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INTRODUCTION The difference between a mineral inventory or mineral reserve and an ore reserve was discussed in the introduction to Chapter 10. The term ore reserve implied mineral in place that is capable of being mined at a profit. Potential profitability of in situ minerals is dependent upon several economic parameters in addition to grade estimates for blocks of the mineral

Jan 1, 1980

The South Junction deposit of St Barbara Mines Limited was discovered in 1989 by the geologists of Ross Atkins Mining.The deposit occurs in the lower part of the Gabanintha Formation of the Lukes Creek Group in the Mt Magnet -Meekatharra greenstone belt. Country rock is predominantly talc-chlorite schist. Gold mineralisation is associated with north-south shear zones, quartz-carbonate-fuchsite alteration of the ultramafic rocks and in particular close to deeply weathered quartz-albite porphyry. For a detailed description of the geology of the South Junction Deposit see Fiala (1992).

Jan 1, 1993

By Singer RP

The Latrobe Valley brown coal deposits are one of Australia's major energy resources with measured and indicated reserves amounting to some 162 billion tonnes. Economically recoverable reserves are estimated at some 65 billion tonnes, 47 billion tonnes of which are classified as available for mining (VBCC (1983)). These deposits contain one of the lowest grade fuels used anywhere in the world. Typical Net Wet Specific Energy values range from 6 to 9 MJ/kg. Despite the low energy value of the raw coal, the Latrobe Valley deposits represent approximately 90% of Victoria's indigenous non-renewable energy resources. Utilisation of this vast primary energy resource has been a key factor in the economic development of Victoria.

Jan 1, 1990

By Gelding P. W, van Herk H

The Cattlegrid copper orebody is a concealed thin, tabular sheet localised near an unconformity between two sub- horizontal Precambrian sandstone units. It extends over an area of 1,000 m by 500 m within a wider area of mineral- isation. The ore consists of complex sulphides and is neither massive nor disseminated. It consists mainly of irregular fillings in pore space developed between clasts in sandstone breccias, in fault zones and joints and along stratification planes. Its habit is unique amongst Australian base metal ore bodies. During the pre-development period ore was outlined by percussion holes but in studies leading to investment decisions ore reserves were manually calculated from intercepts and assay results of cores from diamond drill holes. The methods used for estimating reserves in the pre-production and production periods are described and evaluated by comparing mine production during the first five ore production years with the forecasts made.

Jan 1, 1979

Ore Reserves estimation for the two producing copper orebodies at Isa Mine, Mount Isa, Queensland is discussed. The principal estimation techniques used and discussed are first, a computer based inverse power distance weighted assay meshing technique, and second, a manual arithmetic averaging technique. The principles involved in these techniques are compared, and their areas of application indicated. A general comparison of the estimation of reserves with eventual production is presented.

Jan 1, 1979

The orebodies at Kambalda are complexly faulted, folded and intruded. It is realized that the ore reserve calculations will be wrong and steps are taken to minimise the errors. The calculations are a combination of computer data handling and manual input. Initially Geological Ore Reserves are calculated and then production data and experience are used to produce a Planned Mining Reserve. At all stages maximum professional judgement is incorporated. The basis of the calculation is the polygonal method of area estimation, and production reconciliations together with the style of data available indicate that it is a most suitable technique. It is also a tech- nique that is easily communicated to all levels from operators to management.

Jan 1, 1979

The reliable estimation of ore reserves in mineral sand deposits depends on drilling methods and assay techniques that have been specially developed within the industry. Improvement of these techniques is a continuing process, as variations within and between deposits are highlighted during the actual mining operation. Constant monitoring of metallurgical losses along with mineral production allows comparison of mineral tonnages accounted for by mining, with original calculated reserves. A review of ore reserves in the Jerusalem Creek field from scout drilling in the sixties, through mining in the seventies, shows the progression from understatement prior to mining, to the present when more than two thirds of the reserves have been depleted.

Jan 1, 1979

By LESTER W. STRAUSS

FOR fifteen months after the other dominions of the British Empire and the entire so-called sterling 11loc loosed the shackles that bound the111 to the gold standard, South Africa, giant among gold-producing nations, remained stubbornly attached to gold at the traditional ratio of 85 shillings in currency to one ounce of gold. But eventually even South Africa had to heed the dictates of trade and the obvious interests of its great gold-mining industry. In December, 1932, South Africa's currency severed its golden bonds. Today the South African pound is 011 a par wit11 the British pound.

Jan 1, 1935

By Armine F. Banfield

The Purpose of the Paper It is fitting that the first paper of a session on the Financial Aspects of Mining should be on the basic data upon which any financial discussion of a mining project must be based. The history of a mining project starts with exploration in an area considered geologically favorable for mineralization and culminates in the discovery of a body of valuable mineral material commonly known as a mineral deposit. Subsequently more detailed exploration establishes the approximate size, shape, tonnage and average grade of the deposit by surface and/or underground drilling, -surface trenching and/or underground workings. Some preliminary metallurgical testing and other studies, as required, are made at this time. Development work is then carried out to provide representative samples for determining flowsheet and metallurgical balances, preparing the deposit for production and establishing more firmly the grade and mining characteristics of the deposit. A feasibility study is then made of the engineering aspects of the project including the estimation of operating coats, the capital required to place the deposit into production, profit and return on investment. A valuation of the deposit

Jan 1, 1972

By Hugh K. Taylor

"With some justification, people have long complained about the indefinition of ore reserves. Perhaps they were led to expect too much; from former and easier definition practices in the once common underground mines with exposed and available assets, where the obsolete term 'ore in sight' was at least partly literal. But such mines have become rarer, and their underground development less affordable. For most projects, valuations and its definitions have thus been advanced from actual to prospective mines, leaving a very wide gulf between 'what is there' and 'what may happen to it'. This brings the double challenges of reduced geological and technical assurance and the protraction of economic uncertainties.This paper avoids the popular field of regional resources, being confined to what may possibly be mined within single or closely grouped deposits. For these, many estimates of tonnage and grade must be made, defined and declared long before assessment of feasibility; and the uncertainties of the latter make it an unsound base for defining the earlier quantities. Despite the best of intentions, implied or inferred promises may proveimpossible to honour.A simpler framework of definitions is suggested, to some extent reverting to an earlier dependence on supporting work rather than on opinions of economic assurance or future events that are more properly the functions of production and cash flow schedules."

Jan 1, 1994

By Owen Owens, W. P. Armstrong

Abstract- The process of arriving at the size and grade of: (a) a newly-discovered body of mineralization, (b) a potential ore resource, (c) an orebody proposed for mining, or (d) the ore reserves in a mine, requires fundamental geological, and geometrical determinations as well as physical and chemical analyses. This paper outlines geological and geometrical features considered critical, in the authors' experience, in realistic reserve determination. These are discussed under the headings "The Four Cs". They include the Character, type or nature of the mineralization; the Continuity of various types of mineralization in the deposit; various key concerns in the Calculation besides the mathematics; and the Classification section which refers to basic considerations in classifying a mineral estimate. It is suggested that the responsibility for the calculation of a Resource or Reserve should be that of a geologist experienced in the ore type under review. Further, it should be the responsibility of the board of directors of the company owning the deposit to ensure that a sufficiently experienced person is chosen to carry out the process.

Jan 1, 1993

Errors in ore reserve estimation can occur during drilling and sampling, sample preparation and analysis, geological logging and modelling, database construction, statistical or geostatistical evaluation, selection of economic parameters, selection of ore reserve method and assessment of mining constraints. Core sample recovery can be a major source of error, and it is proposed that the modelling of grade, metal accumulation and thickness should be accompanied by the modelling of core recovery (or core loss) so that for each ore block a weighted block recovery factor is obtained. This gives a good indicator of the reliability of a reserve estimate. It is suggested that a resource reliability rating (RRR) system be established to quantify what is meant by geological assurance and to combine this with an estimate of the precision of estimation as gained by geostatistical analysis. Proven and probable minable reserves would be those with an RRR better than 50% and a precision of estimation better than 20%

Dec 1, 1996

By H. K. Taylor

Ore reserves are inadequately defined. Geological reconnaissance and pre-feasibility mining work generate a broad range of valid tonnage estimates, many published for the benefit of various interests, who may view all figures as reserves. This work reviews the regular estimation of tonnages, grades and relevant factors for single deposits. A consistent framework of definition is suggested which, by conforming to the known structures of feasibility studies and long-range plans, avoids the pitfalls of over-categorisation and of unrealistic promises. Applications are based on North American experience but are intended for general use

Sep 1, 1991

By J. S. Wakeman

INTRODUCTION The primary purpose of comminution circuits in the mineral industry is to reduce an ore to a particle size that will permit separation of the valuable minerals from its gangue constituents. Wide variations in the mineral content and physical characteristics can and do occur throughout a given mineral deposit From the standpoint of their effects on the comminution characteristics of an orebody, these variations may not be identified by the normal sampling and analysis procedures utilized to delimit an orebody and to characterize its grade distribution. The proper design of a comminution circuit for a mineral deposit is very important to the success of that enterprise. It is also an expensive unit process both from the standpoint of capital and operating costs. It is, therefore, essential that any sampling program be designed to identify the variations that may occur that will affect this circuit. Because of the variety of comminution systems that are available, it is also essential that the sampling and subsequent evaluation program be sufficiently comprehensive to identify potentially inappropriate systems or flowsheets. It would be impossible to describe in a single chapter the techniques and approaches that should be utilized for sampling every type of orebody. Each orebody is unique and requires a sampling and testing program designed to its specific requirements for exploration, characterization and circuit design. The following is a general discussion of the guidelines to be used and considerations to be made in establishing such a program. SAMPLE SELECTION When sampling an ore deposit for the purposes of equipment and flowsheet selection for comminution, it is important that the sample composites for grind testing be chosen on the basis of how they will affect the comminution circuit rather than just how they might affect the subsequent metallurgical operations. For example, grindability, classification and liberation size characteristics are more important to the comminution circuit than ore grade. Mineral deposits may contain a multiplicity of ore types that can vary extensively in the dissemination of minerals and optimum liberation size requirements; and may also vary as much as 100% in ore hardness. The accumulation of samples for grind characterization should be done in such a way as to allow the identification of this variation. A proper mineralogical evaluation of the samples obtained to characterize an ore deposit can be a great aid in identifying the individual ore types within the deposit

Jan 1, 1982

By William C. Peters

The frustration encountered by exploration crews in connection with land acquisition could be graphed to show a correlation with the natural law that everything tends to become more so. Figure I shows a rather common, situation. The combinations of ingredients are almost limitless and the resulting brew is often poisonous to an exploration man. A single step, that of taking a series of deep soil samples is often delayed until some sense can be made from "floating" unpatented claims which are obscure in orientation as well as position, placer claims overlapping lode claims, location posts with empty Prince Albert cans, and claims with no apparent assessment work for ten years. Add to this some patented claims with¬out monuments, a state or federal withdrawal area which may or may not invalidate pre-existing claims, a loosely defined tunnel site, and some ranchers who understandably resent the separation of surface rights from mineral rights. The picture is familiar to exploration men. One approach to such problems is to ignore them until someone voices an objection -- but then an even more chaotic situation is likely to develop. Another practice is to stake new claims to cover all ground that is "open" at first glance and then find out if there are conflicts so that the new claims can be adjusted accordingly.

Jan 1, 1970

By A. D. Hoagland

There are large areas on all of the continents with environments which are favorable for deposits of zinc and lead of Mississippi Valley type. In the developed countries, these environments have for the most part been quite thoroughly explored for the near surface deposits, and it will be necessary to direct more effort to the search for deeper buried deposits from which much of our future production must come. The difficulties of exploration for deep ore of this type are many and formidable, but the area of permissive environments beneath deep cover is many times as great as the area of the known near surface ore districts. It is a reasonable assumption, therefore, that numerous deposits wait for discovery and development. The finding cost, however, is certain to increase, and it is essential that concepts and techniques of exploration be improved if we are to sustain a reasonably strong productive capability into the 21st century. Exploration for deeply buried deposits requires at the outset relatively large areas of favorable geologic environment. The favorable horizons must be within economic limits of depth for the exploration as well as for the mining techniques which are currently available; and there must be some condition, design or strategy which will assure the explorer a reasonable chance of obtaining maximum benefit from discoveries which he may make.

Jan 1, 1973

By J E. Everett

A block model of the orebody is used to plan a mine. The first requirement is to identify ore to be extracted, discarding waste, so as to meet target grade, generally in multiple analytes. Commonly, cut-off values are set for each analyte, so as to distinguish ore from waste. It will be shown that, if more than one analyte is important, this procedure is wasteful of ore and a composite cut-off function is preferable.A second requirement is to sequence the ore extraction so that the variability in ore grade is controlled: failure to do so will result either in low-quality ore being marketed, or excessive re-handling being required to blend the ore to reduce the grade variability.A third requirement is that the extraction sequence should be such as to control the amount of equipment movement required, enhancing the equipment productivity.The overall objective, to optimise the Net Present Value (NPV) of the mined ore, is simply stated but complex in realisation, since so many factors, such as target grade, grade variability, equipment choice, equipment movement, and downstream blending all have alternatives which can be traded off against each other, and all of which contribute to the costs and benefits making up the total NPV.There exist commercial packages for ore selection and mine planning. However, they are often of a ‘black box’ nature, and users are sometimes not fully aware of the criteria being applied. In particular, the treatment of quality as a multidimensional vector may be problematic. The purpose of this paper is to discuss some of the issues involved and to suggest an alternative set of approaches, which should complement existing commercial treatments.The discussion will be illustrated specifically by reference to the mining of iron ore, but the issues are relevant to a wide variety of mining situations

Sep 5, 2011

By M Aros, L Reilly

Iron ore is normally sold in bulk at certain specifications. These include iron grade and specific contaminant grades, typically silica, alumina, phosphorous and sulfur. These target grades are normally agreed between the mining company (producer) and the steelmaking company (customer).This study presents an alternative to traditional cut-off grade calculation, using linear programming that maximises the total ore inventories within a predefined mining envelope while meeting the specified targets. Providing a feasible mining sequence that maintains the target grade is not covered in this study.The method was applied to Fortescue’s operations. The complexity arising from differing ore quality within each mining horizon, variable yields and upgrades and the need to control iron and contaminant grades provided a good opportunity to test an alternative method of ore selection. The new method significantly reduced the time spent in cut-off selection and sensitivity analysis, and provided an optimised solution.CITATION:Aros, M and Reilly, L, 2014. Ore selection optimisation for an iron ore deposit using linear programming, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 345–350 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By J E. Everett

Ore selection is generally a highly subjective task, with emphasis on producing product with a consistent target grade matching a perceived market requirement. A composite selection criterion ‘Comp’ (a linear function of the grade vector) can be used to maximise ore tonnage at a specified target grade (in Fe and contaminants) extractable from a block model. The blocks correspond to the selective mining units, with grades interpolated from diamond drill hole data. An iterative procedure has been developed to identify the coefficients and cut-off value for the composite function ‘Comp’, maximising potential ore tonnage at target grade.Commonly, target grade is predetermined by marketing; however, there is no guarantee that maximising ore tonnage at a specified target grade maximises the potential value of the mine. If the value of ore could be expressed as a linear function of the grade components, then these coefficients would be appropriate for the selection criterion ‘Comp’. The cut-off value for ‘Comp’ would correspond to the marginal cost of production; all blocks with a ‘Comp’ score above the cut-off would be classified as ore; and the cumulative grade of these ore blocks would be the average product grade over the life of the mine.Unfortunately, no such value function for iron ore is generally available. Methods for estimating the value function are discussed, using the spot price and sensitivities based either upon operational tolerances for Fe and the contaminants or upon published price differentials. This approach has been applied to an anonymous Pilbara deposit with about one million blocks averaging 1.1 kt. It is shown how the optimal target grade, cut-off grade and maximum tonnage can all be explored as a function of marginal cost and iron ore price. Alternatively, given marginal cost and an iron ore price, the effects of changing the tolerances (and therefore the relative costs of the contaminants) can also be explored.It is suggested this procedure can enable informed decision-making for an iron ore mine. Rather than setting final policy for the entire life-of-mine, the method enables target grades and tonnage estimates to be revised by re-computation as the mine life proceeds to recognise changes in market conditions and knowledge about the resource.It should be emphasised that this paper is concerned with ore selection rather than ore sequencing. Appropriate ore selection is a necessary but not sufficient condition for maximising value. Having identified the set of blocks that potentially maximise value, the sequence in which they are mined will present a trade-off between producing at constant grade and extracting high value ore early. The sequencing issue is not considered here. It is shown that optimum ore selection for an open pit mine is independent of any consideration of discount rates, although ore sequencing will depend upon the time value of money if the product grade is to vary across time.CITATION:Everett, J E, 2015. Ore selection to maximise value, in Proceedings Iron Ore 2015, pp 443–448 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By J V. Lawless

Two types of low sulphidation epithermal deposits that have different gangue mineralogies and ore shoot geometries are recognised. One has laterally near-continuous ore shoots over a significant vertical interval that consist of quartz, chalcedony, pyrite, minor base metal sulphides and adularia, with electrum. The other type of deposit has discrete near-vertical ore shoots of a lesser vertical extent, that consist of quartz, pyrite, base metal sulphides, sulphosalts, electrum and in their upper parts barite, which are enclosed in veins of earlier quartz. The gold mineralisation in both deposit types is considered to be a co-precipitate of pyrite, with that in the first type of deposit produced by prolonged boiling in an upflow of a hydrothermal system (Upflow Deposits); an example is Waihi in New Zealand. The other type is produced by mixing, a deep water primed for gold deposition by prior limited boiling, with an iron-bearing oxidised condensate of the steam released by the boiling, in an outflow of a hydrothermal system (Outflow Deposits); an example is Thames in New Zealand. Early recognition of these different types of deposits can be used to develop mineralisation models of predictive value on which to focus exploration drilling. Early recognition of an Upflow Deposit promotes an extensive program to delineate the extension of the main ore shoot. In contrast recognition of an Outflow Deposit requires a more intensive approach to find individual ore shoots which, although smaller than those found in Upflow Deposits, may be high-grade, particularly if there is earlier mineralisation present to act as a protore.

Jan 1, 1999