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This paper focuses on the significant impact that geological information has in relation to the valuation, both equity market and accounting records, of mining companies. There are many different measures adopted by investors and analysts in valuing mining companies. In particular, focus is primarily on calculation of profit as it is the authors primary expertise. The importance of geological information to the calculation of profit (and to many other measures of a mining company performance) is not always understood by the geologist. The aim of this paper is to raise the awareness of geologists (particularly those who are competent persons under the JORC code) of the impact that reserve statements û and changes to û have on profits. This is the first time that this subject has been presented directly to geologists. Similar versions of this paper have been presented at other forums where other important users (directors, auditors, accountants, analysts, investors) or preparers of financial statements have been made aware of the importance of the geological information. In essence, all mining companies prepare annual financial statements, which are adopted by directors and audited. The major items that require judgement generally revolve around two areas û commodity price outlook and the accuracy of reserves and resources. Reserves and resources are important, and that there is undoubtedly a lack of understanding about the assumptions and accuracy of reserves and resources by accountants, directors and auditors, and a general lack of understanding by geologists as to how the information that they prepare is used. Across the globe the majority of mining companies are listed on stock exchanges (with the main exception being nationally controlled mining companies û eg Codelco). In a very simplistic manner, I have divided all mining companies into three types: exploration plays û these companies are still in the finding or proving modeÆ and typically the stock market and investors rely on geological information and remaining cash in determining their assessment of the company; single mine companies û the major items that investors and the stock market look for are reserves, inferred resources, commodity price outlook and discounted cashflow calculations; and multiple mine companies û the investment community and stock market are looking at reserves, inferred resources (generally to a lesser extent at this stage), commodity price outlook, discounted cashflow calculations and profit and loss accounts. Regardless of the type of company, the equity markets, including analysts, try to determine appropriate valuations for mining companies. In doing this the major two areas that require judgemental consideration are the commodity price outlook and the level of reserves and resources. Generally speaking, most mining companies have a strong understanding of their cost structures û in particular their cash costs as distinct from their accounting costs of production û and therefore this area generally gets less consideration than the other two matters mentioned above.

Jan 1, 2003

Mining of the silver-lead-zinc orebodies at the George Fisher Mine officially started in 2000. A review of mining performance to date shows that many of the extracted primary stopes have experienced some degree of hangingwall dilution. The degree of hangingwall failure in the stopes became progressively more extensive throughout mining of the orebodies in 2001 and 2002, culminating in the unplanned catastrophic failure of the 744D stope in which the ore between 13C (2683RL) and 12L (2714RL) sublevels caved into the previously mined cavity between 13L (2654RL) and 13C sublevels. This was followed several months later by another unplanned caving event in a nearby stope, 740D. As a direct result of these unplanned failures it was decided to mine the stopes with a smaller span than had been previously planned and in a primary-secondary pyramidal stoping sequence. To limit the exposure of the stope hangingwall, a hangingwall drive is no longer developed and therefore geologists no longer have access to the detailed geological information that this provided. Geologists at George Fisher Mine have had to be adaptable and flexible in response to these proposed changes and rely more on data from drilling than mapping for their geological interpretation. The result is that the drilling cycle has become much more critical in the planning process.

Jan 1, 2003

The resistance of lead to chemical attack and the ease of its fabrication has made it one of the most useful of the metals available to the chemical engineer and the electrometallurgist. It has proved to be of particular value in the manufacture of sulphuric acid, and since the conversion of the sulphur of pyritic ores into sulphuric acid is becoming the duty of the metallurgist, the corrosion resistance of this metal will be a matter of considerable interest to him from the standpoints of both producer and user. He realises that there is little to be gained in carrying the process of purification past the ordinary economic limit if little or nothing is to be added to its corrosion resistance, and he as user would not be willing to pay a premium for such purification if it can be shown that its reputed value has no scientific foundation.The metallurgist is well acquainted with the trouble and expense of meeting demands which have nothing torecommend them but prejudice and fancy. The valuable anti-corrosive properties of lead are very commonly ascribed to its forming insoluble compounds with the acids sulphuric, hydrochloric, carbonic, etc. If we trusted superficial visual evidence alone, such a view would receive strong support, but in the light of what we know of the mechanism of corrosion we must attribute its resistance to other factors much less obvious to casual inspection. Certainly there may be some mechanical obstruction set up to diffusion of the liquids towards the surface of the metal.

Jan 1, 1932

A statistical investigation of folding at Mount Isa disclosed similar patterns in both the shales and the "silica dolomite" zones. Analysis of these patterns yields 3 groups of folds fully developed north plunging folds, fully developed south plunging folds, and flexuresrepresenting stages of development of folds. Interpretation of results indicates that a regional force from a southerly direction was responsible for the folding.The general pattern of shearing is allied to that of folding, with the exception of bedding-plane shearing. Many shears resulted from continued application of force on folds which ruptured after overthrusting. Other shears resulted from rupture of the more incompetent shale members, without associated folding. The shear pattern is consistent with the theory of a regional force from a southerly direction.INTRODUCTIONThe notes on folding and shearing presented in this paper are part of a current study of the structural geology of Mount Isa.FOLDING 1Measurement of FoldsInvestigation of folding underground involved the measurement of plunge, strike and dip of the axial plane, and the order of magnitude of each fold, together with its location and the rock type. The total number of folds measured was 701, of which 411 occurred in shale areas and 290 within the "silica dolomite" zones. All folds measured are located on main levels, from 7 level to 13 level inclusive. The sections of the mine involved are the Black Star, Black Rock and Racecourse. Detailed investigation of folds on the upper levels (4, 5 and 6) has not yet been done, but observations there suggest...

Jan 1, 1961

Thank you for the invitation to this forum today. I have a hectic schedule in the Mabo legislation process but it is important not to lose sight of the bigger picture and to attend today to talk to you about the Government's role in the development of our country.More importantly, I hope over the next couple of hours to get some feedback on developments in this area from people very much involved on a day to day basis.

Jan 1, 1993

By Gillies A. D S

The paper presents a review of research in the area of explosible coal dust with respect to safety in the underground mining environment. Research over the last several decades has concentrated on generating dust clouds in small scale laboratory explosion chambers to study flammability limits and the physical and chemical variables which affect explosion propensity. The validity of this approach is discussed and the results obtained for a range of coal types compared.

Jan 1, 1994

By Troman L, Groutsch J. V

The Kwinana Nickel Refinery began operations in 1970 processing sulphide concentrates from Kambalda using the Sherritt Gordon pressure leach and hydrogen reduction process to produce nickel metal as powder and briquette. Over the years a number of changes have seen the refinery capacity increased from the original design capacity of 15 000 tpa nickel on an all concentrate feed to its current design capacity of 42 000 tpa nickel on an all matte feed. This paper outlines the changes in plant equipment and process for the most recent refinery expansion from 35 000 tpa to 42 000 tpa which have been implemented since 1992.

Jan 1, 1996

Despite extensive oil exploration in"Western Australia over the past 12 years no commercial oil fields have yet been found. A total ' of 66 test wells have been drilled throughout the State but only Rough Range No.s.. 1 and 1A have produced oil in significant quantities. Active oil exploration is now in progress in the" Canning, Carnarvon, Perth, Bonaparte Gulf and Officer Basins. Test wells have been drilled' in ,all of these except the Officer Basin, where the subsurface stratigraphy is still unknown. Large .areas of the other four have hot yet been drilled. It, is- probable that. commercial oil deposits will eventually be found' in these basins as they contain thick marine sequences, and have structures 'suitable for.,the. entrapment of oil. .

Jan 1, 1964

Economic evaluations of mineral projects are based on discounted cash flow analyses, followed by sensitivity and risk analyses. However, the global macroeconomic and political environment in which the mineral industries operate have a profound effect on the viability of individual projects. Since the oil crises of 1974 and 1980, demand patterns for minerals have become much more variable and prices more volatile. Significant changes in the geographical distribution of world mineral supply and demand are underway, and the mix of minerals used is also changing. Social and political factors are as important as economic and technical factors in determining the viability of mineral ventures. Economic evaluation of mineral projects have to be undertaken in a more uncertain and risky environment. They can no longer be reduced to a number crunching exercise.

Jan 1, 1987

Improvements in mechanisation should not be considered independently of safety and of environmental hazards. The need to keep gas contents within statutory limits may make the time needed to partially drain a gassy seam the effective control on face development times. Dust levels may provide an effective control on coal extraction rates on any one face. The combination of gas and dust on high output longwall faces may make it necessary for each one to be treated as a separate mine in terms of ventilation, and the faceworkers may need special protection. Mechanisation and safety can be mutually beneficial when mechanisation combined with systematic safety assessment reduces accidents, and when a thorough study of how to reduce accidents and health risks indicates the best method to improve mechanisation.

Jan 1, 1988

The effect of temperature, time and SO2 concentration in the atmosphate have been studied for a complex Pb-Zn concentrate, which contained four sulphides and some organic material, in order to determine optimum roasting conditions. Under static roasting conditions virtually complete sulphation was achieved after roasting at 650¦C.2 hours in 10% SO2 in air. Both zinc ferrite and zinc silicate were observed to form early in the roasting, but continued exposure to SO2 -containing gases caused decomposition of these as the roasting time increased. Water and acid solubilities of iron, silica, calcium, magnesium and aluminium in the calcine were determined, as a function of roasting time, temperature and atmosphere composition.

Jan 1, 1970

Both blast furnace and steel furnace slags have been used extensively and successfully on main line railroads in the United States for more than 25 years. Annually, these slags are being used as ballast at the rate of about 4 million tonnes of blast furnace slag and 1 mil- lion tonnes of steel furnace slag, much of it on main line with 90 metric tonne car loadings. More steel furnace slag would be used if it was available. Both slags meet all the specification limits of the American Railway Engineering Association. Actual use on high density rail- roads has confirmed the long range economics of their use. Comparison of laboratory tests, such as Los Angeles abrasion, with actual field per- formance has shown conclusively that commonly used laboratory tests can not be used to accu- rately compare the quality of various types of ballast materials.

Jan 1, 1979

By Grainger A, Dawkins G, Lysaght A, Kennedy R

Maintenance management improvement projects were undertaken at several BHP Collieries Division mines pursuing.the objective of achieving better structured maintenance procedures. Efficiently structured maintenance and optimum asset use are interdependent and productivity and computer models assist towards that objective. Definition of aspects of maintenance and analysis of the nature of equipment and materials, workloads and tasks, lead to more effective planning and scheduling of maintenance. The quality, standards and procedures of records must be suitable and adequate for storage and future retrieval. Total Quality Control initiatives and improvement projects even extend into spheres of customer/supplier relationships and problem solving teams as well as the more recognisable standards of management and performance factors in maintenance. All such factors contribute to a Maintenance Management Matrix to provide a better structured approach to economic maintenance management in the capital intensive coal mining industry.

Jan 1, 1991

By T Galvin

Drilling and blasting at Westside Mine near Wallsend, NSW, has presented a challenge for Orica Explosives, Australia. The colliery produces 600 000 tonnes of steaming coal per year from two seams using surface mining techniques. Tapping into underlying coal will greatly improve the yield, but there are many issues which make this an enormous challenge. Hunter Valley Earthmoving engaged Orica Explosives to supply the explosives products and to provide much of the blasting expertise that is needed on the minesite. Hunter Valley Earthmoving and Orica Explosives have proven to be an outstanding, unified technical team on this project. The success of the team is based on good communication, progressive attitudes, extensive expertise in blast design and most importantly, care and accuracy in implementing the agreed upon designs.

Jan 1, 1999

The concentrated efforts now being directed towards the development and application of monitoring and control techniques have now resulted in their widespread use in UK mines together with evidence of benefits resulting from their application. There is little doubt that the longwall method of producing deep mined coal will continue but will be made more reliable and efficient with the aid of control technology. The major fields of research and development work are concerned with planning and design of mines and mining equipment; management and engineering information; and automation of coalface, tunnelling and transport systems. The principal achievements now in widespread use are: the standard computer system MINOS, widely applied to mine transport, coalfaces and mine environment; extensive use of machine condition monitoring leading to condition-based maintenance; underground automation of conveyor systems and guidance systems for ranging drum shearers and boom-type roadheaders are being widely introduced.

Jan 1, 1985

By McKee DJ

Many workers have observed an inverse relationship between final concentrate grade and valuable component recovery achieved by a flotation circuit, i.e. an increase in either grade or recovery may only be achieved at the expense of the other. The relationship is termed a "grade-recovery" curve and, in theory, limits the separation obtained by the circuit. However, circuit surveys in a nickel concentrator indicate that the operating "grade-recovery" curve of a circuit is not only determined by the nature of the ore and the circuit operating conditions, but also by the circuit design, particularly in terms of stage capacities. The surveys show that different capacity circuits can produce different operating curves for the same ore, and that capacity reallocation between stages has the potential to improve both grade and recovery. In particular, the relationship between circuit design and operating curve position is shown to be a function of the circulating loads generated by the circuit design, balancing the beneficial effects of recycling material against the proportion of plant capacity consumed by recycling.

Jan 1, 1986

A wide range of models are available to computer process simulators that require a large number of parameters which often are physical measurements, coefficients, calibration factors and functional forms. This makes it intuitively difficult in the majority of cases, to tune the parameters in order to simulate a circuit in agreement with experimental results. Unit calibrators operating on the principle of least squares minimisation of the difference between predicted and observed plant data, are relatively successful when the parameters are unconstrained and independent of each other. In the case of constrained parameters, a set of carefully chosen transforms is presented which map the unconstrained variables being minimised into the constrained parameters required for the model. This technique has been used successfully with the Powell minimisation algorithm and it may also be applied to other unconstrained minimisation methods. Necessary model characteristics are discussed to enable these transforms to be applied to interdependent model parameters such as points of a graph. Examples of the calibration of several unit models using these transforms are presented. KEYWORDS: Calibration, optimisation, transforms, process simulation.

Jan 1, 1993

Deep lead mining by methods other thanconventional open-cut techniques has not been effectively employed in Australia in -the second half of this century. The reasons for this are essentially economic, and are related particularly to the labour intensive nature of the methods involved as well as the high consumption of support materials. These methods have been adapted in recent times to undertake bulk sampling programmes in deep leads. Although some consideration is given to surface-oriented hydraulic and solution mining applications, the prime function of this paper is to investigate the possible application of modern underground methods to deep lead exploitation. As deep leads are not currently being worked (with the exception of some minor operations on the Eastern seaboard), these applications remain essentially untested. They have, however, been conceptually developed following several years of small scale deep lead development. Current mineral economics, particularly with respect to gold, combined with the known extent of partially - or totally - unexploited mineralised leads demonstrates the necessity to investigate all possible means of ore extraction.

Jan 1, 1985

By P Gardner

The Kanowna Belle gold mine in Western Australia has reached a depth of 1000 m on the way to 1300 m. A feasibility study undertaken in 2006 identified the mining of E-Block as both technically and commercially feasible. One of the major risks identified in the study was the ventilation capacity, as the existing primary ventilation system would not support the production schedule for mining and a major system upgrade would be required. Failure to provide the necessary airflow would put the project at risk. A review of the airflow requirements and infrastructure options detailed in the feasibility study was undertaken to ensure that the assumptions and design were optimised. This review recommended a minimum airflow of 206 m3/s, but by acknowledging the necessary constraints imposed by mining at depth and re-engineering the mine layout to optimise the primary ventilation circuit, this requirement was reduced to 160 m3/s. This represents a 22 per cent reduction in airflow and a reduction in capital cost that will see mining at depth become economically feasible at Kanowna Belle. This paper discusses the processes that led to a redesign of the mining layout and highlights the importance of including the ventilation network in the optimisation process.

Jan 1, 2008

At moderate depths this question is of relatively small importance, but at depths over 2,000 feet it becomes a matter of some consequence. The rate of increase of temperature with the depth varies in different localities, but as a rough average we may take it to be about 1° Fahr. for every 50 feet of depth. The variation of temperature of the earth's surface from summer to winter penetrates to a comparatively shallow depth. At 50 feet the variation becomes practically insensible, and the temperature of the strata will be about the mean temperature at the given locality, from 60° to 75° F. in this country or the comfort of men working in the mines it is desirable to maintain a temperature of about 70° F. in the workings, or approximately the temperature of the strata near the surface.In order to obtain some idea of the magnitude of the undertaking involved in cooling a mine, I have examined the effect of placing in a long drive an apparatus by means of which we can abstract heat at a uniform rate from the drive, keeping, thetemperature nearly the same at all points of the drive at any given time.The lowering of temperature 70 F. at any distance feet from the centre of the drive (treated as a cylinder of the same sectional area as the actual drive), after an interval of time days from the commencement of the operation is given by the formula...

Jan 1, 1907