aim of the study was to better understand the binding mechanisms in the reduced compacts and, based on this understanding, to improve on their strength.Titanomagnetite ore was combined with sub-bituminous coal to form compacts. The compacts were then reduced by heating in a thermogravimetric furnace (TGA) to temperatures between 1000 - 1300°C under argon. The reaction progress was monitored by measuring the weight loss with time. The reduced compacts were found to have low strength in compression testing. The main form of bonding between the reduced titanomagnetite particles in the compact was by the formation of a slag-like material. Increasing the fi nal reduction temperature was found to have a profound effect on the strength of the compacts by promoting the formation of this slag-like material.Attempts to improve the strength of the compacts were made by changing two variables, the type of coal and the addition of rice husks. The addition of coking coal gave reacted samples that had little strength, while the addition of rice husks may have enhanced the strength of the reduced compacts.

Jul 11, 2011

"Recognising that the mining industry is wedded to the break-even cut-off grade rather than a cut-off grade that optimises value, the author examines some perils and pitfalls in the use of break-even grades that lead to what the author calls ‘negatively geared ore reserves’.Negatively geared ore reserves occur when a portion of the ore reserves actually has a negative value and is effectively being subsidised by the more profitable portion of the ore reserves. This situation is generally difficult to detect with the level of information available to the public investor. The ore reserves can still be quite profitable in total, but now possess a level of risk that may not be appreciated.The risk profile (financial risk) of a negatively geared ore reserve is far greater than for a non-negatively geared ore reserve. Like a negatively geared investment property in a falling property market (for readers familiar with the Australian tax minimisation investment strategy), when the price of a commodity falls, a company that possesses a negatively geared ore reserve loses value at a magnified rate relative to a company that has a neutral or positively geared ore reserve. In the extreme case of a major commodity price reduction, as happened with the gold price in mid-2013, the negatively geared ore reserve can easily become negative value in total, not just in part.The negatively geared ore reserve is sometimes intentional – for instance in order to increase published ore reserve tonnages and meet the CEO’s key performance indicators – but is also often unintentional, resulting from various errors in the break-even calculation. Common errors in calculating a break-even grade include using fixed metallurgical recoveries, not including allowances for ideal laboratory versus real plant results, ignoring available operational data and using modal rather than mean parameter values in cost and performance calculations.This paper examines a common value distribution profile in many ore reserves and the effect of common break-even grade errors on this profile.CITATION:Poniewierski, J, 2016. Negatively geared ore reserves – a major peril of the break-even cut-off grade, in Proceedings Project Evaluation 2016, pp 236–247 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By J Shillabeer

Paste backfill has been adopted by many underground mines in North America and a growing number elsewhere. Paste offers a number of advantages. This paper suggests wider applications of paste technology to surface tailings disposal and water management. Advantages include improved overall stability, potentially easier permitting, smaller water inventory and earlier reclamation. It may be feasible to use the same plant to prepare backfill and to dispose of surplus tailings. Example cost models are given to illustrate potential applications.

Jan 1, 1998

By Y Pan

The recycling of steel is a crucial aspect of the shift toward a sustainable metals industry. The emphasis on steel recycling through the introduction of the scrap based mini-mill concept is also matched with a desire for greater product quality and reduced environmental impact, which, in turn, has generated important innovations. There have been significant advances in the technology for recycling steel over the last 20 years and this paper will provide an overview of these developments and discuss future directions in steel recycling including scrap management, control of tramp elements, electric arc furnace technology and ladle metallurgy.

Jan 1, 2004

By A Chadwick, J de Ross, C Adams

Imagine a æshinyÆ new mine, $1 B in the bank and record commodity prices. So how does a company and its management team create enough tension to maximise profit and to establish a culture that can weather the good and bad times?That was exactly the situation the team at OZ MineralsÆ world class Prominent Hill mine in South Australia faced in 2009.Three years later, the harder times have come - lower though still healthy commodity prices, rising industry costs, fierce competition for talent, geological and technical issues (common to developing mines). However, the company was able to maximise profit during the good times and equip the culture to deal with the tougher times with minimal turnover.Through the combination of simple systems and processes, people development, application of commercial technical acumen and a combination of yin and yang leadership, OZ Minerals has achieved something quite rare - sustainable continuous improvement.The journey started with a vision. The EGM Operations created the æsparkÆ. The dream was to create a æfranchise mineÆ that could be rolled out to new mines and acquisitions as the company grew. However, the real leadership came from his lieutenants who provided the important yin and yang. The GM commercial provided the tools, processes, systems and the bottom line focus. The GM operations focused on culture, leadership, training and sustainability. This powerful combination (along with some good old persistence) was able to create the critical mass required to make continuous improvement go æviralÆ.This paper explores this unique case to uncover the essential ingredients that were created and mixed together. It will touch on the key human, technical and system elements that helped achieve significant improvements in plant recoveries, mine throughput and operational efficiencies, while overcoming human capacity, geotechnical and contractual challenges.CITATION:de Ross, J, Chadwick, A and Adams, C, 2012. How to create a perfect storm, in Proceedings International Mine Management 2012, pp 239-250 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By Bruington T, Perkins J, Hutton R

Natural resource developments are among the largest and most challenging projects taking place in the world. They involve capital intensive investment with long lead times and the management of geological, market, technical, operational and financial issues. A clear strategy is required to manage these projects and this strategy is underpinned by a development Philosophy.

Jan 1, 1997

By R Justa Cámara, J María Bertrán Llop

"The need for suitable geotechnical characterisation of the rock mass for underground construction is evident. The enlargement project of Railways of the Generalitat of Catalunya (FGC) in Sabadell is a patent example.In general, it is uncommon to encounter problems in the identification and characterisation of certain relevant weak rock formations, which affect project designs. However, all materials should be properly studied, as mischaracterisation can lead to a suboptimal design, resulting in construction problems during the course of the work.Good quality rock is generally not difficult to characterise, but this is not the case for Quaternary or Tertiary cemented soils. Geotechnical investigations based on boreholes do not provide enough information because samples are often badly damaged during the drilling process, if appropriate techniques are not taken. The samples can be altered and may not be representative of the in situ?material.The design and construction of the extension to the FGC line in Sabadell highlighted the importance of the characterisation of Quaternary and Tertiary cemented soils, in particular their rigidity and its underestimation. The twin tunnel project had a total length of 5.1 km, including five stations with 3.5 km excavated by tunnel boring machine (TBM). The remaining 1.6 km was constructed using cut and cover methods. The TBM portion of the tunnel had a bored diameter of 6.83 m with an internal radius of 3 m and 0.25 m thick precast concrete segments. Much of the tunnel alignment passed through and was affected by the presence of certain stiff layers of Quaternary cohesive materials.In this paper the TBM challenges faced will be discussed in detail. In particular:  TBM excavation rate reductions and overheating problems due to the required excessive thrust and torque floating problems in the lining due to nil earth pressure over the rings and the development of an improved, controlled setting time mortar to address this issue block-in and block-out methodology for each station, in some cases with internal blocks to prevent earth pressure drops and soil scouring the relevance of performing simpler solutions, for example, hyperbaric interventions to examine the cutter wheel tools when it has been shown that interventions under atmospheric conditions were equally feasible the implementation of conventional bivalve machines as standard procedure for excavation of diaphragm walls in stations, where in fact, hydrocutter machines or pile boring machines may have been required, given the mechanical characteristics of the materials to be dug out.CITATION:Justa Cámara, R and María Bertrán Llop, J, 2014. Underground extension of the FGC line in Sabadell through cemented soils, in Proceedings 15th Australasian Tunnelling Conference 2014, pp 161–170 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 17, 2014

By A McGann, P J. Coghill, D Miljak

"It is widely accepted that bulk ore sorting could provide a step change in processing of low-grade ores. For this to be achieved a rapid, accurate bulk sensor of grade is required as well as sufficient natural variation of grade in the ore stream. CSIRO trialled a magnetic resonance (MR) sensor capable of measuring chalcopyrite, and by inference total copper grade, on the 1300 t/h Ridgeway portal conveyor. The gauge produced an unprecedented set of data down to a 1 t scale for months at a time. This paper analyses the measured variation and compares it to a simple model derived from the bore core data and mixing within the block cave mine.The model of the small-scale (<1000 t) variation is developed using fractal methods which have successfully been used in the past for copper porphyry deposits showing a power law or near power law distribution of copper grade and vein sizes. These fractal distributions have two features highly favourable for segregating ore, a large proportion of low-grade pods and the large-scale spatial clustering of grade. We show the presence of fractal ordering in bore core data at short range in the Cadia Ridgeway porphyry deposit and measure its persistence in the crushed rock produced by the Ridgeway block cave mine over one month. The model is then extended to demonstrate the effect of varying head grade, mixing and pod (or diversion) weight on bulk sorting efficiency.CITATION:Coghill, P J, Miljak, D, McGann, A, 2016. Modelling Grade Variation in Crushed Ore at Cadia Ridgeway and Its Potential Consequences for Bulk Ore Sorting, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 77–88 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

The paper provides an overview of the development and content of APCOM symposia since their inception in 1961. This development is set within the context of the academic environment in which much of the research published at APCOM symposia is conducted. This environment includes rigorous external assessment of research quality at national levels and against international benchmarks, which carries significant consequences for funding and for the continued existence of the academic minerals industry disciplines. Adverse consequences that undermine the academic provision of mining and resource engineering will impact negatively on the minerals industry by reducing the level of research and education resources available to it.The traditional reductionist approach to research is contrasted with the inter-disciplinary approach that is required to address the complex systems problems that the minerals industry will have to address to ensure its technical, economical and environmental sustainability. Such an approach offers a means of raising research profiles, of establishing mutually beneficial academic-industry engagement and provides an opportunity for APCOM to take a lead role in identifying the research and development agenda for the future

Sep 26, 2011

The phenomenon of Instantaneous Outbursts, although not new to Australia, was sharply drawn to the attention of the local coal-mining industry by two isolated fatal occurrences on widely separated fields, both late in 1954. An outburst is the eruption of apparently solid coal from the face, aided by vast quantities of gas released from the coal, as the coal fails under mining stresses additional to its natural stressing.The gases involved are principally methane and carbon dioxide. The various factors which combine to produce outburst conditions range from external factors such as stresses arising from depth of cover and other causes, to inherent factors such as strength of coal,and its capacity to retain gases (sorption). Of the localities where instantaneous outbursts occur the Gard Basin in Southern France has had the greatest number and the most serious occurrences. By contrast, local outbursts have been minor.Experimental work into some influencing factors has been carried out by various overseas authorities and some research has been accomplished in Australia. Practices used in some overseas areas to improve safety of working are largely empirical, as are the local rules and recommendations for work in affected areas.The appearance of further outburst areas is anticipated as mining becomes more extensive and deeper.INTRODUCTION"Instantaneous Outbursts" can be described as violent eruptions of coal from the solid accompanied by considerable gas evolution. The projected coal is usually of small size, and a high proportion is pulverized, and may be carried and deposited over great distances by the gases, liberated from the outburst. This outburst coal is of bituminous to anthracitic rank, and the gas involved is essentially methane or carbon dioxide, or a mixture of both. Outbursts involving carbon dioxide are usually more violent and dangerous. The phenomenon is relatively unusual, being confined to probably sixteen known areas in the entire world, these areas comprising only portion of the coalfields in which they occur. Usually only one or two mines on each field are affected.

Jan 1, 1958

By R Cox, S Pandey

The coal seam gas (CSG) industry is expanding rapidly in the Surat and Bowen basins. CSG production involves pumping water from the coal seams to release the gas adsorbed to coal particles. The reduction in water pressure in the coal seams will cause some reductions in water pressure in overlying and underlying aquifers because there will always be some interconnectivity between the formations. The Surat Basin is a sub-basin of the Great Artesian Basin, which contains aquifers of high economic, environmental and cultural value. The Condamine Alluvium is also an important water resource, which overlies parts of the eastern margin of the Surat Basin.Under the Queensland (Qld) regulatory framework, an area of intensive CSG development involving multiple CSG operators can be declared to be a cumulative management area. For such areas the Office of Groundwater Impact Assessment develops assessments of future impacts on aquifer water pressures and develops and manages arrangements. The results are published in underground water impact reports.The Surat underground water impact report (QWC, 2012) was approved in December 2012. This paper summarises the place of the report in the Queensland regulatory framework, the content of the report and progress in its implementation.CITATION:Cox, R and Pandey, S, 2013. Managing groundwater impacts in the Surat Basin, in Proceedings Water in Mining 2013 , pp 169-174 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 26, 2013

This presentation addresses the sources and weighting of project risk in coarse gold deposits with relevance to experiences at the Ballarat mine and Castlemaine goldfield. With sample representation and reliability often a source of great error in the resource estimation of coarse gold deposits, it follows that this matter should be of greatest risk to a mining project - but is it? What are the costs and efforts required to best quantify the sampling error due to nuggetty effect? After all, the main problem in Victorian gold mining ventures in the current decade is not the amount of gold available, but defi ning which portion of it can be converted to Ore Reserves or more so profitable gold bars. The author postulates that greater risk to the project lies in the geological interpretation and matching resource spatial parameters to mining methods, than the degree of uncertainty related to grade due to nuggetty gold. Recent experience in the Victorian goldfi elds is that the investor market has already severely discounted Mineral Resources reported in accordance with The JORC Code - so if they don't believe in the capacity to upgrade the resource why should we? To this end, Castlemaine Goldfi elds Ltd at its Ballarat gold project does not intend to estimate its gold mineralisation for public release, instead choosing to focus on the geological interpretation and mine planning elements. So with coarse gold deposits, is your Mineral Resource reported with The JORC Code a glass half full or half empty? Our mining forefathers in Victoria had no predictive tools which could define resources to any degree and yet were successful. By over emphasis on the definition of mineral resources and particularly the sampling error, are we ignoring the basics of cost control, solid geological interpretations and maximum mining flexibility. This is an ABSTRACT ONLY. No paper was prepared for this presentation.

Aug 1, 2010

In 1939 Dr Neil George gave us the statement: Safety is a state of mind by which men are constantly made aware of the possibility of injury at all times. Is this statement still relevant? Have we been able to capture the essence of Dr GeorgeÆs statement in our current safety management systems and have we been able to capture the lessons from the past? Drawing upon 25 years of experience in the mining industry we explore what was done in the past, how this related to Dr GeorgeÆs statement and how the industry has progressed to the current safety management systems. We review the safety management system used by Roche Mining and demonstrate how it has improved safety outcomes for Roche. We then look to the future û are there new challenges? Are the current management systems equipped to cater for these new challenges and deliver continued improvement in safety outcomes? There will always be a desire to improve the industryÆs safety outcomes and so how are future generations going to achieve the improvement in safety outcomes?

Jan 1, 2007

Declines for both access and rock haulage are replacing shafts for mining relatively shallow deposits of down to 1000 m below surface. Where the orebody does not outcrop and where surface access may be restricted, it is often necessary to drive long dead end headings before a connection can be made back to surface and a ventilation circuit created. In hot tropical areas and where large diesel powered equipment is used for mining, heat may also be a problem at these relatively shallow depths. The normal design criteria based on statutory limits and good practice used to evaluate ventilation and cooling requirements in terms of air velocity, dust, gases, diesel exhaust dilution, re-entry after blasting and heat stress are described in this paper. These are then used to design and cost alternative auxiliary ventilation systems that include leakage based on general fan performance curves and typical duct systems. The implications of the current European Community recommendations regarding nitrous fumes are also briefly considered. The actual problem relates to a 2100 m long decline that may have to be extended to 3000 m long without a connection to surface or through ventilation and is located in a hot tropical area where the surface wet bulb temperatures may exceed 25¦C for more than a third of the summer period. Once the preliminary ventilation design is completed, the auxiliary ventilation system can be modelled and simulations undertaken that incorporate heat and moisture transfer routines with the objective of determining the cooling load and amount of refrigeration required. Cognisance is taken of cyclic diesel operations and the thermal flywheel effect of the surrounding rock on the wet and dry bulb temperatures resulting from these operations.A suitable modular cooling system located at the portal is described and optimised with capital and operating costs of both the ventilation and cooling systems provided.

Jan 1, 2005

By S Phinn, V Glenn, P McKenna, P D. Erskine, D Doley

The key goals for mine site rehabilitation require mine managers to demonstrate that rehabilitation is safe, stable, self-sustainable and non-polluting. Within this context, it is reasonable for stakeholders to expect that mine site rehabilitation is resilient to disturbance impacts such as fire and drought. However, mine managers actively avoid fire on rehabilitation; and as a result have limited understanding of fire behaviour on revegetated landforms, the long term implications for site stability and the potential risk to site relinquishment. An experimental fire that was conducted at the Curragh Mine site in May 2015, burnt 117 ha of 19- to 21-year old mine site rehabilitation, mimicking wildfire conditions and creating a mosaic of fire impacts across the landform. Using a combination of ground surveys and remote sensing assessments, we demonstrate that over a two year period, ecological metrics such as species richness, woody density and understorey biomass all recover to pre-fire levels for both grassland and open woodland areas. This is supported by WorldView-3 satellite imagery and the remote sensing assessment using the differenced Normalised Differenced Vegetation Index (dNDVI) which shows high regrowth within the burn area in 12- and 24-month image captures. The results suggest that within the recorded conditions, this site is resilient to fire impacts, and has the capacity to recover to pre-fire levels within the first two years following the fire.CITATION:McKenna, P, Erskine, P D, Phinn, S, Glenn, V and Doley, D, 2018. Measuring the recovery of coal mine rehabilitation following fire in Queensland using remote sensing and ground surveys, in Proceedings Life-of-Mine 2018, pp 141–146 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

The Yabulu refinery of Queensland Nickel Pty Lld near Townsville now imports more than three million wet tonnes per year of nickel laterite ore from New Caledonia and Indonesia, making it the largest importer of any commodity in Australia. The project has illustrated that importing untreated bulk ore and re-exporting high value products makes good economic sense for the company and the nation.The economics of this exercise were considerably enhanced in 1994 by changing the project's principal product from nickel-oxide sinter to refined high-purity nickel metal. It is one of the few operations in the world where nickel ore is transformed to nickel metal at a single site.Several novel technological processes were developed at Yabulu and incorporated into the refinery to allow this product transition to occur. By utilising internally developed technology the new processes were installed at a capital cost of less than $10 million. It is unique for a large nickel producer to change completely the quality of its entire product range many years after the plant was constructed and considerable attention to marketing the new products has been required.The changes have meant that the project is no longer limited to selling lower-value oxide sinter to a relatively small number of large stainless steel mills. In the past year sales of the new high purity nickel metal products have expanded to include a broad range of international customers in the special alloy, foundry and chemical industries.

Jan 1, 1995

By P Hodkiewicz

Recent structural interpretations based on historic stope shapes were used to develop a rapid and innovative method to domain and simulate structurally complex, high-grade gold veins at depth in the Edna May deposit. This involved ‘implicit’ modelling of drill hole data using Leapfrog software, which allows complex wireframe domains to be built and updated rapidly, compared to ‘explicit’ manual wireframing methods that are too subjective and time consuming. Conditional simulation was used for resource estimation, in order to simulate the highly variable gold grades associated with the veins. Similar modelling methods could be used to determine the mining potential of other historic gold deposits that are receiving renewed interest because of the high gold price.Gold at Edna May is hosted in the Edna May Gneiss, which is a WNW-striking tonalitic intrusion along a shear zone that dips approximately 45° towards the NNE. Gold occurs in multiple 0.5 - 5 m thick arcuate quartz veins that plunge steeply towards the west. Two phases of historic underground mining at Edna May (1911 to 1922 and 1935 to 1947) produced 360 000 ounces of gold at an average grade 19.5 g/t from seven ‘reefs’ to a depth of 240 m. This established Edna May as one of the highest grade gold mines in Western Australia at the time.Recent drilling by Catalpa Resources confirmed the potential for down-plunge continuity of high-grade veins. New structural interpretations, based on historic level maps and wireframe re-constructions of the arcuate stope shapes, were used as ‘structural trends’ in Leapfrog to model the mineralisation. The resulting wireframes capture the complex distribution of gold in the deposit and were used as domains for resource estimation.Conditional simulation using the Turning Bands method was used to simulate the expected variability of gold grades associated with this mineralisation style and the median of the 100 realisations was used to report an inferred resource. Results of this modelling method are being used to target vein extensions at depth, to consider different underground mining scenarios, and to assess the risks associated with developing and mining this high-grade and high-nugget gold deposit.

Aug 22, 2011