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

Mar 8, 2016

By S Serp, M Duchateau, P Chevreux

Molten salt reactor (MSR) is a promising advanced reactor system aiming to the transmutation of minor actinides such as americium in order to reduce the inventory of ultimate nuclear waste. The fuel is a molten salt in which actinides are homogeneously dissolved in the liquid phase. A chloride salt may be retained for this concept, as it provides low melting point, high solubility of actinides, harder neutron spectrum. To avoid corrosion and precipitation issues, molten salt composition has to be carefully controlled with impurity content as low as possible. Obtaining pure actinide chlorides without contaminants such as oxide, oxychloride, hydroxide and water is still a challenge. To prepare actinide-bearing salt, the chlorination of actinides oxides was investigated in an unstirred reactor under flowing gas as solid-gas reaction. The carbochlorination of PuO2 were performed in the temperature range of 600 to 800°C with chlorine gas as a chlorinating agent and the presence of solid carbon. PuCl3 was successfully synthesised by this method and characterised by X-ray diffraction measurements but some impurities such as oxide phase remain inside the formed product. Refinements of anhydrous and hydrated PuCl3 phases by Le Bail method were also performed for crystalline materials definition. Conversion mainly depends on the chlorinating temperature and the contact between the oxide and the chlorinating agent. A conversion value of 70–80 per cent was achieved at 700°C from PuO2 with quite high specific surface area. The conversion rate was not improved with increasing the chlorination time. The volatilisation of Pu was observed during the carbochlorination experiments. To avoid a loss of Pu caused by sublimation, the chlorination temperature should be limited to 650°C despite that the conversion of PuO2 to PuCl3 was enhanced by increasing temperature. Both carbochlorination and hydrochlorination of AmO2 were also carried out leading to the formation of AmCl3. These first results suggest that americium oxide was chlorinated more readily than plutonium oxide. The purity of produced PuCl3 and AmCl3 still deserves further investigations.

Jun 19, 2024

By E J. Sellers, A Cocker

Movement of the fragmented rock mass is an inevitable consequence of open cut blasting. Uncontrolled, unaccounted movement from blasting commonly causes ore loss and dilution from waste mixing. Therefore, the prediction of the post-blast location of both ore and waste is vital in grade control and of direct interest to mining geologists. Direct measurement techniques have matured significantly over the past decade, but their use remains expensive and labour intensive. Access and safety issues are further disincentives to regular movement monitoring. What is needed is a combination of direct measurement to establish baselines and reliable predictive modelling.The W H Bryan Mining and Geology Centre of the University of Queensland has pioneered 3D blast movement modelling using ‘physics engines’ to handle in-flight collisions and predict the final resting place of blasted material. Open cut metalliferous mines are a demanding environment for this style of modelling as they can involve complex geometries and variable buffering, which leads to inconsistent confinement. A version of the model designed to deal with these complexities is under development. A well-controlled field trial was needed to validate this new version.A validation trial was completed at a gold mine in South-East Asia. The aim was to increase throughput by increasing the blast powder factor without losing grade through dilution and mixing with waste. Four blocks were blasted to identify the effect of bench height and face confinement on ore movement, fragmentation and process throughput. The powder factor and blast timing were kept constant. Movement of the broken rock was measured by placing blast movement monitors at known positions in the block and then locating them after the blast. The majority of sensors were recovered, providing a unique insight into blast movement dynamics and generating a substantial data set for model validation.The model (called ‘MetaMove ‘) was calibrated for one blast and applied to investigate the extent of grade loss and possible mitigation strategies. Conventional mining techniques that involved firing across the strike of the orebody, and no post-blast boundary adjustment of the ore/waste boundaries prior to digging, were found to cause up to 44 per cent loss of high-grade ore, depending on the grade distributions. Post-blast adjustment of the ore/waste boundaries can negate this loss. The model indicates that altering timing and ensuring that the block boundaries are well confined can further constrain the movement of ore/waste boundaries. Thus, the model can be successfully applied to minimise grade dilution and limit misclassification of ore as waste whilst using higher powder factors to increase mill throughput. Application of a calibrated model to move ore/waste boundaries prior to digging will enable the production geology team to add significant value to the mining operation.CITATION:Cocker, A and Sellers, E J, 2014. Modelling blast movement for grade control at an open cut gold mine, in Proceedings Ninth International Mining Geology Conference 2014 , pp 377–386 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

The Channel Tunnel is an outstanding example of an undersea tunnel and its design illustrates most of the unique features of this type of tunnel. The marine site investigation was partic- ularly vulnerable to adverse weather conditions. To minimise this interference the time the drilling vessel was required to remain on station was kept to a minimum by expediting the drilling and the insitu tests as far as was practicable. To avoid additional unforeseen costs the contract documents were framed to take particular account of marine practice. The limited access at the coast line meant that for economy, maximum tunnel advance rates had to be attained. Ground excavation, handling and disposal methods and the provision of the lining were optimised and equipment specified in detail to ensure that no one com- ponent was delayed by a lack of capacity or mechanical failure in any other.

Jan 1, 1976

By Ely K. W

On January 21, 1986, a methane ignition and subsequent mine fire occurred in the under- ground workings of the Jim Walter Resources, Incorporated No. 3 Mine located near Adger, Alabama. The fire, which began on a longwall face and eventually spread into the adjacent gob area, could not be extinguished directly and raged out of control for several hours. Sealing operations were begun underground by Mine Rescue Teams and the fire area was successfully sealed with the mine able to resume production in about one month. The No. 3 Mine liberated over sixteen million cubic feet of methane in twenty-four hours. The operation was unique, in that, the successful underground sealing of a fire in an ultra-gassy mine had not been attempted or com- pleted for several years. Maps and charts are included to give explanation of the typical data used to manage the recovery effort.

Jan 1, 1988

During the 1950's there was a flurry of activity on the design of main ventilation shafts for mines. More recently, a new ana- lysis was commissioned in relation to the multi-shaft, nuclear waste isolation facili- ties currently under design in the United States. This paper presents the major find- ings of that study and should prove of value as a reference in the design of proposed new shafts. An overview of mine shaft resistance introduces the effects of the shaft walls, fittings, conveyances and shaft stations. Each of these is analyzed in turn. A com- pletely new technique is described, which facilitates the estimation of wall resis- tance. The effect of size of a conveyance is quantified and shown to be dominant when the cage occupies more than 30 per cent of the shaft cross-section. The dynamic effects of a moving conveyance are also analyzed.

Jan 1, 1988

By T J. Napier-Munn, T Perkins

The JK Drop Weight test was developed at the Julius Kruttschnitt Mineral Research Centre (JKMRC) in the early 1990s as a means of characterising ore for the purposes of AG/SAG mill and crusher modelling. It has since been used extensively worldwide in the minerals industry as a key ore characterisation test which produces parameters which are used in comminution circuit design and optimisation. The test generates three parameters which are used in the AG/SAG mill model of the JKSimMet software. The resistance of the ore to high energy (impact) breakage is quantified with the A and b parameters. The oreÆs resistance to low energy (abrasion) breakage is measured using the ta parameter. The accuracy and precision of the results of the JK drop weight test are of great importance given that the parameters are key inputs in the design of such capital intensive items as SAG mills. Plant optimisation exercises also rely on the accuracy of the parameters to assist with improving the performance of an existing circuit. A thorough analysis of the accuracy and precision of the parameters generated by the JK drop weight test has now been undertaken by JKTech Pty Ltd (JKTech). An experimental program was designed using statistical methods to plan a hierarchical set of 24 drop weight tests on homogeneous material. Each stage of the test was identified and incorporated into the experimental design so that the contribution to the overall error of each stage could be quantified, including the effect of operator. The data were analysed by nested analysis of variance. An overall analysis of the A, b and ta parameters generated from the test program has now quantified the variance of these parameters more thoroughly than ever before. Using the results for the impact parameters, an analysis has been carried out to investigate the effect of these variances on final SAG mill comminution circuit design. The results will also be used to refine the comparative testing procedures currently in use by licensees worldwide.

Jan 1, 2008

By O Ignatenko, A van Schaik

Environmental legislation for the process and manufacturing industries is frequently formulated without considering the fundamental limits of physics, chemistry and thermodynamics within process technology. Recycling of end-of-life goods is used in this paper to show how the limits can be evaluated on the basis of the theory of minerals processing and metallurgical engineering. This theory has been applied on European Union level to re-examine the legislation for automobile recycling in a recent stakeholder discussion involving the automotive industry (http://www.assurre.org). This theory and our models are finding their way into the computer aided design (CAD) tools of the automotive industry, developments that form part of a project to design the super light car of the future (http://www.superlightcar.com). Only such fundamental approaches will in future be able to provide the basis to argue and define realistic and sensible environmental legislation.

Jan 1, 2006

By M Allen

By its nature, the mining industry is energy and emissions intensive. In the future, the world will still require the outputs of mining but the industry will need to adapt to the low emissions economy. Understanding the risks of climate change to a particular site or at a company level is key to managing this transition.CITATION:Allen, M, 2018. Assessment of climate risk in the Australian mining industry, in Proceedings Life-of-Mine 2018, pp 13–16 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

In March 2003, Rio Tinto Coal AustraliaÆs (RTCA) new Hail Creek open cut coal mine commenced operations in the Bowen Basin. Hail Creek is a two-seam strip mining operation utilising two 90 m3 draglines and a fleet of excavators and trucks to remove the overburden. All overburden at Hail Creek is blasted prior to excavation. The mine conducts its own drill and blast operations while engaging Dyno Nobel for the provision of explosives supply and loading truck (bulk explosives vehicle û BEV) services. This arrangement was favoured over outsourcing the entire blasting function to a contractor. Subsequent to a value engineering review, the mine set about developing and implementing a blasting operation that did not rely on the need to store bulk quantities of ammonium nitrate on site. There were advantages identified in doing this, in particular the reduction of capital expenditure required and reduced exposure to a number of recently introduced security requirements. This approach also makes sense operationally. The establishment of reload facilities for the BEV close to the blasting location, where turnaround times are kept to a minimum, increases the productivity of the BEV. For this strategy to be successful the logistics of ammonium nitrate supply into the blasting operations has to be well planned and thoroughly executed. This means a robust planning and forecasting arrangement needs to be established with the supplier and transporters of the ammonium nitrate. To date, 80 million bcm of overburden has been blasted at Hail Creek and each year the quantity of overburden requiring blasting is increasing. The purpose of this paper is to present the findings of a study: evaluating the effectiveness to date of the strategy to conduct blasting operations without ammonium nitrate storage on site, and identifying whether there is a limit to which this strategy can operate after which the introduction of bulk ammonium nitrate storage facilities are necessary.

Jan 1, 2007

At the outset, I guess we should define what we mean by "com- modities". In the 20 minutes or so which I have for this paper, it is impossible to tackle all commodities -one would need to con- sider not only the base metals but also the ferrous iron and steel products as well as energy commodities such as coal, oil and even uranium. For the purpose of this address however, I would prefer to refer to the principal non-ferrous commodities: copper, lead, zinc, aluminium and nickel and, I would like to consider some of the changes which have taken place in the industry over the past 20 years-and the likely reasons for these changes. I would also like to dwell a little on the future and some of the key issues which-may influence the future path and direction of the metals industry.

Jan 1, 1988

Central to any business is its Asset Management Plan which encapsulates the business context and key organisational objectives such as profitability, safety and environmental standards. Life Cycle Planning (LCP) is a key component of an overall Asset Management Plan. A comprehensive approach to Life Cycle Planning forecasts the financial expenditure required to support the performance of the asset over the business life. It incorporates capital, maintenance and operational expenditure along with an estimation of economic life. Within its body the LCP provides the detail of the maintenance plan and method of its execution. Once optimised the LCP becomes the overarching plan executed through the application of several elements of the Asset Management Plan to ensure the return on investment from the assets is optimal. Each of the elements of the LCP is bound by a set of loops that provide information based on the analysis of outcomes. These loops drive the continuous improvement of performance and cost over the life of the asset. In this way we ensure that the LCP is a dynamic plan responsive to the changing business environment. The paper being presented today will describe the process undertaken and the outcomes derived when this approach was applied to a $600 M+ coal handling and preparation plant in QueenslandÆs Bowen Basin. It will also delve into the difficulties encountered from both technical and cultural aspects; the latter proving to be the most difficult to manage. It will describe the hurdles and barriers that hampered progress including the human influences and the natural desire to revert to what has been done in the past when things became a bit difficult. In the end the results are there to show that the upfront expenditure and investment in time was time and money well spent and the outcome has the operation well placed to manage the assets in a manner designed to deliver the optimal business outcome.

Jan 1, 2007

By E A. Agorhom, M Beyuo, C Owusu, I Quaicoe

Understanding the mineralogy and liberation of gold particles in an ore is key to the development and optimisation of gold processing operations, being cyanidation or gravity separation. This can be achieved through basic historic geological information, gold deportment studies, chemical speciation and metallurgical test works. The present study assessed the nature of the occurrence of gold particles (mineralogical composition, liberation, associations and surface chemistry) and its effect on the process route (cyanidation and gravity separation) of a typical paleo placer gold ore deposit within the Tarkwaian Rock system. The investigative approach used involved chemical assay, quantitative X-ray diffraction (QXRD) and quantitative evaluation of minerals using scanning electron microscopy (QEMSCAN). The ore samples (A, B, C, D, E, F) used were obtained from six active pits of a gold mine working on this orebody. The results of the mineralogical analysis revealed that the ore is highly oxidised and comprised quartz (>80 per cent) and Muscovite mica (>6 per cent) as the major mineral phases in all the samples. Trace amounts of hematite, kaolinite and todorokite were also identified in all the samples. The chemical analysis showed presence of gold (Au) in all the samples with samples B (3.62 g/t) and C (3.96 g/t) containing the highest concentrations. Trace amounts of copper (Cu), iron (Fe), sulfur (S), aluminium (Al), arsenic (As) were also detected in all the ores. The QEMSCAN mineralogical liberation and gold association results revealed that the gold grains were relatively coarser in all samples (P80 > 80 µm Au in size) except F (P80 < 32 µm Au in size). Gold grains were highly liberated especially in sample B with the majority of the locked gold grains forming complex associations. All the samples responded well to cyanidation and gravity separation except samples C and F, respectively.

Aug 24, 2022

By R Wei, Y Peng

With the depletion of high-quality ores, the efficiency of extracting difficult gold ores through flotation and leaching becomes very important in the mining industry. Iron contaminants, sulfide and carbonaceous coatings on the surface of gold and gold bearing minerals significantly hinder the recovery of gold during gold processing. As the surface of gold minerals is easily contaminated, coatings of iron oxides and iron hydroxides originated from the grinding process and oxidation of iron sulfides will cause a retarding effect on both gold flotation and leaching.To mitigate the processing issues caused by undesirable surface coatings on gold minerals, a new technology in treating surface coatings of iron contaminants has been developed. The pulp potential and pH of the slurry are altered to allow dissolution of surface coatings which are further excluded by the use of complexing reagents. The current work shows that iron contaminants can be removed from the surfaces of gold through Eh-pH adjustment and chelation which result in significantly improved gold flotation response. The addition of complexants aids the formation of iron chelates to prevent the iron species in the solution from forming iron oxide and iron hydroxide in the flotation conditions.CITATION:Wei, R and Peng, Y, 2014. Mitigating the effect of surface coatings on gold processing, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 187–192 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By F F. Pitard

The optimisation of a metallurgical plant requires two kinds of sampling systems. The first provides samples to follow process changes, so in due time actions to maintain key parameters within pre-established specifications can be applied. The second provides composite samples at the end of a working shift to demonstrate that valuable constituents sent to the plant went to either a final concentrate or to the tailings in a logical, expected proportion. Contrary to what many experts may claim, these two kinds of sampling requirements are incompatible and cannot be fulfilled using the same sampling systems; this is because the required samples have completely different objectives. A process control sample is an instantaneous sample with increments taken at short intervals, and the objective is to know where the process is at any given time. Excellent accuracy is not a must, however good precision is recommended since a possible process correction may need to be made. Online analysers fed with in-stream stationary cutters or other kinds of in-stream or by-stream probes can do well for such a mission. A composite sample for metallurgical accounting with increments collected over a long period of time, for which excellent accuracy and good precision are both required, must be generated by sophisticated and extremely well-maintained cross-stream sampling stations. The use of process control sampling systems to achieve good metallurgical accounting has been promoted by several manufacturers of sampling equipment around the world; it is a grave mistake that is misleading top management and a practice that should be scrutinised and preferably eliminated. Furthermore, bias tests used to prove otherwise are often based on insufficient data to draw valid conclusions; a guideline is provided.CITATION:Pitard, F F, 2014. Sampling systems for process control and metallurgical accounting, in Proceedings Sampling 2014 , pp 25–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By P Donecker

Like all chains, iron ore values chains are only as strong as their weakest link, which in ore processing is often the humble chute. While mechanically the simplest element in the iron ore flow sheet, chutes are often the most problematic and regularly the major cause of unscheduled downtime. Chute designs have remained static for decades, despite the extra demands being placed on them by grade reduction, which impacts chutes in three ways viz: 1. Higher volumetric rates as infeed increases to meet production targets. 2. Higher moisture content as mining goes below water table. 3. Stickier properties as the dilution phase is often clay based. While there is no shortage of ideas and the geometry options are infinite, the fact is that chute design has not kept pace with grade decline and has remained essentially unchanged. One reason cited for this lack of innovation is the difficulty evaluating and de-risking designs. While the power of computers running Discrete Element Method (DEM) models has advanced, the models themselves still need to be ‘calibrated’ with the dynamic properties of the ore. Flow properties commonly measured for bin design are useful for static situations only and were never intended to predict dynamic behaviour as in chutes, a critical qualification lost in the mists of time. So while they always produce a colourful and reassuring animation, DEM models informed by static ore properties often result in wildly inaccurate real world predictions. Responding to this low success rate, many operators are now utilising physical modelling to help reduce risk and avoid the consequences of having an underperforming chute in their value chain. Physical testing, in a dimensionless scale-down of the proposed system (bulk material and chute geometry), addresses the shortcoming of mathematical models designs and when used in combination with DEM is the best option. In the ideal world, the focus of chute modelling should be innovative design concepts aimed at addressing future needs, however in reality the focus is nearly always on modifications to installed chutes that are underperforming even today. This situation can be traced back to design procedures which if informed at all, are based static ore properties. As an industry, we need to break this cycle and become more proactive, which means addressing flaws in the current design process. In 30 years of providing modelling support to the industry, I have looking at hundreds of underperforming chutes in the iron ore industry. This practical experience has led to a unique and unbiased perspective on chute design and their performance in the real world. The knowledge presented in this paper can not only be used to help avoid baked-in problems now, but also help guide and evaluate designs so we can deal with the challenges of our low-grade future.

Sep 18, 2023

By R Schiller, E Chait

"Quebrada Blanca is a porphyry copper deposit located in the Eocene-Oligocene belt of Chilean Andes. Operation started in 1994 and original reserves for supergene mineralisation gave a life-of-mine (LOM) of 20 years; however, further exploration extended the LOM until 2020.In order to optimise the remaining five years of supergene resource, geometallurgical variables were added to the geological model including copper recovery and acid consumption. LOM plan encompasses finishing the phase number eight and the future development of phases 11 and 13.LOM lithologies include diorites, quartz monzonites, porphyries, igneous and tourmaline breccias. Main alterations are: potassic, phyllic and argillic. Litho-alterations or geometallurgical units were formed by combining five types of rocks with three types of alteration. According to statistical information, the deposit can be represented with 12 litho-alteration units, which cover 98 per cent of the LOM volume.For copper recovery information, there were 40 mini-columns tests made in order to obtain kinetics curves and copper recovery values after comparing the difference between head and tails grades. Acid consumption was obtained using an automatic neutraliser device-based test.Historical data said that copper recovery in pads after 450 days of irrigation is around 75 per cent of recoverable copper while acid consumption is around 5.5 kg/t.According to this study, lower recoveries are related with potassic-altered diorites and argillic-altered quartz monzonites with values around 60 per cent. On the other hand, best recoveries could be found in potassic-altered quartz monzonites and argillic-altered diorites with values closer to 80 per cent.It was also revealed that the most reactive rock is the potassic-altered diorite with 12 kg/t of acid consumption. This rock covers approximately 40 per cent from phases 11 and 13.The final geomet model was calculated using a program that relates each geometallurgical unit with a specific copper recovery and acid consumption value. Results found after comparing model-obtained information with historical leached pads data were used to validate the model.CITATION:Chait, E and Schiller, R, 2016. Adding Copper Recovery and Acid Consumption Variables to the Geological Model of Quebrada Blanca, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 257–266 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By T Medhurst

Recent developments in geophysical borehole log analysis using the Geophysical Strata Rating (GSR) are now routinely used in a number Australian coal mining operations. This allows development of 3D geotechnical strata characterisation models for a range of purposes. The availability of this data provides a means to identify relationships between ground conditions and ground behaviour. As a result, several new design methods have been developed to assist in the strata management process such as roof support, longwall shield design and shaft stability assessment. This paper outlines these methods and provides examples of their application. CITATION:Medhurst, T, 2018. Geotechnical strata characterisation using geophysics and its application for coal mine design, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 420–433 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

Morning Star Gold aims to enter the ranks of Australia&apos;s gold producers, revitalising the Eastern Victorian Goldfi elds in the second half of 2010 - the fi rst gold production in around 50 years from the Morning Star Gold mine, which was once Australia&apos;s largest under WMC. This presentation will outline the redevelopment of the Morning Star Gold Mine from exploration to production. Morning Star Gold NL&apos;s (MCO) key project area is centred at the historic mining town of Woods Point and nearby Matlock (to the southeast) and Gaffney&apos;s Creek (to the northwest), all of which are located in the lower part of the Victorian Alps roughly 60 kms south of Mansfield. Morning Star has literally numerous historic mines and gold bearing &apos;dykes&apos; on its tenements, many with a rich production history of high-grade gold from quartz reefs and alluvial sources. The area encompassing the Woods Point goldfi eld and the multiple high-grade gold bearing dyke structures located north towards Jamieson and south towards Walhalla formed one of the most significant mining fields in Australian history. Historical gold production was at least 155 t or around six million ounces of over a century of mining with an average production grade exceeding 27 g per tonne. The bulk of this recorded production came from just a handful of mines and of those only three were mined to any great depth. One of the key historical production hubs in this area was the famous &apos;Morning Star&apos; mine, which is situated adjacent to Woods Point township. The Morning Star mine produced almost one million ounces at 27 grams per tonne, operating fairly continuously between 1861 and 1959 with a break after Jan 1939 due to the devastating &apos;Black Friday&apos; bush fi res across eastern Victoria. During the early 1940s, the Morning Star was Australia&apos;s biggest gold mine. The Morning Star mine along with Walhalla ensured that this goldfield was third behind Bendigo and Ballarat as Victoria&apos;s biggest hardrock gold production centre. Morning Star Gold has rebuilt its 100 per cent owned &apos;Morning Star&apos; mine with a view to producing gold in the second half of 2010. Morning Star is exploring its regional dykes in order to estimate an overall gold endowment and rank local production sources to feed its proposed mill at the Morning Star mine site. Key initial targets (all within 11 kms of the Morning Star mine) are the Waverly, All Nations, Rose of Denmark, Hunts, Wallaby and Loch Fyne dykes, all of which historically produced high grade gold, much of it gained from only shallow workings above the water table in the weathered zone of rocks. Historically the Morning Star mine was developed over 24 levels to a depth of 940 m via one large vertical shaft and a smaller, deeper inclined shaft at the 1900 feet level underground. At present MCO has dewatered and completely refurbished all infrastructure to the ten level (~310 m below surface). MCO knows there are a number of substantially under-explored and undeveloped or partially developed but not stoped areas within the Morning Star mine. As a result, MCO has been carrying out extensive channel sampling and an underground diamond drilling program targeting areas of the mine that were largely unexplored and undeveloped by the last operators of the mine - Western Mining Corp Ltd (Gold Mines of Australia). Four thousand, fi ve hundred pages of archival WMC records have helped the cause significantly. The shaft refurbishment and reconstruction stage is complete. This has been a program that originally commenced back in 1993 and has cost around $22 M. This refurbishment paved the way for the extensive underground resource focused diamond drilling program, which MCO completed in 2008 with two company-owned and operated drill rigs from drill cuddies on level 9 (900 feet underground) of the mine. This drilling, which encountered some stunning grades intersections and multiple visible gold hits, has outlined further production opportunities including 0.4 m @ 1392 g/t Au (MS 410). Metallurgical testing conducted by Gekko Systems of samples obtained from the exploration program found gravity concentration and a leach circuit gave recoveries of ~95 per cent to 99 per cent, or ~92 per cent from gravity alone at a coarse crush (300 ¦m). Currently, the plan is to use gravity to fi rstly produce dore bars on-site from the free milling gold and secondly a saleable concentrate for CIL processing off-site. A purpose built 10 t/h (~80 000 t/a) gravity treatment plant was subsequently ordered from Gekko and is expected to be installed onsite and commissioned in the Q3 2010. The plant features fi ne crushing with a vertical shaft impactor, followed by gold concentration by inline pressure jig, inline spinner and Wilfley table. This is an ABSTRACT ONLY. No paper was prepared for this presentation.

Aug 1, 2010

By M Binks

The Fosterville Gold mine is located approximately 20km to the East of Bendigo in central Victoria. The gold at Fosterville occurs as solid solution within disseminated arsenopyrite and pyrite. The Fosterville ore bodies contain various amounts of native carbon in the form of bituminous coal. This carbon (Non-Carbonate Carbon or NCC) has been the predominant mechanism for gold loss from the processing facility through”preg-robbing”.Processing of the Fosterville ore is achieved initially through crushing, grinding and flotation to extract the sulphides. The sulphide concentrate is oxidized using Bacterial Oxidation, before being leached in a conventional CIL circuit. A high portion of the native carbon (NCC) in the mine ore is naturally hydrophobic in nature, and subsequently reports to the flotation concentrate stream, and ultimately onto the CIL circuit. This NCC has a notable preg-robbing ability. Treatment of Black Shale ores, which have elevated NCC levels, has historically resulted in CIL recoveries as low as 35%, with around 60-80% of the gold loss from the leach circuit attributed to preg-robbing.Standard technologies for dealing with a carbonaceous leach feed have been trialed with limited success. The discovery of the significance of heat on leach recoveries, triggered extensive testwork on a range of leach feed and tails samples. Pilot plant testing demonstrated that “Heated Leaching” of the CIL tails was the best process with an average recovery increase of 7.5% being achieved. Following a successful pilot study, an engineering feasibility study was completed by Minerva Engineering, and the project economics determined. With strong recovery gains evident and a predicted project payback of 1-1.5 years, approval for the installation of the full scale plant was granted. Detailed design commenced in September 2008 with installation commencing in January 2009. The circuit was successfully commissioned in April 2009.Following commissioning, the Heated Leach circuit has achieved recovery gains of 4-14%, and has proven itself to be a significant contributor to the overall plant performance.

Aug 8, 2011