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Equity finance provides the most suitable and frequently the only access to capital during the exploration and evaluation stages of resource projects when project risk is at its highest. Investors are prepared to provide equity funds in the knowledge that they are compensated for the higher risk they take on with higher potential returns or sufficient upside potential to justify the higher risk. The context of resource projects which determines the role of equity finance has changed considerably. Prior to the resurgence of the gold price and the development of new mining technology many resource projects were selectively mining orebodies by underground methods frequently with limited reserves proved up in advance of mining. The limited proved ore reserves base and the volatility of the gold price all contributed to a higher risk and higher return investment environment in which the use of equity finance was more appropriate and frequently the only option for capital raising. The financial risk of a resources project can be transferred to an underwriter who makes the commitment to distribute the financial risk between a number of investors. There is also the opportunity for financiers to use a mix of equity and debt finance to allow a company to proceed with the development stage where without such a mix the resource project would not proceed. By using a level of equity finance the project becomes robust enough in its ability to service the debt finance facility and the project proceeds with the equity participants receiving a suitable risk reward return. The liquidity from the establishment of a market for the company's securities enhances further capital raising and generally enables the company to satisfy its financial requirements on more favourable terms particularly during bull markets. The role of equity finance in the management of the financial risk during the exploration, evaluation, development and mining stages of resource projects is summarised in Table 1. In more detail the principal roles of equity finance and the ways in which equity finance impact on the risk management of resource projects will be considered in turn.

Jan 1, 1994

By E P. Leite, L A. Magalhpes

The Amazon Craton is one of the largest cratonic areas and comprises one of the est-endowed metallogenic provinces in the world. It hosts a number of different ore deposit types for which a variety of mineral exploration data are presently available at various scales and formats. These data, however, are not properly organised nor integrated by means of advanced spatial analysis tools. In this view, here we present a suite of neural network methods that were applied to these data, providing unprecedented mineral potential scenarios for several precious and base metals in the region. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

The phrase "Total-Energy" has, during the past few years, become widely used to describe a wide range of very different operations. However, if accurately described they all have one basic factor in common - energy usage is optimised with the prime mover being powered by gas or oil to generate shaft horsepower and the products of combustion being put to some use. The item which distinguishes a Total Energy system from any other engine or turbine driven project is that orate pains are taken to utilize the waste heat, whether this be in the form of exhaust gases and/or engine jacket ling water. n areas where grid supplies of electricity are readily available, the economics of most projects undoubtedly hinge upon the successful application of waste heat. However, there has been a growing awareness of other benefits, such as reliability of supply, which can be incorporated into the system. In particular these factors sway managements of hospitals and companies with complex computer facilities to examine closely the feasibility of Total Energy, Consequently, in America for example, where many systems have proved themselves the list of applications is wide - shopping centres, apartment blocks, office buildings, airline terminals, universities, schools, motels. And these do not cover the industrial sectors where the range is wider. The total number in North America is now approximately 500 and this to some extent-speaks for itself. In Australia, the real work involved in carrying out feasibility studies for Total Energy is only just beginning. 'in some quarters, the concept is not well received in that it is too new. Therefore, a typical approach is to play safe and wait until some other company has proved its operation "under Australian conditions". This is certainly a realistic approach when considering something revolutionary but as far as Total Energy.is"concerned all the individual components and sometimes combinations, (engines, generators, boilers, air-conditioning units) have been in operation for many years. The only innovation is that they are now all being brought together under one roof. This should not be forgotten when the question "where can I see something like this operating?" is asked.

Jan 1, 1970

By D Chalmers

"There is a tendency to treat mine roadways with fan installations as leak proof systems. Morecomplex ventilation arrangements are being installed in coal mines out of necessity or designand these can introduce additional hazards. This paper explores the leakage paths that can existaround fans and in particular the hazards these leakage paths may generate around undergroundfan installations. The behaviour or these leakage paths in the event of a fan failure has also beenexplored. Early detection of spontaneous combustion is essential, so understanding the leakage behaviour around fans especially boosters or main fans installed underground will assist in sett ing up monitoring locations in the correct places. If this behaviour is not fully understood then monitoring may be placed incorrectly, or trends may not be picked up until it is too late."

Jun 1, 2012

By R G. Barker, N Mortimer

In New Zealand, platinum group metals (PGM) occur in three main geological environments of economic interest: layered mafic igneous complexes, the Dun Mountain Ophiolite Belt, and in association with placer gold deposits. Most of the layered mafic complexes with PGM potential occur in the Median Batholith. These include the Longwood (Permian), Bluff (Permian), Riwaka (Devonian) and Rotoroa (Jurassic) igneous complexes. Exploration of the Longwood Complex discovered PGM associated with gabbroic rocks. Best assays to date include a 1 m drill intersection of 1 g/t Pt + Pd and float rock with 3.0 ppm Pt and 3.3 ppm Pd. The Greenhills complex at Bluff consists of basal dunite overlain by wehrlite and gabbro. PGM occur with chrome spinel in the basal dunite and Pt geochemical anomalies have been identified associated with the wehrlite-gabbro contact zone. The Greenhills complex has some similarities to Alaskan-Ural type complexes.Reconnaissance exploration in the Dun Mountain Ophiolite Belt has identified PGM geochemical anomalies, but no follow-up work has been carried out. During the late 1800s and early 1900s, PGM were recovered as a byproduct of placer gold mining in Southland. Placer gold prospects with PGM potential include the Waiau River, deposits flanking the Longwood Complex and some Southland beaches.

Jan 1, 2002

Quality Assurance has become a buzzword amongst governments and industry. Notwithstanding the world class work done by its committees in developing codes of ethics and of practice in field geological handbooks, mining cost estimation handbooks, and reserve estimation, the AusIMM could better prepare its membership for QA. MICA could provide a simple set of guidelines to enable consultant members to develop their own QA procedures manual conforming to AusIMM Codes and to IS09003, and AS3903.

Jan 1, 1994

By R L. Koenig

Previous papers at Metplant conferences have covered the options for crushing and grinding circuit selection. High Pressure Grinding Rolls (HPGR) may have considerable advantages over autogenous milling circuits but test work and evaluating different grinding circuits must be done to establish which circuit provides the best option. The Hawsons low grade magnetite project provides a specific example in using thorough test work, careful simulations and detail in design to allow the evaluation of grinding circuit performance. Fortunately tools are available for this evaluation and the test work for the Hawsons iron ore is detailed in this paper. The results of the test work and simulation indicates that although the Hawsons iron ore is competent in terms of autogenous milling given the medium hardness of the ore in the Drop Tests, the HPGR testing indicates that the use of HPGR is likely to use half the energy requirement. This is a characteristic of the Hawsons iron ore and is likely to be valid for other iron ores in the Braemer Iron Formation which stretches from the Hawsons lease in New South Wales to Razor Back and South Dam in South Australia. The Hawsons magnetite iron ore resource has been known from the early 1960s when CRA explored the area. However, the Pilbara region was discovered in this era and this led to development of high grade direct shipping grade hematite ores. Carpentaria Exploration (Capex) rediscovered the magnetite whilst undertaking multi-commodity exploration in the Broken Hill district during 2009. The magnetite grade was found to be low at around 16% Davis Tube mass recovery (DTR) but despite this, the project provides a positive business case as a result of the following key factors:• The mineralisation is particularly soft for crushing and grinding with a Bond Work Index of 6.3.• The mineralised rock fractures easily preferentially along grain boundaries.• The location is close to mining infrastructure and a skilled workforce in Broken Hill, 60km to the North East.• It is close to road and rail infrastructure for access to the resource.• The only contaminant in concentrate is silica.• The resource contains many billions of tonnes of magnetite mineralisation.The low Bond Work index is a key characteristic of the Hawsons iron ore and the use of autogenous milling and HPGR circuits is compared to other iron ores indicating why the plant energy requirement may be just as important as iron ore grades.

Aug 8, 2011

By Harris J. W

Mr. Gillie and Mr. Harris have given us a wealth of information and food for thought on the vital subject of information and food fo rthought on the vital subject of reducing costs and mention considerable saving in some of the larger items. There are a number of points on which I would like further information, but I will confine my remarks to a relatively small saving which is of particular interest in view of another paper to be presented this afternoon.Mention is made of a 50 per cent reduction in the amount of zinc used in the precipitation of gold slime from the pregnant solution. Would Mr. Harris enlarge on the methods by which they obtained this reduction; and could he give an actual figure of zinc consumption either by ton of ore treated or per ounce of bullion recovered.AuthorsWe consider the reduction of zinc is due to improved clarification of the pregnant solutions. The sand clarifiers used prior to the installation of the 50 ft. -thickener were not satisfactory due mainly to the blending of the hessian and matting under the sand. Under these conditions the leaf clarifiers were fed with overflow solution from the clarifiers and were overloaded in consequence. The addition of Calgon has also been beneficial.The present consumption of zinc per ton of solution treated is 088 lb. per ton.A. L. "Keats (No,rth Broken Hill Limited)In the operation of milling equipment there is a progressive increase in maintenance expenditure during the life of a machine, so that when comparing the cost of operating old equipment with the cost of operating new equip...

Jan 1, 1956

As the surrounding environment continues to change and evolve, mine managers face a changing climate of expectations. TodayÆs mine managers must juggle competing pressures to deliver sound social, environmental and economic results. Leadership is a fundamental tool for the effective mine manager. Whilst mine managers require solid technical and operational skills, importantly the manager must be able to engage a workforce, build and retain employees and seize opportunity for growth and development when presented. An important tool for engaging employees in the business at Rio Tinto Aluminium is the business improvement programme. At Rio Tinto AluminiumÆs Weipa mine, the business improvement methodology Six Sigma is used to deliver measurable, sustainable outcomes for the business. The next step in Rio Tinto AluminiumÆs improvement journey is to implement Lean Manufacturing at all managed operations. The operating environment for mine managers continuously evolves and effective mine managers must be flexible and adaptive to meet challenges. Governance and regulation constantly change in an environment of commodity cycles and finite resources. This increases pressure on the economic return achieved by the operation. As such, effective mine managers must be aware of and manage the operating environment û the broader, issues-based environment not just the immediate day-to-day responsibility of mine managing. This includes delivering on safety, community and environmental priorities. At Rio Tinto Aluminium, part of managing the business is via investment in the area of social partnerships to engage employees and the broader community in Rio Tinto AluminiumÆs commitment to sustainability. The Future Reef partnership entered with the Great Barrier Reef Research Foundation in 2005 forms an important part of Rio Tinto AluminiumÆs climate change strategy. This four-year, A$1 million investment funds programmes looking at the effect of ocean acidification on the Great Barrier Reef. The partnership is a unique example of industry and science working together on an area of mutual and national concern. Modern mine managers require a broad set of skills to effectively deliver outcomes. TodayÆs mine managers must make innovative and courageous responses to determine todayÆs strategy for tomorrowÆs future.

Jan 1, 2006

By R R. Lovel

In this paper, life cycle assessment methodology has been used to assess the variations in water use associated with different metal production and processing routes and provide insights into the value derived from water usage in the minerals sector. Using water consumption data derived from the literature it has been shown that the æcradle-to-gateÆ water consumption (or embodied water) for production of the various metals considered in the study ranged from 2.9 m3/t for steel up to 252 087 m3/t for gold. The results largely reflect the grade of the initial ore used to produce each metal, and can be approximated by the following equation:W = 167.7 G - 0.9039 where: W = embodied water (m3/t refined metal) G = grade of ore used to produce metal (per cent metal) The study showed that indirect water consumption in the metal production life cycle, in particular that due to electricity generation, can make a significant contribution to the embodied water value, eg aluminium production. When expressed in terms of m3/t ore, the results for all metals considered indicated that the embodied water is roughly, on average, three times the water consumption of the mining and concentration stage. It was also shown that the economic value per m3 of water consumed for the minerals industry exceeds that for the agricultural and industrial sectors, supporting the view that allocating water resources to the minerals industry has a strong underlying economic basis. Water reforms currently taking place in Australia aim to address issues such as competition for water access, reduced security of supply and increase in cost. Consequently the minerals industry, along with others, can be expected to come under increasing pressure to reduce fresh or raw water use and to integrate water use across sectors. While water recycling is an obvious candidate to help reduce water consumption in the minerals industry, issues such as water quality, among others, will influence the extent to which this can be achieved. In addition, wastewater volumes can be minimised using techniques such as pinch analysis to establish and use the minimum water requirement for the process. The use of dry or near-dry processing technologies, for which the demand for water is small or zero, may be a more radical solution to the water consumption problem; however, it is possible that the introduction of dry processing would bring with it a new set of problems, including dust.

Jan 1, 2006

By G Kennewell

At 11 am Monday 8 September 1997, the successful detonation of the 5/9 Mass Blast at Pasminco - Elura was signified by the subsiding of æMt KevinÆ (a 15 m high earth fill mound). The blast was in response to earlier mine subsidence, which holed through to the surface affecting future stability of underground workings. The blast was a first for Elura which fires small tonnages regularly to avoid rapid oxidation of the ore. This paper discusses the strategy and the considerable planning that went into EluraÆs first blast of this magnitude in order to succeed first time round.

Jan 1, 1999

By Johns D. R

The producers of mineral sands on the East Coast of Australia might be regarded as having a simple task of selling Rutile and Zircon. Such is not the case. Differing quality and grain size requirements plus the dramatic increase in the percentage of mineral sold in a processed form have meant a large increase in the number of different end products handled. The resulting sales control problems are compounded by the need to be able to deliver against a large number of separate contracts which may relate to spot or long term sales in small quantities or in bulk shipments. Methods of helping management control this situation have been devised and incorporated into a suite of computer programs. Experience with the approach has been very satisfactory. The effect of changes to shipping schedules, commitment to new or changed orders, or proposed changes to production can be evaluated as and when necessary with little bother. Confidence in decisions taken is high since the process of data collection has been designed to involve

Jan 1, 1977

By S Holmes

Solid Energy New Zealand operates the Stockton Opencast Coal Mine, a unique deposit consisting of high quality hard coking and thermal coals. Stockton's uniqueness includes high variability of the shipment specifications, strict quality constraints, minimal stockpiling capacity in the coal transport chain and the variability of coal quality both vertically within the seam and laterally across the deposit. The process of resource proving and modelling results in a high level of understanding of the deposit to allow detailed planning to be undertaken. The use of computer aided mine planning tools is an important component of the mine planning at Stockton. Detailed planning is implemented in the field through selective mining practices and monitoring to minimise dilution and maximise recovery of the coal resource. The quality variability in the coal, the æjust in timeÆ approach of the coal transport chain and markedly varying quality specifications from shipment to shipment requires a large coal inventory and the mine to be driven by quality constraints rather than material movement capacities.

Jan 1, 2003

By J-M Rendu

Substantial progress has been made over the last ten years in the development of uniform national and international standards covering the definition, estimation and public reporting of mineral resources and mineral reserves. Agreement between the major participating countries has been reached, which includes the requirement that a Competent Person prepare and approve publication of mineral resources and reserves. Most national regulatory organisations have accepted the new standards and have included them in the rules that must be followed by mining companies operating under their jurisdiction. These developments are the result of a concerted effort on the part of professional societies, national regulatory agencies, international organisations, and many dedicated individuals. The historical development of these standards is summarised in this paper. Accepted definitions of mineral resources and mineral reserves are discussed, as well as the definition and role of the Competent Person. Additional effort is needed before the international standards are fully understood, accepted and followed by mining companies, regulatory agencies, the investment community and the general public. Steps being taken toward development of an International Code are outlined.

Jan 1, 2002

By T Smith

The evaluation of a new mineral resource and its economic viability is critically dependant on the quality of the assay data as it is this data that defines the grade of the resource. However, all too often the procedures of sampling and chemical analyses used to generate such data are neglected or given little consideration until final modelling and evaluation are under way. This approach frequently requires large reassay and/or re-sampling programs to be undertaken to validate or to improve the integrity of the data base. This paper outlines a step by step approach to ensure quality data is achieved and then maintained throughout the entire exploration and resource development program. This involves the use of correct field sampling methods, assay methods designed to give the required levels of accuracy and precision and quality procedures in place to monitor the effectiveness of the overall process. Thorough documentation is an overriding and necessary part of the entire process. Practical examples are given to demonstrate the use and value of these methods.

Jan 1, 1998

By N C. Steenkamp

The Northern Cape Province of South Africa is host to the Kalahari Manganese Field (KMF). The northern portion of the KMF hosts high-grade manganese referred to as Wessels’ type ore and is mined mostly from underground operations. WorleyParsons TWP is currently involved with the development of a ventilation shaft for one of these mines. The main challenge is to develop through the unconsolidated Kalahari material and weathered portion of the Karoo formation. These formations are preserved very erratically over short distances. A lack of understanding of the unique challenges presented for developing shafts in this area has resulted in the failed development of a shaft on an adjacent property and over-expended budgets on others.The renowned red sand of the Kalahari forms the top several tens of metres and overlies a horizon of gravels and calcrete that pose seasonally variable water ingress problems. A very stiff red clay horizon is then intersected. The Red Clay is prone to swellling during excavation and has been the main stumbling block on previous constructions. The standard approach has been to develop non-stop through this layer. The red clay is underlain by another horizon of calcrete, gravel and conglomerate that marks the bottom of the formation. The top of the Dwyka Tillite (Karoo Formation) is usually highly weathered and has a distinctive yellow colour. The weathered tillite is highly susceptible to drying and becomes friable. At reef-intersection, the combination of subhorizontal bedding and joints with the dominant subvertical faulting results in potential wedge failures in the manganese and ironstone units.This paper describes the geotechnical issues identified during the planning of the ventilation shaft and the risks associated with development through the Kalahari and weathered Karoo Formations. A new approach to developing ventilation shafts in overcoming these challenges is recommended.CITATION:Steenkamp, N C, 2014. Challenges of developing a ventilation shaft in Kalahari and Karoo formations, Northern Cape, South Africa, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 81–88 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

The primary objective of designing, constructing, commissioning and operating a technically and economically viable processing plant cannot be achieved without a rigorous scientific understanding of the chemical principles underlying every facet of the total flowsheet, from feed preparation through to a final product. Having developed a thorough understanding of the chemistry involved, the next challenge is to match the innovative advances with the necessary engineering skills. In simple terms, there is little point in proposing a new processing route if it is not possible or practical to design, construct, commission and operate it. Thus to achieve our objective, it is necessary that processing facilities that are both smarter and cheaper be developed. This presentation highlights a number of the more significant research and development activities that are designed to facilitate the conversion of a smart idea into a real process. Following a brief discussion of several examples, the presentation concludes with the observation that a pro-active team approach is almost mandatory in order to achieve an acceptable outcome.

Jan 1, 2000

By I Haine, J Penm, T Waring

During 1999 there was a considerable turnaround in world prices for most minerals and energy commodities, except for the bulk commodities (coal and iron ore). The main reasons for this turnaround were: improved prospects in demand for most minerals and energy commodities in the Asian region following a return to both economic and industrial production growth in key economies in that region; continued moderate growth in demand in Europe and North America; substantial production cutbacks in a range of minerals and energy industries; effective reductions in the supply of oil by OPEC nations; and an announcement by European central banks that they would cap the amount of gold they sell and loan in the next five years. Most of these influences are expected to be sustained into the first years of the new millennium. In 2000, with exception of coal, average world prices of minerals and metals are forecast to rise significantly. Gross domestic product and industrial production is expected to grow in some European countries and most Asian countries in 2000 and, with moderate growth expected to be sustained in the United States, demand for minerals and energy is expected to increase. AustraliaÆs main bulk commodities, iron ore and coal, saw prices set for 1999 - 2000 at substantially lower levels in negotiations in early-1999. Double digit price cuts were locked in. However, similar falls appear to have been avoided for coal in Japanese Fiscal Year 2001, while increases of between four and six per cent were achieved for iron ore. Forecast modest recovery in economic growth in Japan and increasing demand elsewhere in Asia are expected to lead to tighter market conditions in 2000. Beyond 2000, world minerals and energy markets will be influenced by the expected robust global supply responses of minerals and energy companies, against a background of sustained economic growth and industrial production growth in major consuming countries. Over the medium-term, a return to declining real prices which have been evident for most commodities in the recent past, is expected as exploration, mining and processing technological change and associated productivity growth continues to reduce industry costs. While lower rates of exploration and mining investment in Australia between 1998 and 2000 will modestly constrain the rate of future industry expansion, Australia remains an important contributor to expected growth in global minerals supply over the medium-term. Australian mine production is forecast to grow between 1999 - 2000 and 2004 - 05, boosted by production from recently commissioned mines and minerals processing facilities and comissioning of other projects at advanced stages of planning.

Jan 1, 2000

Distal air-fall ashes are widespread deposits that may record volcanism many hundreds of kilometres from their source. They are characteristically thin, fine-grained and have a low preservation potential usually being either eroded, or reworked and incorporated in overlying sediments following deposition. The most likely sites of accumulation are deep sea, lake and swamp environments where low energy conditions favour preservation. Post-depositional alteration of predominantly glassy volcanic ash is commonly extensive hampering identification of such layers in the geological record. As a result air-fall tuffs are poorly represented in the rock record and furthermore are commonly misinterpreted. Southeast Queensland during the late Triassic hosted active silicic volcanism and a number of fault-controlled basins in which coal-bearing sediments were accumulating. Silicic volcanics of late Triassic age are represented by the Brisbane Tuff in the Brisbane city area, the Chillingham Volcanics to the south of Brisbane and extending into New South Wales, the North Arm and Mount Byron Volcanics to the north of Brisbane, the Aranbanga Beds exposed around Gayndah and the Agnes Waters and Muncon Volcanics which occur northwest of Bundaberg. Stephens (1986) interprets these Volcanics as the remnants of a major silicic igneous 'province which he likens to modern continental orogenic margins. The Ipswich, Tarong and Callide Basins of southeast Queensland all contain coal measure sequences of late Triassic age that accumulated in alluvial plain environments. A Dicroidium flora is common to all and palynol.ogical evidence indicates a late Triassic (Carnian) age (de Jersey, 1975; Stevens, 1981). The coal seams of the three basins are characterised by their thickness (up to 25 m) and the presence of abundant thin, laterally persistent, kaolinite claystones (tonsteins) that show a marked similarity of morphology, texture and mineralogy. Detailed studies of the Ipswich Coal Measures (Falkner, 1986) suggest a volcanic air-fall origin for the tonsteins of the Ipswich Basin. Similar.tonsteins from the Tarong and Callide Basins provide evidence for widespread silicic volcanism during the late Triassic in southeast Queensland.

Jan 1, 1987

By E R. Ramanaidou

The presence of clays in channel iron deposits (CID) within the Pilbara region of Western Australia causes problems in the classification and subsequent processing of the iron ore. In particular, the presence of clay adversely affects the processing and ore metallurgical properties by increasing the amount of Si and Al. Iron ore companies are seeking new methods to quickly and objectively detect the type and amount of clay in these deposits. Traditional methods of clay quantification such as X-ray diffraction (XRD) and thermal analysis are time consuming and expensive. Reliance on bulk chemical techniques (eg X-ray fluorescence, (XRF)) to derive normative mineral abundances can give misleading results. For example, the replacement of Fe by Al in the structure of the iron oxide minerals, goethite and haematite, which dominate in CIDs, can be significant. Silicon can also occur in association with these Fe minerals. If not accounted for, chemical techniques may overestimate the normative abundance of clays. In comparison, reflectance spectroscopy in the visible-to-near infrared (VNIR) and short wave infrared (SWIR) wavelength range (eg 400 - 2500 nm) and Fourier transform infrared (FTIR) (6000 - 900 cm-1) analysis are non-destructive techniques that can provide rapid and objective mineralogical information. Both techniques are particularly suited to Al-, Fe- and Mg-OH bearing minerals such as clays. Kaolinite and, to a lesser extent, montmorillonite are the most common clay contaminants that occur in the Pilbara CIDs. Previous applications of VNIR-SWIR spectroscopy have demonstrated the potential of these methods in quantifying the clay mineralogy of CID ore. In this study, variations in the depth of diagnostic spectral adsorption features in the SWIR wavelength range of kaolinite and montmorillonite in standardised mixtures, with known proportions of clay, were well correlated to the abundance of kaolinite and montmorillonite, and to the clay alumina content (ie per cent Al2O3 û clay).

Jan 1, 2007