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The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994

Samples weighing 0·5 g are fused with potassium hydrogen sulphate, leached with 4 ml. of 4 M nitric acid and diluted to 10 ml. with water. An aliquot of the clear solution is treated with EDTA, adjusted with ammonia to give a pH value between 5 and 6 treated with cyanide, ammonia, and sodium diethyldithiocarbamate then bismuth diethyldithiocarbamate is extracted with chloroform and the yellow colour is compared visually with a standard series. Alternatively, the bismuth complex may be filtered on a "Millipore" filter and subjected to x-ray fluorescence spectrometry.

Jan 1, 1971

Samples weighing O·25 g are fused with 1 g potassium hydrogen sulphate, leached with 5 ml. of hydrochloric acid, and then diluted with another 5 ml. of acid. After settling, an aliquot of the clear solution is reduced with stannous chloride, and then a zinc dithiol solution is added to form a coloured tungsten complex which is extracted with petroleum spirit for comparison with standards.Concentrations down to 4 p.p.m. may be analysed at a rate of 100 determinations per man-day of 8 hr.

Jan 1, 1970

By T Day, I G. Robertson, G J. Lyman

"Various approaches are used in the industry for establishing procedures (sample mass estimation and method of subsampling) for sampling and analysis of gold ores. The key factors that determine the accuracy of the results that can be expected for a given set of procedures are widely misunderstood.Recent developments in sampling theory show that the estimation of the accuracy that can be expected for a given gold ore as a function of sample mass is actually a simple matter. For a given sample mass, the accuracy that will be achieved depends only on the grade of the ore and the range of masses of the grains of the gold in the ore. This, of course, demands that a reasonable estimate of the distribution or spread of gold grain masses in the ore be known. But this is something that should be known if the gold is to be efficiently recovered in the processing plant.This paper provides a simple explanation of the real facts about sampling of gold, either in the field or in the plant, and provides results for a number of cases of combinations of fine and coarse gold in an ore. The prerequisites for accurate gold sampling are:correct sampling with no loss of sample or contaminationsample preparation procedures that recognise the impact of the gold grain mass spreadpractical analysis of the sample masses required to provide acceptable accuracy.Issues of corporate governance are also discussed.Citation:Lyman, G J, Robertson, I G and Day, T, 2016. The Simple Facts about Sampling Gold Ores, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 159–172 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By S Dunham

For decades we’ve been focusing on reconciliation as a tool to validate mineral resource estimates. And for decades we’ve been misleading ourselves. The concept of reconciliation is simple. Predict, measure, compare and assess the quality of the prediction. This four-step process reflects the ideas of statistical process control and the plan-do-check-act cycle of Shewhart and Deming fame and our intuitive understanding of using system feedback to improve performance. In an ideal world where data is robust and dense this type of feedback loop can be useful. In the mining industry however, there are some fundamental flaws with the conceptual framework. At almost every stage of the process from pre-estimation through to final production the mining system is plagued by material challenges with data and measurement quality and quantity, system delays, and losses from a supposedly closed system. These issues can and do impact on the benefits sought from reconciliation. Instead of providing feedback leading to improved estimation, reconciliation can result in poor decisions, distracting investigations, and exacerbate the noise in an already noisy system. Before we can rely on reconciliation as a management tool, we need to address the multiple challenges present in our everyday practices. Some of the most critical issues are addressed in this paper.

May 24, 2023

By H Rossiter, C Simpson, J Market, P Jeanneau

Downhole Assay tools are a geophysical method to collect an instigated response from the material surrounding a drill hole and deliver a multielement proxy-assay. They were first tested in the Pilbara at the turn of this century, however since 2011 they have seen a more focused testing and implementation regime with multiple companies across multiple Pilbara mine sites. The increase in the volume of data has led to advances in the measurements and significant improvements to the efficiency of the calibration process. Pulsed Fast and Thermal Neutron Activation Analysis (PFTNA) downhole assay tools collect gamma photon spectra which are characteristic of elemental signatures. One of the key components of the technique is calibrating the spectral signatures to lab assays. Each tool is slightly different due to the organic nature of the crystal detector and therefore responds slightly differently. Environment and hole conditions as well as ore characteristics are among other external influencing factors. Thus, a unique calibration is required for each tool. In addition, not all elements are measured directly, but some are actually characterised by proxy, meaning that if the signal-to-noise ratio for an element is small, it may be easier to identify the mineral or geology in which that element is found and thus infer the concentration of the element. These proxies may differ for each site or geology type within a site. There is a large advantage to build a unique calibration per tool at each site rather than a universal one to be used across the whole province. This then delivers the accuracy and precision of measurements that mining companies require for modern operations. Early work with the tool required several thousand metres of calibration data and several weeks of analysis to build each calibration. This process has now been streamlined to significantly reduce the amount of data required and the analysis time to make it much easier to introduce new tools to a site with an existing model or to create new models. This paper details the calibration process, illustrating the increasing accuracy of the models as training data are acquired as well as the methods for transferring a calibration from one tool to another.

Nov 8, 2021

In practice a sampling solution is a compromise of many requirements: the sample should be representative; the sampling system should also be reliable, less than 95 per cent availability restricts the use of the assayed sample for process control purposes; no sample is the worst sample, and investment costs and installation space/layout are frequently a restriction. For instance, online X-ray analysers for process control introduce a delimitation error by the nature of X-ray physics. Thus only in special cases a relative accuracy better than three per cent relative, as one standard deviation, is achieved. A sampling system for process control needs not to be, as representative, for so many sample properties, as one for composite laboratory analysis samples. Sampling system maintenance is also an important issue. There are many sampling systems in the industry which have been difficult to maintain and are in disuse for lack of resources or incentives to keep them running. Pierre Gy developed the most generally accepted sampling theory. One of the main principles is that all particles in a one-dimensional process stream should have equal chances of being included into the sample. A correctly designed and operated transversing cutter comes close to this goal but has limitations in temporal representativity. For slurries an acceptable solution in many cases is to use a fixed vertical cutter(s) in a position where the slurry is well-mixed by turbulence and other means. For online analysis, reliability problems are mostly related to faulty design or installation of the piping system to the analyser. Properties of material processed, process flow sheet and piping details before and after the sampler have to be taken into account when deciding on which sampling arrangement is appropriate. Guidelines and some solutions to these issues are presented in this paper.

Mar 1, 2010

By D J. Thobaven

Project financing challenges caused by declining commodity prices have heightened the need to improve project metrics such as minimising capital payback and maximising net present value (NPV). Khnaiguiyah Mining Company (KMC) recognised the need to improve early cash flows at their Khnaiguiyah zinc-copper project after initial studies showed the project could not provide the desired financial outcomes necessary to compete for investment dollars in the current market.A significant improvement to the project cash flow in early years was realised through simultaneous optimisation of cut-off grade, mining sequence and strategic stockpiling. This improvement was achieved by accelerating mining in the pits, stockpiling lower value material and feeding higher value material directly to the plant. The schedule required higher mining and stockpile capacities than the sequential mine plan although minimal change occurred in the definition of ore and waste as measured by tonnes and grade. The practicality of the strategic schedule was demonstrated by implementation in the production plan with excellent conformance.CITATION:Thobaven, D J, 2014. An application of simultaneous optimisation – improving the payback period of a zinc-copper open cut project, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 137–144 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By J-T Zhu, Q-Y Tu, S-L Kong, L Wang, Y-P Cheng, H-Y Liu, Q-L Yang

China is the largest coal-producing country in the world, while the geological conditions of deep coal mining are extremely complicated with high ground stress, high gas pressure and low permeability, which results in the difficulty of gas drainage and aggravation of gas explosion and coal and gas outburst disasters. Co-extraction of coal and gas is an effective method to eliminate coalmine gas disasters and realise the safe exploitation of coal and efficient gas drainage at the same time. This concept is widely accepted by the main coal-producing countries around the world, while the concrete definition of co-extraction is vague and not unified, and there is little accurate theoretical support for co-extraction of coal and gas, which makes it hard to determine efficient gas drainage methods correspondingly according to the features of coal seams in a comprehensive and systematic way. Based on theoretical analysis, laboratory test and field observations, basic thoughts and specific definition of co-extraction of coal and gas were put forward after analysing the occurrence characteristics of coal seams in China. We obtained the mechanism of mining-enhanced permeability and established the corresponding theoretical model, which is the process of fracture network formation through opening recovery of the original fractures and new fractures produced by unloading damage. Based on the core idea of ‘mining-enhanced permeability’, engineering approaches of ‘unloading by boreholes drilling’ for the single coal seam and ‘unloading by protective seam mining’ for the coal seam group were proposed to realise safe and efficient co-extraction of coal and gas. Meanwhile, combined with engineering practice, we put forward the construction principle of coal exploitation and gas drainage system in different coal seam occurrence conditions. The above methods were applied successfully in the Tunlan coalmine in Shanxi Province and the Panyi coalmine in Anhui Province, which had established the ‘underground-surface united’ spatial gas drainage modes, and could ensure safe and efficient co-extraction of coal and gas in the outburst coalmines.CITATION:Cheng, Y-P, Wang, L, Liu, H-Y, Kong, S-L, Yang, Q-L, Zhu, J-T and Tu, Q-Y, 2015. Theory of safe and efficient co-extraction of coal and gas and its applications, in Proceedings The Australian Mine Ventilation Conference, pp 79–92 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By J Caron, M Athayde, F Lavoie, R Joyce

Decarbonisation has become a major challenge for the global steelmaking industry, turning towards new technologies aimed at carbon footprint reduction, which on its own accounts for approximately 9 per cent global emissions. The iron and steel industry represents a ‘hard to abate’ sector, where much of efforts are currently being deployed into initiatives aiming to decarbonise the ironmaking through the use of green hydrogen, carbon capture utilisation and storage and state-of-the-art operation of current technologies, while little efforts being deployed to find carbon-efficient solution to iron ore burden preparation, where high-grade iron concentrate will increase in importance to ironmaking regardless of the chosen reduction route. Quebec Iron Ore (QIO), a subsidiary of Champion Iron Limited (Champion), produces high-grade hematite concentrate with one of the lowest carbon global footprints. Still, QIO is partnering with its clients to the development of burden solutions to minimise CO2 emission, in the seek for a decarbonised steel. In a strong technological partnership, Binding Solutions Limited (BSL) has developed a novel, coldbinding technology to provide a cleaner, more cost-effective alternative to induration. The technology allows miners and steel producers to reduce Capex significantly and reduce energy consumption and CO2 emissions by 90 per cent. QIO and BSL have partnered to adapt the disruptive cold binding technology developed by BSL to QIO’s concentrate to produce a high-quality low emissions iron ore agglomerate. This paper describes the efforts taken to further develop BSL’s cold binding technology and its application to QIO’s high-grade iron ore concentrate to produce a hematite cold bonded briquette (hCBB) showing comparable performances with high quality seaborne fired pellets.

Nov 8, 2021

By J Penman, N Turner, H Liu

This paper aims to present a snapshot of the risk profile for tailings storage facilities within Western Australia by comparing the spatial distribution of known facilities against common geohazards such as cyclonic activity, climate, and peak ground accelerations from earthquakes. The analysis also includes an assessment of proximity to populations at risk including towns and sensitive receptors including significant river systems and wetlands.

Jul 1, 2021

By K S. Smith, J Woodhead, K Olson Hoal

Mineralogy is the link between ore formation and ore extraction. It is the most fundamental component of geomet programs, and the most important aspect of a life-of-project approach to mineral resource projects. Understanding orebodies is achieved by understanding the mineralogy and texture of the materials, throughout the process, because minerals hold the information required to unlock the value they contain. Geomet mineralogy programs absolutely require the appropriate expertise and at least three steps of mineral characterisation prior to using semi-automated or other methods: field examination, thorough core logging, and optical microscopy. Economic geological inputs for orebody characterisation are necessary for orebody understanding, and are exemplified by current research in the Zambian Copperbelt, where revised sequence stratigraphy and understanding of alteration, metasomatism and metamorphism can be used to predict topical issues at mine sites. Environmental inputs for sustainability characterisation are demonstrated by recent work on tailings from the Leadville, Colorado, USA area, including linking mineralogy to water quality issues. Risk assessments need to take into account the technical uncertainties around geological variability and mineral extractability, and mineralogy is the only metric that can be used to make this risk contribution.CITATION:Olson Hoal, K, Woodhead, J and Smith, K S, 2013. The importance of mineralogical input into geometallurgy programs, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 17-26 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By E Bouchard March, F Lavoie, B Legare, K Bourassa

Quebec Iron Ore (QIO), a subsidiary of Champion Iron Limited (Champion), completed the restart of the Bloom Lake iron ore mine located in the heart of the Labrador Trough region of Northern Quebec, Canada in February 2018. Prior to its restart, the concentrator flow sheet underwent major upgrades which brought the iron recovery to the highest of all Labrador Trough operations. After two profitable years of production, QIO, supported by Soutex, started to look at technologies to improve its current performance and integrate into its expansion project flow sheet. From the lessons learned while optimising Phase 1, the addition of a scavenger-cleaner processing stage was identified as an improvement opportunity to increase recovery, produce a higher-grade product, and further improve the stability of concentrate quality. In 2019, the NI-43101 feasibility study for the Phase 2 expansion, aiming to double the production of high-grade iron ore concentrate, was published. Based on the metallurgical test work, the hydraulic classifier was selected to perform the scavenger-cleaning duty for its well-established performance and known behaviour at the cleaning step in the Phase 1 plant. To validate laboratory results, a pilot scavenger-cleaning hydraulic classifier was installed in Phase 1. Although the hydraulic classifier was selected for the feasibility study, metallurgical test work performed with the REFLUX® classifier showed interesting potential. It was thus decided to also install a pilot RC300 Reflux classifier at the scavenger-cleaning stage in Phase 1. Despite their apparent great similarities, the metallurgical performance was significantly different, and many dozens of sampling campaigns highlighted the different performance of both pieces of equipment considering the feed material particle size. This article presents the pilot plant results in terms of recovery, selectivity and stability for both the Reflux classifier and the hydraulic classifier operated in a scavenger-cleaner stage at the Bloom Lake iron ore concentrator.

Nov 8, 2021

The demands of the economy require larger manufacturing facilities using greater quantit- ies of raw materials which must be mined, handl- ed, stockpiled and recovered with efficiency and dependability. All over the world, mining com- panies, steel manufacturers, power stations and process plants are not only seeking but finding methods of increasing outputs and'reducing costs in the field of materials handling. In mining bigger continuous mining machines and shovels, larger trucks and crushers are digging and processing greater quantities of differing materials which have to be handled and shipped at rates once thought to be impossible. To implement such schemes demands the blending of a lot of diverse-equipment, mining machinery, bins, feeders, reclaimers and it is here that the belt conveyor assumes a role of ever increas- ing importance. Significant developments have taken place in the seventies with respect to conveyor belt transportation; not only in the systems but also in the components which combine to make such systems work efficiently.

Jan 1, 1976

By A Halim

"There is still debate about who should ultimately be responsible for the ventilation system in anunderground mine. The Queensland Coal Mining Safety and Health Regulation 2001, states that adedicated ventilation offi cer is the person, while Western Australian Mines Safety and InspectionRegulation 1995 states that it is the mine manager who is responsible; the ventilation offi cer actsas the managerÆs principal ventilation advisor. This paper outlines a comparison between bothapproaches."

Jun 1, 2012

By Z U Bajwah

During the Palaeoproterozoic, a large number of granitic intrusions were emplaced in the various parts of the Pine Creek Geosyncline (PCG). In the central region, the granitic magmatism is represented either by the coalesced mass, eg the Cullen Batholith, or individual plutons such as the Mount Bundey Granite which together with the Mount Goyder Syenite intrude the metasedimentary strata, causing wide spread contact aureoles. Some of these granitic intrusions are temporally and genetically related to gold (and less commonly base-metals) mineralisation present in the adjacent metasediments. These plutons are characterised by the presence of biotite and homblende which appear late in the paragenetic sequence. Electron microprobe analyses of biotite and homblende show that these minerals are poorly to moderately zoned. Biotites are characterised by a decrease in Fe/(Fe + Mg) ratios when plotted against AIVI. Similarly a modest decrease in Ti from centre to the margins of the biotite crystals has also been observed. Furthermore, an increase in Mg/(Mg + EFe) ratios from centre to the margins as well as in mafic to felsic rocks is also apparent. On the other hand, homblendes from the granitic bodies display less well marked trends and are poorly zoned. However, they show systematic increases in Mg/(Mg + EFe) ratios, and decreases in Fe, Al"' and Fe/(Fe + Mg) ratios, when plotted against Si. Magnetic susceptibility measurements on powdered samples of the plutons give results characterised by high values ranging from 0.8 x 10-4 to 2.0 x 10-3 emu/g which place the granites in magnetite- series field. This indicates that the oxidation state of the magma was high during crystallisation. The range of chemical compositions of the mafic phases indicates a rise in the oxidation state of the magma as it progressively became saturated in H20-volatiles and other metals, not partitioned into the earlier crystallised phases in the final stages of magma consolidation. These variations in chemical compositions also indicate that initially fOz was high and became progressively higher during fractional crystallisation of magmas; this subsequently led to the emanation of hydrothermal fluids responsible for the mineralisation in the adjacent metasediments.

Jan 1, 1994

By D J. Alchin

Most of South AfricaÆs high-grade iron ore resources are hosted within a fault-controlled structural basin in rocks of the Palaeoproterozoic Transvaal Supergroup in the Northern Cape Province of South Africa. Iron mineralisation occurs as individual orebodies in fault-bounded basins or as fold-controlled concordant lenses around an unconformity plane above the Kuruman Banded Iron Formation. The Sishen mine near Kathu and the beeshoek mine and Sishen South deposit near Postmasburg lie on the northern and southern border of a major domal structure known as the Maremane dome, respectively. The effects and structural constraints of at least three orogenic compressive episodes and several intermittent extensional episodes on the formation, erosion and preservation of iron mineralisation on the Maremane dome and surrounding environs were investigated. Ventersdorp impactogenal rift basin development at ~2.78 - 2.64 Ga, finalised with the deposition of the volcano-sedimentary Vryburg Formation during the thermal subsidence stage at ~2.64 - 2.6 Ga, and was followed by tectonic quiescence/stability and an extensive marine transgression across the entire Kaapvaal craton. The drowning event led to the formation of a carbonate platform with the deposition of the Schmidtsdrif and Campbellrand subgroups conformably above the Vryburg Formation at ~2.6 - 2.52 Ga. The initiation of distal (to the west of the Kaapvaal craton) off-craton oceanic rifting, causing submarine volcanism and associated hydrothermal activity, led to the deposition of initially manganiferous chert (Wolhaarkop Formation) followed by banded ironstone formations (Manganore Iron/Kuruman Formation) of the Asbestos Hill Subgroup at ~2.52 - 2.46 Ga. Initial passive margin rifting along the N-S oriented western edge of the Kaapvaal craton, initiated at the end of Ghaap Group time (during Koegas Subgroup deposition) at ~2.46 - 2.35 Ga, formed a prominent system of N-S striking, westerly dipping normal faults. Easterly directed crustal compression in post-Ghaap Group time in response to the Kalahari Orogeny (accretion of Rehoboth craton along western edge (Kalahari suture zone) of the Kaapvaal craton at ~2.35 - 2.24 Ma led to the formation of large-scale regional, N-trending F1-folds. Partial to complete inversion of the Koegas passive margin rift system (ie reverse dip-slip reactivation of the N-S striking normal fault system to high-angle reverse faults and dextral strike-slip reactivation of the Ventersdorp rift system developed in the Archaean basement), was followed by uplift, erosion and formation of a regional angular unconformity (Postmasburg unconformity). Uplift was accompanied by deposition of fluvio-glacial sediments of the Makganyene Formation (Lower Postmasburg Group) within an intracratonic peripheral foreland basin setting unconformable above Ghaap Group strata at ~2.35 - 2.24 Ga. Post-orogenic crustal relaxation and rifting caused extensional reactivation of the N-trending Palaeoproterozoic passive margin rift system and NE-trending Neoarchaean Ventersdorp impactogenal rift system, forming a fault-controlled depository for the volcano-sedimentary Upper Postmasburg Group at ~2.24 - 2.1 Ga. Deceleration in rifting was succeeded by thermal subsidence of the Upper Postmasburg Group rift, erosion, formation of a regional angular unconformity and deposition of clastic sediments of the Lower Olifantshoek Supergroup unconformable above Postmasburg Group strata at ~2.1 - 1.93 Ga. Renewed rifting led to the deposition of volcano-sedimentary units of the Upper Olifantshoek Supergroup within a rift system superimposed on the Postmasburg Group rift depository at ~1.93 - 1.83 Ga. Easterly directed crustal compression during the Kheis Orogeny at ~1.83 - 1.73 Ga led to renewed inversion of rift structures of the Postmasburg Group and Olifantshoek Supergroup depository, N-trending F2 folding and thin-skinned thrusting of older rock units eastwards over the cratonic cover, thereby utilising planes of weakness in the strata such as prominent unconformities and lithological contrast boundaries as principal dTcollements. NNW-directed crustal compression in response to Lomanian (Namaqua-Natal) Orogeny at ~1.15 - 1.0 G along the southern margin of the Kaapvaal craton, resulted in minor sinistral strike-slip reactivation of the N-S striking fault system, the formation of extensional NNW-SSE striking fracture/fault zones and the development of ENE-trending F3 folds forming a F2/F3 fold interference pattern. Post-Lomanian tectonic events (eg the Pan-African Orogeny at ~650 - 500 Ma, the Cape Orogeny at ~310 - 240 Ma, and the Gondwana breakup at 205 - 120 Ma), caused only comparatively minor extensional reactivation of the pre-existing fault systems. Iron mineralisation was ultimately preserved from erosion by Kheis Orogeny-related N-trending F2 synclines and Lomanian Orogeny-related ENE-trending F3 synclines, in particular areas of interference between F2 and F3 synclines representing comparatively deep semi-circular trough- like depressions, as well as in half grabens formed adjacent to reactivated westerly dipping N-S normal faults. Support for relating the iron and manganese mineralisation to structurally controlled hydrothermal fluid flow during the Kheis orogenic event has also been found, and ongoing research is aimed at confirming and refining the hydrothermal model for iron ore mineralisation in the Northern Cape.

Jan 1, 2007

By M Lak, R Amiri, A Haratian, M Asghari, S Haji

Dry magnet separators are used to upgrade and beneficiate a wide variety of minerals such as hematite and magnetite materials. In recent years advances in dry magnetic separators have improved their performance. Fine particle separation is one of the main areas which still remain weak. This paper will present a new design of fine particle drum separators which used for particle size less than 3 mm. A big problem in processing of iron ore is the grade and recovery of mineral values in the fines fraction. The new design high efficiency drum separator is developed to handle fine feeds. In this drum separators both of the drum shell and magnetic yoke rotate in opposite direction. the results showed that when the material feed size was = 1298 μm, drum shell speed was 42.5 rev/min, magnetic yoke speed was 100 rev/min and the maximum intensity of magnetic field was at = 30° the feed grade increased from 50.87 to 65.67 in concentrate box, increase to 60.45 in middle box and tail grade was 24.44. The total achieved recovery for both concentrate and middle box was 81.89 per cent.

Nov 8, 2021

By S Juras

The terms measured resources and proven reserves denote the highest level of estimation confidence in all of the major classification schemes. But what do they really bring to today’s project or mine with respect to production planning and expectations? Initial reserve declaration does not need measured resources, just indicated resources. Economic viability of a project is assessed on total reserves with nary a bonus for the amount of proven reserves. Production plans are based on grade and tonnage goals that may only coincidently correspond to proven reserves. So are the measured and proven categories still relevant? Historically, and almost exclusively in underground mines, companies only allowed mining in areas of proven reserves. Some companies still follow that philosophy. But many others will mine a mixture of probable and proven reserves without hesitation. Also what of the undeveloped project in a new district – what is to be made of their declared measured resources and proven reserves? Measured resources are commonly set either by some type of proximity to data scheme or a matter of ‘feel’ based on the qualified person’s experience. The parameters for reserve conversion focus on the project as a whole and then a portion becomes classified as proven reserves almost solely based on whether the resource category is measured. So should the mining industry continue to use these categories of resource and reserve classification? This paper will present arguments about making these categories once again more relevant. A more disciplined usage of these categories may re-introduce their relevancy in public disclosures of resources and reserves. As well a more consistent usage in operations may lead to increased confidence in managing production targets and costs.

Aug 22, 2011

By K Akiro

Volcanogenic massive basemetal sulphide and gold mineralisation of predominantly low sulphidation style has been located within Lower Tertiary basaltic and felsic volcanic and sedimentary sequences at Ufuo, in the Left April River area, northwest Papua New Guinea. The four discrete massive sulphide bodies, which have been so far identified, occur within a 3 +5 km area situated within a north west trending structural corridor. The sulphide bodies are all localised on the margins of the corridor where the bounding major through going faults are transected by regional faults. Mineralisation is characterised by massive pyrite-bornite-sphalerite-barite-quartz-anhydrite deposition with later galena-tennantite-chalcopyrite. Minor phases include enargite, goldfieldite and bismuth sulfosalts. Jasperoidal silica lenses and bioturbated sediments are closely associated with the massive sulphides. Basemetal sulphide mineralisation is also closely associated with phyllic-style quartz-sericite- altered host rocks underlying the massive sulphide lenses. This mineralised phyllic alteration is localised to fractures, veins and breccias that cross-cut propylitic style alteration characterised by quartz, epidote, chlorite, adularia and zeolite. The mineralised system possesses several hydrothermal features consistent with a copper-rich submarine exhalative volcanic hosted massive sulphide (VHMS) system, ie discrete massive sulphide bodies with abundant barite, associated jasperoidal silica and bioturbated sediments. However, exploratory drilling of the alteration zone underlying each of the massive sulphide bodies has not identified a well-defined zoned alteration pipe that is characteristic of such systems. The alteration is also similar to that of a porphyry-related low sulphidation system in which phyllic alteration has overprinted a regional propylitic style assemblage. The presence of sporadic enargite (and ?tennantite/tetrahedrite) suggest there were intermittent pulses of acid fluids in the system probably derived from exsolved magmatic SO2 which flowed directly to the surface along reactivated faults. The occurrence of tellurium and bismuth minerals is also consistent with a magmatic contribution to the metalliferous hydrothermal fluids. It is proposed that the VHMS orebodies are the products of submarine exhalative deposition generated by a crystallising magma emplaced within crust of on-going tectonism. Ufuo mineralisation is similar to many VHMS deposits elsewhere in that it is unclear whether the metals are derived from the magma directly, or via seawater leaching of the wallrock. Additional studies such as oxygen isotope analysis may assist in resolving this issue. If the metals are shown to be of direct magmatic origin then there may be good prospects for discovering economic-grade porphyry-related mineralisation at depth below the massive sulphide deposits.

Jan 1, 1999