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By McDougall I, Claoue-Long J

A combination of high precision 40Ar/39Ar and U-Pb dating has been used to determine the age of hydrothermal minerals and host rocks in a number of Lachlan Fold Belt (LFB) gold deposits in New South Wales, Au4 ralii In particular, this investigation demonstrates that the UAr/ Ar technique of K-Ar dating can be used to determine the timing of mineralization in Palaeozoic systems.A close temporal link between mineralization and Late Ordovician to Early Silurian magmatism is indicated by the dating work. Hydrothermal sericite from the Goonumbla p8rph gy Cu deposit and Glendale Au prospect yieldsAt/ Ar step heating ages between 437.9 ¦ 1.1 and 441.2 ¦ 1.1 Ma (16), and4 minjrnum age of about 425 Ma has been obtained by Ar/ Ar dating of hydrothermal amphibole from the Browns Creek Au-Cu skarn deposit. Hydrothermal aluniI8 frog the Gidginbung epithermal Au deposit yields reset 44 Ar/ Ar ages of 401.0 ¦ 1.3 to 417.3 ¦ 1.3 Ma (16). U-Pb dating by ion microprobe on magmatic zircons from the vicinity of the Goonumbla and Gidginbung deposits gives ages of 438 ¦ 3.5 Ma (2 6), and 435 ¦ 2.5 Ma (2 (7) respectimly, W a minimum age of 435 Ma has been obtained by Ar/ Ar dating of magmatic phases from volcanic rocks adjacent to the Browns Creek skarn deposit. Magmatic episodes near the Sheahan-Grants gold skarnpost give ages of 479.2 ¦ 1.1 and 467.9 ¦ 4o1 by 'Ar/ 9Ar dating of magmatic amphibole. Most Ar/3yAr age spectra show the effects of partial Ar loss at between 360-420 Ma, probably due to heating caused by granitoid emplacement.The radiometric dating work in this paper suggests a restricted metallogenic epoch in the Late Ordovician-Early Silurian LFB, NSW, of similar duration to that found in the Andean margin and the western Pacific island arcs around the Pacific Rini.

Jan 1, 1990

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

By Weyer J

Many existing computer planning programs for the mining industry focus either on big mining enterprises with a high production rate or on smaller operations for high value minerals. Big mining enterprises, like the hardcoal company `Ruhrkohle AG' in Germany have their own R&D departments which develop powerful computer programs for planning purposes, partly in co-operation with mining universities. However, there is a remarkable number of small- scale mining operations which are either not able to buy expensive hard- and software or don't have the skills for the operation of extensive software programs. Partly there is also a trend in using rule of thumb calculations rather than computer programs which need a lot of - partly unavailable - data. For this reason a computer program was developed which does not need expensive hardware and software and which can help the planning engineer in the selection of a limited number of possibilities. Until this time the planning engineer established two or three different cases and calculated the results with a pocket calculator. This could last some hours or even some days. Now he or she can use the computer program with a normal PC to compare the cases. All activities are menu-driven. The basis for all, calculations are fixed and variable costs as well as average performance for special activities. The paper gives an example for a possible planning situation in fluorspar mining (originally this program was developed for the fluorspar enterprise Lengenfeld in Germany). It shows the initial situation, the main structure of the program, the input logic and the results. Benefits, limits and possible extensions of the program are discussed.

Jan 1, 1995

By A Stasi, B Brice

Water is a limited and precious resource in Australia. Because of the increasing demand for water from all sectors of the economy and the variability in supply, efficient management of water resources is of vital importance. The national water reform agenda has provided a strong impetus to all states and territories to progressively move towards more efficient and sustainable water management. The Queensland Water Act 2000 is the legislative framework for providing water for the environment and for planning for the security of supply to water users. The comprehensive water planning process prescribed in the Act results in new tradeable water allocations that are separate from land. These water allocations are well specified and can be traded on a permanent or temporary basis. Trading of water allows it to move to its highest value use, thereby encouraging the most efficient distribution of this limited resource. In addition to transferring ownership of water allocations, it is also possible to change the attributes of the allocation, such as the location from which water may be taken. Changes to water allocations are subject to approval from the resource manager. Pre-testing allows for certain changes to be approved very quickly, making the trading process more streamlined and cost effective. Temporary trades, or seasonal water assignments, currently account for the majority of water trades in Queensland. However, permanent trading activity is expanding steadily as old water entitlements are converted to tradeable water allocations and as the market matures. The permanent trading market provides significant opportunities to the mining sector. It allows mining companies to buy water allocations at market prices without compromising environmental outcomes or causing third party impacts.

Jan 1, 2006

By Brien RT, O&apos

The work reported in this paper extends,-bhsb on the "Heat Hardening of Artificial Magnetite ;Pellets"., which was described at the- International Symposium on Agglomeration ;-sponsored by the American Institute. of Mining, Metallurgical and Petroleum Engineers at Philadelphia; U.S.A. in April, 1961. Whereas- that work was of a.,more basic nature, -serving to illustrate the suitability of artificialòmagnetites with various.admixtures, to the application of heat hardened pellets, on: this occasion the aim-is to illustrate the procedures-which were used-to- establish the dimensions of commercialòrecuperativ strands for Australian raw materials,The nature of the pellet feed, i.e. relatively uniform :spheres of4 3/8 in. - 7/16. in. diameter, makes it possible to use small scale static pots for test work. By the use of a closed system and the measurement of suctions, gas f lows, and temperatures through beds, the speed and heat requirements of the various stages of heat hardening can be measured, so: that for a specified quality of product estimates can be made of the broad design characteristics of a moving grate system. In practice of course it is .usual to correlate the data from this type-of :experimental 'apparatus with . existing production units upon which good operating data, in the statistical sense, are available.

Jan 1, 1963

By S S Solomons

In 1991 the uranium spot market price dropped to approximately US$7/Ib U308, a historical low in real terms and the short-term outlook for the industry in the next five years was grim. At this time the Ranger operation was producing uranium concentrate at its design capacity of approximately 3 000 tonnes/year. The loss of two major long-term contracts owing to price and reduced power utility demand due to excess inventories meant that the company could not match production to sales. Continuance at this production level would have resulted in a rapid buildup of product inventory and the tie-up of significant cash reserves. After analysing various options, an innovative operating strategy was devised such that production and sales were approximately balanced without a significant impact on the unit production cost or a long term effect on the plant or operation. A campaign mining/milling operation commenced and approximately 40 per cent of the workforce were retrenched. Multi-skilling of all employees was a critical aspect of ensuring a successful outcome. This paper examines the strategy and reports on the success of the operation two years after the restructuring exercise was effected in November 1991.

Jan 1, 1994

By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

In recent years there have been many changes in mine ownership due to the on-going rationalisation towards larger mining companies. Larger companies inevitably find it hard to manage small mining operations and in many cases smaller mines do not fit corporate resource, production and profit criteria. Smaller companies are more suited to managing these medium or small scale mines and are tendering for the purchase or lease of mines that larger companies wish to dispose of. In addition to these factors there has also been a trend (especially in Western Australia) for mines to continue operating at ever increasing depths. This in turn has led to more mines operating in high stress environments and experiencing damaging seismicity. Assessing the viability of seismically active mines from a takeover or purchase point of view should involve analysing the risk profile of every aspect on mining that could be affected by adverse seismicity. This includes assessing current and alternative mining methods, mine designs, support systems, extraction sequencing, monitoring and blasting. This paper includes discussion on items that need to be assessed when considering the purchase of seismically active mines, with experience gained from some recent studies in Western Australia. In these cases it was apparent that quantification of previous seismic history on itÆs own was a totally inadequate method of assessing minewide seismic risk potential. A more holistic approach is required, taking into account all aspects of relevant data, all the minewide effects of seismic activity and all possible means of mitigating those effects.

Jan 1, 2002

By D Thornton, B Smith, S Demey

Mine to Mill (MTM) optimisation, a total systems approach to the reduction of energy and cost in mining and mineral processing operations, is well-established technology. However, successful applications of MTM optimisation have been largely confined to gold, copper and lead/zinc semi autogenous grinding (SAG) operations, where the goals of tweaking the blast design to increase fines and hence throughput through the mill have been relatively easy to meet. The application of MTM optimisation in a more demanding environment, like that of a multi-stage crushing and screening aggregate operation, was conceived as part of a Department of Energy (DOE) initiative in 2004, aiming to reduce the energy consumption in the US aggregates industry. Two quarries operated by the Luck Stone Corporation of Richmond, Virginia, were selected for the demonstration sites. Dealing with ore variability and a requirement to maintain a fixed feed size distribution to the tertiary plant, whilst still aiming to increase yields of saleable products, presented some unique challenges. Despite these variables, the implementation of the MTM approach at Luck StoneÆs aggregate plant in Pittsboro, North Carolina, has led to a tangible improvement in productivity, particularly in the primary and secondary plants. The successful outcome was dependent upon several key factors, including reliable blasting and processing models, careful analysis of the rock conditions and plant configuration, understanding and buy-in from the Luck Stone operations staff, excellent collaboration with Virginia Tech staff and students, and long-term monitoring made possible through comprehensive PLC logging. This paper presents a review of the work conducted at the Pittsboro quarry and highlights the key reasons behind the successful implementation of the MTM approach in a complex plant environment.

Jan 1, 2007

In 1556, Agricola noted that "a prudent owner, before he buys shares, ought to go to the mine and carefully examine the nature of the vein, for it is very important that he should be on his guard lest fraudulent sellers of shares should deceive him"(1). In today's world, the owner rarely has the opportunity to visit the mine and, instead of reading about the `nature of the vein' in annual reports, prospectuses, government publications, et cetera he sees the words `reserves' and `resources'. Unfortunately, the subject of reserves and resources has become increasingly complex and Canadians, along with their counterparts in Australia and elsewhere, are still struggling with definitions which will attempt to cover all conceivable circumstances from national or regional resource endowment to the material to be extracted next week from a given stope or open pit bench. The providers and recipients of reserve and resource data are: - Government agencies who are concerned with questions of national endowment, strategic use of raw materials and other questions of public policy. - Stockholders who have a vested interest in the basic assets of their companies. - Financiers who are concerned about the security of their loans. - Regulatory bodies whose function is to protect a frequently naive investor from unscrupulous practices. - Management, at head office and on-site, who need basic information for decision-making, whether it be to open up a new mine, expand or close an existing operation, acquire or merge with other entities, or, more mundanely, for routine mine planning. To satisfy their demands with unanimously accepted definitions is a formidable task but, it is my impression that, little by little, a concensus appears to be growing within the industry.

Jan 1, 1987

By McKay AD

The bulk of Australia's uranium resour- ces was delineated in the last 18 years when a total of $563 million (1984 dollar values) was spent on uranium exploration. Australia's share of the low-cost Reasonably Assured Re- sources in the World Outside the Centrally Planned Economies Area (WOCA) increased from 1.5% in 1967 to 29% by the end of 1984 and its share of the low-cost Estimated Additional Resources (Category I) then stood at 25%. As of December 1984, Australia's uranium resour- ces were estimated by the BMR to be: Cost range US$80/kg U (US$30/lb U301) Reasonably Assured Resources 463 000 t U Estimated Additional Resources(I) 251 000 t U Cost range US$80-130/kg U (US$30-50/lb U308) Reasonably Assured Resources 63 000 t U Estimated Additional Resources(I) 126 000 t U The increases in Australia's resources was sustained by a group of large and rela- tively high-grade deposits which were disco- vered during the period 1969 to 1975. Austra- lia's share of the low-cost resources was also enhanced by a contraction of WOCA's low-cost resource base due to escalation of production costs for smaller low-grade deposits. Most of Australia's uranium resources are contained in the Proterozoic unconformity- type deposits of the Alligator Rivers uranium field and the stratabound deposit at Olympic Dam on the Stuart Shelf. Most of the remain- der of Australia's uranium resources is con- tained in calcrete-type deposits. Less than 10% of Australia's uranium resources are in sandstone-type deposits. Total Australian production to the end of 1984 amounted to 26 241 t U, representing 3.4% of WOCA's cumulative production. Aus- tralia's share of WOCA's annual production has steadily increased from 1.3% in 1977 to 11.2% in 1984 (4390 t U). The increases in Austra- lian production took place in the face of reductions of production in WOCA countries, principally the US, from a record level of 43 988 t U in 1980 to about 39 000 t U in 1984. New low-cost production centres, mainly in Australia and Canada, have partly compen- sated the decline in US production. The Department of Resources and Energy (1985) reported that Australian exports of yellowcake are expected to reach 10 000 t U308 (8480 t U) by 1993/94, representing an in- crease of about 13% oer annum.

Jan 1, 1986

The following data are put together to assist those who are responsible for ordering stores for mines and works. When making out a list of mine stores for a new plant, one can hardly be expected to remember everything, still it is all the more important that articles should not be forgotten, should the mine be situated in an out of the way place, where the manager has to look several weeks ahead. A man who has been accustomed to buy stores on a small scale, from local merchants, where he could pick out personally what he wanted, may suddenly find himself in a place where he has to order wholesale quantities or make out store lists to send contractors for quotations. As it is of course cheaper to purchase stores by the hundredweight, coil, barrel, etc as the case may be, in which they are made up, than to break such a parcel, the way in which the materials are placed on the market is mentioned, so that those who don't know may take full advantage of wholesale terms. The most frequent sizes and brands employed in connection with Australian mining are also mentioned. It would be useless to enumerate all sizes made by the trade, as many would be of no value for our purpose; still I have put down what will serve as a reminder to the manager to mention what size he requires when giving an order, such as the diameter of dynamite cartridges a slight neglect of this sort has often caused serious delay. By mentioning certain brands I do not wish to recommend them in preference to others inadvertently omitted they are simply mentioned as some of those frequently met with.

By R Razanatsimba, A Galli

A mining company has entered into contractual commitments to supply certain quantities of its product to clients in each time period. Failure to fulfil its obligations would damage its reputation as a reliable supplier. The planned production would normally be sufficient unless major problems such as highwall failures, roof falls, natural disaster, or strikes that interrupt production or delays in obtaining environmental permits, occur. To overcome these difficulties, the company may be able to obtain more of the commodity: from its strategic stockpile (if there is sufficient there); by buying it on the spot market; or for some commodities such as gold and uranium, by leasing it. Two sources of uncertainty, the spot price of the commodity and the occurrence of serious incidents that interrupt production, are considered. For simplicity it is assumed that the commodity price follows a geometric Brownian motion, that productions incidents have a binomial distribution, that they are independent from one time period to another and that they do not affect prices. A branching tree structure is used to model the joint evolution of prices and production incidents. The aim of this research project was to evaluate the companyÆs options for fulfilling its contractual commitments. When evaluating these options, multi-stage stochastic programming with recourse was used to solve this problem because in addition to providing the dollar value of the project, it gives decision-makers the æroadmapÆ to reach the optimal value. That is, how much material should be bought/sold on the spot market, how much to add to/subtract from the stockpile, how much to lease and in the worst case what the shortfall would be, for each time period as a function of the current spot price and breakdown status. A case-study over a five-year period is used to illustrate the proposed procedure. In this study the production would be sufficient to cover the companyÆs contractual commitments unless production incidents occur. Focus is on evaluating the impact of the quantity initially in the stockpile on the value of the project when the commodity market is tight, that is, when only small quantities can be bought on the spot market or by leasing.

Sep 26, 2011

In 1984/85 financial year Australia produced 529 thousand barrels per day (kbd) of crude oil. By far the major contribution (453 kbd) was light waxy oil from offshore Gippsland, Victoria. When these discoveries were made in the latter 1960s, imported oil was available in abundant supply and at low prices. Because of this, the Gippsland producers persuaded Government to control the marketing and pricing of their crude, and thus provide the required security of offtake. Political events in the middle East created supply shortages during the 1970s, and dragged up government selling prices for OPEC crude oil. Thus Arab Light crude that sold for less than US$2/barrel (bl) in 1970 reached $34/bl in 1981. Following the consequent decline in world oil demand, in 1982, Australian refiners sought to evade their obligation to lift Gippsland crude. Hence, in 1983, the Government was forced to introduce a floor quota of 385 kbd of Gippsland crude liftings and to allow producers to export any additional production refiners did not require. On expiry of the old arrangements, Government introduced a partial free market from January 1985, whereby the balance in excess of 350 kbd may be sold to Australian refiners at negotiated prices, or exported as before. In 1984/85 exports were some 90 kbd and will be higher in the current year. About half this total has been exported by BHP, providing valuable experience and lessons which are described in the paper.

Jan 1, 1986

By D Craw, N Newman

Previously published stream quality data and AMD (acid mine drainage) analyses have been collated into a database (DAME û Database for Assessment of Mine Environments) and additional samples including NMD (neutral mine drainage) have been collected from coal mine drainages on the West Coast. Variations in the chemistry of mine drainage samples can be related to four factors: 1.       regional geology (Brunner Coal Measures or Paparoa Coal Measures) 2.       mine type (open cast or underground) 3.       hydrogeology 4.       local geology   In general mines hosted in Paparoa Coal Measures produce NMD whereas mines hosted in Brunner Coal Measures produce AMD with highly variable chemistry. Differences in coal mine drainage chemistry between mines hosted in Brunner and Paparoa Coal Measure sequences can be measured with acid-base accounting geochemistry. Correlation of ANC (acid neutralising capacity) and MPA (maximum potential acidity) analysis of rocks with mine drainage samples is substantially better than correlation of NAG (net acid generation) analysis with mine drainage chemistry.   It is likely that NAG analysis over estimates acid generation potential of some samples due to release of organic acids that are not released under environmental conditions. In general, differences in mine drainage chemistry between Brunner and Paparoa hosted mines are attributed to the effect depositional environment and diagenesis on coal measure composition. Exceptions to generalisations relating mine drainage to Paparoa or Brunner host rocks are likely where local geological conditions cause increased deposition of pyrite in Paparoa rocks and additional analyses are required to confirm interpretations.   Based on the interpretation of these results a mine drainage chemistry hazard model has been constructed. The hazard model predicts likely variations in mine drainage chemistry based on the four factors listed above. The hazard model has implications for mine related water quality risks. For example, ecotoxicity, human health affects and selection of remediation techniques are all sensitive to mine drainage chemistry.

Jan 1, 2006

By J L. Mauk

The Sovereign, Jubilee, Scotia and Jasper Creek prospects occur in an area of ~3.0 km by 2.5 km (~7.5 km2) in the Hauraki goldfield. The prospects are hosted by andesitic to dacitic flows, autoclastic breccias and localised pyroclastic and air fall deposits. Jubilee and Sovereign prospects lie along the northern and southern parts of the Waitekauri Fault, respectively, whereas Scotia is located ~1 km to the E, and Jasper Creek a further ~1.2 km to the ENE. Wall rocks are typically intensely altered, although the degree of alteration becomes more variable east of Scotia and at Jasper Creek. Alteration minerals include quartz, adularia, albite, chlorite, pyrite, illite, interstratified illite-smectite, smectite and calcite. Several of these minerals have distributions that show distinct zonation with adularia most abundant at Sovereign and Jasper Creek, but restricted to shallow levels at Scotia. Illite occurs throughout Sovereign and Jubilee plus the western margin of Scotia where it grades into interstratified illite-smectite; smectite predominates at Jasper Creek. Veins are uncommon and typically narrow, but show distinct zonations. Quartz veins are more abundant at Sovereign and Jubilee, whereas calcite veins are more abundant at Scotia and Jasper Creek. Laumontite veins occur at Scotia, and rare clinoptilolite, mordenite and stilbite veinlets with calcite occur at Jasper Creek. Fluid inclusion in quartz and calcite homogenised between 141¦ to 272¦C and trapped a dilute solution with an apparent salinity of less than 2.6 weight percent NaCl equivalent. Homogenisation temperatures are hottest at Sovereign (average 241¦C) and Jubilee (average 239¦C), cooler at Scotia (average 204¦C) and coolest at Jasper Creek (average 162¦C). Calculated paleowater table elevations suggest the water table was 680 m to 750 m above sea level at Sovereign and Jubilee, 450 m at Scotia and 225 m at Jasper Creek. The current data suggest three scenarios that can explain why Sovereign and Jubilee are deep and hot, whereas Jasper Creek is cool, shallow and marginal; 1.   some or all of the prospects may represent separate overlapping hydrothermal system, 2.   a high-relief hydrothermal system on the side of volcano with an inclined water table and outflow towards Jasper Creek, and 3.   a low-relief hydrothermal system that has been either tilted or block faulted with greatest uplift and erosion to the west.

Jan 1, 2005

By G J. Massoth, K Faure, A G, R G. Ditchburn, I J. Graham

From modest beginnings in 1996, research into the mineral potential of New ZealandÆs Exclusive Economic Zone has progressed into a major multidisciplinary component of GNSÆs recently funded 6-year æMineral Wealth of NZ and its EEZÆ Programme. In excess of $7.5 M of research funding has been expended, plus $10 M leveraged via collaborations with NIWA (NZ), NOAA (USA), JAMSTEC (Japan), U. Kiel (Germany) and ANU (Australia), whose scientists have contributed hugely to research cruises, as well as subsequent analysis and publication. The 1999 NZAPLUME I cruise was the first research expedition to systematically locate, and chemically characterise, submarine hydrothermal venting associated with arc volcanoes of the southern part the Kermadec intra oceanic arc system. This was followed by the 2002 NZAPLUME II and 2004 NZAPLUME III cruises to the mid- and northern-sections of the Kermadec arc, respectively. Combined, these cruises have surveyed 1300 km of the volcanic chain (from Whakatane to Monowai), including 34 major volcanic centres. Together with concurrent surveys in the Tonga arc, this is now the longest continuous stretch of intra oceanic arc to be surveyed for hydrothermal emissions. Most of the volcanic centres are characterised by simple cones although 30 per cent contain caldera complexes, and compositions range from basalt through to rhyolite. Massive sulphide mineralisation has been recovered from several volcanic centres in the southern Kermadecs (Clark, Rumble II West and Brothers), suggesting the existence of significant Au and base metal bearing deposits along the arc front.

Jan 1, 2005

By S Watson, L Martinez

Mine projects are complex opportunities that demand a constant assessment of uncertainty, ie risk and upside potential. This is because the value of a mine project is typically influenced by many underlying economic and physical uncertainties, such as metal/mineral prices, metal/mineral grades, costs, schedules, quantities, and environmental issues, amongst others, which are not known with much certainty at the beginning of the project. But, is uncertainty an enemy or an ally of the mine planner/analyst? To answer this question, this paper first assesses and elaborates upon the general concept of uncertainty. It then looks at the different sources of uncertainty in a mining project, such as the orebody, costs and product price uncertainties, and their effect on the final project value. Next, a general?review?of current mine evaluation techniques highlighting their limitations when dealing with uncertainty is made. Finally, an extended evaluation and risk management framework that addresses the existing uncertainty in the (greenfield/brownfield) mine evaluation process is proposed. One important characteristic of this framework is that it uses and manages uncertainty in order to generate additional value to the project; this is done through operational and managerial flexibility, which allow mine planners to minimise/maximise project risk/upside-potential giving a more realistic estimate of the projectÆs market value - this is shown in practical and simple examples occurring at different stages of a mine project, such as exploration and operation. Final conclusions are provided at the end.CITATION:Martinez, L and Watson, S, 2012. Uncertainty - An important source of (additional) value for mine projects, in Proceedings Project Evaluation 2012 , pp 131-140 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

The discovery of gold mineralization at the Manhattan mercury mine, Napa and Yolo counties, California in 1978 was the result of applying a new exploration ore deposit model in a region previously unprospected for gold. This discovery, the McLaughlin gold mine, owned and operated by Home-stake Mining Company, is a classic epithermal mercury-hot springs-gold deposit currently producing approximately 7,776,000 grams of gold annually.The exploration program that led to this discovery was based on a mercury-hot springs-gold genetic model. The model was developed using basic knowledge of ore-forming processes plus careful field observations made during examination of many known precious metal districts in. the Western U.S.A. Theoretically, hot spring systems could host gold deposits and, indeed, gold in these environments had been recognized for years. However, at the time of the McLaughlin discovery, it was not known to occur in sufficient quantities to inspire geologists to explore hot spring systems specifically for gold. Field observations recognized the presence of hot spring deposits and mercury mineralization asso-ciated with precious metal districts, (Bodie, California being a type example), and this associ-ation prompted the development of a hypothetical model. Subsequent exploration activities were directed towards the examination of mercury mines and prospects as potential targets for gold deposits. The model envisioned hot spring deposits (sinter) containing mercury mineralization at the surface with anomalous gold values grading downward into significant ore grade gold values.

Jan 1, 1990

By B C. Povey, K Lagutin, M Mryasov, V Noll

The current Stoilensky magnetite concentrator comprises a three-stage crushing circuit followed by three stages of ball milling, grinding and concentration to produce a magnetite concentrate with 66.5% iron (Fe). The plant is built in four lines, three lines having four mills and one line with five mills, to treat 32 Mt/y of ore and produce 13.9 Mt/y of concentrate.NLMK, the owner, is Russia’s third largest steel maker and while the ore from the Stoilensky Mining and Beneficiation Plant (SGOK) provides the bulk of their supply, they still must buy ore from external sources at world prices. A decision was taken to expand the SGOK operation to supply all the NLMK concentrate, including the production of pellets.To commence the expansion, high pressure grinding rolls (HPGRs) were introduced as a fourth stage of crushing ahead of the first ball mill. This was a relatively low capital cost expansion and increased production by 12 to 15%, the cost being much less than an additional grinding line. The importance of this development was that earlier introductions of HPGRs in Russia had presented several problems so there was some reluctance to the initial concept. The even greater significance was that nearly every magnetite plant in Russia had a three-stage crushing circuit so the successful introduction of HPGRs was of interest to many operators.The design was developed by a team, consisting of Worley Parson, Mineralconsult and PiterGORproject (PGP), for the first four units to fit inside existing building structures. The first two units were commissioned in March 2016 and the next two units in May 2016, and production improved by over 12%. The design of the installation of the final four units is in progress and the installation is expected in late 2017.CITATION:Povey, B C, Noll, V, Lagutin, K and Mryasov, M, 2017. Introducing HPGR quaternary crushers in a Russian magnetite operation – challenges and solutions, in Proceedings MetPlant 2017, pp 84–100 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017