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By J Rapkoch, M Cerna

As long as the tendency of Chilean copper ores continues to feature high levels of impurities, the smelters will tend to produce high-impurity mattes. The most notable impurities include As, Sb, Pb and Zn. Producing high-quality copper with such materials is a major challenge to metallurgical engineers and operators. More investigations into process optimisations and/or alternatives are needed, using both theoretical knowledge and operational skill. Converting of matte in Chile depends on the matte grade using established technologies. Mattes up to 66 per cent Cu, such as those from Outokumpu Flash furnaces, are converted in two stages, while typical Teniente Converter mattes, ranging from 70 - 74 per cent Cu are converted in one blow, directly to copper. In this paper thermodynamic data are used to evaluate possible variations in the use of traditional technologies applied to smelt copper concentrates with high impurity levels. The results of this analysis help to predict the impurity distributions between matte-slag-gas during the slag blow, and between copper-slag-gas during the copper blow. For converting high-impurity white metal, the effectiveness of volatilisation in the slag blow is analysed. In the copper blow, the type and the amount of flux (SiO2, CaO and others) are altered with the aim of optimising impurity distribution to the slag and gas.

Jan 1, 2005

Rajasthan of western India blessed with rich base metal and phosphorite deposits. The biogeochemical and geobotanical methods of mineral exploration are greatly used in parts of Rajasthan Zawar, Khetri and Ambaj multi-metal project Gujarat and Jhamarkotra phosphorite deposit. These principles are exclusively based on certain assumptions about the anomalous chemical composition in plants and distribution and migration of indicator elements. Biogeochemical studies for lead zinc deposit of Zawar group of mines were carried out to locate the probable accumulators which could help in prospecting for these metals. The important roots of Impatiens balsamia plants contain 735 mg. of cadmium and crotolaria linifolia 603 mg., melhania futteyporensis 626 mg. lindenbergia muraria 443, celosiu argentia 360 mg. In the Khetri copper belt the vegetation is scanty and the species includes Acacia arabica, zyzypus jujuba and cactus euphorbia.

Jan 1, 1988

By Donchak P. J, Champion D. C, Fordham B. G, Domagala J

The Hodgkinson Province forms the northern part of the Tasman Orogen and contains the most extensive outcrops of Silurian - Devonian rocks in Queensland. Deep-water, marine siliciclastic sequences (mainly turbidites) dominate most of the province except near the western margin where mafic volcanics and fossiliferous limestones characterise much of the succession. It is difficult to apply normal stratigraphic mapping techniques to the Hodgkinson Province because of extensive stratal disruption by numerous thrust faults, the general lack of stratigraphic and structural markers, and the unfossiliferous nature of much of the succession. Nevertheless, several distinct units have been delineated although their internal stratigraphy or boundary or superpositional relationships are uncertain. Ordovician strata, as well as two major unconformities have been recognised in the western part of the province. Several models have been proposed to explain the evolution of the Hodgkinson Province. Although there is no general agreement most recent researchers favour an extensional tectonic regime.

Jan 1, 1990

By J Barnes

During September 2000, Nabalco management identified the need for a corporate system to deliver its key performance indicators (KPIs). In June 2001, a need was also identified to replace the existing metallurgical accounting system. After a review of the technologies available, the decision was made to develop the systems in-house, in preference to purchasing commercial software packages. This would allow much greater control over the structure, and provide for an iterative, concurrent development process between software and key business developers. This has proven invaluable in the development process. The purpose of the KPI system is to provide a unified reporting tool for all performance indicators. These indicators include production, safety, health and environment, personnel, costs, continuous improvement initiatives and opportunity losses. All of these disparate measurements are brought together into the KPI system and used to determine the performance for each department or area. The general principles of the balanced scorecard business approach (Kaplan and Norton, 1996) are applied to achieve a performance measurement for each area within Nabalco. The new metallurgical accounting system (MA) is a SQLServer database with web page and Excel interfaces. The database is structured around daily inputs of all measurements and calculations. The data is stored and adjustments and reconciliations can be made to this data as required. The focus is on accounting rigour, with all adjustments recorded in the database to allow for full auditing. The structure of the data focuses on the five input/output streams (bauxite in, caustic soda in, fuel oil in, residue out, and alumina out). In-circuit inventory provides a secondary measurement on which to check and calibrate the MA system. The KPI and MA systems were developed using Web technologies and are available to any internet-enabled device with Internet Explorer installed. This removes the need for software rollouts and user training. This will promote the wide use of the systems throughout Nabalco and Alcan.

Jan 1, 2002

By J-P Franzidis

The Floatability Characterisation Test Rig (FCTR) is a self-contained, highly instrumented, mobile pilot plant. It was developed as part of the AMIRA P9 project, primarily to determine ore floatability characteristics and to develop and validate flotation plant modelling, scale-up and simulation methodologies. This paper describes the use of the FCTR in validating the AMIRA P9 flotation model and modelling methodology. In 2001 the FCTR was installed and operated in parallel with WMCÆs (now BHP BillitonÆs) Kambalda Nickel Operation. The FCTR was operated using four different circuit configurations of increasing complexity. Metallurgical surveys, cell characterisation measurements and batch flotation tests were performed around each circuit. This allowed the calibration of a number of flotation models using a combination of data from one, two, three or four circuit configurations. The calibrated flotation models were then validated using predictive validation. To do this, data around a further five FCTR circuit configurations were collected (three of which are presented in this paper). The performance of each of the five circuit configurations was predicted using JKSimFloat V6.1 and the parameters from the various calibrated flotation models. The predicted performance was compared to the experimentally determined performance of each circuit. The validation of the AMIRA P9 model was shown to be largely successful except in the case where the reagent addition (depressant) to the validation circuit was different to that in the calibration circuits. The results also provided information regarding the required complexity of the calibration circuit and how many calibration circuits are required to obtain an accurate prediction of circuit performance. These results have increased the confidence in the AMIRA P9 flotation modelling methodology and have provided important information on what data must be collected to allow the accurate prediction of plant performance using the floatability component modelling approach.

Jan 1, 2007

By D S. Scovira

The effect of blast vibration on highwall stability is a common concern for many open pit mines. Vibration in such a case is a typical near-field blast vibration situation. Vibration modelling in the near-field of a blast requires consideration of both the amplitude and frequency attenuation of waveforms with distance. Most existing blast vibration models are designed for far-field vibration and do not simulate the frequency attenuation and its effect on waveform shape. With the advent of electronic detonators it is desirable to quantify the effects of blast delay on the amplitude as well as the frequency of blast vibrations. A suitable modelling tool is proposed here. At present, a blast vibration model with double attenuations(amplitude and frequency) has been developed at Orica. The present model simulates the amplitude and frequency attenuations separately using different transfer functions. The amplitude attenuation is modelled according to the non-linear relation between the peak particle velocity (PPV) and the charge weight scaled distance established from the signature hole vibration. The frequency attenuation is modelled with the signal broadening based on KjartanssonÆs transfer function û a linear model for attenuation of waves. The model is capable of taking multiple sets of signature waveforms as input to improve the modelling accuracy of the wave propagation in the geology at a site. The screening effect of the earlier firing holes in the path of a later firing hole is taken into account on not only the amplitude, but also frequency attenuation. The present blast vibration model is suitable for modelling both near-field and far-field blast vibrations. It yields reasonable agreement with measured field data for the near-field vibration examples discussed.

Jan 1, 2007

By J D. van Wees

Preliminary project evaluation is relevant to the evaluation process of the decision makers (or executives) prior to making the critical business choices. Important to the assessment is an integrated sensitivity, scenario and risk analysis at every stage of a mining project. This should include the evaluation of different options taking into account uncertainties. Construction of interactive financial computer models where each element is functionally integrated into a fully integrated life-cycle allows rapid and automatic study of the sensitivity of each element through changes in the value of an input. The scenario analysis is the effect of changing more than one input at a time, organised through scenarios in a decision tree. Risk analysis is an integrated analysis of the effect of all uncertainties of the parameters, using Monte Carlo simulation. Key to the asset decisions process is that the decision maker is provided with the essential integrated decision information. We have clustered this information into several scenario groups. Within each group, two levels of uncertain information are distinguished: discrete scenarios critical for the decisions; and remaining uncertainty within the scenario (risk analysis) which can be modelled by continuous probability density functions (pdfÆs). For an asset, the relevant scenarios in each group and the associated continuous pdfÆs need to be defined. When the scenario groups and associated pdfÆs have been defined for the asset, the decision process can be started by structuring the different scenario groups in a Scenario Tree. A Scenario Tree contains decision and end nodes. Each end node corresponds to a completely defined mine project or asset model. The calculations for each end node result in a set of stochastic realisations for the reserves, production forecast, cash flow, and profitability indicators (NPV, IRR, DPR). Thus, a deterministic and fully probabilistic multi-commodity analysis tool is provided to investigate the sensitivity and robustness of decisions.

Jan 1, 2003

With the use of 36 rock drills of the jackhammer type at the West Lyell Open Cuts of the Mt Lyell Mining & Railway Co, it is of importance to determine the economic as well as the physical life of these machines. With this purpose in mind records have been kept of the footage bored and the cost of new parts placed in each machine, and the following procedure adopted.A graph is plotted for each machine showing the footage bored as a horizontal line and at each 5000 feet of boring the total cost of new parts is noted on this line (see Figure 1). Thus at a glance it is possible to see the amount of work done by each machine and the money spent on it in new parts. However, it is difficult to visualise from this graph the increase in the cost of new parts for each machine as its life advances. To obviate this clifficulty a curve is plotted with the cost of new parts as the vertical component and the distance bored as the horizontal component.As before the cost of new parts are taken at each 5000 feet bored (see Figure 2).

Jan 1, 1994

By Arnold J. J

The design of a coal preparation plant using bore core data cannot be discussed without some reference to the wider considerations of design. A thorough knowledge of coal preparation processes and processors as well as ancillary equipment is essential if the coal properties determined from bore cores, are to be fully utilised. Whilst generalised information of processes is available from a wide range of publications and equipment suppliers for the intending plant designer, local operational experience must be taken into account where there are similarities. However it would be wrong to assume that satisfactory plant design can be achieved merely be repeating previous design parameters. A detailed examination of bore cores used in conjunction with well proven design 'criteria will identify important differences in design parameters without which efficient and economic plant/sectional sizing cannot be achieved.

Jan 1, 1977

By B Roberts

The Department of Industry and Resources (DoIR) is responsible for several sets of legislation, which, among other things, regulate the storage, handling and transport of dangerous goods as well as every aspect of the life cycle of explosives in order to prevent explosions, fires and spillages. The legislation with particular relevance to explosives includes: The Explosives and Dangerous Goods Act 1961; the act deals with the storage, manufacture, sale, import, authorisation and use of explosives. It is primarily framed for use of explosives and fireworks in the general community but also has relevance for storage on mine sites. The Dangerous Goods (Transport) Act 1998; this act regulates the transport of explosives on public roads, but not on mine sites. The Mines Safety and Inspection Act 1994 (MSI Act); this act and supporting regulations deal with the full spectrum of occupational health and safety in the mining industry. There is a substantial section in the regulations dealing with the use of explosives at a mine site.DoIR has identified the need for security upgrades of the Government Explosives Reserves, the need to tighten security measures at mine sites, the need for improved security checking for licensed shotfirers and the need to restrict the availability of explosives to authorised people who have had appropriate security checks. It is also clear that we need restrictions on the sale and use of ammonium nitrate (AN). A number of additional security measures are being proposed and all proposals are being refined by ongoing industry consultations. These will be adopted into new explosives regulations in association with the new Dangerous Goods Safety Act 2002 (DGS Act). Government finalised the act in June 2004. The act remains dormant until new explosives and dangerous goods regulations have been prepared. When the DGS Act and a suite of regulations are proclaimed as a package, sometime between December 2004 and April 2005, the old legislation consisting of the current two acts, will be automatically repealed. It is also proposed that all explosive regulation, including those under the MSI Act will be consolidated in one place under the DGS Act for user friendliness.

Jan 1, 2004

The introduction of cement into underground backfilling at The Zinc Corporation, Limited and New Broken Hill Consolidated Limited mines to improve mining efficiencies gave rise to several major problems, the magnitude of which had not been anticipated. These problems were 1. A loss of recovery in the milling circuit due to the presence of cement 2. The presence of cement-rich slime layers on the surface of the fills 3. The introduction of a safety hazard due to the slippery nature of the surface of cemented fills 4. The deposition of cemented slimes on the levels and in underground sumps and dams. The loss of revenue due to decreased metal recoveries considerably offset the gains from increased stoping efficiencies and the use of cement was substantially reduced while, (a) the Metallurgical. Department attempted to identify the chemical nature of the problem and overcome it, and (b) the Mining Department investigated methods of reducing cement contamination of the ore stream. As a part of this investigation the Mining Department added polymeric flocculants to the cemented fill pulp. Testwork was carried out in the following steps 1. The available Alfloc polymers were screened to determine which was the most effective and what was its optimum dosage rate. 2. This polymer was used in the laboratory to determine the reduction of surface slime, clarity of water, and effects on strength and percolation of fill. 3. Fills were placed underground to substan- tiate the laboratory work. /+. The polymer was then added to all cemented fills going underground to study its effect over a long term. The use of flocculants not only improved the distribution of cement in the body of the fill, but also the distribution of the fines fraction of the filling material, practically eliminated slippery surfaces and improved the clarity of the drainage water. Flocculant is now added to all cemented fills and restrictions on the use of cement are gradually being lifted.

Jan 1, 1973

HAPPENING to be in Cue recently the writer was unexpectedly called upon to make surveys of some diamond drill bores on the Big Bell mine on the Murchison goldfield. The owner of the mine Mr Herman Mandelstam. had brought such apparatus with himas he could lay his hands on. and no other was available without prohibitive delay.The usual method of making these surveys as is well known is by putting a glass tube half filled with gelatine or glue in a melted state down the hole with a small magnet freely suspended in the glue and having it there till the glue sets solid. When this tubeis withdrawn (its depth down the bore being noted) the bearing and inclination of the borehole at this particular point can be read - the bearing by the compass and the inclination by the angle between the tube and the surface of the glue which of course ishorizontal. By taking a number of these observations according to the degree of accuracy required the course of the bore can be fairly accurately plotted.In dealing with dry holes there is little trouble but when the holes are full of water great difficulty is experienced. In the case in point the first observation was made in water 300 ft. deep, corresponding to a pressure of 130 lb. per sq. in. The tube containing the gelatine and glue (a mixture was used) was found, when hauled to the surface, to be completely filled with a weak mixture of water, gelatine, and glue and there was no horizontal surface from which to measure the angle of inclination of the bore. The water had been forced through the corks and sealing wax with which the tube had been closed. After several attempts it became obvious that no method available would keep the water from getting into the air-space in the tube, and to a pressure-proof metal container was impossible, nothing remained but to do away with the air-space and this was accomplished by using two liquids of different specific gravity - mercury and melted glue. The tube...

Jan 1, 1930

THE object of this note is to set forth some particulars of the effect of light on cinnabar occurring in a deposit of this mineral at Puhipubi, in the North Auckland peninsula of New Zealand. This deposit is contained within a gently-inclined sheet of siliceous sinter forminga hillock called Mount Mitchell, and is particularly notable in that it is an instance of the simultaneous deposition of cinnabar and silica on a large scale. The mercury-bearing material varies in character from semi-porous sinter to dense translucent cbalcedony, of which the former is stained to various shades of pink, the latter to brilliant reds and vermilion. On exposure to daylight-and particularly to sunlight - these colours change to corresponding shades of translucent bluish-grey. As a direct result of this change the Mount Mitchell deposit remained unknown until some ten years ago, for, while prospectors early discovered cinnabar in the adjacent city and in a neighbouring stream bed, none of them recognized this mineral in the bluish chalcedony strewing portions of the surface of the Mount. The writer has carried out a series of experiments designed to indicate the cause and nature of this change, and to form a basis for the elaboration of more delicate experiments which would yield positive information. Circumstances, however, have so far combined to prevent the continuation of the research, and, as there seems little prospect of the writer being able to do more work on the subject, it seems well to publish the data so far obtained. Prior to describing this colour change, the writer would point out the desirability of restricting the meaning of the term cinnabar to the naturally occurring red sulphide of mercury; this would eliminate the ambiguities which arise from its indiscriminate application, in chemical literature, to both natural and artificial sulphides. Further the term cinnabarite having long since fallen into disuse, there appears to be no good reason for retaining the companionterm "metacinnabarite" when reduction to "metacinnabar" would preserve the meaning in a less clumsy word.

Jan 1, 1923

The mining industry was one of the first to be directly regulated by legislation in the 19th century when British public opinion was mobilised by reformers seeking social change. In the next wave of mining safety legislation, account was taken of technological advances in the industry, but again, the amendments were in large measure driven by public expectations following a series of disastrous mining accidents with great loss of life. The result was the prescriptive and detailed type of regulation that has, to a great extent, remained with and become a way of life in the mining industry of today. In 1970, the then British Government appointed Lord Robens, a former Chairman of the National Coal Board, to head a Committee of Inquiry to consider the arrangements then in place for preserving the safety and health of people at work and to consider and make recommendations on the need for change in the legislation governing such matters. The result was the 1972 report Safety and Health at Work which, in turn, resulted in the Health and Safety at Work etc Act 1974 (UK). This Act, which embodied the now familiar concepts of consultation with the workforce on matters relating to health and safety and the statutory application of the previously existing Common Law concept of the duty of care, became the model for much occupational health and safety legislation in many places around the world, including the various States of Australia. As a result of the `Robens style' of legislation, the regulators of the mining industry have had the opportunity to become less prescriptive and to introduce an `enabling' style in their statutes. This has not always been welcomed by the industry which has, to some extent, missed the comfort of knowing exactly what is required of it in order to ensure compliance with the legislation while appreciating the `self-regulatory' opportunities that the new style of regulation offered.

Jan 1, 1995

By J A. Rumball

Measuring cyanide in the leach liquors associated with high copper and/or sulfide ores is a non-trivial exercise. It is well known that copper complexes with cyanide and reduces the amount of cyanide available for gold leaching. What is not so well known is that the rhodanine end point overestimates the amount of cyanide available for leaching in the presence of copper. Sulfide ions also interfere with a rhodanine end point titration, although this is less of a problem as the black silver sulfide precipitate formed clearly indicates to the operator that something is wrong. Thiosulfate, which forms readily from the alkaline oxidation of sulfides, causes an overestimation of the cyanide available for leaching due to the formation of Ag(S2O3)-. The net result of these observations is that rhodanine is rarely of value as an end point indicator in complex solutions. It generally overestimates the amount of cyanide available, providing plant metallurgists with a false sense of security. Potentiometric titrations are generally much more capable of accurately measuring cyanide in complex solutions. The interfering effect of copper can be resolved and it is even possible to estimate the copper concentration using the inflexions associated with the titration of CN- + Cu(CN)43- versus Cu(CN)32-. Using the potentiometric method sulfide ions can be determined before the cyanide measurement is made due to the formation of AgS2, although the electrode will foul with repeated measurements. Thiosulfate can also be distinguished from cyanide with a potentiometric titration. Rhodanine and potentiometric titrations are both affected by the pH of the liquor. At pH 9.2 half the cyanide will be present as CN- and half as HCN(aq) with only the CN- being titratable. This does not hold in the presence of a buffer active around pH 9. In the presence of sufficient buffer, both the CN- and HCN(aq) are titrated. Ca(OH)+ may buffer the pH when large amounts of lime have been added.

Jan 1, 2007

Kumba Iron OreÆs Sishen Mine is one of the worldÆs largest iron ore mining operations situated in the Northern Cape, South Africa. It produces 29 million tonnes of iron ore products per annum using a dense medium separation (DMS) beneficiation process. Kumba is currently commissioning the Sishen Expansion Project (SEP) which will produce a further 13 Mtpa product through a jigging beneficiation process. The products from the Sishen Mine are highly sought after and consumed by domestic and various European and Asian customers. During beneficiation iron ore slimes are generated and discarded as waste material to the slimes dams. A study was initiated in 2005 to investigate processes to beneficiate these slimes to saleable products û prompted by the current high demand for iron ore products and the high grade in the Sishen slimes thickener underflow of approximately 54 per cent Fe. Initial laboratory scale test work indicated that a 66.5 per cent Fe iron ore concentrate could be produced from the Sishen slimes thickener underflow through a process of classification, two stage wet high intensity magnetic separation (WHIMS) and five stage flotation. This process, however, did not produce the desired results during pilot plant testing and numerous alternative process routes were investigated. The process that did achieve the desired product grade of 66.5 per cent Fe at economically feasible product yields consisted of two stage WHIMS using SLON magnetic separators. Results achieved indicate that the thickener underflow slimes can be upgraded from 54 per cent Fe to 66.5 per cent Fe at a product yield of ca. 40 per cent. Product yield could be increased through the further beneficiation of the SLON tails. The Sishen slimes thickener underflow production rate is ca. 3 Mtpa û resulting in a potential concentrate production of ca. 1.2 Mtpa. The slimes concentrate will be fed to a pelletising plant that will produce 66 per cent Fe pellets destined for domestic and or export markets.

Jan 1, 2008

This is the time of year tor the presidential address, and with the present incumbent engaged in the coal mining industry, it will therefore come as no surprise to you that the theme of my address this evening is concerned with coal.There are other reasons for this apart from my contact with the coal industry. At present, coal is supplying considerable overseas revenue at a time when the remainder of the mining market is in a somewhat depressed state. That times will change goes without saying, if history is to be believed.However, so far so good for coal. My first reaction when The Institute indicated its wish that I be president for 1976 was to become deeply conscious of the honour bestowed on me.On consideration, I realized that very few past presidents have been intimately connected with the coal mining industry to the extent of indulging in it for lengthy periods as a full time occupation or, conversely, a part time interest for a long time. It also appears that not one had started their career in the industry. In my case, 'also, there were 8 very interesting years ,as a gold miner and metallurgist before commencing in coal.It therefore seemed appropriate to endeavour to discover ,why this should be so, as coal mining is now a very important part of a very important industry. What were the reasons why the industry took so long to emerge when there were ample reserves of easily accessible coal?Frankie and Johnnie in their bar room epic of the depression years concluded, and I paraphrase, that "their story held no moral, their story told no tale". If my story has such a message, it could perhapsbe construed as reinforcing the oft-repeated dictums, true or false, that "history repeats itself" or "man never learns".Coal mining is by far our oldest major Australian industry except for agriculture. Its history is almost as old as that of settlement:For various reasons, there has been a glamour associated with metal mining ventures which prob...

Jan 1, 1976

By Simmons SF, Fleming J

Alteration and mineralisation at the Island Copper deposit is related to the intrusion of Early Jurassic quartz feldspar porphyry dykes into surrounding comagmatic Bonanza volcanic rocks. The pyrophyllite alteration zone forms an upward flaring cone, largely hosted within a breccia body that c ross-cuts the Cu, Mo, and Au-rich ore shell. This alteration zone contains pyrophyllite, dumortierite and diaspore and resembles alteration occurring in some high-sulfidation deposits, but which is barren. Fluid mineral equilibria and fluid inclusion studies indicate formation at approximately 300 ¦C from fluids dominated by steam and gases. These fluids appear highly acidic, but sulfur poor, leading to extreme base leaching within the breccia body and surrounding rocks.

Jan 1, 1995

By U Briem, R Verreet

The level of wire rope technology used in mine hoisting applications has a significant effect on the overall efficiency of the hoisting system. This paper discusses the effect that a reduction in rope mass per unit length and an increase in rope breaking strength can have on rock skip capacity and hence mine shaft output. A 20 per cent reduction in rope mass per metre for a typical 48 mm hoisting rope, while maintaining the breaking strength, increases the skipÆs capacity by circa 30 per cent at a suspended rope length of 3000 m. Such gains in shaft output, without any significant changes to the shaft or winder design, can have major implications for the feasibility of future deep mine projects. The technical challenge for rope manufacturers is how to get rid of 20 to 30 per cent of the rope mass while keeping the breaking strength and modulus of elasticity of the whole rope constant. CASAR are currently developing steel wire rope constructions where the steel IWRC has been replaced with high strength, high modulus fibres such as Kevlar«, Spectra« and Dyneema«. One of the key aspects of such composite rope designs is to ensure equal load sharing between the different rope components, ie in proportion to their area. If there is a significant difference in modulus between the fibre core and the steel outer strands, the core may not carry its proper proportion of the load and the outer strands would be overloaded. Some technical aspects of the design of composite steel wire ropes are discussed. A design and operational issue that needs careful consideration is the safe non destructive testing (NDT) of composite ropes. Traditional magnetic NDT would only be capable of inspecting the steel wires. Techniques therefore need to be developed that would give operators a reliable indication of the condition of the load bearing fibre core. This paper also discusses possible solutions to this very important NDT question.

Jan 1, 2005

This paper summarises the performance of the gold exploration industry in the Western World since 1970, with particular emphasis on the period 1985 - 2003. It identifies the number and size of major (ie >1 million ounce) primary gold discoveries made over this period by location and type of company. Estimates are also made of the likely contribution from smaller discoveries down to 0.1 million ounces. It also assesses the overall trend in the percentage of grassroot discoveries that are converted into mines, and the time taken to get them into production. By comparing the discovery data against total exploration expenditures it is possible to determine the average unit cost of finding a major gold deposit. It is significant to note that the average unit cost per discovery and per ounce of resource has tripled over the last 30 years. An attempt is made to determine the overall economic value generated by the industry. This is based on a detailed analysis of the rates of return and the Net Present Values (NPVs) of 109 major gold projects. After including an adjustment for discoveries not modelled, the NPVs are compared against the total amount of money spent on exploration to determine the value-to-cost ratio for the industry. Based on historical spot gold prices and tax rules, it is found that the return on investment for gold exploration in the Western World over the period 1985 - 2003 was around five per cent real after-tax. The returns achieved in the US and Australia was significantly higher than that for Canada. The returns also appear to have declined in recent years. With regard to the relative performance of junior versus major companies, the paper estimates that the junior sector accounted for 30 - 40 per cent of the total exploration expenditure, and were was associated with 34 per cent of the total number of major deposits, 27 per cent of the contained ounces and 25 per cent of the economic value found.

Jan 1, 2004