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Problems caused by water discharge from surface mine ventilation shafts can be significant and are usually unforseen. The discharged water is often hyper-saline or acidic and can cause environmental degradation over a wide radius. It can also lead to recurring power pole fires and primary fan breakdowns. A range of solutions to the water discharge problem has been implemented in many Australian mines. In most cases the solutions have been ad hoc, with the overall cost and effectiveness varying tremendously. This paper reviews and contrasts the practicality and effectiveness of the various available remedial options.

Jan 1, 2002

By Y Li, Z Fu, D J. Williams, E Topal

Mine waste rock is unavoidable in the recovery of ore by open pit mining methods. Effective management of waste rock movement covers the removal and placement of the waste rock, generally in a surface dump in the most cost-effective way while satisfying the long-term environmental expectations. Since the 1960s, there has been significant research carried out into planning of ore movement from open pit mines such that the overall net present value (NPV) of the project can be maximised. Currently, several software packages are available to achieve this task as a common practice within the mining industry. However, planning of mine waste rock movement is still achieved manually, as the available software does not consider optimal waste rock movement and dump design. This paper describes a tool to optimise waste rock placement, which minimises the haulage cost while creating environmentally friendly waste rock dumps through selective placement and encapsulation of the reactive waste rock in the dump. The embedded methodology in this tool has been developed based on the mixed integer programming (MIP) modelling technique to optimise the waste rock movement. The methodology provides an easily-manipulated and fully-automatic tool for professionals to complete waste rock dump scheduling in four main steps: data input, model construction, model computation and solution retrieval. The application of the new tool into a real case project in this paper shows that it can determine economically and environmentally optimised waste rock dump schedules in an acceptable time frame.CITATION:Fu, Z, Li, Y, Topal, E and Williams, D J, 2015. A new tool for optimisation of mine waste management in potential acid forming conditions, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 333–342 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By P Navarra, R Kuhne

Dynamic simulation (discrete event simulation) is the preferred methodology to evaluate the impact of dynamic aspects of processing plants on the overall plant capacity. This tool can be used to: identify bottlenecks in the plant,justify upgrade and expansion projects by evaluating their impact, oroptimise maintenance and operating practices without disrupting the operation. Iron Ore Company of Canada's (IOC) pelletising plant is a complex operation because of multiple products, varying equipment capacity and shifting bottlenecks. Furthermore, with extensive capital requirements for projects and long lead times, a high level of confidence in project outcome is required. Therefore, a model of IOC's pelletising plant in Labrador City was constructed in 2007 by a joint IOC and Hatch team. The model includes both operational and metallurgical aspects in order to better capture the complexity of IOC operation. In this paper, the justification, boundaries, and functionality of the model are described. A comparison of simulation results to historical plant operation is given. It is observed that projects have interactions and that the benefits of combined projects are not equal to the combined benefits of the individual projects. Projects can have synergies that result in greater benefits when combined or can have overlapping benefits that result in lower benefits when combined. The power of the proposed modeling exercise lies in the ability to assess the impact of projects on overall performance.

Jan 1, 2009

By R K. A Taylor

The growth in production of beneficiated ilmenite products has been one of the most significant trends in the titanium feedstock industry over the past 30 years. In this period, the production of titanium slag and synthetic rutile has grown five-fold to the point where these products represented 56 per cent of total feedstock production in 2000. Additional production capacity is being proposed as the core component of new feedstock supply projects presently under consideration. A high proportion of these products is based on technologies for which the inherent quality of the is an essential factor. Location specific factors also play a large part in determining the cost of production. As the demand for such products grows, and the availability of favourably located sources of ilmenite of suitable quality declines, it can be expected that existing beneficiation technologies will become increasingly constrained. Existing beneficiation technologies, and those which have been developed, but are not yet commercially applied, are reviewed. Future issues which are likely to impact on the cost effectiveness of these technologies, or the quality of final products, are identified. These factors suggest directions for development of ilmenite beneficiation technologies to achieve economic production of the quality of feedstocks which will be demanded by the TiO2 pigment industry in the future.

Jan 1, 2001

By H Arvidson, D Guibal

This paper presents updated interpretations of controls on mineralisation in C Deposit and highlights structural features that influence the geometry of mineralisation domains used in resource estimation. The Area C mining lease is located in the central Hamersley Province, ~100 km WNW of Newman, Western Australia, and contains resources of approximately 1100 Mt of Marra Mamba and Brockman iron mineralisation. C Deposit is located within Area C, on the northern limb of the Weeli Wolli anticline, and mineralisation is hosted predominantly in the Mt Newman Member of the Marra Mamba Formation. Production from C Deposit began in August 2003, following mining of a 950 000 tonne bulk sample in 2002. Recent mapping in the bulk-sample pit and updated interpretations by BHP Billiton geologists have highlighted the significance of structural controls on mineralisation in C Deposit and their influence on the thickness of mineralisation, which ranges from 20 to 80 metres. Structural controls on the geometry and continuity of mineralised domains include south-dipping thrust faults that developed along the Mount Newman/West Angela contact, folds associated with thrust fault development, steeply dipping stratigraphic contacts in the hanging wall of the thrust faults, and gently north-dipping stratigraphic contacts. Thrust faults and folds in C Deposit are significant for two main reasons: their formation resulted in the thickening of the main ore-hosting units in the Mount Newman Member; and faults and folded stratigraphic contacts provided conduits for supergene metasomatic-enrichment processes that produce high-grade iron mineralisation.The implications of this interpretation for the definition of the resource estimation domains are discussed, and suggestions are made for a better integration of geology into the data acquisition and estimation process.

Jan 1, 2005

Quite apart from economic considerations, the following performance parameters must be considered when selecting an explosive for a particular blasting operation. 1. total energy yield/kg, and more particularly, strain energy/kg and bubble energy/kg of charge 2. charge weight/m of blasthole 3. sensitivity of the charge 4. water resistance of the charge The effective division of an explosive's total energy into strain energy (SE) and bubble energy (BE) is explained as is the influence of each energy component on blast results. Because some rocks require a high strain energy for effective breakage, while others are most satisfactorily fragmented by bubble energy, values of SE and BE are more meaningful than those of total energy. Unfortunately, our extensive knowledge of the effects of certain variables on total energy has not yet been completely supplanted by the influence of these variables on SE and BE values. Relative SE/kg and BE/kg values are presented for a range of explosives. The 'charge density of ammonium nitrate/ fuel oil (ANFO)-type explosives is essentially constant throughout the length of the charge; because of their compressibility, slurry

Jan 1, 1974

By A J. Weston

Block or panel caving technology is far removed from that of the top slicing and block caving of the late nineteenth or early twentieth centuries. The rapid mechanisation and expansion of these methods in the late twentieth century was as much a result of the change of the technology of the unit operations of development, ground support, drilling and blasting and transport as it was of the advances in geotechnical understanding and practice. The small footprint gravity and scraper block caving mines with boundary weakening, rail transport and shaft hoisting of the early to mid-twentieth century have been replaced by massive high lift panel caves using preconditioning of the ore, large load-haul-dump units, adjacent crushers and conveyors to surface. The technology changes in the unit operations are described and the drivers for these changes examined.CITATION:Weston, A J, 2016. The evolution of block caving technology, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 265–274 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By B J. Monaghan, R J. Longbottom, D J. Pinson, S J. Chew

Recycling steel plant by-products is a critical issue for achieving both environmental and economic sustainability of integrated steel plants. A key steel plant by-product stream is dust from basic oxygen steelmaking (BOS), which can be recycled back to the BOS vessel as iron units and to aid slag formation. The major limitations for its recycling are zinc and the uncertainty in zinc speciation of the dust. This uncertainty affects the amount of dust recycled and how it interacts with the slag during processing. BOS dust in stockpiles can undergo self-sintering reactions that oxidise the iron-bearing components. As this occurs, zinc (or oxide) may combine with iron oxides to form a zinc-iron spinel solid solution phase. Knowing which zinc-bearing species are present in the BOS dust is a key aspect in understanding and developing an efficient recycling process for the dust. To overcome difficulties associated with phase identification in the BOS dust (both fresh and selfsintered), particularly the magnetite-zinc ferrite spinel solid solution using X-ray diffraction (XRD) / scanning electron microscopy (SEM) / energy dispersive spectroscopy (EDS), high end characterisation tools, transmission electron microscopy (TEM) and Mössbauer spectroscopy, were also used. Such an approach allowed improved phase identification of key zinc- and iron-bearing phases that were not previously resolvable. The zinc in fresh BOS dust was mostly present as extremely fine separate particles of zinc oxide, attached to the iron particles. These extremely fine particles were <10 nm in size. Additionally, a small amount of zinc ferrite was also identified within the sample (most likely contained within a magnetite-zinc ferrite spinel solid solution). However, the zinc in the self-sintered BOS dust, was found to be present entirely in a magnetite-zinc ferrite spinel solid solution. While this spinel phase had been previously identified by XRD, it was not clear that it contained zinc. The Mössbauer results provided definitive evidence of zinc within the spinel phase.

Jun 19, 2024

By A Gerdes, H BrStz, E GSbler, D Davis, F Henjes-Kunst, S Dewaele, T Graupner, T Oberthnr, M Sitnikova

Following the United Nations initiative to fingerprint the origin of conflict materials, the German Federal Ministry for Economic Cooperation and Development has decided to fund a pilot study on coltan ores. Since 2006, our working group has been investigating columbite- tantalite (coltan) mineralisation, especially in Africa, also within the wider framework of establishing certified trade chains. More than 300 samples were obtained from the worldÆs major coltan producing areas. Special attention is, however, directed to samples and concentrates from Ta-Nb-Sn provinces in Africa: Democratic Republic of the Congo, Rwanda, Mozambique, Ethiopia and Namibia. Using state of the art analytical tools, we investigate mineralogical and chemical parameters obtained from columbite-tantalite ores and concentrates in order to distinguish between ore provinces, likely even down to the deposit scale. Methods employed include fully automated electron microscopy (mineral liberation analysis), electron microprobe analysis (major and minor elements), laser ablation plasma-source mass spectrometry (trace elements and U-Pb dating), X-ray fluorescence spectroscopy (bulk major and trace elements), X-ray diffraction analysis (mineralogy and structure) and thermal-ionisation mass-spectrometry (U-Pb dating). Major and trace element concentration patterns, mineral assemblages in the ore concentrates, and zoning characteristics in the different pegmatites from Africa distinctly differ from each other. Furthermore, the following age populations are evident:Archaean (&gt;2.6 Ga);Palaeoproterozoic (1.9 - 2.1 Ga);early Neoproterozoic (æKibaranÆ; 0.98 - 0.93 Ga); andlate Neoproterozoic to early Palaeozoic (ca 0.5 Ga). Currently, we focus on the resolution of the fingerprinting system from region via ore province down to deposit scale. Our preliminary analytical results indicate that a certification scheme including fingerprinting of sources of coltan ores is feasible.

Jan 1, 2008

By M Paine

Work to date has shown that the use of Al2O3:SiO2 ratios is suitable for identifying potential gibbsite bearing samples. Subsequent confirmatory XRD analysis helps to refi ne this initial identification. Based on these methods, gibbsite has been mapped in two common settings:1. along steeply dipping faults, or2. in association with stratigraphic contacts where one unit is aluminous (eg dolerite dyke).On a microscale, the samples studied illustrate an association between haematite, and to a lesser extent goethite, and gibbsite. In these samples the dominant forms of haematite are discrete crystalline phases of either microplaty haematite or euhedral martite. Two dominant forms of gibbsite were observed:1. vein style gibbsite that cross-cuts (or infill’s cracks) in goethite ± martite iron oxide associations, or2. gibbsite intimately intergrown with and forming a matrix to microplaty haematite.Some of the gibbsite microstructures observed suggest that it may have formed during a very hydrous, possibly hypogene, stage of the deposit genesis. The presence of this crystalline gibbsite, and in particular its occasionally euhedral form, suggests that aluminium was at some stage remobilised, at least locally, and then precipitated from solution as gibbsite. These observations suggest that these has been a phase of gibbsite precipitation that may have had a close but complex relationship with regards to the timing of the mineralisation processes, rather than formation as a result of late stage lateritic weathering.

Jul 11, 2011

By D J. Brake

Most mine ventilation engineers are involved in ventilation planning and design in some capacity. Ventilation modelling software used by a competent experienced ventilation engineer is extremely useful in developing good ventilation designs by allowing assessment of a wide range of potential options. Unfortunately, ventilation modelling undertaken by persons who do not have sufficient experience or knowledge usually results in a fa&#231;ade that covers up a fundamentally unsatisfactory design. Ventilation models are produced for a wide variety of purposes including: fault-finding of a problem area in a mine and options analysis for resolution of such problems; a complete review or optimisation exercise of an entire mine’s ventilation system; or a much longer life-of-mine type of study. Models can be intended as the basis for studies with diverse purposes such as primary shaft or airway sizing, primary fan specification, examining re-entry times after blasting, resolving leakage or recirculation, or investigating the impact of fires or underground climate or cooling requirements. The concepts of ‘materiality’ and ‘fitness for purpose’ are essential to developing or using a ventilation model and serious mistakes have been made in wrongly using a ventilation model for purposes for which it was never intended, often because it is simply the most recent model on the mine site. Mistakes at this level often translate into faulty ventilation strategies and inefficient or ineffective use of scarce capital for ventilation projects. Validating a ventilation model is a time-consuming and expensive process and not every model must (or even should) be fully validated to meet the objectives at that time. This paper discusses the application of quality assurance in ventilation planning with particular respect to the ‘basis of design’ (BOD) as well as the standards for validating a ventilation model. It also provides a recommended way of dealing with non-conformances in measured versus modelled values of critical parameters in the model.CITATION:Brake, D J, 2015. Quality assurance standards for mine ventilation models and ventilation planning, in Proceedings The Australian Mine Ventilation Conference, pp 221–228 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By R Dimitrakopoulos, C Paduraru

The optimisation of mine complexes and related value chains is a challenging problem due to the simultaneous presence of a highly-dimensional decision space, integer decision variables, non-linear constraints and recovery functions, as well as geological and market uncertainty. In addition, if the uncertainty is revealed progressively, then decisions need to continuously adapt to new information, which poses additional challenges. Stochastic dynamic programming is a well-known class of methods for addressing problems where a decision-maker reacts to new information. While simplistic applications of dynamic programming using exact representations would be intractable for any realistic mine planning problem, new dynamic programming methods using approximate value function representations have been successfully implemented in the past to address problems of similar complexity. This work formulates the problem of mine complex optimisation as an approximate dynamic program and presents an application of the resulting method to a gold-copper deposit.CITATION:Paduraru, C and Dimitrakopoulos, R, 2014. Mineral supply chain optimisation under uncertainty using approximate dynamic programming, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 415–422 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By D Johns, L Murray

This paper discusses pore pressures in the embankments of tailings dams by comparing real world data with common design assumptions. Assessment of pore pressures has implications on material behaviour interpretation from CPT investigations and, therefore, on the design. For example, the assumption of hydrostatic pressure is conservative for limit equilibrium stability analyses but may be un-conservative in assessing the potential for contractive behaviour and strength loss during shearing. This paper presents some real world data, the investigation methods to determine the pore pressures, and subsequent interpretation of CPT data and material parameters such as the state parameter. It also examines the design implications of assuming a hydrostatic pressure distribution, by comparing results from that assumption with those obtained using the real pore pressures.CITATION:Johns, D and Murray, L, 2018. Characterisation of pore pressure in tailings dams and the implications for design, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 239–249 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By F Ramos

Conventional techniques for resource estimation generally involve the laborious analysis of variograms and the specification of parameters for covariance functions. In large deposits, construction of resource models and their update require significant amount of manual work, expert knowledge and time. In this paper we take a machine learning view to the problem of resource estimation. This is a non-parametric Bayesian method, leading to automatic parameter estimation (learning). Through Bayesian learning, the parameters of the model can be obtained by optimising a quantity known as the marginal likelihood. The main advantage of this approach over conventional maximum likelihood estimators is that the objective function incorporates the OccamÆs razor principle. This allows the comparison of different statistical models û for example, models designed with different covariance functions û and naturally penalises complexity, thus avoiding overfitting. Our technique presents significant flexibility for the definition of mean and covariance functions and permits the usage of more sophisticated models.The second contribution of this work is the formulation of a data fusion mechanism that continuously updates the resource model. As mining progresses, more information becomes available. For example, the hardness of the rocks can be measured while drilling blast holes, grades of ore and contaminants are obtained from cone logging. This information is in general available at a finer spatial resolution but can be more uncertain. The data fusion mechanism can seamlessly estimate the uncertainties of the different types of information and fuse them as new measurements are acquired. This procedure can significantly improve the quality of the resource model, defining new grounds for stochastic mine planning. We demonstrate the effectiveness of our approach in estimating iron ore deposits by integrating information about different grades.

Sep 26, 2011

By Bigu J, Grenier M. G, Knight G

Particulate control is a major concern in underground mining and the subject of continuing research world wide. In Canada the federal government&apos;s Mining Research Laboratory at EIIiot Lake, Ontario, has been using two aerosol counters to aid its investigations. Specific studies with the units include: a) evaluating total and elemental size efficiencies of dust filtration units: b) characterizing the dust particulate cloud from different mining operations: and c) determining dust transportation characteristics.

Jan 1, 1988

The treatment of mixed lead carbonate and lead sulphide concentrates at Mount Isa presents a problem which is unique ,in the lead smelting world; a problem whose solution is far from simple, and is not yet complete. Two years of study under plant conditions have definitely proved, however, that a most satisfactory sinter can be made in a single-pass roast.The object of this paper is to present a brief record of the development of the single-pass roast and a resume of current practice in the smelting plant. The sintering operation is discussed in greater detail, as it is upon this phase of the work that every item in the smelter operating programme depends.The smelter, to-day, presents a very much simplified layout, equipped for economical, straightforward operation, requiring, however, very careful and constant supervision, due to the extreme delicacy of the sintering operation and to the rapid and wide variati9n in the nature of the concentrates which are to be handled.

Jan 1, 1933

By A Kobzev, C Robben

Sensor-based particle sorting of gold ores is the masterclass of preconcentration. The technical challenges of a grade in ppm scale makes a direct detection with currently available technology in milliseconds impossible. Consequently, the detection and classification of particles into ore and waste classes relies on detectable proxies which are the foundation for the classification. These must be reliable and repeatable across the ore bodies processed in future. A sensor-based particle ore sorting equipment must therefore be calibrated systematically by understanding the gold deportation in different lithological groups. Also, it must be in best operational state to minimise possible misplacement. The technical challenges are met by a stringent financial regime governing the business case. Many gold ore sorting projects require a stable grade of gold in the rejected waste significantly below 1gr/t. Two examples are introduced in this paper:  The pilot results and operational experience of X-ray transmission (XRT)-based particle ore sorting for pebble sorting of sulphide associated ore;  Laser-based particle ore sorting for pebble circuit of an orogenic, quartz associated gold ore. Usually, sensor-based particle sorters are installed in the crushing section of a plant. However, for large capacity plants, the number of equipment required, and the associated material handling costs result in significant capital and operating expenses for plants with 1200tph run-of-mine capacity. As a conclusion, it was decided to investigate sensor-based particle ore sorting applied to the pebble stream of two existing semi autogenous mills.

Nov 10, 2020

By Y Li, D J. Williams, E Topal

A mine waste rock dump does not have any intrinsic value, yet is an inevitable structure in surface mining operations. Since the purpose of mining is to maximise profit, possible expenditure reduction in hauling waste rock to the dump, which can represent up to 50 per cent of the total operating cost, is highly desirable. Apart from cost, potential acid mine drainage (AMD), due to seepage from surface waste rock dumps containing reactive waste rock, could threaten the ecological balance, drinking water supplies and irrigation systems downstream from a mine site. In order to minimise these potential risks, selective placement of benign and reactive waste rock, and the encapsulation of reactive waste rock by benign waste rock, need to be carried out during the construction of the rock dump.In this paper, a new methodology, based on mixed integer programming (MIP) is developed to manage waste rock dumping. The model aims to minimise waste rock haulage costs by locating the optimum destination(s) for each waste rock block, while at the same time controlling the placement of reactive waste rock to minimise the potential for AMD. Tests on small-scale virtual data demonstrated that the model is capable of dealing with selective placement of different waste rock types, encapsulating reactive, potentially acid forming (PAF) waste rock, and stockpiling benign waste rock for encapsulation and rehabilitation purposes. The solution time for the MIP model is far less than the traditional manual approach, and the resulting schedule is up to 46 per cent more cost effective.CITATION:Li, Y, Topal, E and Williams, D J, 2012. Mathematical approach for better mine waste rock dumping management, in Proceedings Life-of-Mine 2012 , pp 207-214 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By A Boucher, M Baudin, P Androszczuk, I Minniakhmetov, A Rigby, P Machado, M Wright, B Van Dijken

IGO Ltd’s (IGO’s) Nova Operation (Nova), which is 160 km east-north-east of the town of Norseman in Western Australia (WA), mines and processes nickel-copper-cobalt (Ni-Cu-Co) sulfide ore from the magmatic Nova-Bollinger Deposit (Nova-Bollinger), which is hosted by the Mesoproterozoic age high-grade metamorphic rocks of the Albany Fraser Orogen. Over its 56-month life-of-mine (LOM) operations to 31 December 2020, Nova has processed 5.63 Mt of ore grading 2.04 per cent Ni, 0.86 per cent Cu and 0.07 per cent Co from its underground mine. At the end of 2020, both the Nova-Bollinger JORC Code reportable Mineral Resource estimate (MRE) and Ore Reserve estimate (ORE) were >90 per cent classified in the highest JORC Code confidence categories of Measured Mineral Resource and Proved Ore Reserve respectively. The high JORC Code classification confidences assigned to the Nova-Bollinger MRE and ORE results from the 386 km of surface and underground diamond drill testing of the deposit to a nominal 12.5 by 12.5 m pierce point spacing in mineralisation. The close spaced high-quality drilling and bulk mining method employed at Nova has effectively removed the need for any grade control modelling outside of the MRE process. Importantly, having only the one fully drilled out deposit being mined and only the one process plant, Nova’s reconciliation process is in the fortunate situation of not being confounded by issues such as external ore sources and constant updates as new grade control information becomes available. IGO’s Nova reconciliation processes are focused on reconciliation ratios that quantify operational period differences between the MRE and ORE head grade and tonnage forecasts and the process plant head actuals. These metrics have been used to identify key reconciliation issues and have initiated several studies into the causes for specific reconciliation results, which are discussed in the paper. In late 2020, a period of sustained poor reconciliation results led to the recognition that increasing the understanding of risk between the MRE and ORE should be investigated. To assist with modelling stope level risk within the mine plan and subsequent reconciliation, an attempt was made to develop a formula to quantify ‘stope risk’ from MRE metrics such as sample spacing, kriging efficiency and so on

Mar 22, 2022

By P Collier

From 1972 until 1989 when operations were suspended Bougainville Copper Limited (BCL, owned 53.58 per cent by Rio Tinto Limited) operated a large open pit mine and processing facility at Panguna on Bougainville Island, Papua New Guinea producing copper concentrate containing significant quantities of gold and silver.BCL has a stated vision of recommencing operations at Panguna. In 2008, Rio Tinto, on behalf of BCL, conducted a multi-disciplinary study to assess the technical and financial viability of redeveloping the Panguna operation. One of the key outputs of the study was a Joint Ore Reserves Committee (JORC) Code compliant mineral resource statement based on the existing block model and fundamental data, archived since mine closure. Historical data (including the resource block model and drill hole data) was recovered from computer archives by a former Panguna mine employee familiar with the various obsolete data formats, thus maintaining an unbroken chain of custody of the data by Rio Tinto since operations were suspended. No additional data were collected as part of this study.The extensive data and documentation archive facilitated a sufficiently detailed evaluation of the fundamental data and model to support an updated resource statement. Table 1 of the JORC Code was used to guide the model validation process.Reconciliation of blasthole and metallurgical plant data with the reserve model, indicated that the copper and gold drill hole composite database was significantly biased towards underestimation in several key domains due to a combination of the following: mineralisation loss during core loss, core loss (minor), vertical drill holes failing to intersect sufficient subvertical mineralised fractures and veins, drill hole spacing too wide, and variable diamond drill hole core size. The resource model evaluation was based on three material types (all previously mined at Panguna), that were defined based on cut-off grade and rock type parameters: direct feed ore – material for delivery directly to the plant, preconcentration and screening ore – subeconomic material beneficiated to produce fines of economic grade, and waste. Three pit shells and designs were generated based on three separate sets of economic parameters. These economic parameters were also used to assign material types to the block model. The three resulting models were then evaluated against the corresponding pit shells.Classification of the resource was approached conservatively due to the inherent bias in the drill hole data. Consequently only Indicated and Inferred resources were tabulated.The study highlighted the importance of maintaining detailed documentation pertaining to resource estimates and operational history, particularly reconciliation, and the value that can be added by a simple, low-cost data compilation exercise.

Aug 22, 2011