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The Circum-Pacific is defined to include back arcs and continental areas of volcanism. Volcanoes must be regarded as dormant, if the time since their last eruption is less than about ten times the average interval between eruptions, even if they have not erupted for tens of thousands of years or longer. It is important to establish a complete history, over as long a period as possible, for varying volumes of eruptions. In order to assess risk, the average interval between eruptions should be calculated for each range of erupted vo4ume~, in orders of magnitude from about 10 m up to the maximum volume possible at each volcano. Eruptions are considered to consist of individual explosions, and are grouped into eruptive sequences, with the sequences grouped into overall cycles of activity. Frequency of eruption versus volume erupted is a linear relationship for most andesitic and basaltic volcanoes, but is often bimodal at rhyolitic volcanoes, 3 with a slower eruption rate above about 10 km. Worldwide, during the last 7000 years, there have been three known e~uptions with volumes of ejecta of > 100 km , a9d, since 1638 A.D., 7 with volumes > 10 km , and 48 with volumes > 1 km . Average recurrence intervals are about 71 years for eruptions of > 20 km , 39 years for those of > 10 km , and 7 years for those of > 1 km . Rough esti- mates can be made for larger volumes erupted. Mean intervals in the Circum-Pacific are about twice the length of those for the world as a whole. During the last 400 years, about 61% of the world's eruptions of > 1 km3 have taken place in this region.

Jan 1, 1987

By Schneider CL

The calculation of the liberation spectrum in the product from continuous milling operations is a problem of considerable importance, and it is difficult to solve because the population balance equation must be integrated in two-dimensional space. Complete solutions require a very detailed knowledge of the complex interactions between the fracture patterns and the mineralogical ore texture when brittle particles are subject to impact fracture. Most of the liberation models that have been developed to date apply only to batch comminution processes and under these conditions the liberation problem can be studied in isolation. When the comminution is continuous and forms a unit operation in a flowsheet that includes classification and separation operations, the situation is very different, and then the liberation of the minerals must be described when single particles of known mineralogical composition are fractured. Important industrial examples are conventional milling circuits closed by hydrocyclone and regrind mills in flotation plants. This paper presents an efficient computational algorithm for the calculation of the liberation spectrum produced by continuous milling operations. The algorithm relies heavily on the detailed internal structure of the Andrews-Mika diagram. The modifications that are required to make this diagram apply to practical ore minerals, and the internal structure of this diagram can be established using single-particle fracture on mono-size, mono-grade material but suitable liberation models are essential to interpret the data in terms of the cross transfer coefficients required for the population balance procedure. Models proposed by Leroux (1992) and King (1990) are compared to experimental data.

Jan 1, 1993

By Yamamoto Y, Ohyama H

In case of NATM, mechanical cutting is desirable in view of the original purpose of not spoiling natural ground. As typical tunnelling machines, there are two (2) kinds available: one is "Full Face Excavator" known as TBM (tunnel boring machine), and the other is "Roadheader" known as Part Face Excavator. By the use of the former, accurate profile cut is made possible, but there is a limit in the shape of a cutting section. By the use of the latter, cutting of various sections is made possible, but in order to cut a section economically and accurately, operators are required to have a high level of skill. In this text, we introduce Automatic Controlled Profile Cutting System (hereafter "ACPC" System) developed as a roadheader.

Jan 1, 1987

A new least-squares method for inversion of d.c. resistivity soundings from horizontally layered earth is proposed. Powers are used as measured data. Apparent resistivity is generalized and apparent parameters curves are defined. Estimates for parameter errors are often possible even when data errors are unknown or large. Acceptance or rejection of a model is made an easier decision. Total computational effort is often reduced when compared to global least-squares methods, because although several optimizations are needed, few data points are involved in each, and initial guesses are requested only once and not all at the same time. Correlations between parameters may be used to improve solutions. Precise indications for extra needed data points can be conveyed. A test example is worked out and a field sounding, taken by Rijo (1973, personal communication) in an alluvium-filled river valley in north-eastern Brazil, is studied.

Jan 1, 1987

Resource rent tax is a form of taxation or royalty, which only become effective at such a time as a pre-determined rate of return has been achieved by an operation. The offshore petroleum industry in Australia is already subject to RRT as is the Roxby Downs (Olympic Dam) Mine in South Australia. Both the mining and petroleum taxation regimes in Papua New Guinea include a resource rent tax component called Additional Profits Tax (APT). The implications of the current form of Additional Profits Tax for shareholder cash returns are that the tax burden on the operation may suddenly increase at some stage in the life of the mine, if and when the threshold level of profitability for the tax to be triggered is exceeded. From that point in time onwards the cash return to the shareholders on the capital invested is greatly diminished. For mining companies in Papua New Guinea, the effective tax rate increases from 35% to 57.75% as a result of the onset of Additional Profits Tax. This tax rate penalty is so severe that there appears to be merit in considering the concept of managing profitability through time rather than purely maximising annual pre-tax profits as is currently the case in most mining operations. This would have the benefit of deferring or perhaps preventing altogether the onset of the tax. One possible method for the effective management of profitability is through the control of average mining grade by cutoff grade manipulation. Traditional cutoff grade theory has usually considered taxation as a direct cost at a fixed or variable percentage of annual profits. As a result of this most analyses are conducted on a pre-tax basis. If tax is included in analyses it is usually present as a time independent function of gross profit. Additional Profits Tax is both time and rate of return dependent and therefore not adequately accommodated by currently accepted cutoff grade theory. A review has been made of the effects of resource rent taxes on both the investment decision-making process as well as possible development and mining strategies which may be employed by mining companies faced with Additional Profits Tax. The review includes examples based on the structure of Additional Profits Tax which is levied in Papua New Guinea.

Jan 1, 1997

By Vynne J. F

Drill monitors for rotary blasthole drills have been available to the mining industry since the 1970s. The early monitors were pen strip chart recorders that were developed for the oil drilling industry and adapted to mining. They recorded drilling parameters such as depth, pull-down pressure, torque, RPM, and hailing air pressure. While these recorders could generate a large volume of paper, the amount of useful data was minimal. The data was not summarised and required an engineer to interpret the chart traces. Being a mechanical recorder, the devices were also susceptible to frequent failures. Modem electronics, and the development of the personal computer and its associated software have radically changed the type of instrumentation that is now available for blasthole drills. Perhaps more important is what can be done with the data. The PC allows the logged data to be analysed, summarised, and a variety of reports to be generated. The reports can be customised to meet the specific requirements of the mine and reduce the amount of time that is required to interpret the data. There is also an increased awareness in the mining industry of the importance of production drills. Blasthole drills have typically been the piece of production equipment that received the least amount of attention in a surface mine. Management focussed on the trucks and shovels or draglines. This situation is changing, and therefore the benefits that can be derived from monitoring drill performance are being recognised. Potential economic benefits of installing drill monitors have been documented in previous papers (Peck and Vynne, 1992). Mines are finding that pay-back periods of less than twelve months and rates of return in excess of 30 per cent are not uncommon. These benefits include the following: 1. Reduced overdrilling; 2. Increased rate of penetration; 3. Helping to locate coal seams; 4. Identification of weak and strong zones; 5. Reduce geophysical logging; 6. Optimising blasts; 7. Improved fragmentation and diggability; 8. Decreased coal dilution; 9. Increased bit life; 10. Reduced maintenance costs; 1 I . Improved accuracy of data and reports.

Jan 1, 1995

This paper is a summary of the general theory of sampling published by the author in 1975. Sampling is a random process and its the- ory is a study of the, numerous errors liable to take place in the course of its realization. A complete sampling scheme is a sequence of sampling (proper) and preparation stages . At each stage, the total error ET is the sum of : -.Sampling errors EE arising from the selection process itself. -Preparation errors EZ arising from the operations (crushing, transfer...) sup- ported by the sampled material. ET a EE + EZ . At each sampling stage, the (total) sampling error EE is the sum of seven inde- pendent errors : - Weighting error ED resulting from the non-uniformity of the density or rate-of-flow of the sampled material. - Integration error EI1 resulting from the long-range distribution heterogeneity of the sampled material. - Periodicity error EI3 resulting even- tually from periodic quality variations of the sampled material.

Jan 1, 1976

The South Mine, property of Broken Hill South Limited, is situated at Broken Hill, NSW, Australia, towards the southern end of the main lode. The leases (MLs 7 and 8) cover a length of 2400 feet along the lode outcrop and the workings extend, at this date, to a depth of 1940 feet below the collar of the original main shaft and to 825 feet below sea level. Mining operations have been continuous for about 58 years and during this period nearly 12.5 million tons of ore have been mined. The monthly tonnage extracted approximates 30 000 tons in normal times.The ore is a mixed sulphide containing galena and marmatite; the gangue minerals are principally calcite, rhodonite, quartz and garnet. A typical assay for a monthly period is 14.4 per cent Ph, 5.6 ozs Ag, and 11.6 per cent Zn. The whole of the ore is concentrated on the property by combined gravity and flotation methods. The lead and zinc concentrates produced are railed to other centres for the extraction of the contained metals.

Jan 1, 1994

By Wilson CJN

The central Taupo Volcanic Zone is a region of intense Quaternary silicic volcanism accompanying rapid crustal extension. Modem central TVZ is the most frequently active and productive silicic volcanic system on Earth, erupting rhyolite at c. 0.28 m' s'. The rhyolites show no major compositional changes with time, but the total extent of magma chamber zonation has changed with the advent of rifting and crustal extension at c.0.7 Ma. At least 34 caldera-forming ignimbrite eruptions have formed a complex sequence of relatively short-lived, nested and/or overlapping volcanic centres in central TVZ. Taupo contrasts with other large silicic magmatic systems in the exceptionally high frequency, but small size, of caldera- forming eruptions. This contrast reflects the thin, rifted nature of the TVZ crust, that precludes the development of long- term magmatic cycles at Taupo.Within central TVZ, non-rhyolitic compositions have been erupted apparently irregularly in time and space; in particular there is no evidence for a geographic separation of basalts from andesites. TVZ is a rifted arc, but its segmented nature, high thermal flux and voluminous rhyolitic volcanism make it unique on Earth.

Jan 1, 1995

By Gardavsky V, Gabell AR, Green AA

The I,)hyllosilicate mineral chlorite is a common constituent of altered rocks associated with volcanogenic massive sulphide deposits, and literature studies indicate that, in general, this mineral is progressively enriched in magnesium relative to iron as an orebody is approached. Studies have shown that there is a direct correlation between the Mg/Mg + Fe ratio of chlorite and its absorption spectra in the 2.7 to 3.0 um range. However, this region, which contains the fundamental 0-H stretch absorption features, is affected by intense atmospheric absorption, and therefore cannot be used for remote sensing. At shorter wavelengths (0.4 - 2.5um), there are windows where the atmosphere is sufficiently transparent and vibrational absorption bands still occur, although they are clue to overtones and combinations, and accord- ingly are much weaker than the fundamental features. Shifts to longer wavelengths with increasing iron content can still be observed in this region of the spectrum and, with better spectral resolution and sensitivity, it may be possible to monitor subtle variations in chlorite chemist by remote sensing techniques.

Jan 1, 1987

By L M. Lobato, J C. S Seoane, F J. Baars

The Carajßs Province presents several volcano-sedimentary sequences that comprise the Itacai·nas Supergroup. The rocks represent bimodal volcanism, and clastic and chemical sedimentation in relatively unstable basins subject to recurrent structural events with subsidence and volcanism. The Grpo Parß Group represents one of these sequences with mafic volcanic rocks that enclose discontinuous jaspilite lenses, with development of large high-grade orebodies (Fe >65 per cent). This unit is named the Carajßs Formation and presents peculiar characteristics compared to other iron districts in the world, thereby departing from the classic Lake Superior or Algoma iron formation types. Owing to the dense vegetation, lack of outcrops and harsh landscape, the structural analysis of the district can only be accomplished by combination of regional field work, detailed structural work on the open pits, and remotely sensed image interpretation, in this case Landsat ETM7, JERS-1 images and the SRTM digital terrane model. The regional trend of the several sequences of the area is approximately N-S and the structure is dominated by a flattened flexural fold system with axes moderately dipping WNW, intersected by several strike-slip faults subparallel to their axial plane. The Serra dos Carajßs represents an s-shaped synform-antiform pair, herein named the Carajßs Fold. This regional structure is partially disrupted by the Carajßs Shear Zone that divides it in the northern (Serra Norte) and the southern (Serra Sul) Ranges and also probably prepared the terrane with the development of pathways for mineralising hydrothermal fluids forming large high-grade massive iron bodies. Syntectonic granitic bodies played an important role in the structural evolution of the area as well. They caused localised ductile flattening deformation and thermal contact metamorphism in surrounding terranes. The Estrela pluton, for instance, was responsible for the discontinuity of the regional trend between the Serras do Rabo and Leste. The Carajßs Province is regionally the upper crustal product of a very shallowly eroded dome-and-keel geometry of Neo-Archaean volcano- sedimentary units intruded by syntectonic calc-alkaline intrusives and overlying pre-existing infracrustal rocks. The lithostructural data suggest continental-margin back-arc basin development and closure in an oblique collision belt, with N-S shallow crustal shortening, parallel to the inferred pre-existing strike of the stratigraphy.

Jan 1, 2005

Mining companies in order to compete and succeed in being viable business propositions must look to the future and select mining methods which guarantee improved efficiency and productivity as well as lower costs.A mining company in adopting a method of mining must now select the equipment most compatible. To some mines compatible equipment may mean the use of drilling jumbos to replace hand held rock drills or the use of load haul dump units to replace scrapers. To other more mechanized mines compatible equipment may mean the use of raise borers and road heading machines. The right decision will be where equipment compliments method in such a way that the working environment is improved, productivity is maximized, cost if reduced and all profit opportunities are optimized. An example of such is where the use of improved mining techniques in underground operations may see cut off grades reduced. By selectively mining these lower grade orebodies, smaller operation's ore reserves improve and the capacity for continued growth is enhanced.

Jan 1, 1990

By C McIntosh, M Carder, P M. J Durance

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Disseminated, gold-bearing sulfide minerals hosted in sheared, wall rock metasediments and clay alteration zones comprise one of the dominant styles of Palaeozoic orogenic gold mineralisation within the Reefton Goldfield, and is exemplified by OceanaGold’s Globe Mine. This study begins the exploration and characterisation of the gold-arsenic-antimony mineralisation hosted within the dominant lithologies of the Globe-Progress shear zone. The main gold-bearing sulfides are pyrite, arsenopyrite and stibnite. Pyrite and arsenopyrite are not compositionally uniform across the Globe-Progress shear zone. Pyrite from the mineralised greywacke and argillite has higher As contents than pyrite in the host rock and pug breccia. Furthermore, the mineralised greywacke and argillite pyrite are enriched in As from core to rim. The 3D models based on bulk assays reveal a significant correlation in the distribution of Au, As and Sb. The interpolant for Sb envelops those for Au and As, which in turn are very similar to each other in their vertical and lateral extents across the shear zone. This result is consistent with earlier findings that the occurrence of stibnite represents a separate and likely later phase of mineralisation relative to that represented by the formation of disseminated pyrite and arsenopyrite both of which exert a stronger control on the distribution of As.CITATION:Durance, P M J, Christie, A B, McIntosh, C and Carder, M, 2015. The composition of disseminated, gold-bearing sulfides within the three-dimensional framework of bulk Au, As and Sb in the Globe-Progress orogenic gold deposit, Reefton Goldfield, New Zealand, in Proceedings PACRIM 2015 Congress, pp 327–334 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

It is proposed to deal with those raw materials which are produced in South Australia to meet the needs of the country's steel industry. They are chiefly, iron ore, limestone and quartz.Iron ore and limestone are fed to the blast furnaces of Newcastle and Port Kembla together with coke to produce the hot metal charge for the open hearth steel furnaces.They are also qsed in the raw state in the steel furnaces to assist in the conversion of the hot metal to steel. The iron ore is quarried from' Iron Knob and shipped from Whyalla to Newcastle and Port Kembla, whilst the limestone is supplied from the deposits at Rapid Bay and shipped in the same manner.Quartz is used in the manufacture of ferro-silicon, an alloy which is added to the ladles of molten metal tapped from the open hearth furnace in the case of almost every grade of steel. It is obtained from a quarry situated between Iron Knob and Whyalla, and shipped to Newcastle.IRON OREWith the exception of several small quarries situated at Breadalbane, Cadia, Cowra, Crookwell, Michelago, Jerrawa and lerraama in New South Wales, the iron ore requirements of Australia's steel industry to date have been met from Iron Knob and the Middleback Range in South Australia.Several of the small deposits in New South Wales were worked during the war years of 1941-44 during the shipping emergency and produced 1,355,417 tons, compared with an output of approximately 43,000,000 tons from Iron Knob between 1901 and 1949.

Jan 1, 1951

By Takagi T, Seetharam R, Sie SH, Naito K

Tin-polymetallic vein type deposits are one of the major source of metal producers in the Circum Pacific Belt. This type of deposit is of great importance for the modem electronics and medical industries because of their high content of rare metals (especially indium and bismuth). We have studied two representatives, Tosham of India (Cu-In-Bi-Sn-W-Ag-Au), and Mount Pleasant of Canada (Zn-Cu-In-Bi-Sn-W), using proton and electron microprobes in order to delineate the distribution of medical/high-tech rare metals. The electron microprobe study showed that major indium carrier in such type of deposit are roquesite (CulnSZ), sphalerite, stannite and a Cu-Zn-Fe-In-Sn-S mineral; and that indium is incorporated in sulfides by coupled substitution like Cu + In = 2(Zn + Fe). The proton microprobe showed that indium at trace levels is also present in chalcopyrite and pyrite. In addition, zinc, copper, arsenic, antimony, selenium, tin, and bismuth are common in chalcopyrite and pyrite. Arsenopyrite contains nickel, copper, zinc, silver, tin, antimony and bismuth. In chalcopyrite and pyrite, zinc, arsenic, indium, bismuth and lead are higher in Mount Pleasant ore, but silver is higher at Tosham. Also thallium and gold were found only in Tosham pyrite. The Tosham deposit is genetically related to S-type magma, while the Mount Pleasant deposit is related to A-type granite. Tosham ore contains zinc-bearing biotites that coexist with chalcopyrite in ore bodies but Mount Pleasant ore lacks such biotite. We propose that the difference in elemental abundance between the two deposits are caused by the different character of source magma and different mineral associations of the ore body.

Jan 1, 1995

By J Araya, O Leiva

The mine evaluation process, composed of the designing, planning and valuation of a mine project, is, among other variables, based on an estimated orebody model. However, as the information from the drill holes is limited, it is impossible to know with certainty the mineral content in each block within the estimated block model. Consequently, uncertainty about the value of metal grades, or other geological attributes, arises because of the lack of information at unsampled locations. This is one of the reasons why, in any mine operation, there will always exist a divergence between estimated and real values. Cut-off grade optimisation is the process used to determine the operating mining strategy (long-term production scheduling) that will maximise the total profit value (normally referred as the net present value (NPV)) of a mine operation. This is done by defining a dynamic cut-off grade policy which is constrained by the production capacity of the mining, mill and refining.Real options is a type of contract, written on real assets such as mining, oil and other natural resource industries, that gives you the right but not the obligation to exercise the contract. It is based on operational and managerial flexibility, which allow mine decision makers to react to either good or bad operational and economic events in the future. But, what do geostatistics and cut-off grade optimisation have to do with the application of real options in a mine project evaluation process? The objective of this paper is to answer the previous question by showing how geostatistics combined with cut-off grade optimisation are key tools for corporate/managerial decision makers, which allow them not only to analyse the resource/reserves of their projects, but also to generate operational strategies that can maximise project value by minimising the downside risk due to ore tonnes and grade uncertainties, while achieving operational and physical constraints such as mining and processing capacities. A real copper grade open pit mine project is used as a case study.

Sep 26, 2011

The control system of a mine winder or other variable speed drive has many component parts that must work together to provide the required functional performance of the machine, together with comprehensive safety features, reliability, maintainability, user-friendliness and efficiency. Modern winders use digital control technology extensively and hence software design is a major part of the overall system. It is not practical to simulate an entire mine winder in a single computer model because of the sheer mathematical complexity of the behaviour of many of the components. However, most component parts can be simulated quite easily, and related parts of the control system software can be simulated. Such simulations allow control software algorithms to be developed and tested in isolation from the real plant. Tests can be performed on the model without fear of injury to personnel or damage to the valuable plant. For example, speed regulator control algorithms and stability settings can be adjusted to and beyond the limits of stable operation, and near optimum settings can be found. This is particularly important, for example, when designing closed loop controls for emergency brake systems. Obviously, care must be taken to ensure that the computer model of the plant is realistic and takes into account as many non-linear features of the real plant as possible. Pure mathematical analysis of some systems is very difficult to perform when non-linear plant behaviour is involved. This paper shares a number of practical simulation experiences performed using commercially available software such as Matlab and Simulink to simulate various parts of the control system of a mine winder or other variable speed drive. Demonstrations of the operation of several different computer models are shown during the presentation of the paper.

Jan 1, 2005

By Lauha E. A

The Goldstrike Mine is in Eureka County, Nevada, U.S.A., approximately 23 miles northwest of the town of Carlin. The mine is at the north end of the Tuscarora Spur of the Tuscarora Mountains at elevations of 5,300 feet to 5,950 feet. It is part of the Bluestar/Goldstrike subdistrict of the Carlin Trend, a northwest alignment of sediment hosted, disseminated gold deposits. The Carlin Trend includes over 15 major gold deposits with production, reserves and geological resources of approximately 65 million ounces of gold (Figure 1). In the Bluestar/Goldstrike subdistrict, there are seven major deposits; Betze, Lower Post, Post, Genesis, Bluestar, Purple Vein and Deep Star, plus numerous smaller deposits (Figure 2). Production, reserves and resources for the subdistrict are approximately 40 million ounces. Betze and Purple Vein are located on property controlled by Bamck Goldstrike Mines and Bluestar and Genesis on Newmont Gold property. Post, Lower Post, and Deep Star occur both on Barrick and Newmont Property.

Jan 1, 1991

This study introduces a new probabilistic approach to seismic stability analysis of embankments and slopes. The approach is based on Sarma's solution, which is modified through presentation of the seismic force by its horizontal and vertical components; i.e. the force may have an arbitrary inclination. The probabilistic modelling includes Monte Carlo simulation of the shear strength parameters of the soil mass, which are assumed to have a normal distribution. The probability of failure is determined based on the seismic co-efficient, which is treated as a random quantity. The probabilistic approach is illustrated through a solution of a numerical example from an opencast coal Mine.

Jan 1, 1992

By R C. Schodde

The future of any mining company depends on maintaining and growing its access to high-quality mineral resources. Often the true size of a given resource is not fully recognised until after mining has commenced. Also, the strong desire to increase production puts pressure to expand the resource base of the mine to get maximum value out of the capital employed. This, plus diminishing M&A opportunities and declining world-class greenfield discovery rates, makes brownfields exploration a high priority activity in any operating company. For the success and long-term survival of the company it is critical that this is done well. The primary aim of brownfields exploration is to find or acquire new deposits within economic transport distance of an existing mine that will add materially to shareholder value through: mine or capacity expansion, displacement of lower-margin ore from the mine plan, preserving and extending the mine life, and ensuring potential value is understood in order to maximise potential future mine development or exit. A number of strategic principles are important in any program designed to achieve these aims: understanding the life of mine (LOM) production profile and the related key drivers for exploration, understanding the dynamic nature of the brownfields search space, understanding and measuring depletion of the brownfields search space, understanding the potential of the near-mine region, investing in exploration technology to expand the search space, and investing in a basic geological understanding of the ore-environment. Examination of the LOM profile will highlight critical issues facing development plans for the mine including future grade and throughput issues, key technology requirements or innovations and scenarios for increased production. Exploration targets in the brownfields program should address these key issues. Often it is as æsimpleÆ as keeping mine development sufficiently far ahead of extraction to allow time for the various phases of exploration and resource assessment drilling. Because of the low additional capital costs required, expansion of the brownfields search space is strongly leveraged to: metal prices, development of new markets, incremental operating cost reductions, strategic changes in downstream requirements in integrated businesses, depletion of higher unit-value ores, and new technologies (both extraction and exploration). Therefore the brownfields search space is likely to incrementally expand through time and must be regularly reviewed. This is also important as any given search space will be progressively exhausted, resulting in smaller and higher cost discoveries. It is therefore important to monitor and critically review sustained trends of increasing brownfields discovery cost. The first wave of discoveries in any camp are usually empirically driven and do not need a strong geological understanding. However, an improved geological understanding is critical to making the next generation of hidden discoveries. To illustrate these points, a case study was carried out on the exploration and development history of the Kambalda nickel camp. Over a period of 40 years, more than 40 deposits were found containing over 1.7 million tonnes of nickel metal. Efficient mines need to maintain reserves for operating flexibility. Consequently, the company needs to clearly understand the global resource in order to maximise its full potential. In addition, understanding the full brownfields potential earlier in the development of a deposit rather than later, creates optionality through the flexibility that this understanding brings to future development choices. To ensure best practice in attaining this aim, the roles and responsibilities of the exploration team and the mine operation should be clearly understood. It is important for the explorers and the operators to have shared views about what needs to be done. Typically, mine operators would be accountable for identifying future resource requirements to support the life-of-mine production schedule whilst explorers would be accountable to ensure best-practice assessment of brownfields exploration opportunities. This would include an assessment of the global undiscovered endowment in the regional near-mine area. The balance between brownfield exploration drilling and resources to reserve conversion will need to be decided to ensure efficient operations are maintained. Both need to agree the optimum level of brownfields funding taking into account: urgency to replace or grow reserves, and quality of opportunities (relative to those elsewhere). The ultimate cost of ignoring the full brownfields potential of an operating asset can be significant, ranging from inefficient and poorly planned operations, lost opportunity cost and resultant value through under-utilised resources and, in the worst case, early exit from the asset at the bottom of the commodity cycle û leaving behind huge amounts of shareholder value.

Jan 1, 2006