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Changes in reductant and energy inputs which are required to adjust the slag composition in anilmenite smelter to a higher or lower FeO content are calculated. The calculated changes are based on the assumption that solidification equilibrium with the freeze lining constrains the slag composition to follow a eutectic groove in the TiO2-FeO-TiO1.5phase diagram. Calculated equilibrium conditions along the eutectic groove are presented, and form the basis of the calculations. The inputs of energy and carbon need to deviate strongly from the steady-state values to adjust the slag composition. The inputs required at any given time depend on the desired rate of change of the slag composition, and the current slag composition. The steady-state relationship of a change in energy input of 5 kWh corresponding to a 1 kg change in carbon input does also hold for the changed inputs during transient changes in FeO content. Keywords: Ilmenite smelting, freeze lining, solidification, eutectic

Jan 1, 2003

By K. Osburn

South Deep Gold Mine, owned by Gold Fields Ltd., is situated near Westonaria in the Gauteng Province of South Africa and mines the conglomerate bands of the Upper Elsburg reefs (Mondeor Conglomerate Formation) of the Witwatersrand Supergroup and the Ventersdorp Contact Reef (VCR) of the Ventersdorp Supergroup. The stoping and underground developments are mechanized. The Upper Elsburg reefs are mined by a variety of mining methods, including mechanized drift and fill, modified drift and bench, longhole stoping, and low-profile mining. Optimal mine design and scheduling for deep-level mechanized mining are complex, and success is highly dependent on detailed, robust, and accurate geological and geostatistical models. Geological structures significantly influence the sedimentological characteristics, distribution, and preservation of the Upper Elsburg reefs and VCR. Accordingly, particular emphasis is placed on the generation of a mine-scale structural model that accommodates the relationships between the older north-trending fault systems (West Rand and Panvlakte faults) and younger east-trending dextral wrench faults. Results from underground mapping, borehole intersections, and highresolution three-dimensional seismic data have been integrated to produce coherent three-dimensional geological models. The Upper Elsburg reefs suboutcrop against the VCR and comprise an easterly diverging clastic wedge, thickening from the suboutcrop position, to approximately 130 m at the mine?s eastern boundary. The Upper Elsburg reefs are characterized by conglomerate and quartzite bands forming multiple, stacked, upward-fining unconformity-bounded couplets. Palaeocurrent directions are dominantly from west-northwest to east-southeast, indicating that the more proximal deposits are preserved close to the suboutcrop, with distal facies to the east. Sedimentological modelling is applied to individual stratigraphic units and caters for facies definition. This is achieved through channel width (CW) kriging and fitting of type sections to borehole and mapping data. Homogenous geological geozones for each stratigraphic unit are thus defined within individual structural blocks on the basis of those sedimentological parameters that have been found to have a positive spatial correlation to gold concentration. These geozones then serve as constraints to the evaluation of the orebody. This contribution presents a summary of the modelling processes that are currently applied in the development of high-confidence, timeously produced geological models that are essential input for mineral resource estimation and mechanized mine planning and scheduling.

Jan 1, 2014

The main objectives of the Mine Mechanisation and Automation program (MMAP) are to enhance health and safety in underground mining operations, facilitate mechanization and automation in narrow-vein and deep mines, provide sound science to regulatory agencies and improve mine profitability. The program, which has a unique underground and surface industrial scale facility, is involved in many multi-partner projects, like hydrogen fuelcell applications, electrification and hydraulification of underground mines, reduction of noise and vibration, miner location device, explosive-free blasting and hoisting. The paper presents an overview of the Mine Mechanisation and Automation Program of Natural Resources Canada and some of the main projects.

Jan 1, 2002

By L. A. Cramer

South African platinum mines produce the world?s majority of platinum metal that is used in autocatalysts and jewellery. As the platinum market is forecast to grow at healthy rates into the future, the South African producers, Anglo Platinum, Impala, Lonmin and Northam, are planning to expand in the next decade. Furthermore, a number of smaller producers who are accessing other mineral rights are entering the buoyant market. The South African platinum mines have traditionally exploited the Merensky Reef of the Bushveld Igneous Complex (BIC); however, the mining of this reef is reaching depths that require significant vertical shaft systems and costly refrigeration for access to the orebodies at deeper levels. In the past decade all of the producers have begun to mine the less attractive UG2 reef because of its cheaper mining costs. This UG2 reef contains significant quantities of chromite with typically a chrome-to-iron (Cr/Fe) ratio of 1.35. UG2 ores can contain between 10 and 25% Cr2O3dependingupon the reef width and the selected mining method. It is relatively cheap and easy to extract a portion of the chromite from a platinum concentrator tailings stream at a grade of between 40?42% Cr2O3. However, it is only in recent years that some ferrochrome producers have begun to source some of their chromite from the tailings of platinum producers. South Africa is also the world?s largest single producer of ferrochrome and supplies much of the world?s stainless steel producers and thus the growing market for their product. As the traditional sources of high Cr/Fe ratio ores have been depleted at the shallow economic depths and thus have become more expensive sources of chromite, technical developments have improved the ability to use fine chromite economically to make acceptable grades of ferrochrome. Thus UG2 fines are now becoming possible cheap sources of acceptable feed to the ferrochrome industry. The abundance of feedstock for ferrochrome production and the lessening dependence on mined material will impact upon the structure of the ferrochrome business in South Africa. With continued platinum mining from UG2 reefs, South Africa is set to remain highly competitive in the world?s ferrochrome/stainless steel industry.

Jan 1, 2004

By T. Proietti, L. Mongiovì, L. Simeoni

Reliable estimates of the kinematic characteristics of movements are obtained by using a statistical model SSM. This model represents a useful tool for the management of alert and alarm systems. L'élaboration des données du déplacement médian d'un modèle statistique SSM opportun fournit des estimations fiables des caractéristiques cinématiques du mouvement. Le modèle peut être ainsi utilisé pour la gestion des systèmes d'alarme. Die Bearbeitung von Bewegungsdaten anhand eines geeigneten statistischen Modell SSM ergibt vertrauliche Abschätzungen der kinematischen Eigenschaften der Bewegung. Das Modell kann also für das Management von Alarmsystemen verwendet werden.

Jan 1, 2003

Analysis for pillar extraction potential (A-PEP) is an intelligent tool, which could be used as a preliminary output indicator when considering the secondary extraction of regional support pillars in the Witbank and Highveld coalfields of South Africa. The safe and economic extraction of underground coal pillars is of paramount significance and importance to the South African coalmining industry to ensure continuity of supply of this fossil fuel. Pillar extraction practices in South Africa have been responsible a significant proportion of safety and fatality statistics in relation to its relative output (less than 5 per cent of total South African coal production) and, as a result, research was undertaken in local pillar extraction operations and extended to similar operations in New South Wales, Australia to assess a way forward for pillar extraction in South Africa. It was found that, although little in the way of new technologies has emerged in this field in the recent past, significant contributions could be made in the field of risk analysis to obtain a generic design methodology for pillar extraction in South Africa. The resultant A-PEP tool to assess pillar extraction potential is based on certain physical, risk and economic factors, which combine to indicate operational success in terms of economic, health and safety attributes. At the time of A-PEP?s development there was alack of operating underground coal pillar extraction operations, which made it difficult to validate its applicability. Since then, however, A-PEP has been successfully tested and validated against two unique underground coal pillar operations, which is the discussion of this paper. One operation is situated in the Witbank coalfield and is extracting pillars, which are 20 years old and at a depth of 80 metres below surface, while the other operation is situated in the Highveld coalfield-which is extracting 6 month-old-pillars underneath a massive dolerite sill at a depth of 220 metres. A-PEP has shown that its predictive nature is consistent the workings at both operations, irrespective of their unique conditions, and as such it can be successfully used as a mine planning tool. The A-PEP mine planning tool thus represents a positive step toward an integrated approach to underground coal pillar extraction when considering legal and operational aspects, which could form the basis for legislative guidelines when considering the future of pillar extraction in South Africa.

Jan 1, 2005

By R. P. Goel, P. N. Chaudhary, R. K. Minj

The bulk of high carbon ferromanganese produced in India continue to have more than 0.35% phosphorus since they are produced by carbothermic reduction process. The low phosphorus manganese ores are depleting fast and ferromanganese manufacturers will have no option but to use medium and low grade ores having high phosphorus content resulting in high phosphorus in the product. A systematic study was taken up at NML to solve this problem. Initially, a thermodynamic analysis was carried out for which Ba-P-O ternary predominance diagrams were constructed at several temperatures to predict the most suitable conditions for selective removal of phosphorus from high carbon ferromanganese. These conditions required a usage of a flux having a high level of basicity, moderate oxygen potential as well as low melting temperature. The experimental results showed that it was possible to remove phosphorus from high carbon liquid ferromanganese from 0.56%to 0.18% using BaCO3 based fluxes at the rate of 16-wt% of the ferromanganese charged. However, the Mn loss varied in the range of 2-5%. The objective of the subsequent study carried out at the laboratory scale was to optimize the flux consumption as well as minimize the Mn loss with effective dephosphorization by using BaO based calcined pellets instead of BaCO3 based powders. It was felt that the handling of pellets under plant conditions would be easier and also eliminate the loss of flux as a dust, which occurs when powder is added. These pellets were forced towards the bottom of the melt for better efficiency. For this purpose, a plunging system was designed and fabricated in-house that helped in reducing the flux consumption to less than 5% and also improved the kinetics of the process. The desired results were achieved within 10 minutes of the addition of the flux. The know-how is ready for transfer to interested parties and authors are willing to conduct large scale trials with them.

Jan 1, 2007

By M. Tangstad, H. Brun, P. Calvert, A. G. Lindseth

In 1999, Eramet bought the ferromanganese plants in Porsgrunn and Sauda (Norway) and Marietta (USA). With an ownership in the Comilog mine, the plants will operate with a high amount of Comilog ore. The properties of Comilog ore are reviewed and compared to a number of industrial operations. Important ore properties are chemical and mineralogical analyses, CO reactivity and mechanical strength. The advantage of Comilog ore is its contribution to lower energy and coke consumption. However, special precautions must be taken regarding the amount of fines and water introduced in the furnace, as Comilog ore is more porous compared to other Mn ores.

Jan 1, 2004

By A. Varadarajan, M. Hashemi, K. G. Sharma

Quartz mica schist collected from Nathpa-Jhakri Hydropower Project, Himachal Pradesh, North India is tested under triaxial loading using a servo-controlled loading system. Complete stress-strain-volume change behaviour including post peak softening behaviour of the samples, are presented. Strength and deformation parameters are given. Quarz mica schist, der von Nathpa Jhakri Hydropower Projekt, Himachal Pradesh gesammelt wird, wird Nördlich Indien unter triaxial geprüft, der von Gebrauch eines servo kontrollierten Ladesystems beladung. Vollständiges Spannung-Spannung-Band Änderung Verhalten Postens Spitze Erweichung Verhaltens der Proben, wird überreicht. Kraft und Verformung Parameter werden gegeben. Mica à quartz schist recueilli du Projet de Hydropower de Nathpa Jhakri, Himachal Pradesh, l'Inde du nord est essayé sous l'utilisation de chargement de triaxial un système chargeant servo réglé. La tension complète-la tension-comportement de changement de volume y compris la poste sommet amollir le comportement des échantillons, sont présenté. Les paramètres de force et déformation sont donnés.

Jan 1, 2003

By X. Q. Cao, D. S. Zhang, L. Q. Ma

To solve the support stability control problem for a coal face with large angles along both strike and dip (CLSD), the ’support-surrounding rock’ mechanical model has been developed, which takes into account the impact of the dip angle of the seam on the stability of the support in the strike direction. The mechanical relationships of the critical topple angle and critical slip angle of the support along the strike of the coal face with large dip angle and the support height, support resistance, friction coefficient, and other factors have been derived through the mechanical analysis of support stability in the strike direction of CLSDs in the free state, the operating state, and the special state. The research findings were applied to a fully mechanized CLSD in Xinji Coal Mine. The maximum underhand angle and overhand angle in strike are 42° and 25° respectively, and the maximum dip is 39°. It is calculated that during underhand mining and overhand mining, the critical support resistances for avoiding support toppling are 3723 kN and 1714 kN respectively, and the critical support resistances for avoiding slipping of the support are 7405 kN and 6606 kN respectively. Thus, the selection of type ZZ7600/18/38 hydraulic roof support for the coal face is justified. Measures to prevent sliding of the support and the installation of a limiting stop maintain the support runs in good condition and ensure safe and efficient mining of CLSD.

Jan 1, 2015

By E. Swart

The purpose of this paper is to provide an overview of the current legislative framework for mine closure within South Africa as well as the new requirements in terms of the Mineral and Petroleum Resources Development Act, 2002. The roles and responsibilities of Government, the mining industry and other stakeholders and confusion caused are also highlighted.

Jan 1, 2003

By G. Swan, E. Nordlund, P. Zhang

"SynopsisThe most widely used support design damage criterion for rockburst-prone mines is based upon kinetic energy, which is proportional to the square of the ejection velocity and is commonly expressed in terms of peak particle velocity (PPV). Field monitoring and back-analyses have shown that ejection velocities of the order of 10 m/s and higher can result from seismic events of moderate magnitude. Such velocities are much higher than those predicted using PPV obtained from scaling laws. It has also been found that the peak ground motion (i.e. PPV) on the surface of an excavation is preferentially amplified (by four- to tenfold) compared to the motion in solid rock at a similar distance from the source. However, the wave propagation and interaction processes involved within the fractured rock in generating high ground motion are very complex and are not well understood at this time.In this paper, velocity amplification was investigated by modelling the dynamic interaction between fractured rock and a free surface using a 2D discontinuum-based numerical program, UDEC (Universal Distinct Element Code). A 1D model with a fractured zone was used to represent the fractured rock. Velocity amplification, quantified by PPV, predicted at the free end of the model was 2.0–3.6 times higher than the input velocity. It was found that the wave frequency, fracture stiffness, fracture spacing, and thickness of fractured zone are the main factors that affect the velocity amplification. The results have proved that the interaction of the seismic wave and multiple fractures near the free surface strongly influences the ground motion.IntroductionSince mining-induced seismicity is almost inevitable in deep mines, ground support is generally employed to mitigate the risk of seismically-induced damage. The most widely used support design criterion for seismicallyprone mines is one that seeks to maximize the absorption of the kinetic energy (plus potential energy if a gravity component is considered) of key rock blocks. Based on this criterion, design methods for rock support were first proposed by Wagner (1984) in South Africa and later improved, among others, by Roberts and Brummer (1988) and Kaiser et al. (1996)."

Jan 1, 2015

By N. M. Skarbøvig

Safety nets have been used selectively in several South African mines over the years. Recently, however, an increased emphasis on mine safety has seen a resurgence of their utilization underground. This renewed interest has, however, also raised questions about the design and performance of these nets and their practical applications underground; these are the subjects of this paper. Generally, mine safety nets are used to protect personnel from falling rock in temporarily supported development ends, tunnels, ASGs and stopes. These diverse applications each require specific net designs, resulting in a wide product range. As a rule, however, mine safety nets need to carry specified static or dynamic loads with the least possible deformation. Because of the application-specific characteristics of mine safety nets, there is no South African national standard for them. Consequently, neither the SABS, nor the CSIR, performs standard tests on these components. In 2007, therefore, SIMRAC made available their Savuka facility for the testing of mine safety nets; the Savuka drop test became the accepted industry test standard for mine safety nets. From late 2007 to mid 2009, Norsenet, in collaboration with SRK Consulting, the designated operators of the site, conducted approximately 200 tests, which formed the core of Norsenet's database of safety net performance under various loading conditions. The test specimens comprised a wide range of net materials and config¬urations; the materials included: high density polyethylene, polypropylene, polyester, nylon, as well as a blend of polyester and polypropylene used primarily for reinforcement ropes. Net configurations encompassed the following parameters: net type, i.e., knotted nets or sewn nets; net strand type, i.e., braids, twines, or webbing; strand size; mesh size; mesh orientation, i.e., parallel or oblique to the net edge; net edge reinforcement, i.e., knotted, tied, with or without reinforcement ropes; internal reinforcement ropes, i.e., diagonal ropes and/or orthogonal ropes; as well as net attachment options, including loops and chainlinks. From the number of variables listed above, and the limited number of tests available, it can be appreciated that the findings of the test series required careful scrutiny. Nevertheless, principal performance factors clearly emerged: besides the obvious net mesh variables, such as net strand material, strand diameter and mesh size, it was the configuration of the reinforcement ropes and their attachment to the net panel which had the strongest influence on net performance. All the structural elements of a safety net need to work together to transfer the imposed load from the net panel, through the reinforcement ropes, to the net attachment points. In this load transference chain, the weakest link limits the strength of the structure. From this development work, Norsenet has gained valuable expertise to custom-design and manufacture nets to clients' specifications. The examples presented in the paper will also show the experience acquired in the installation of nets underground. Future work will include the establishment of a state-of-the-art net testing facility at Norsenet's factory in Vredenburg.. Keywords Mine safety net, safety net, protective device, mine safety, safety net design, safety net performance, safety net applications.

Jan 1, 2011

By A. Bouvard, N. Hoteit, E. Boidy, F. Pellet

In the context of the construction of an Underground Research Laboratory devoted to the feasibility studies of radioactive waste deposits, it appears of the utmost importance to study the long-term behaviour of rock, over a long time period. In this paper, some results of tests performed on the argillite from the Meuse-Haute-Marne site test in Eastern France are presented. Then a numerical simulation of one of this test using the viscoplastic damaging constitutive law proposed by Lemaitre is presented. Finally, this law is used to simulate numerically the behaviour of the rock at the wall of a circular tunnel in order to determine the extension and the change along the time of the Excavated Damaged Zone (EDZ). Advantages and limitations of the model are discussed. Dans le cadre de la réalisation d’un laboratoire de recherche souterrain conçu pour étudier la faisabilité d’installations de stockage de déchets radioactifs, il apparaît fondamental de caractériser non seulement le comportement viscoplastique à très long terme des matériaux mais aussi les phénomènes d’endommagement consécutif à la redistribution de contraintes provoquées par l’excavation des cavités. On présente ici les résultats d’essais réalisés sur les argilites du site de Meuse/Haute-Marne et destinés à caractériser leur comportement visco-endommageable. Il est ensuite procédé à une application de la loi viscoplastique endommageable de Lemaitre pour simuler l'un de ces tests. Les apports et les limites d'un tel modèle sont mis en évidence par des simulations numériques du comportement de la roche au pourtour d'une galerie circulaire permettant de suivre l’évolution au cours du temps de la zone endommagée (EDZ) à la paroi . Im Rahmen des Baus eines unterirdischen Forschungslabors für die Untersuchung der Machbarkeit von Deponien für radioaktive Abfälle erweist es sich als äußerst wichtig, das langfristige Verhalten von Gestein über einen langen Zeitraum zu untersuchen. Im vorliegenden Artikel werden einige Ergebnisse von Untersuchungen vorgestellt, die mit Tonschiefer aus der Meuse-Haute-Marne in Frankreich durchgeführt wurden. Anschließend wird eine numerische Simulation der Untersuchungen unter Verwendung des von Lemaitre vorgeschlagenen viskoplastischen Verformungsgesetzes vorgestellt. Schließlich wird dieses Gesetz auf die numerische Simulation eines Kreistunnels angewandt, um die Ausdehnung und die zeitliche Entwicklung der Auflockerungszone (EDZ) zu bestimmen. Es werden die Vorteile und Grenzen des Modells diskutiert.

Jan 1, 2003

Common practice in mineral resource estimation consists of partitioning the orebody into several domains defined by grade intervals, prior to the geostatistical modelling and estimation/simulation at unsampled locations. This paper shows the pitfalls of grade domaining through a case study in which we compare the performance of several estimation schemes and demonstrate that the use of domains defined by grade cut-offs implies a deterioration of the resource estimates, mainly in what refers to precision and conditional bias. Then, several conceptual limitations of the grade domaining approach are stressed, in particular the fact that it does not account for the spatial dependency between adjacent domains and for the uncertainty in the domain boundaries. Also, this approach is shown to be sensitive to the cut-offs that define the domains, to provoke artifacts in the kriging maps, histograms and scatter grams between true and estimated grades, and to lower the kriging variance, a feature that may impact the mineral resource classification. An alternative approach is finally proposed to overcome these limitations, based on a stochastic modelling of the grade domains and a co-kriging of the grades using information from all the domains. Keywords: geostatistics, kriging, conditional bias, geological control, grade zoning.

Jan 1, 2005

By J. M. Schaekers

In the first part of the article, the authors give a broad overview of the chemistry and some engineering aspects of bioleach processes, eventually leading to the important and critical issue of the stability of arsenic-containing residues, especially those derived from bioleaching of sulphidic gold ores. In the section ?Factors affecting arsenic stability? they give an excellent summary of the factors normally affecting the stability of such residues. This is followed by some valid comments on the suitability of a single leach test to evaluate the long-term stability of solid waste streams. However, they fail to mention that, up till now, no tests procedure has been accepted by either environmentalists or the mining/processing industry as a valid method to test the long-term stability of solid wastes. Their own method is no exception, although, like many others, it is useful to identify potential problems with solid wastes considered for disposal.

Jan 1, 2001

By C. Ware, R. Uken, G. Whitmore

The coastal dune cordon of northern KwaZulu-Natal is among the highest in the world reaching heights in excess of 180 m and up to 2 km in width. It comprises a complex system of Quaternary stacked dunes of various geomorphologies, types and ages (Sudan, 1999; Maud and Botha, 2002;Ware et al., 2001; Ware, 2003). The dunes contain economic heavy minerals that have been exploited for the last two and a half decades. Dune units have recently been defined based on sand composition and texture(Sudan, 1999; Ware, 2003). Despite this, little work has been undertaken on the clay-fraction (< 2 um). This work documents the weathering of dunes to form clays. From the documented clay assemblages and relative abundances, a simplified weathering sequence with increasing maturity can be summarized as follows: primary minerals ? illite + vermiculite ?illite +interstratifications ?illite + montmorillonite ?halloysite + interstratifications + kaolinite ?kaolinite. The dominant controlling factors in determining clay assemblages is pH and leaching conditions. The presence of carbonates results in an alkaline pH and high concentrations of Ca2+and Mg2+which favours the formation of montmorillonite and vermiculite. However, vermiculite tends to form under slightly acidic conditions and is indicative of palaeosols where organic acids produce localized acidic pH’s. In contrast to this, kaolinite will only form and concentrate when carbonates have been leached. Kaolinite dominated samples are considered very mature under current climatic conditions(Chamley, 1989). Halloysite represents a transitional phase between montmorillonite and kaolinite (Herbillon et al., 1981). Ion mobility and evacuation is also critical in determining clay assemblages. Past work and field studies indicate that the dune cordon acts as an open system, resulting in carbonates and mobile ions being readily leached and lost from the system. However, when prolonged weathering has caused an accumulation of fine-grained material, the permeability decreases substantially whereby mobile cations and silica cannot be readily evacuated. This results in the formation of montmorillonite rather than kaolinite, even when carbonates have been leached. Illite (sericite) is considered to alter directly from feldspars. However, dune stacking and geometries, vegetation, water fluxes, reworking and erosion complicates this sequence.

Jan 1, 2003

By GA Harrison

The introduction of Extra Low Profile (XLP) mechanised equipment within Anglo Platinum is aligned with the overall New Mining Technologies strategy to focus on continuing modernization of our mining operations to achieve injury free sustainable production and cost effective mining technologies. The method allows for the introduction of a suite of XLP and Low Profile (LP) equipment in a narrow reef (1,2m) mining environment. For the first time it is now possible to achieve total trackless mechanisation at these stoping widths and XLP Breast mining has the potential to add more value when benchmarked with conventional mining and other mechanised methods. Various types of XLP equipment were tested at different sites within Anglo Platinum and this paper describes the XLP equipment evolution to-date. It concludes with recommendations on our future strategy regarding implementation and roll out of the XLP technology within Anglo Platinum.

Jan 1, 2008

By J. F. Curtis

In the synopsis, the author concludes that ?high levels of seismicity do not coincide with high rockburst rates?. Implicit to an appreciation of this statement is the necessity of a common understanding of what is understood by the terms: ?high level of seismicity? and ?high rockburst rates?. With respect to the former term there is no difficulty in that the level of seismicity is traditionally measured in terms of the Richter Scale. The latter term however presents a problem in that the author defines it as a particular sort of seismic event?viz: ?Rockburst? is understood as a seismic event that causes damage to an underground excavation with subsequent injury, loss of material/equipment or production shifts? (p. 322). No scale is given of the amount of: ?excavation damage ?level of injury ?material/equipment loss ?production shifts lost whether separate or cumulative, for a particular seismic event to be classified as a rockburst. A further difficulty arises in that in common usage the words ?rockburst?, ?seismic event? and ?earthquake? are all used to describe the same event.

Jan 1, 1999

By A. J. Van Der Merwe, J. F. Erasmus

One of the valuation approaches applied to Advanced Exploration Areas and Pre-Development Projects is the so-called ?in situ Mineralization Method? or the ?Yardstick Method?. This method is based on the concept of a known undeveloped Mineral Resource being worth a certain fraction (the ?Yardstick?) of the contained commodity value (?metal in ground?), using commodity prices ruling at the date of valuation. The Yardstick value is derived usually from an average market-based figure obtained from an analysis of recent transactions and is expressed as a monetary value per ounce or per tonne. It maybe modified to accommodate the quality (e.g. grade) and category (e.g. confidence level) of the Mineral Resource/Reserve involved and the time, effort and expenditure expected to be involved in bringing the project to fruition. Some eighteen recent and relevant transactions were analysed, allowing the following general conclusions to be reached: ? a Yardstick with which to value undeveloped PGE mineral resources is likely to range between 0.5% and 2.5% of the in-ground contained metal value ? the expected method of mining (especially with regard to mining costs) and the grade of the mineralization both have a strong influence on the Yardstick ? the status (classification) of the Mineral Resource has some influence on the Yardstick and ? the ruling price of platinum and the regional location of the deposit appear to have insignificant influences on the Yardstick.

Jan 1, 2006