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By R Wolff

One critical factor in open pit mining projects is the estimation of the recoverable reserves. The reason for this is that at the valuation stage there is a lack of information about future metal prices and production costs. Consequently, the estimation of the recoverable reserves needs to be done based on a fixed break-even cut-off grade (BECG), in which fixed expected metal prices and production costs are assumed throughout the operating life of the mine (OLM). In this paper, an alternative technique for estimating the recoverable reserves of an open pit mining project is presented and explained in detail. The main characteristic of this technique is that it estimates the recoverable reserves of the project using mining costs as reference: this is done due to the fact that mining costs are easier to model than metal prices. Another important characteristic of this technique is that it uses the uncertainty of the geology of the orebody, given by simulations of the deposit, to make final strategic decisions, such as the selection of the operating life of the mine and the optimal production rate, which minimise the risk of not achieving future production targets while maximising the upside potential of future rewards. As it will be shown, the final outcome of the proposed technique is the generation of a robust open pit design, that include cutbacks and ultimate pit limits, called the marginal open pit mine design (MOPMD). One characteristic of the MOPMD is that, at each production period, it will be characterised by their respective geological uncertainty, given as probability distributions of ore, waste and metal quantities, and by marginal economical project indicators, such as cut-off grades and metal prices, among others. The details follow in the paper.

Jan 1, 2006

By L Lorenzen, H Muller

"Every year a large number of projects are evaluated by small listed and unlisted mining companies that are hoping to find the ideal project, which will catapult them from a mining junior status to that of a mid-tier mining company. Usually this includes finding the æidealÆ or ærightÆ orebody and then developing a process which will allow cost-effective recovery of the valuable metals and the production of a saleable product. These dreams are seldom realised and there are a number of good and obvious reasons for this. Issues that are generally high up on the agenda for the smaller companies are: cost of developing a project before the feasibility study stage finding a suitable, or optimum processing technology financing of the project dealing with risk.The most expensive part of the development process for the small miner is often the exploration side of the business and finding the æidealÆ orebody. However, finding the right orebody will not be discussed in this paper. The æidealÆ orebody does not necessarily solve the problems of the mining junior, as much of the uncertainty lies in the process required to recover and produce the final metal product. Once a mineralised deposit has been identified and the grade at least reasonably qualified, the development of a suitable process becomes the driver to convert the deposit into an orebody. This paper proposes that a small exploration company has a very limited opportunity to succeed if it does not do sufficient homework before it identifies the æidealÆ orebody. The risk profile for the small mining company, by its very nature, has to be different to that of a major company and as a result the opportunities often lie in managing different and often new process options, which may be the key to bring such projects on line successfully.CITATION:Muller, H and Lorenzen, L, 2012. Project selection and process development for mining juniors, in Proceedings Project Evaluation 2012, pp 149-158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

This paper presents an analysis of the production data for the period 1861 - 1953 from hydrothermal gold-silver deposits of the Hauraki Goldfield. To directly compare the metal content of the deposits a figure of ounces of gold equivalents (oz gold equivalent) is calculated from the value of the gold-silver bullion produced from each deposit. Frequency distributions for ore tonnage and oz gold equiv. appear to be lognormal and show a high proportion of very small deposits, with 90 per cent less than 100 000 tonnes. The deposits when plotted in order of size fall roughly on a smooth curve which suggests that the size distribution is not random. A large proportion (68 per cent) of the total gold-silver extracted from the Hauraki district was contained in the largest deposit û Waihi. A technique used for predicting undiscovered mineral resources is ZipfÆs law, which relates the size of an item to its rank order. The figures for ounce gold equivalents from the major Hauraki deposits fit ZipfÆs law remarkably well. Taking Waihi at 6.8 million oz gold equivalent as the rank one deposit, Thames is number five and Karangahake number seven. A Zipf plot indicates that down to rank 100 (68 000 oz gold equivalent) only 28 per cent of the total gold-silver resource in the Hauraki Goldfield has been extracted. A further 72 per cent or 25.4 million oz gold equivalent, including the deposits of rank 2, 3, 4, 6, 8, 9 and 10, are undiscovered. However, since some deposits will be deeply buried under younger rocks and others will be under the sea only a proportion of the total resource will be discoverable.

Jan 1, 1981

The mining industry continues to be a major driver of the Australian economy generating over A$130 billion in export earnings in 2008/2009. However, the industry has been cited as a significant contributor to green house gas emissions. Australia's proposed carbon trading scheme, the Carbon Pollution Reduction Scheme (CPRS) will financially impact on mining operations; this calls for a holistic planning approach for mining operations taking into account the impact of the emissions trading scheme. Since carbon trading is a new area of study, particularly within Australia, the quantitative effect of the CPRS on the mining industry is uncertain and current mine planning practices do not directly consider emissions. This paper presents results of the study into the impact of the CPRS on a hypothetical large scale open pit operation, using a spreadsheet model based on linear programming and simulation. By varying the production rates, life of mine (LOM), carbon price and ore grades among other variables several scenarios were simulated to determine the impact of emissions trading scheme on the net present value of the project. This study found that the adoption of the proposed Carbon Pollution Reduction Scheme could impact mining operations in Australia by a three per cent to six per cent reduction in net present value, for carbon credit costs of $25/t to $50/t respectively. While the six per cent reduction in net present value for a mining operation is significant, rising fuel prices have had a similar effect in recent years. The most energy-intensive processes are the milling circuit and the flotation concentrator circuit. These processes are jointly responsible for up to 60 per cent of the total emissions, depending on the production rate and the level of offshore processing conducted. Clearly, the introduction of the CPRS makes it is imperative for mining companies to assess the impact of carbon emissions on a mining project during mine planning.

Dec 6, 2010

By A S. Derrington

There are several long-standing rules of thumb that are often quoted in mine ventilation studies. They include airway ‘carrying velocities’ and the critical upcast air velocity range that must be avoided to prevent a water blanket forming. Quoting these rules of thumb may lend an air of legitimacy to a ventilation design, and allow the design engineer to avoid having to study a problem from first principles. But how valid are these shortcuts in today’s rapidly changing world? This paper summarises research into the genesis of several commonly quoted rules of thumb. It finds that they were very specific to the local conditions, practices and economics at the time they were developed. It also presents examples where applying these rules of thumb outside of their original context can lead to unexpected and erroneous results.CITATION:Derrington, A S, 2017. Ventilation rules of thumb – friend or foe? Focusing on design upcast air velocities for shafts and raise bores, in Proceedings Australian Mine Vent Conference 2017, pp 253–260 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

Mechanism of Modified Sodium Silicate on Fluorite Ore Flotation

Sep 13, 2010

By M Humphreys

Multi-episodic mineralisation is often characterised by different spatial trends exhibited by different generations of the mineralisation. The structural complexity of mineralisation together with the heterogeneous nature of the mineralised zones prevents unambiguous application of the conventional deterministic methodology for 3D constraining of the mineralised domains (ie conventional wireframing is ambiguous).A different approach, discussed in the present paper, includes a probabilistic definition of the domains encompassing one statistical population of the data. The domains are defined geostatistically using the indicator probability model. An indicator threshold is chosen for the definition of the high and low-grade domains. The spatial distribution of this indicator is then modelled by a variogram. The probability of exceeding the given grade threshold is than estimated by ordinary kriging for each modelled block. Blocks are then grouped according to their probability of exceeding the threshold and a continuous closed volume (domain) created from this likely patchy grouping using an appropriate structural model to fill the gaps). Methodology for the geostatistically assisted domaining is discussed in the paper. It is suggested that this technique represents an additional tool facilitating a structural interpretation of the mineralised zones.After the geostatistical domaining of the lode has been completed the grade within each of the domains is modelled using Uniform Conditioning method. Application of Uniform Conditioning for modeling the grade distribution has a significant advantage over linear methods (such as inverse distance or kriging) because Uniform conditioning enables estimation of local recoverable resources at different selective mining unit sizes that can be substantially smaller than the drilling density and are unable to be estimated directly.

Jan 1, 2002

By F Grobler

Many projects fail because project performance in unfavourable economic conditions was not anticipated at the investment decision stage. This type of failure may have been avoided through the selection of a strategy that enables the project to perform well under a range of possible future economic conditions (a ærobustÆ strategy); rather than an æoptimalÆ strategy for expected future conditions that will never eventuate. This paper describes a method of rapidly generating mine plans for a number of project strategies, and then evaluating it against a representative range of equally likely economic conditions. The key performance indicators derived for each strategy are the mean value and the distribution of values (variance). A prudent investor will identify prospective strategies not only on the merit of highest mean values (as a proxy for economic reward), but also on the probability of not meeting specified investment hurdles (a proxy for risk). A robust strategy will achieve its financial objective even under adverse economic variations. This paper focuses on the effect of commodity price uncertainty; particularly around the choice of mining and processing capacity levels. Results from enumerating 2000 prices scenarios against 63 strategy combinations show how processing and mining capacity can be manipulated to manage the risk-reward trade-off.

Sep 26, 2011

By B Broad

"Establishing ventilation in the early stages of a new mine is an essential step to achieve scheduled outcomes that ultimately drive the financial success of an operation. If the primary ventilation is not in place in time to support a contractorÆs work output, then the ore delivery is likely to be severely impacted. Options to increase ventilation in order to address shortfalls are limited. This in turn can lead to reduced revenue generation at a time when a mine is at its highest capital outlay. This can have implications for any company, but even more for an explorer moving to producer. The ventilation put in place to cover the start-up period is also unlikely to cover any extended or increased load required to meet schedule delays.The following paper examines two issues in relation to ventilation with a focus on small to medium projects where the company is establishing a mine using a mining contractor. The issues being: potential impacts on the contract and tender process when using a mining contractor key mine design considerations, such as æcrunch timeÆ, as they interact with ventilation achieving a successful ramp up.A recommendation is made for higher levels of detail around secondary ventilation leading up to the primary fan installation. The information should be included as part of the tendering process and preliminary project execution planning. Understanding the æcrunch timeÆ concept can lead to strategies, as well as back up plans, to minimise any negative impact.By understanding key risks around primary ventilation establishment for a new mine, detailed design work can be completed where it is needed most. Value is added by reducing uncertainty and a payback with better contract terms and a more robust ramp up plan. This will improve the economic return for the company and reduce the risk.CITATION:Broad, B, 2013. Contract considerations and other critical ventilation aspects in achieving a new mine ramp up, in Proceedings The Australian Mine Ventilation Conference, pp 207-214 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 1, 2013

Platinum-group minerals (PGM) are recorded from a number of localities along theWaiau River, western Southland, and the south coast of the South Island, New Zealand. At each locality, small amounts of PGMs were recovered as by-products of historical gold mining operations. During the period 1890-1950 an estimated 1000-2000 oz. of æplatinumÆ were recovered from the region, the only area within New Zealand where PGM have been commercially exploited. The PGM suite of southern New Zealand consists of Pt-Fe alloys, IPGE (iridium subgroup, platinum-group elements) alloys, sperrylite (PtAs2), cooperite (PtS) and braggite ((Pt,Pd)S). The composition of Pt-Fe alloy exhibits considerable variation and two compositional populations are recognised. Some Pt-Fe alloy grains are chemically zoned. Iridium is the most abundant IPGE alloy phase and often contains considerable Pt, in contrast to osmium and ruthenium alloys. Cooperite and braggite grains are characterised by extremely low concentrations of Ni.   Exsolution of osmium and iridium from Pt-Fe alloy and Pt-Fe alloy from iridium is observed Several PGM host mineral inclusions which vary from single to poly-phase, display rounded to equant outlines and range in diameter from greater than 100 ¦m to less than 5 ¦m. Olivine and Ni-sulphide inclusions are only present within IPGE alloys. Pt-Fe alloy, cooperite, braggite and sperrylite host Cu-Fe sulphides, a wide variety of PGM, clinopyroxene, amphibole, magnetite and plagioclase within inclusions. Sperrylite also hosts Pd bismuthiotellurides, gold and several potassium-rich silicate phases. Similarities in inclusion phases and mineral chemistry from several localities suggest that the PGM are derived from a single (as yet unidentified), probably calc-alkaline magmatic source. This source is situated somewhere along the margins of the western Southland sedimentary basin where PGM liberated by erosion are transported down the Waiau River and dispersed eastwards along the coast by strong longshore currents.

Jan 1, 1995

Recovery Efficiency Study on Ilesha Placer Gold Ore by Flotation Using Locally-Sourced Frothers and Collectors

Sep 13, 2010

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

Jan 1, 1990

Owing to improvements in computer capacity, it is now possible to undertake fully coupled or partially coupled, three-dimensional (3D) hydromechanical Finite Element (FE) simulation of mines, including explicit representations of large numbers of discontinuities. The analysis requires fewer assumptions than uncoupled analysis or two-dimensional (2D) analysis, but may require a change in how hydrological data is collected. The way hydrological data is incorporated in stability assessment and the approach to uncertainty in hydrological information also requires discussion. The current procedures for this type of analysis are discussed, along with some practical difficulties and teachings from early applications. A work flow for integration of 3D hydromechanical modelling with pit planning and some considerations for the management of uncertain data are also proposed.

May 1, 2010

By C Dell

Hillgrove, situated on the New England plateau of New South Wales, is an area rich in history and resources. Key resources are predominantly antimony, gold and scheelite and the area surrounding the historical field is environmentally sensitive and topographically challenging. Since acquiring the Hillgrove leases, Straits Hillgrove Gold has undertaken a significant exploration program on these historical mining areas with the goal to return the field to production. This exploration program has enabled Straits to significantly increase the resource base and has subsequently enabled the planned redevelopment of Hillgrove to be realised. In October 2006, installation of mining infrastructure and the initial stripping of existing development had commenced. To successfully redevelop Hillgrove, Straits has had to adopt a highly mechanised, trackless, diesel mining operation which will see the production rate commence at an initial rate of 250 kt/a of ore from a narrow vein environment. This ore will be processed on site to produce antimony metal, gold bullion and a scheelite concentrate.

Jan 1, 2008

By J M. Parr, P M. Herzig, J B. Gemmell, S D. Scott

PACMANUS is an actively-forming seafloor analogue of volcanic-hosted massive sulfide orebodies, situated on the crest of an andesite-dacite-rhyodacite ridge overlying rifted older arc crust in a back-arc basin. Hydrothermal deposits range from Mn-oxide crusts to Cu-Zn-rich massive sulfide mounds and chimneys containing significant Au and Ag. Preliminary data suggest a substantial magmatic component to fluids and metal sources, and we speculate that PACMANUS is the cap to a complete hydrothermal system including subvolcanic and intrusive-related mineralisation.

Jan 1, 1995

By J D. St George

In this paper a laboratory investigation into the effect of confining stress, water content and gas desorption on coal permeability is presented. Of major significance is the effect of coal permeability on outburst occurrence and methane production, which is influenced by changes in stress. Test results indicated that the shrinkage of the coal matrix associated with desorption is greater than the coal matrix compressibility which will cause a reduction in the effective stress, hence increasing coal permeability.

Jan 1, 1998

Maintaining high carbon activity is vital to the efficiency of any Carbon-In-Leach or Carbon-In-Pulp process. Reduced activity can lead to longer residence times or gold losses in the tails. Regenerated carbon from the CIL circuit at Macraes Gold Mine was analysed for kinetic activity and composition over a 15 month period. An increase in kinetic activity during the time period was recorded, which was linked to reduced Na and Ca loadings. A laboratory simulation of the loading, stripping and regeneration of gold was developed and tested. Kinetic activities were obtained for synthetically fouled carbons following three circuits of the laboratory simulation. It was shown the competitive gold adsorption ability of xanthate fouled carbon (previously reported as a serious deactivator) could be significantly recovered following effective thermal regeneration. This ability was maintained in a subsequent circuit loading.

Jan 1, 1993

By J Johansson, J Lööw

Attractive mining workplaces are good, safe and healthy environments. They are also workplaces that the workforce of the future wants to work in. As skilled miners and engineers are already scarce, this is important both for today and for the future. However, the future of mining will also be subject to increased international competition. In attempting to become more competitive, many mining companies turn to rationalisation, looking to both rationalise their production and organisation as well as optimise their processes. Work organisation is important in both rationalisation and providing attractive mining work. As a result, this paper investigates a ‘lean production’ (LP) philosophy for the organisation of future mines. The aim of the paper is to investigate to what extent LP can be used to organise for attractive mining. It first defines what attractive mining work is and to what degree it can be influenced by work organisation. A short insight into the LP concept will be given as well as a review of how it is discussed and utilised in mining today. In conclusion, a summary of LP’s potential to realise future attractive mining is given.CITATION:Lööw, J and Johansson, J, 2015. Work organisation for attractive mining – lean mining and the working environment, in Proceedings Third International Future Mining Conference, pp 197–204 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

Study on Basic Theory of the Grain Settlement in Fluidised Bed This paper takes thick goal grains (less than 1.5 cm) as research object. According to different densities and particle sizes, thick goal grains are divided into 20 kinds of narrow density and narrow size level average grains. Free settling and hindered settling tests are respectively carried out in ?100 fluidised bed thick goal separators. Hindered settlement includes hindered settling velocity test and measurements of suspension density. Results show follows. (1) Fluid state in separator belongs to transition region. Alien's law is the appropriate formula of thick coal particles free settlement terminal velocity. (2) The main factors affecting hindered settling velocity are the number of solid particles in medium and the structure feature of the particle group. The bigger volume fractions of solids ? is, the smaller decreasing velocity coefficient of particle hindered settlement ¯ becomes. In the organism from bottom to top, density of suspended particles in fluidised bed gradually decreases, but near the top of the suspended particles, the density increased slightly. With increase of density and size, suspension density reducing extent increases from bottom to top of separators.

Sep 13, 2010

The spatial and temporal evolution from the porphyry to high-sulphidation epithermal environment can be assessed by integrating new results on such deposits (Arribas et al, 1995; Hedenquist et al, 1998) with past studies of plutonic and porphyry systems (Dilles and Proffett, 1995; Cline, 1995; Shinohara and Hedenquist, 1997; Hedenquist and Richards, 1998). Some time ago, Sillitoe (1973) argued for the nature of the tops and bottoms of porphyry deposits. He concluded that epithermal deposits may form over the tops of some porphyry systems. We can now conclude more confidently what the tops and bottoms of many high-sulphidation ore deposits appeared like while active (Arribas, 1995; Hedenquist, 1995). In addition, we better understand the nature of the zonation of high-sulphidation epithermal systems from the intrusive to surficial environment (Sillitoe, 1999), and how these two styles of ore deposit are related. Geological and geochemical evidence clearly indicates a continuum between these two ore environments. This improved understanding of genesis allows more efficient exploration for these deposits. There are many examples of spatially associated porphyry and epithermal ore deposits. A genetic connection has been suggested by some, and argued against by others. Nowhere is this spatial association better seen than in northern Luzon, Philippines, where the Lepanto high-sulphidation epithermal Cu-Au deposit overlies the Far Southeast (FSE) porphyry Cu-Au resource (Figure 1). Together these mineralised bodies contain a resource of >3.8 M tonnes Cu and >550 tonnes Au. Lepanto was largely mined out in early-1997. Post-war production until 1995 was 0.73 Mt Cu, 115 t Au and 393 t Ag at an average grade of 2.2 per cent Cu, 3.5 g/t Au and 11 g/t Ag. The recent discovery of the adjacent Victoria low-sulphidation quartz-Au-base metal vein deposit, with a resource of >68 tonnes Au (Cuison et al, 1998), illustrates the variety and abundance of mineralisation in the Mankayan district. This district also hosts the Guinaoang porphyry Cu-Au deposit (Sillitoe and Angeles, 1985) and other epithermal vein occurrences (Figure 1). This brief summary reviews the results recently published on the Lepanto-FSE deposits (Arribas et al, 1995; Mancano and Campbell, 1995; Claveria, 1998; Hedenquist et al, 1998), and stresses the evidence for coupling of mineralisation between the porphyry and high-sulphidation epithermal environments.

Jan 1, 1999