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This paper is directed at the problems flowing from Australia's capital gains tax (CGT) on the disposal of exploration and mining tenements both in Australia and overseas. It will seek to identify the issues and give some idea of the dollar consequences of decisions lacking forethought. The paper should not only be seen in the context of Australian tenements. CGT applies to the disposal of any assets by an Australian resident anywhere in the world. Offshore incorporated companies are not necessarily free from CGT risk where it can be shown that control management and control of the relevant company is in Australia. Also the disposal by non residents of Australian tenements are potentially caught by CGT. Some will ask what has taxation got to do with a valuer who merely determines the value of assets. These days no determination can be blind to the consequences. Whether the consequences can encourage a movement in value is another thing dependent upon the circumstances; but? A role of an experienced taxation consultant is to point out parameters within which associated professionals can work. The parameters will vary from case to case, but these when clearly indicated may be of help to persons such as valuers. When one comes down to it real estate salesmen are never wrong. They have a feel for the market and almost through self fulfilling prophesies achieve sales at their guestimates. Whether they could have achieved higher considerations become virtually academic in the process. Of course I am not suggesting that tenement valuers can be compared to real estate salesmen, or am I? What is the value of a tenement? Is it the DCF/NPV type of generated value based on a large number of variable factors (ie what one may call the fundamental value)? Or is it what another may pay to purchase that tenement if it were on the market at an instant point in time? How big is the market, the quality of the bidders, the size of their purses, the needs of the buyer for comfortable fit, the premiums for foreigners, the standard of the marketing, the industry intelligence level of the bidders, the obligation to farm/sell down? The list goes on endlessly. One question must be.asked-"Is a range of values acceptable for tax purposes". ie Would any tax consultant ever provide a valuation to the Australian Taxation Office that indicates three or more possible values ie

Jan 1, 1987

By J Rutter, S Dunham

Technological advances in sensor and material handling technology has enabled a step change in mine operations performance. Sensors capable of monitoring the grade of broken rock mass can be mounted on shovels, truck loading units or conveyors allowing highly precise ore/waste decisions to be made on small parcels of rock, increasing selectivity. This increased selectivity has the potential to remove sub-economic material from the product stream prior to incurring ore treatment costs. Bulk ore sorting is capable of intervening at <10t “pods” on Run Of Mine conveyors, or alternatively at per bucket loading (5-100t) or truck scale (30-350t) parcels of ore. This Grade Engineering technique being developed by CRCORE (Rutter, 2017) can improve mill feed grade, remove deleterious materials and ensure that the high capital intensity ore treatment facility is presented with the best ore feed strategy. While this technology can improve mine economics, estimating the performance of a bulk ore sorting system is challenging. Traditional resource estimation practices such as Ordinary Kriging and Inverse distance weighting (IDW) are based on weighted averages, a process that smooths the grade profile, reducing modelled variance and dispersion. Its purpose is to generate a globally unbiased result but is less suited to generating a model of adequate granularity to enable confidence in local grade heterogeneity. This is an essential component for bulk ore sorting success. Estimating ore sorting performance requires knowledge of the grade-tonnage curve at the scale of the sensor diversion unit (SDU). Evaluation based on an estimator that smooths the SDU distribution will not correctly predict ore/waste separation or economic performance. Alternatives to traditional linear geostatistics have been tested on a variety of mineralisation styles. Additionally, a number of heterogeneity metrics have been developed to assist with evaluation and assessment. The difference between estimation for grade (metal) and modelling for traditional mining block models, versus methods used for predicting heterogeneity and variability are explored.

Nov 10, 2020

By C V. Deutsch

"Geometallurgical variables often cause problems to conventional geostatistical workflows. There are many variables; some are compositional and some are non-additive. They often show: complex multivariate relationships undersampling relative to conventional grade variables unequal sampling; that is, all variables are not available at all data locations.A variety of approaches have been developed over the years, but geostatisticians remain mostly focused on modelling rock types and a few grade variables with an abundance of data. The problems are reviewed and a chained workflow is presented where appropriate techniques are employed in sequence to permit reliable spatial prediction of geometallurgical variables. The spatial models may be used to assess the value of additional data, for prediction of process performance, for improved mine planning and other optimisation tasks. The chained workflow will include data transformations such as ratios and normal scores that make the variables amenable to geostatistical modelling. Data imputation techniques to account for missing values are considered with special consideration to spatial correlation with the available data. Decorrelation techniques such as the principal components, min/max autocorrelation factors and projection pursuit multivariate transformation are employed to manage massively multivariate modelling. Full distribution modelling must be considered to avoid biases in the prediction of non-additive variables. The post-processing of geometallurgical models must be streamlined for robustness and efficiency. The precise workflow varies according to the specific purpose of the study. Guidelines and thoughts on best practice are presented.CITATION:Deutsch, C V, 2013. Geostatistical modelling of geometallurgical variables - problems and solutions, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013, pp 7-16 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 29, 2013

By A Dix

Fire suppression systems are but one of the many technologies currently available to manage operational tunnel risks. However, the actual reasons for their use are often shrouded in mischievous discussions of the marketing variety.The international tunnelling community still stands divided on the merits (or otherwise) of fire suppression systems. For some the debate focuses on their cost compared to the theoretical benefits they bring to human safety.Long standing concerns about their potential adverse effects in an emergency are often at odds with the experience from tunnels which use them. High installation and operational costs are cited as reasons not to use them, yet toll road operators and insurers increasingly use them as a risk mitigation strategy for toll revenue protection.Fact or fiction, myth or reality, should such systems be seriously entertained or are they just another expensive gadget in the escalating array of expensive toys for modern tunnels? Ultimately this presentation argues that they have their place as a risk mitigation measure to achieve a range of objectives. The exact circumstances for their use ultimately fashioning their design and operational characteristics. This is an abstract only.&nbsp;No&nbsp;paper was prepared for this abstract.

Mar 8, 2011

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

Jan 1, 1995

Fundamentally, the development of a minerals processing project is a very risky enterprise. Most mining companies do not have sufficient financial resources to undertake significant projects and hence have to undertake external financing. Indeed, most resource companies understand the high risks associated in developing their projects and therefore, wish others to share in the risks. Most merchant banks, on the other hand, are searching to find suitable resource development projects in which they can share their risk and also share a large proportion of the ærewardÆ. To resolve this issue a Feasibility Study is completed by the project developer and assessed by the merchant bank often with the assistance of an æIndependent EngineerÆ (IE) who assesses the validity of the development proposal. Generally speaking, unless the Feasibility Study has been prepared improperly, the technical aspects of most mineral projects are reasonable. Some of the more recent so-called æhigh techÆ projects are exceptions but these still do not present major technical mistakes or misconceptions. p> In most cases, the major criticism the IE presents after discussing the validity of the ore reserves focuses on production plans, capital costs and operating costs. Of these three parameters the production plan is one in which owners tend to be far too optimistic and financiers, until recent years, have not taken a position. The most critical part of the development plan is the ability of the project, as designed, to attain the required design performance and, even more critically, the ability of the owner to reach and sustain this level of production. In short, how long should the æramp-upÆ be planned to take? Financiers have become more circumspect and are now taking a more conservative view of new project performance by factoring into their project financial analysis longer periods of ramp-up, higher capital costs and higher operating costs. However, these financiers can also be part of the æproblemÆ if they become overly conservative. This paper attempts, by way of case studies available from the public arena, to identify the pitfalls the project owners can meet and possible means of avoiding the disastrous financial conundrum whereby the second or third æownerÆ is the company that reaps the rewards initially extrapolated. The paper briefly discusses this problem by referring to projects known to the author and including previous studies that looked at this very problem. It is emphasised that many of the opinions stated within the paper are strictly those of the author and could be subject of much debate.

Jan 1, 2003

By M Stewart, J Petrie, L Basson

This paper explores tools which have the potential to promote and assess the formation of partnerships between the minerals and energy industries to enhance the economic, environmentally responsible and socially acceptable use of energy. There is a need to look at energy provision and energy services in an integrated manner with key drivers for economic development û both locally and regionally. The minerals sector will remain highly significant to regional economic development in a number of globally significant regions in the medium term. Furthermore, mining, minerals and metalsÆ projects are both consumers and, in some cases (potential), generators of large amounts of energy (electricity included). It is therefore appropriate to focus on the promotion of partnerships between energy providers and the minerals sector which seek to improve resource efficiency within the combined minerals/energy envelope, guided by the tenets of Sustainability.Whilst there has been considerable development of systems analysis tools in recent years to address this sort of æcomplex systemsÆ analysis (Life Cycle Management, Cleaner Production and Industrial Ecology arguments for example), there is no effective roadmap available to decision makers to guide the selection and exploitation of these tools in different contexts. Our previous work developed a Decision Support Framework (DSF) which provides some guidance here, but only within the context of coal-based power generation. The DSF employs the tools of Multi Criteria Decision Analysis (MCDA), within which trade-offs between competing objectives are explored in such a way that alternatives can be compared without necessarily reducing all the different cost and benefits to a common basis (eg a monetary basis). Even if the existing DSF is extended to include all aspects of supply-side management, it is still lacking the necessary tools to analyse energy providers as dynamic network partners within minerals projects (or indeed any resource or manufacturing sector). New models are required for this, which firstly, seek to characterise such network structures, and secondly, enable the application of the necessary analytic tools to exploit these partnerships and networks for optimal performance.This paper explores the development of such an integrated set of network analysis tools, and their relation to the DSF. Due consideration is given to the choice of the attributes needed to characterise partnership linkages and network integrity (eg security of supply of electricity), and the efficiency of material transformations within any node of the network (as a function of energy consumption), and the impact that this has on the viability of other linkages (eg due to reduced availability of raw materials). We discuss how these perspectives help shape the form of objectives to be considered by MCDA.

Jan 1, 2004

By K Gottliebsen

Many hydrometallurgical and chemical processes produce large amounts of acid waste. This is illustrated by the copper S/X-E/W process used at the Mount Gordon mine in North Queensland, which produces a tank house bleed in the form of a concentrated sulphuric acid stream. The bleed stream is necessary to remove impurities such as iron that decrease the efficiency of the electrowinning process. However, this bleed stream comes at a high financial cost due to large quantities of make up sulphuric acid required as well as the need to neutralise the bleed stream prior to disposal. The present work describes the approach taken to develop a solvent extraction process for the selective recovery of sulphuric acid from copper tank house bleed liquor. The proposed extraction system was investigated using a branched long chain aliphatic tertiary amine tris(2-ethylhexyl)amine (TEHA) as the extractant, Shellsol 2046 as the diluent and octanol as a modifier. Computer simulations were used to determine the optimum operating conditions for the recovery process. It was found that the process was able to selectively recover up to 90 per cent of the sulphuric acid from the copper electrolyte. This is recovered as a pure aqueous acid stream at a concentration of up to 130 g/L that can be recycled back into the tank house circuit or other areas of the process. The raffinate acid concentration was reduced from 180 g/L to as low as 18 g/L, significantly reducing waste disposal and the environmental impact of the copper process. The equilibrium data and simulation results were also compared with an alternative extractant, CYANEXR 923. Finally the efficiency of the TEHA extraction system was investigated on a pilot-scale in a pulsed perforated plate column. This information was used in order to scale the process for an industrial application. The same methodology applied in this case study could be used to provide innovative and cost-effective solutions to waste streams encountered in other hydrometallurgical or chemical processes.

Jan 1, 2000

By T Higuchi, T Yamamoto, K Takehara

Iron ore fines are used as raw materials for sintered ore for blast furnaces in the world. Since the production and quality of sintered ore have a great influence on the stable operation of a blast furnace, many technologies were developed for controlling the heat profile in the sintering machine, which largely affect the sintered ore properties. In particular, the influence of oxygen in the suction gas, which plays an important role in combustion, was investigated over the years. It is known that increasing the oxygen ratio by about 30 per cent not only significantly improves the combustion rate, but it also increases the strength and yield of sintered ore. However, the details of the mechanism for improving these qualities are unknown. In this study, we investigated the influence of oxygen enrichment at higher ratios (O2: 21–40 per cent) and tried to understand the sintering behaviour enhanced by oxygen. The effect of oxygen enrichment on sintered ore quality and the heat profile were evaluated by sintering tests using a quartz glass pot. From the results, sintered ore yield had a maximum value for O2 = 30 per cent, but strength was increased for O2 = 40 per cent. From heat pattern analysis, it is clear that the high temperature holding time also reached a maximum at O2 = 30 per cent. Furthermore, we found that with increased oxygen ratio, the combustion speed (flame front speed) was increased, but the area of combustion was enlarged. It is considered that there could be a maximum oxygen ratio value for the yield from the balance of these positive and negative effects on high temperature holding time. To clarify the reason for strength improvement, thermodynamic calculations were performed and it was found that melting behaviour could be improved by changing the oxygen ratio.

Sep 18, 2023

The degree of ionicity-covalency of complex compounds is discussed here as a prospective criterion for selection and purposeful synthesis of sulfhydril and oxhydril collectors. Theoretical predictions of flotation behaviour were confirmed by flotation of a number of ores.

Jan 1, 2005

By Balint F

The Izok massive sulphide deposits are located in the Northwest Territories of the remote western Canadian Arctic. Together they represent one of the highest grade undeveloped zinc-copper resources in North America. Metall Mining Corporation is presently engaged in a feasibility study on developing the Izok property as well as actively exploring for additional reserves. The Izok deposits are Archean-aged, volcanogenic massive sulphide (VMS) bodies hosted within and near the top of a thick sequence of predominantly felsic pyroclastic rocks. The hangingwall package includes additional felsic volcanoclastics, dacitic and basaltic flows, thin sulphide-rich iron formations, and turbiditic sediments. The felsic volcanics are intruded by syn- to late-hydrothermal dacitic dykes and sills and post-hydrothermal gabbroic dykes and sills. Both intrusives are interpreted to be volcanic feeders to overlying flows. All lithologies are cut by much later irregular granitic pegmatite dykes and regionally metamorphosed to pyroxene homfels grade. The deposits occur within a large kilometre-scale soda-depleted alteration zone. The immediate footwall and hangingwall rocks to the deposits are characterised by zones of muscovite-biotite (with or without sillimanite), lesser chlorite-biotite-cordierite (with or without anthophyllite), and locally intense silicificified and albitised zones. All lithologies have been affected by a later calcic metasomatic alteration. As currently defined, the Izok Zn-Cu-Pb-Ag deposits comprise a cluster of four complexly-zoned composite lenses: the Northwest, North, Central, and newly discovered Inukshuk deposits. The first three deposits are amenable to open pit mining while development of the Inukshuk deposit will require underground methods. The combined mineral inventory of the Northwest, North, Central and Inukshuk deposits at present totals 15.6 million tonnes with a grade of 2.4 per cent Cu, 13.8 per cent Zn, 1.4 per cent Pb, and 74.6 g/t Ag.

Jan 1, 1993

By P Trotta

The paper provides a structured methodology to investigate metallurgical problems within the operating concentrators. The strategy uses classical metallurgical data analysis as well as pulp, solution and surface analysis to determine the reasons for particular behaviours. The approach applies equally to all mineral-processing operations. To demonstrate its effectiveness a case study, based on work conducted at Pasminco Rosebery Mine, is described. In this work, the classical metallurgical analysis indicated that a significant amount of sphalerite reporting to the lead concentrate occurred as liberated particles. A combination of pulp, solution and surface analysis supported the hypothesis that the liberated sphalerite was recovered by inadvertent activation by lead ions. Laboratory studies have indicated that the use of sodium carbonate, by itself and in combination with zinc sulphate and sodium cyanide, when added to the lead regrinding mill can depress sphalerite flotation, resulting in an improvement in the lead grade/recovery curve. When this approach was tested in the plant other more dominant issues masked any positive effect the addition of sodium carbonate may have had. The plant trial highlighted the real need for additional regrinding capacity.

Jan 1, 2002

Mt Muro was a gold and silver mine in Central Kalimantan on the Island of Borneo, Indonesia. Aurora Gold through its Indonesian subsidiary Indo Muro Kencana owned the project. Processing commenced in November 1994, and ceased in June 2002. Mining, including prestripping, commenced in March 1994, and ceased in May 2002. Nominal throughput was 1.5 Mtpa, at average grades of 3.80 g/t Au and 99 g/t Ag. From the start of prestripping until the end of 1996, Drill Blast sampling was the main grade control method. After several studies into the viability of Reverse Circulation, including an assessment of costs and benefits, the switch from Drill Blast to Reverse Circulation was made in late-1996. From 1997 until the end of the project Reverse Circulation was the main grade control method. The mine-to-mill call factors û the reconciliation between predicted and actual tonnes and grades delivered to the mill û for the period from commencement of processing to December 1996 were 1.069 for tonnes, 0.949 for gold, and 0.969 for silver. The mine-to-mill call factors between January 1997 and June 2002 (excluding a period of significant illegal mining) are 1.086 for tonnes, 0.977 for gold and 1.025 for silver. At face value this indicates a 2.8 per cent absolute improvement for gold, and 5.6 per cent for silver. Using average grades for the project, an additional 5112 oz of gold, and 267 173 oz of silver were delivered annually to the mill using Reverse Circulation sampling instead of Drill Blast sampling. The additional recovered metal value is estimated at $US 2.87 M annually, significantly exceeding the cost of Reverse Circulation drilling. This paper discusses a number of issues that may affect the estimated benefits.

Jan 1, 2003

By Enugroho E, Nashution Y, Susanto M

PT Allied Indo Coal is the owner of the Parambahan Open Cut Coal Mine in the Ombilin Basin in West Sumatera with an annual production of in excess of 0.5 million tonnes/year of saleable coal.The parent company Allied Queensland Coal was one of the first foreign companies granted a contract of work. by the Indonesian Government. PT Allied Indo Coal is therefore a contractor to the Indonesian Government and pays a 20 per cent royalty of all coal mined.

Jan 1, 1992

The growth in the nickel market and the price increases predicted in 1970 have not mat-erialized. Several plants have been construct-ed, particularly to treat lateritic ores. A spectacular increase in cost of energy and the escalation of capital costs have led to severe economic difficulties on the part of many nickel producers. Several of the nickel prod-ucers joined together to form a Nickel Develop-ment Institute in 1984 with the prime objective of improving nickel markets. Most producers have taken exceptional action to cut overall costs as well as unit costs. Another organiz-ation made up of nickel producers, NiPERA, was established in 1980, to study and take action on problems of nickel in the environment and especially in the workplace.Ion exchange, and particularly continuous ion exchange, has been developed into a reli-able commercial unit operation in the last dec-ade. An example of how ion exchange combined with hydrogen reduction can be integrated into a Caron type reduction roast ammonium carbonate leach process for the recovery of nickel from laterites is discussed.

Jan 1, 1985

The first step in the mining and processing of nearly any mineral ore is comminution. Since the oil embargo of 1979, the mining companies have been striving to reduce energy consumption and costs. The first serious step was the introduction of in-pit crushing in the early 1980s. With in-pit crushing accepted as a standard design mode, the energy saving emphasis turned to comminution practices. A great deal of attention has been focused on blasting and grinding. The one step that has not been addressed is the primary crusher. This paper will address the opportunities for comminution improvement through optimisation of the primary crusher.

Jan 1, 2004

By R Benton

Since commencement of underground production in March 2006 the Kencana K1 orebody has delivered over 0.9 Mt of ore containing 1.18 Moz Au until April 2009. The Kencana deposits are part of the Gosowong goldfield located on the island of Halmahera in eastern Indonesia. The district has produced over 2.3 Moz since mining commenced in 1999 with the first two deposits extracted by open pit methods. The K1 deposit is technically challenging being a vein style deposit with poor to very poor ground conditions and a relatively low overall dip of around 45 degrees to mine grid east. It is mined under geological control by underhand cut and fill methods utilising cemented paste backfill aiming for 100 per cent extraction. With these conditions the operation was mine limited in the initial two years of production resulting in low stockpile levels for mill feed blending and hand-to-mouth mine to mill production. Mill feed rates have increased from 30 t/h to 55 t/h over this period following business improvement projects while mine production has escalated to match this increase as deeper levels of the deposit are accessed. The operation has now become mill limited. Monthly mill gold production from Kencana has ranged up to 50 000 oz with head grades ranging between 8 g/t and 122 g/t Au on a daily basis. As individual grade control assays can extend into the per cent Au range there are challenges in sampling, modelling, mining, blending and milling the Kencana orebody. At the time of commencement of ore driving in K1 the national geology team had little prior experience in underground mining and systems were in early development. The variances in feed grade and tonnages have been reduced with time as the operation evolves and business improvement initiatives are undertaken to smooth peaks and troughs in ore supply. Two such initiatives in the geology department have added over US$20 M of additional revenue per annum.

Jan 1, 2009

By Heyer T, Wasmuth H-D

The concentrator plant of Fahrica Mine, that started production in 1977, was using nine Jones wet high intensity magnetic separators (WHIMS) of the standard type DP 317 with a 1.5 mm gap width for the production of pelletfeed concentrate. These WHIMS units were operating in parallel with a feed rate of 110 t per hour, with about 47 per cent Fe in the feed, and with a maximum of only 0.8 per cent magnetite. The field strength was about 1.2 Tesla. From 1986, the mine has adapted its production facilities to mine and concentrate larger amounts of lowgrade itabintes to maximise the use of the available iron ore reserves. An increase of up to three per cent magnetite in the magnetic separator feed, resulted in a reduction of capacity. This was due to partial clogging of the separation boxes at high field intensities, which were required for the recovery of the very fine hematite. Even by lowering the feed rate and the field intensity the problem could not be resolved. After extensive testwork in a pilot plant, with a Jones separator model DI&apos; 90, the commercial WHIMS plant was modified into a two stage process using the existing nine Jones separators. The gap of the first stage with four machines was increased to a width of 3.5 mm, corresponding to a maximum field intensity of 0.7 Tesla. This first &apos;medium intensity scalping stage&apos; is followed by a second &apos;real&apos; high intensity WHIMS step with five machines operating at the original settings with 1.5 mm gap width and 1.0 Testa maximum field intensity. Feed rates of up to 320 tons per hour in the first and up to 240 tons per hour in the second stage could be achieved. The design concept of the concentrator at Fabrica mine is described using the old and new flowsheets. Details of the pilot plant testwork as well as actual performance data of the new plant section are presented.

Jan 1, 1993

At the outset I want to thank you for inviting a representative of the Chamber of Mines of South Africa to address you on the subject of mining and its future at this, the 13th Congress of the Council of Mining and Metallurgical Institutions. It is indeed a pleasure and an honour to be here. As many of you will recall, four years ago I, as the then President of the South African Institute of Mining and Metallurgy, had the privilege of hosting and welcoming you to the 12th Congress, the third such congress hosted by South Africa. The late Sir Ernest Oppenheimer, President of the 1930 Congress - the first to be held in South Africa - in his opening address foresaw the mining industry as "the most potent factor in spreading the benefits of civilisation over the sub-continent." We have come a long way since those halcyon days but, as I noted four years ago, it still remains true that mines have been, and will continue to be, the missionaries of development in many, if not most, of the Third World countries. I have been asked to address you on the subject of "mining" and to let my imagination roam widely so that delegates can leave the congress with a broader vision than they brought on arrival. It is a tall order and in my attempt to fulfil it I ask you to cast your minds back 120 years to a sultry, rustic day when the first diamond was discovered in South Africa at the now famous town of Kimberley. At that time the South African economy, predominantly pastoral, was still at subsistence level. Almost overnight the ensuing diamond rush turned the then British- owned northern Cape Colony&apos;s semi-desert scene into a hive of mining activity, every prospector bent on making his instant fortune. It was very little different, I am sure, to the gold rushes that hit California in 18+8, Australia in 1851, New Zealand in the 1860s. and the Yukon in the 1890s.

Jan 1, 1986

By Smith CB, Boxer GL

The Argyle diamond deposits in the East Kimberley were found as a result of a long term exploration programme, begun in 1972 by the Kalumburu Joint Venture (KJV), to search for diamonds on the Kimberley craton. When CRA Exploration Pty. Limited joined the KJV in 1976, it was re-named the Ashton Joint Venture (AJV). The Kimberley craton was considered prospective by analogy with structural settings of diamondiferous kimberlites in Africa. Diamonds were found during regional drainage sampling in Smoke Creek in late 1979, which led directly to the discovery of the rich Argyle lamproite diatreme (AK1) and associated alluvial deposits of Smoke and Limestone Creeks. The diatreme intruded into quartzites, sandstones and shales of Adelaidean age, and consists predominantly of lapilli ash tuff, with minor coarse and fine ash tuffs, &apos;non-sandy tuff&apos; and olivine lamproite dykes. Erosion of the diatreme has produced the alluvial deposits of Smoke Creek and Limestone Creek to the north and east. Argyle diamonds are of predominately industrial quality, and the typical diamond is a brown, irregularly shaped, frosted, heavily resorbed form with abundant graphite inclusions, well developed etch channels and prominent hexagonal surface depressions. The pre-feasibility evaluation of AK1 comprised diamond drilling, surface and underground sampling, metallurgical sampling, marketing studies and ore reserve estimation. The proven AK1 ore reserve is 61Mtonne at 6.8ct/tonne. Evaluation of the alluvial deposits gave results of Upper Smoke Creek, 580 000 tonne at 4.6ct/tonne and Limestone Creek, 1.7Mtonne at 3.5ct/tonne. Commercial production from the two alluvial deposits began in 1983 with production for the year reaching 6.2 Mct. Mining of the alluvial deposits at three to five Mct/year is proposed to continue until the start of mining of the AK1 deposit in late 1985 or early 1986 at which time a new processing plant and associated infra- structure will have been constructed adjacent to the AKl deposit in the Limestone Creek area. Production is planned at three Mtonne/year, producing 25Mct/year, which will make Western Australia the largest producer of natural diamond (by weight) in the world.

Jan 1, 1984