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By Sorentino C

Mineral valuation may appear to be a special field of financial valuation when in fact it is a subset of general investment decision theory. The only significant difference in mineral valuation is that in the case of valuing an on-going mineral asset, ie a mine, often there is no initial capital outlay involved. One is required to determine what the mineral asset as it stands is worth. But this is the same problem as determining the maximum one could pay today and not incur a loss over the life of the asset. In other words one needs to determine the Net Present Value (NPV) of the asset. The two most widely used discounted cash flow methods, NPV and Internal Rate of Return (IRR) came of age with the rapid adoption of the personal computer and spreadsheet programs. The two methods are directly related as the IRR is a special case of NPV. NPV measures the absolute increase in real wealth that can be expected from a certain investment, which makes it particularly suitable for mineral asset valuation, but ignores the efficiency of the investment. In contrast, IRR gives the expected efficiency of the investment but ignores the increase in wealth aspect. IRR has two serious theoretical weaknesses; multiple IRR's and a very rigid assumption about the rate of return of reinvested proceeds, plus if no initial equity expenditure is involved there is no IRR. The choice of the ""hurdle"" rate can also be a problem and in certain circumstances one can obtain different rankings of mutually exclusive projects using IRR and NPV. Although NPV and IRR supposedly measure financial risk, in fact they only address a very narrow area of risk, namely the time value of money given the real discount rate. They side step the issue of what the real discount rate should be and varying degrees of risk. The classical way to establish the real discount rate is to use the weighted average cost of capital.

Jan 1, 1994

By Barrett D

The paper discusses the justification for the Open Pit Mining Operation at Central Norseman Gold Corporation Limited's North Royal facility.Open pit mining history is outlined together with production statistics and associated costs. Underground mining practice is discussed together with an outline of the problems with mining in oxidised ground.

Jan 1, 1984

By A Baensch, E Grimsley

Eloise Copper Mine is situated 56 km east-southeast of Cloncurry, Queensland, Australia. The deposit was discovered by BHP Minerals in 1986 during follow up diamond drilling of EM anomalies associated with major aeromagnetic anomalies. The deposit is overlain by 60 m of Mesozoic cover. Amalg Resources NL commenced mining during 1995 by means of decline access and long hole-stoping. The total mineral resource comprised 1.77 million tonnes at 4.10 per cent Cu as at the end of June 2003. Proved and probable reserves are 930 000 tonnes at 3.97 per cent Cu. Mineralisation is hosted within a strongly foliated Proterozoic meta-sedimentary sequence comprising arenites and schists. The metasediment sequence also contains a coarse-grained amphibolite body possibly representing an early intrusion of gabbroic composition. Economic mineralisation characteristically occurs as a number of steeply plunging lenticular bodies with strike lengths of between 100 and 200 m and maximum widths approaching 25 m. The principal orebody, the Levuka (B) Lode, displays a down plunge extension exceeding 1000 m and is open at depth. Ore mineralogy is almost exclusively chalcopyrite with the principal gangue phases consisting of pyrrhotite + quartz + carbonate. A biotite + hornblende + magnetite assemblage represents locally intense mafic alteration of the metasedimentary host sequence. Magnetite is present in variable amounts and may be locally significant in some of the smaller satellite orebodies. Within the orebodies the sulfides display a range of textures from massive through to vein like. Sulfides commonly display brecciated textures at a range of scales. Post-mineralisation faulting has severely dislocated the orebodies, resulting in a complex arrangement of fault bounded ore blocks. These faults display considerable variability in regard to strike, dip and amount and direction of throw. A recent review of the fault system by means of large-scale structure underground mapping, re-interpretation of drill core and 3D modelling has led to a significant improvement in the understanding of these structures. A significant upgrade of the geological database has accompanied the structural review. The overall improved understanding has aided the mine design processes with particular regard to decline and access development and pillar location. This has also impacted on the design of drilling programs and exploration for additional satellite ore zones.

Jan 1, 2003

By Jaracz K

At the operation of mine winders in deep shafts considerable oscillations of winding ropes may occur due to elasticity of both wind-ing and balance ropes. The amplitudes of longitudinal oscillations may reach + lm at relatively low frequencies, ranging from 0.5 to 2 c/s. These oscillations may be dangereus for the rope and produce several hazards to the winding installation as a whole. They may cause conside-rable instant accelerations on the pulley and dangerous tensions in ro-pe wires. The excessive acceleration may cause the uncontrolled rope slip on the pulley. Several methods of limitation of these accelera-tions were developed, some of them have been already in control system: of electric drive of the winder. The most simple ones are: a/ limita-tion of the rate of change of acceleration and retardation of the win-der /so called "jerk"/ and b/ the proper selection of regulators of the winder control system to get the optimal control. The trouble in solv-ing the problem of rope oscillations is that the dynamic system of the winder is a nonstationaryone owing to changing distance of conveyance from the pulley. Besides, the system is described by the equations with distributed parameters. The brief discussion of the theory and its practical aspects are enclosed as well.

Jan 1, 1985

By Beech-Jones J. M

At Port Latta in Tasmania, Savage River Mines operates vertical shaft furnaces for the firing of pelletised magnetite concentrates. At times the temperature profile of the furnace has changed markedly, necessitating the- burning of greater quantities of fuel to maintain good pellet quality. A study of the oxidati=of magnetite concentrates was under- taken because this exothermic process supplies much of the heat required to indurate the pellets. Using the thermal analyses methods, different magnetite concentrates from Australian and overseas were heated in air under identical conditions, to compare rates of oxygen uptake and of heat release. In addition, a compari- son was made of the oxidation behaviour of different particle size fractions of a selected concentrate. Particle size analyses, x-ray diffraction and dilatometer tests were used to aid inter pretation of the thermal analysis traces. The investigation emphasized the importance of particle size and ferrous iron content in determining' oxidation rates from the commencement of heating.

Jan 1, 1974

By P D. Franzmann, D J. Readett, J Peterse

A better connection between laboratory- and pilot-scale test results, and heap bioleaching performance can be achieved by generating reliable information on the fundamental microbial, chemical and physical processes that occur in heaps and incorporating this information into a comprehensive and robust model. More efficient heap bioleaching, particularly of chalcopyrite, has the potential to add value to the mining industry as well as deliver attractive environmental and social benefits to the communities within which those companies operate.The results of fundamental chemical and microbiological studies of the leaching mechanism, the temperature dependence of chalcopyrite bioleaching, and the optimisation of leaching conditions are described with examples from full-scale heaps. The development and application of a number of novel techniques and tools has assisted our understanding of heap subprocesses mineralogy, hydrology, chemistry and microbiology. The heap bioleaching model HeapSim, which embodies a large number of effects not previously accounted for in other models, continues to be refined and has been applied successfully to the study of several heap bioleach systems.

Jan 1, 2004

By Blake W

Based on preliminary computer model simulations and stability analyses, both longi- tudinal and transverse, large dimension, cut- and-fill rooms were designed for the parallel dipping ore layers at Kamoto mine. Full scale testing of the designed rooms showed that the rooms are stable and that the rock behavior is predictable. Ordinary waste rock was selected as the filling material because the fill was found to carry little load.

Jan 1, 1973

The complexities of mining in current economic conditions, where ore extraction schedules are varied on a weekly basis so as to ensure constant supply to the process plant, can result in a number of scenarios that pose geotechnical challenges. This paper presents a case study where alterations in the mining schedule of a particular mine resulted in the necessity to mine under a large uncompacted embankment, ie integrated tailings and mine waste land form. To effectively ensure that ore recovery was maximised, a well-designed slope monitoring system to evaluate design performance and to provide timely warning of impending failures was imperative. In order for an appropriate slope monitoring strategy to be developed, a thorough understanding of the potential slope failure mechanisms, capabilities and limitations of available monitoring techniques is required. Communication of the monitoring results and response strategy to alarms generated by monitoring systems must also be carefully considered to maximise effectiveness. The results of preliminary stability modelling can be used to guide the design of a monitoring system, which in turn can then generate data which can be used to iteratively refine the geotechnical model. This paper illustrates the development and implementation of a slope monitoring system and associated communication system, using the Daydream embankment at Fortescue Metals Group's (FMG's) Cloudbreak Operations as a case study.

May 1, 2010

Depletion of shallow ore reserves is forcing the South African gold mining industry to exploit reefs at ever-increasing depths. By 2010 around 30 per cent of South African gold production probably will come from depths greater than 3 km (Johnson and Schweitzer, 1996). At such depths, virgin stresses will rise significantly, producing complex rock engineering problems (Malan and Basson, 1998). Concern over structural instability at depth has led planners to seek a technology capable of ædetection of geological structures with a displacement of 2 m or greater (or as appropriate to the mining technique) 200 m ahead of mining at an acceptable costÆ. Borehole radar probably is such a technology. Cover holes are drilled routinely ahead of development. The evaluation of its candidacy for a tactical role in ultra-deep gold mining dependsùamong other thingsùupon establishing the electromagnetic characteristics of the environment hosting significant gold reefs. The Ventersdorp Contact Reef (VCR) is one such reef. Recent borehole radar field trials, presented here, suggest that the VCRÆs overburden is a remarkably translucent, clutter-free dielectric with a Q of ~35 and that the VCR itself is the dominant radar reflector.

Jan 1, 2002

By Wright J. K

A description is presented of the results of reduction experiments using a laboratory reduction apparatus in which simulation of the gas and temperature profiles which occur in direct reduction shaft furnaces is achieved using microcomputer control. The apparatus allows continously changing reduction conditions to be impressed on lump or pellet samples to simulate the environment that is experienced by iron ore burdens during their transit down the shaft of a direct reduction furnace. Three pellet samples and three lump ore samples were reduced in the apparatus. Comparative reduction curves and strengths after reduction for the materials were obtained over a range of reduction temp- eratures using Midrex-type gas compositions. The resulting reduction and strength curves show considerable variation in behaviour and reflect the physical and chemical variations in the individual ore and pellet types. A comparison is made of the reduction rates and modes of reduction of the samples reduced under "conventional" test conditions using a single unchanging gas composition and the simulated shaft furnace reduction conditions. It was observed that the course of reduction is very different in the two procedures and the major influence of temperature on the strength of the reduced product is noted.

Jan 1, 1987

By M Miller

Operators of nickel laterite pressure acid leach and gold pressure oxidation technology frequently employ a series of steam condensing heaters to preheat the leach feed slurry. The heaters are an economic pinch point û although the thermal performance of the heaters is critical to overall process viability and operating cost minimisation, they are also a significant capital item and must be sized accordingly. Despite this, discussions of the factors underlying heater design are conspicuously absent from technical literature, and existing operations feature a conflicting range of heater sizes and configurations. This variety would suggest that at least some of the chosen heater designs are oversized. As part of its detailed design stage, the Ravensthorpe Nickel Project (RNP) constructed and tested a pilot plant heater to develop an understanding of the heating process and to ensure that the RNP heaters were appropriately sized. This testwork used RNP slurry at design density and viscosity on a 450 mm diameter, 6500 mm high column. The pilot plant testwork demonstrated the intrinsic efficiency of the direct steam condensation heating process, which was essentially independent of slurry density and viscosity. Presence of non-condensable gases in the steam phase decreased the heat transferred in certain circumstances, but heater performance remained consistent with thermodynamic limitations. Stagewise heat transfer within the column was rapid, and suggested either a very high slurry surface area or excellent heat transfer within the slurry phase. While the testwork did not set out to distinguish between these effects, physical evidence pointed to droplet formation in the inter-tray shower zone, giving a high heat transfer area. For scale-up purposes, the key facts were that the heat transfer rate was not limited by using high viscosity slurries and heaters could be designed using the principles applied to the smaller of those in existing operations. This paper discusses existing slurry heater designs, the current understanding from open literature, the pilot plant testwork, results and analysis, and scale-up to commercial sized equipment.

Jan 1, 2005

By Kurihara K, Tanimoto C

Construction and mining sites are often subject to unexpected flooding and extensive delays may occur in locating and installing emergency pumps. This particularly applies to sites located in remote areas. A simple and effective pump, called an air-lift pump, can be built from the equipment available at the working site. The basic req- uirements are a compressed air supply, air hose and conventional water pipes. The air-lift pump is comparatively in- efficient but approximately 35 per cent of the available compressed air power at the site can be applied to pumping. Suprisingly high liquid discharge rates may be obtained in suitable applications. The theoretical and practical consider- ations of the air-lift pump are evaluated and a suggested procedure for the emergency design and construction is outlined. INTRODUCTION. Sudden inundations of water into mine and development excavations require the immediate removal of the water if extensive and often irrepairable damage is to be avoided. Pumps installed in shafts or tunnels may become un- servicable due to being totally submerged during the flooding. The emphasis is on rapid

Jan 1, 1976

Not so many years ago the reason for an inadequate result from a geophysical survey was insufficient data or poor quality data. In many instances such as gravity, magnetic and radiometric surveys, both these constraints are vanishing or have vanished. High quality sensors, improved data storage, accurate differential GPS and top quality interpretive software now enable the interpreter to understand not just the cause of the anomaly but the host environment in which it resides. Examples of potential field data and also data provided by the more complex electromagnetic systems, from Australia Ghana, West Africa, are used as illustrations.

Jan 1, 1997

In the general planning of this area, provision was made for the distribution over the whole area as required of the following services:(a) Power and lighting from the substation distribution boards 'located in the winder house.(b) Miscellaneous electrical indicating, control and signalling systems.(c) Telephone lines from the main internal automatic exchange located in the changehouse, the town exchange to the automatic exchange and also direct lines from the town exchange to selected offices.(d) Compressed air from the incoming 16-in. air main. (e) Water, both unfiltered and filtered; and the disposal of the following effluents:(f) Sewage from the area to the town sewage system.(g) Changehouse shower water to the regeneration area.(h) Storm water to the general mine surface drainage system leading out to the naturally drained area north of the No. 8 Shaft.

Jan 1, 1957

By Wall J, Platell R, Knight P

The Argyle diamond mine is located in the East Kimberley area of Western Australia, some 100 km south of the town of Kununurra. The diamondiferous Argyle olivine-lamproite diatreme was discovered in August 1979. Production began in December 1985 at a planned throughput of 3 Mtpa to recover 25 million carats of diamonds. Presently, Argyle is the world's largest producer of natural diamonds and produced over 40 million carats in 1993 from seven million tonnes of lamproite ore treated. Two phases of evaluation have been carried out. The first in 1981-82 was designed to prove around 60 million tonnes of ore to justify the establishment of a mine with a minimum life of 20 years. The second phase, in 1989-90 involved drilling the orebody to greater depths to provide data on which to plan the final pit design. The final pit contained 120 million tonnes of ore at 5.3 carats per tonne (ct/t) grade. Mining of the planned pit will extend the mine life to around the year 2004, following which it is possible that a further cut-back could be mined. There is also the potential for future underground mining. A substantial amount of geotechnical work has been undertaken due to the fact that the pit will be nearly 500 m deep and is located in a mobile zone causing abnormally high residual stresses to occur in the pit walls. The occurrence of low strength rocks at depth in the pit walls further complicated the situation. Hydrogeological investigations were done to determine pit dewatering requirements and to assess the effect of dewatering on pit wall stability.

Jan 1, 1994

By D A. Kepert, D Clark

During early 2004, Fortescue Metals Group (FMG) began an aggressive exploration and drilling program in the Chichester Range, targeting iron enrichment developed in the Nammuldi Member at the base of the Marra Mamba Iron Formation. The timely recognition by FMG of distinct zones of (hypogene) microplaty hematite (mplH) enrichment overprinted by extensive supergene mineralisation led to an early reappraisal of the geological history of the area and characterisation of the possible structural and stratigraphic controls on mineralisation. Regionally, the Chichester Range dips gently at less than 5¦ to the south, however, detailed mapping shows that this regional limb is overprinted by low amplitude, long wavelength, north/south to northeast/southwest trending folds. The locations of major structures in the Marra Mamba Iron Formation, combined with spectral analysis of known mineralisation, allowed extrapolation and prioritisation of exploration target areas. The delineation under cover and understanding of these structures was enhanced by detailed airborne magnetic data. Recognition that supergene mineralisation was associated with a palaeotopography that continued significantly under cover to the south under sediments of the Fortescue River valley led to the discovery of extensive supergene mineralisation together with additional mplH mineralisation. A model for the landscape evolution and preservation of enriched Nammuldi Member was generated in order to help communicate both the complexities involved with targeting drill holes beneath cover and the potential limits to the lateral extents of mineralisation.

Jan 1, 2005

By M Surtees

The Limpopo region in southern Africa is considered to be a favourable target for the discovery of base and precious metal mineral deposits. The integration of gravity, geomagnetic, LANDSAT data and geotectonic history is used to formulate an ore deposit model which can be used in the implementation of mineral exploration programmes. Field work was carried out to test and refine the model.

Jan 1, 1993

By Lauha E. A

The Goldstrike Mine is in Eureka County, Nevada, U.S.A., approximately 23 miles northwest of the town of Carlin. The mine is at the north end of the Tuscarora Spur of the Tuscarora Mountains at elevations of 5,300 feet to 5,950 feet. It is part of the Bluestar/Goldstrike subdistrict of the Carlin Trend, a northwest alignment of sediment hosted, disseminated gold deposits. The Carlin Trend includes over 15 major gold deposits with production, reserves and geological resources of approximately 65 million ounces of gold (Figure 1). In the Bluestar/Goldstrike subdistrict, there are seven major deposits; Betze, Lower Post, Post, Genesis, Bluestar, Purple Vein and Deep Star, plus numerous smaller deposits (Figure 2). Production, reserves and resources for the subdistrict are approximately 40 million ounces. Betze and Purple Vein are located on property controlled by Bamck Goldstrike Mines and Bluestar and Genesis on Newmont Gold property. Post, Lower Post, and Deep Star occur both on Barrick and Newmont Property.

Jan 1, 1991

Copper was first produced in Australia in 1844, at the Kapunda Mine in South Australia, and, by 18i>0, production exceeded 2,000 tons of copper a year. Output increased ,steadily, reaching a peak of 14,00Qo tons a year in 1867 and 1868, when the Burra Burra and Kapunda Mines in South Australia and the Peak Downs Moine at Clermont, Queensland, were at the height of their production. At this period, Australian copper formed a considerable percentage of the world's supply, its output equalling, for a short time, that of the United States. Production declined to between 3,000 and 4,000 tons a year after the closing of' these three mines between 18717 and 1879, and, at this stage, the Australian output came chiefly from the Wallatoo and Moonta mines in South Australia. About 19000, it began to rise again, with the extension of the railway to the copper fields of Chillagoe and Cloncurry, and, between 1905 and 1912, was at its greatest, with a maximum of 47,774 tons of copper in 1912. During this period, Australia contributed 4,7 per cent. of the world's annual production, and ranked among the six major copper-producing countries of the world (Table 1).

Jan 1, 1943

By R Lurf, C Weber

In the frame of this paper a holistic dynamic process model approach is presented in order to introduce operational and technical excellence in drilling and blasting. Both on a macro and micro level the single process parts of drilling and blasting are outlined and their interaction is explained. The use of this approach for closing the gap between process planning and process implementation is explained and an example of the value generated is given.

Jan 1, 2007