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By S Adamson

Morphological analysis of alluvial gold recovered from the same segment of a placer by four common commercial methods indicates that gold shape and the presence of quartz intergrowths or sulphide overgrowths substantially influence the recovery efficiency of each method. The amount and types of gold saved by each method varies according to the different hydrodynamic conditions under which each of the methods operates. Reverse circulation drilling has the lowest efficiency and preferentially loses moderate-high flatness gold and intergrown or overgrown gold particles with relatively low density. Gravity riffle, hydraulic riffle, and jigcentrifugal concentrator systems respectively save progressively more of these problematic gold morphotypes, but still lose significant and sometimes substantial amounts (of profit) to the tailings. Because of the differences in recovery efficiency, reverse circulation drilling probably underestimates the grade of most placers and may have resulted in bypassing several economic deposits. Losses to tailings by commercial recovery plants arise from inadequacies in fundamental plant design features. These inadequacies compromise plant efficiency by limiting the ability of plants to simulate the wide range of hydrodynamic conditions necessary to operate effectively throughout placer systems. Incorporation of sand pumps and multiple recovery methods into the more sophisticated plants only partly overcomes these inadequacies. At best, efficiency will be maximised in a few segments of the placer determined by individual plant design, and will decrease progressively upstream and downstream of those segments. Without prior knowledge of the morphological characteristics of the gold to be mined, it is difficult to choose the most appropriate plant design, or to estimate what proportion of the gold will be recoverable by any given plant. If the relevant relationships are not considered beforehand, the recovery plant is likely to lose a significant proportion of the gold, and sacrifice maximum profit.

Jan 1, 2001

Beneficiation of Nickel Lateritic Ore from Montes Claros de Goißs, Brazil Beneficiation is a key factor for both technical and economical aspects of industrial processing of nickel lateritic ores. A combination of comminution, classification and concentration stages are usually used to upgrade the metallurgical plant feed, thus resulting in both capital and operating cost reductions. This paper describes the testwork conducted on Montes Claros nickel lateritic ore in order to investigate the potential for upgrading. A comprehensive laboratory testing program included crushing, scrubbing, screening, grinding, gravity separation and attritioning, for both saprolitic and limonitic ore types from the Montes Claros deposit. The results indicated a clear potential for such an upgrade, which was later validated in a pilot plant program.

Sep 13, 2010

Neutralization with lime is a simple, cheap, and effective means of treating acid raffinates from uranium processing to' raise the pH, reduce the concentrations of dissolved salts (including heavy metal impurities), and remove amine by adsorption. Two-stage neutralization, using limestone in the first stage at approximately pH 4 and lime in the second, lIlay be advantageous.Lime neutralization of mffinates in the pH range 7 to 8· 5 generally reduced the radium ·concentration to 10 to 200 pCi 1-1, but ·there was considerable scatter in the experimental data. The radium concentration was further reduced to less than 3 pCi 1-1 by co-precipitation of barium (radium) sulphate with 10 mg Ba (as barium chloride) per litre of raffinate. Adsorption of radium on barytes was -also effective in reducing the radium concentration in neutralized raffinate to less than 3 pCi 1-1.The radium concentration of pit water was readily reduced to less than 3 pCi 1-1 when pit water containing 0·01 M sulphate as ammonium, calcium, or sodium sulphate was treated with 20 mg Ba per litre of pit water.Adsorption on barytes was also effective in removing radium from pit water containing 0·03 M sulphate.

Jan 1, 1975

By J T. Woodcock, G J. Sparrow

A sample of pyrrhotite flotation concentrate pulp assaying 15.3 g/t Au, which had been prepared from an old tailing dump, was treated to extract the gold. Examination of the concentrate with an SEM showed that exposed or free native gold, 5- 40 ¦m in diameter, was present but no locked gold was observed. Direct cyanidation of the concentrate to extract the gold showed that the flotation reagents present inhibited gold extraction. A range of pre-treatments was used to overcome these effects. Direct cyanidation for 48 h extracted only 26 per cent of the gold, indicating possible contamination of the gold in the concentrate with flotation reagents. Pre-treatment of the concentrate pulp by aeration for 24 h, or by 72 h aeration with an addition of 3.65 kg/t of sodium sulphite, gave little improvement in gold extraction by subsequent cyanidation. Pre-treatment by filtration, or by aeration with 12.5 L/t 100 volume hydrogen peroxide, followed by cyanidation for 48 h gave gold extractions in the range 67-77 per cent. Combining filtration and an aeration period with hydrogen peroxide addition raised the subsequent cyanidation extraction of gold to 88 per cent, giving a tailing assaying 1.5 g/t Au. Re-cyanidation of some of the dried tailings from the initial tests extracted most of the remaining gold giving a tailing assaying 0.5 g/t Au. This indicated that most of the gold was available for dissolution by cyanide. The poor dissolution of gold by cyanidation of the untreated concentrate was attributed to the presence of flotation reagents. It was shown by UV spectrometry that xanthate-containing compounds were present in the solids fraction of the original pulp and that they were partly removed by pre-treatment. MIBC was also present, and dithiophosphate, which was used in the flotation step, was also probably present. The results indicated that the improvement in gold extraction after filtration and oxidation of the original pulp was due to partial removal of the flotation reagents, and illustrates the detrimental effects that residual flotation reagents can have on the extraction of gold by cyanidation of a flotation concentration.

Jan 1, 1990

The New Zealand microcontinent is relatively well endowed with gold deposits; its past gold production per unit area of 3.2 kg/km2 ranks high on a world scale. Total recorded production (1857 - 1986) is about 854 000 kg and most of this gold was mined between 1861 and 1920. There has been a strong revival in gold exploration and mining since 1979, with exploration expenditure of around $15 million per annum and a declared gold production in 1986 of 1265 kg (886 kg in 1985). In addition to numerous alluvial gold recovery plants working small to medium sized deposits (mainly in Westland and Otago), there are five medium to large projects that have started production (Martha Hill), or have reached advanced stages of construction (Grey River dredge), permitting (Golden Cross and Macraes) or exploration (Globe-Progress). This summary paper is taken from reviews by Brathwaite et al (1986) and Brathwaite (1988).

Jan 1, 1988

By B A. Mowat, T M. Leach

The Morobe Goldfield inPapua New Guinea has produced in excess of 120 tonnes of gold from predominantly alluvial sources. Hardrock gold has been mined historically at Wau (23 t) and Edie Creek (4 t) and geological resources have been established at Hidden Valley (78 t), Kerimenge (36 t) and Hamata (30 t).Numerous prospects have also been identified within the goldfield. Primary gold mineralisation is related to intrusion of dacitic to andesitic Edie Porphyry (2.4 to 3.8 Ma), often with associated diatremes, which have intruded along major regional structures. A full spectrum of deposit styles from proximal (mesothermal) to distal (epithermal) to the porphyry source is recognised. The transition between the proximal and distal styles is recognised both between deposits and within an individual deposit. The deposit styles should be termed porphyry related gold mineralisation rather than given the generic epithermal and mesothermal labels.   It is proposed that magmatic fluids which evolved from parent melts to the high level Edie porphyry stocks mixed with convecting meteoric fluids and were channelled along major structure and diatreme contacts. Proximal to the intrusives, gold mineralisation is associated with deposition of pyrite-hematite-quartz+/-magnetite-gold (Hamata) and pyritebasemetals-quartz-gold (Wau). The mineralising fluids were hot, and periodically saline due to pulses of magmatic fluid. Gold is non-refractory and occurs as 20 to 30 micron blebs within the pyrite.   More distal from the intrusives or under late cooler conditions, mixing of cool dilute meteoric and magmatic fluids resulted in gold deposition associated with arsenic rich pyrite-and arsenopyrite-mineralisation (Kerimenge, Hamata and Edie Creek). Gold is refractory and occurs within the sulfides either as sub-micron inclusion or within the lattice.   CO2 and H2S gases which evolved off the upwelling hydrothermal fluids as a result of boiling and pressure reductions, condensed within superficial groundwater and formed cool oxygenated bicarbonate fluids. These fluids percolated back down the structures depositing manganocarbonate in the upper parts of the hydrothermal system. At deeper levels in the system mixing of the descending bicarbonate fluid with upwelling mineralised fluids deposited manganocarbonate-quartz-sulfides nonrefractory gold (Hidden Valley, Wau and Edie Creek).   At Kerimenge the cool bicarbonate fluids have also quenched a late stage magmatic fluid rising along high permeability structures. The quenching has resulted in deposition of non-refractory gold mineralisation associated with hessite (Ag2Te)-tennantite-chalcopyrite deposition.   Within the Morobe Goldfield, a transition from deeper level pyrite-quartz+/-hematite-magnetite to intermediate level quartz sulfide and quartz-carbonate-sulfide deposition to upper level, massive manganocarbonate deposition is recognized. Gold mineralisation can occur within all levels up the system.

Jan 1, 1995

By J Samosir, L Snyman

Northparkes was the first mine in Australia to use block cave mining method which relies on gravity and natural rock stresses to fragment and recover the ore. It was also the first hard rock mine to use hydraulic fracturing, in conjunction with CSIRO, to promote caving of E26 Lift 1. The technique was later used on E26 Lift 2 wedge and E48 prior to undercutting.Northparkes production is currently sourced from the E48 Lift 1 block cave mine and E26SLC. The E48 block cave contains economic ore to the north and south of the current cave footprint. To recover this ore the footprint has been extended on the north and south with two extraction drives and one extraction drive, respectively. Modelling of cavability above the additional drives indicated that the cave would not readily propagate to a sufficient height of draw to mobilise the ore and tended to arch over into the existing cave. To address the modelling results and to reduce the risk of the project, rock mass preconditioning was adopted.This fracturing campaign was performed from surface drill holes adjacent the subsidence zone angled to intersect the higher grade and higher elevation ore zones.Optical televiewer surveys, run prior to fracturing, picked intervals and fault zones to be avoided. Holes were resurveyed post-fracturing to detect newly created fractures and as a measure of success of the program.During fracturing operations water and gel fractures were run at varying depths and pumping pressure was logged for each fracture. The mine seismic system monitored significant events and dye in the fluids utilised for tracking water inflow locations during underground inspections.Towards the end of the project, guar fibres from gel were detected within the mill circuit and required treatment to resume optimum processing.CITATION:Webster, S, Snyman, L and Samosir, J, 2016. Preconditioning E48 cave extension adjacent to an active cave, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 471–478 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By G Anderson, M Mativenga, C Stanton, M Larson

Arrium’s magnetite concentrator has recently completed a modification program to improve the process that has been in operation in Whyalla, South Australia for the previous seven years. The magnetite concentrate is pumped via pipeline to the coast and serves as pellet plant feed, eventually being turned into steel in the Whyalla blast furnace. With the addition of a new 3MW IsaMill at the concentrator, the plant has seen increased production from a reduced feed grade, enabling Arrium to treat ores previously stockpiled as waste. This paper will focus on the design work and commissioning of the fine grinding circuit along with the year of optimisation that followed, taking the IsaMill up to 350+ tph of throughput.CITATION:Larson, M, Anderson, G, Mativenga, M and Stanton, C, 2015. The Arrium IsaMill from design through commissioning and optimisation, in Proceedings MetPlant 2015, pp 110–119 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 7, 2015

By M F. Jennings, N J. Corlis, B J. Thomas, L N. Tylkowski, A E. Petts, G D. McDonald

Flinders Mines is an iron ore explorer and developer with a tenement package located in the Hamersley Ranges region of Western Australia, approximately 70 km north of Tom Price. Exploration over the past five years has identified a Global Resource in excess of 900 Mt at a grade of 55.2 per cent Fe (+50 per cent Fe cut-off). This resource is spread across multiple deposits and has been divided into a number of mineralisation type domains. These domains are comprised of transported hematite rich detrital iron deposits (DID) and goethite dominant channel iron deposits (CID) as well as in situ bedded iron deposits (BID). The BID at PIOP is low in alumina and silica with a high calcined iron content making it an attractive exploration target. BID exploration techniques include a combination of mapping, structural analysis, downhole gamma logging and 3D geological modelling. Relationships identified between existing BID mineralisation, geology and structure has aided in targeting additional mineralisation across the tenement and highlighted other previously untested areas that warrant further investigation.CITATION:Tylkowski, L N, Corlis, N J, McDonald, G D, Petts, A E, Jennings, M F and Thomas, B J, 2013. The hunt for hydrous bedded iron deposits - an investigation into Flinders MinesÆ Blacksmith Tenement, in Proceedings Iron Ore 2013 , pp 121-126 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

During the course of the major research in the Metallurgy Department of the University of Melbourne into the creep characteristics of lead and .its dilute alloys, it has been the practice to prepare the majority of test specimens from rolled strip. From time to time during the progress of the work, certain variables involved in. the rolling of the experimental ingots have been investigated. It is proposed to collect together in this paper the results of these experiments. Some general features relating to the type of deformation produced have been discussed in a previous paper.While it is admitted that the conditions prevailing through this work differ' in some respects from those of industrial rolling practice, it is felt that many of the factors investigated have an important practical significance. Some of the work described forms a continuation of the researches of R. S. Russell (2) , (3) , (4), into the recrystallization of various pure leads after deformation by rolling.MATERIALS USEDIn this work, a variety of "pure" leads and certain dilute alloys made from the purest of the basis leads have been studied. The compositions of the basis leads and the corres...

Jan 1, 1940

By E Villaescusa, C Drover

Fully resin encapsulated threaded bar and cement grouted cable bolts are common forms of reinforcement for underground mining excavations constructed at great depth. These elements are frequently installed to dissipate the dynamic loads caused by violent rock mass failure mechanisms. Failure of the ground support scheme without rupture of the reinforcement elements implies that the maximum energy dissipation capacity of the scheme was not utilised. The ground support damage mechanisms are useful to identify in this context as they reveal vulnerabilities which limit the scheme performance. This paper presents a number of field observations of reinforcement performance following a range of dynamic loading conditions. It was observed that fully resin encapsulated threaded bars exhibit variable behaviour. In particular, inconsistent resin encapsulation was frequently observed in combination with surface support failure, indicating that the retention function of these elements may allow preferential loading of the surface support system. Observations of cement grouted, twin-strand plain cable bolts reveal a common mode of damage involving differential displacement across the steel-grout interface and slip of the cable within the borehole. This is common where strands are not mutually tensioned with barrel and wedge assemblies. Surface fixtures that exceed the strength capacity of the cable strand are required in order to minimise the occurrence of this response. Improved load transfer from the rock mass and surface support to the cable can thus be achieved, particularly where small block size failure occurs.CITATION:Drover, C and Villaescusa, E, 2016. Field performance of fully encapsulated reinforcement during violent failure events, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 659–668 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

Correlation of Air Recovery with Thin Film and Froth Stability in Flotation

Sep 13, 2010

The Significance of Internal Recycle in Froth Flotation

Sep 13, 2010

This Institute, by nature of its charter, draws on various persons in the mining and metallurgical world of Australasia for its President from year to year, and consequently when the presidential address is given by one of these people the topic. which they generally select is a topic to which they are accustomed and on which they are able to speak with authority.As most of you know, my prime object in life has been concerned with steelmaking, so tonight you can steel yourself to the thought that you are going to be spoken to about steelmaking.Even if that were not the case, and were I not particularly interested in steelmaking, I think it would be appropriate to look at steelmaking in a broad sense on a basis of pure metallurgical interest, because the steel industry is going through as big a revolution today as it went through something over one hundred years ago when Bessemer made a theory become a fact.Bessemer, and as the Americans prefer to think Kelly, separately conceived the idea of blowing cold air through molten pig iron, and, contrary to the then general belief, this did not result in cooling of the metal but succeeded rather in heating it, and in burning out of the rather crude pig iron the impurities which prevented it from becoming a ductile metal.For many years before this, steel had been made in a very small painstaking way by what was known as the crucible process. Benjamin Huntsman is credited with having developed the crucible steel making process to a stage where it could make a reliable and trustworthy product, but he...

Jan 1, 1961

By J L. Lett, I Brunton, T Thornhill

Block cave fragmentation has been documented in the literature to have a significant impact on mine design, performance and downstream material handling and comminution processes. Due to this impact, emphasis is placed on the premining prediction and subsequent quantification of primary and secondary fragmentation distribution. This paper discusses the fragmentation prediction and assessment methodology employed at the Ridgeway Deeps (RWD) and Cadia East PC1 (CEPC1) cave operations.Prediction of drawpoint fragmentation was based on an iterative process, which relied on an improved quantitative and qualitative understanding of the rock mass as the mining project developed. In particular, the collection of scanline mapping data provided detailed information in relation to discontinuity trace length, persistence, termination characteristics and large-scale planarity. This allowed an improved estimation of select modelling input parameters, in particular ‘block forming’ discontinuity orientation and strength characteristics.With the start of production, drawpoint fragmentation assessment was undertaken using digital image processing (DIP) techniques for drawpoint extracted tonnes up to 61 000 t. This technique provided a consistent methodology to estimate changes in fragmentation as the block cave matured. It can generally be concluded that the measured mean fragmentation distribution became finer as drawpoint tonnage increased. The incremental change in fragmentation distribution (per 10 000 t) was not uniform, with step changes evident. In addition, for a given geotechnical domain and drawpoint tonnage, the measured fragmentation distribution range was found to vary significantly. A possible explanation for these observations may relate to the disturbed flow behaviour noted from marker experiments at RWD and CEPC1. These experiments indicate that material reporting at the drawpoints (for any given tonnage extracted) may be sourced from highly variable heights within the cave, with finer material preferentially reporting.A comparison between predicted and measured drawpoint fragmentation distribution indicated two general findingsa close match between predicted and measured distributions for material greater than 1.0 m3an under prediction of finer material passing 0.5 m3 relative to measured.The findings would indicate that the fragmentation modelling frameworks utilised at both RWD and CEPC1 were deficient at predicting the percentage of finer material for both primary and secondary fragmentation.The wide range in fragmentation distributions observed in the measured results, and the discrepancy between modelled and measured fines should be considered in the design of mine (material flow, extraction level geometry and draw rate), material handling (crushing and material movement), and downstream milling (comminution and metal recovery) processes for future block cave mines at the Cadia Valley Operations (CVO). With respect to fragmentation distribution range, a sensitivity analysis should be undertaken for these design considerations, with a range in predicted fragmentation distributions investigated (for example, lower quartile, mean and upper quartile). For future mines with similar geotechnical and mining conditions, the calibration of fines should be considered in any fragmentation distribution prediction to match those measured previously.CITATION:Brunton, I, Lett, J L and Thornhill, T, 2016. Fragmentation prediction and assessment at the Ridgeway Deeps and Cadia East cave operations, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 151–160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

The early history of the mine is traced from the beginning of shaft sinking in 1886 to the purchase by the Broken Hill Proprietary Co. Ltd. in 1949. A necessary preliminary to mechanisation of the Borehole Seam was development of the Young Wallsend seam, andthis development is described. Surface reorganisation and coal handling arrangements are dealt with in detail. Then follows a description of the Borehole Seam mechanisation, the provision of power supply for this purpose, arid pumping arrangements in themine.INTRODUCTIONStockton Borehole Colliery is in the Parish of Teralba, between the townships of Teralba and Boolaroo, and about 12 miles from Newcastle. The colliery holding, a freehofd area of 2,560 acres, was apparently an original land grant when acquired by Teralba Co-operative Coal Company who decided to mine for coal and named the mine "Teralba Colliery." Shaft sinking was commenced in 1886 but was delayed by financial and water troubles to such an extent that it was not until 1901 that the Borehole Seam was reached.Coal was won until 1904 using a single 16 ft. diameter shaft, ventilation being achieved by means of a wooden boxing down one side of the shaft. This collapsed, and operations ceased until the mine was taken over in 1906 by a company known as "Borehole Colliery Limited," the principal stockholder being the Stockton Coal Company. It renamed the mine "Borehole Colliery." This new company immediately commenced sinking a 13 ft. diameter air shaft. In 1908 the Stocktol1 Colliery at Stockton was abandoned, and during the following year much of its equipment was transferred to Borehole Colliery. The name was again changed becoming "Stockton Borehole Colliery." From this period on, coal was produced from the Borehole Seam by...

Jan 1, 1957

ALTHOUGH the development of the various flotation processes during the last 8 years has been so revolutionary, this development has been, until recently, entirely confined to the separation of the gangue from the mixed metalliferous sulphides.The desirability of finding some method of separating the independent sulphides from such a miXture, by means of flotation, has long been recognized. ThIS need was emphasized when the slimes resulting from the grinding of Broken Hill sulphide ores were for the first time successfully dealt with by the Mineral Separation Company's process on the Central mine. This process proved the practicability of separating the sulphides of lead and zinc as a mixed concentrate from the gangue present in slime. Although this was a very notable achievement, the process has not been generally used, owing to the mixed lead and zinc concentrates resulting from the treatment being acceptable neither to the zinc nor the lead smelters.Although the introduction of eucalyptus oil in minute quantities as an emulsifying agent has simplified the work of the subsequent tabling of mixed sulphide concentrates, rendering unnecessary the burning off or removal of the oil, there will always be a considerable quantity of slimy product too fine to settle on the moving surface of the concentrating machines, and therefore requiring other means for its division into lead and zinc concentrates.

Jan 1, 1912

By Baker G

The exposures resulting from development work, following on the discovery of a new shoot of hIgh grade ore at the north end of the Sardine tin mine, during 1952, have provided an unusual opportunity to study the oxidation of a stannite-rich ore. Through the kindness of C. C. Morton, Chief Government Geologist of Queensland, an exactly located suite of specimens representative of the exposures was supplied by J. and W. Reddie. This was later supplemented by a number of specimens culled from a parcel ofrepresentative ore submitted to the Melbourne Ore Dressing Laboratory for testing.The Sardine tin mine, near Ewan, Queensland, has been the outstanding producer of the Kangaroo Hills Mineral Field. Since its discovery in 1918, up to 1952 it has yielded about 1,500 tons of cassiterite concentrates, and about 85 tons of stannite concentrates. The outcrop ore averaged 35% tin oxide, but the grade declined with increasing depth, and by 1930 had fallen to 7% tin oxide. In the northern section of the mine the ore shoots show a downward passage to complex primary s.ulphide ore, containing cassiterite and abundant stannite.The orebodies occur in a series of fissures in a crushed zone about 50 ft. wide in slates and quartzites that have been intruded by granite (Connah, 1952). A quartz porphyry dyke forms the footwall of the original main lode in its southern part, being traced' from the surface to' the No. 4 level (173 ft. vertical depth), and two narrow dolerite dykes were encountered in the workings north of the main...

Jan 1, 1954

A unique sluicing process for recovering tailing impounded in a valley was developed by Electrolytic Zinc Company of Australasia Ltd., West Coast Mines, Rosebery, Tasmania.Earthmoving equipment could not be used as most of the material to be recovered was semi-fluid. A conventional sluking method was also impracticable as there was no suitable working face from which the process could be commenced.Operations started from a flat surface, using special techniques for sinking through the tailing and establishing producing working faces as the sinking process continued.After about 2 years the bottom of the dam was reached and conventional sluicing methods could be used.

Jan 1, 1973

Resources and reserves are critical inputs into the determination of an operating mineÆs financial results and balance sheets, but how well understood is this fact. Do the investors, directors, accountants and geologists/engineers responsible for preparing or relying on relevant aspects of the end results properly understand the inputs and outputs and the associated risks that may be established. The first step is to understand how financial reports are impacted. The most obvious, and best known, impact is in the calculation of depreciation and amortisation charges against long term assets. In addition, however, there is a requirement to regularly determine whether asset book values are impaired û this is nearly always performed globally by the preparation of a discounted cashflow model for a mine which is usually based on a mine life as determined from the resource and reserve statement û the particular driver here is normally the short and long term production plans. A key aspect of the short term production plan is that it would normally not assume that the reserve and resource statement implies consistent grade, stripping ratios, etc. However, outside of the early years of a plan, more generic assumptions of these variables are often made in conjunction with the reserve and resource statement. Depending on the timeframe of the detailed production plans, this can have a large impact on a projectÆs net present value. Other financial balances that may also be impacted include restoration and rehabilitation provisions, retrenchment provisions and deferred or equalisation stripping accounts. The age old question of whether all reserves should be used or whether some or all of the resources should be included for financial reporting purposes has never been adequately resolved. It is our view that there should be no prescriptive answer to this question but judgement of all professionals involved in the process needs to be included. Furthermore, the company needs to be able to support their conclusions with well thought out and appropriate answers. This may not be in line with the approach that certain accounting standard setters may be proposing or taking, and this paper will outline the current status of global requirement and the likely future directions. Whether reserves or resources are utilised, does not change the key requirement that those preparing or using reserve and resource statements need to understand key aspects. For example: geologists/engineers do they know how reserves or resources will be used? have they imparted information on variability of key drivers such as grade or depth or dilution? do they know that major financial/business altering decisions may be made based on the analysis? accountants do they understand where the numbers have been derived from and the assumptions that may have been made in their determination? do they understand the degree of accuracy (or inaccuracy) that may exist particularly with resources)? do they understand the history of resource reconciliations and what it may mean for the future? directors do they understand the processes undertaken by the company to prepare the financial report and the interaction between the geologists/engineers and accountants? do they understand the potential sensitivity of results to the input variables? Financial reporting is extremely reliant on the use of the reserves and resources, however, the geologists/engineers, accountants and directors do not always understand the interactions between themselves which may lead to misleading public reporting. More education and communication between various parties is needed.

Jan 1, 2002