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By E C. Holloway

"The financial valuation of mining assets has a number of fundamental differences to the valuation of many other asset groupings. One such difference is that typically, the greater proportion of both the cost and revenue sides of the cash flow are inherently governed by systemic market forces.As a result, the range of outcomes for the valuation of each mining asset is more unpredictable, with higher levels of risk and uncertainty. In contrast, the management function of many other non-mining businesses or industry groups can control at least a portion of the cash flow by maintaining the margin or controlling the sales price. The management teams of mining businesses and operations typically have limited options, and are thus price-takers for both costs and revenues. As mining is an inherently cyclical industry, large, long-life operations can exist through several price cycles, making valuation both subjective and challenging.The outcomes of both static- and stochastic-based valuations, as well as the internal probabilities of the associated cash flow statements, are significantly impacted when the correlations between the appropriate parameters are quantified, modelled and incorporated into the valuation framework. The appropriate parameters for correlation modelling primarily include those that are governed by systemic market forces. Applying this process results in a different risk profile for the asset by allowing the risks resulting from systemic market movements to be more accurately quantified and then objectively minimised. This process also reduces the level of residual uncertainty in the valuation outcome.This paper presents a valuation methodology to pragmatically incorporate this level of valuation sophistication and statistically quantify the associated increase in the level of confidence of the valuation outcomes reported.CITATION:Holloway, E C, 2016. Correlated valuation methodology, in Proceedings Project Evaluation 2016, pp 181–200 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By A Scott, I Onederra

A great deal of technical and research effort has been applied to the development of models to predict fragmentation from rock blasting. A number of quite useful empirical or engineering models are currently available to blasting engineers and consultants, while more sophisticated approaches using mechanistic and numerical descriptions of rock breakage continue to be developed and applied by researchers and explosives companies.The fragmentation resulting from any blast will be heavily dependent on the properties of the rock mass being blasted; however, most empirical models rely on ‘rock factors’ generated from simple rock mass properties to describe the influence of the rock on the blasting outcome. In contrast, mechanistic models need explicit rock mass properties that require sophisticated laboratory measurements and detailed structural data if realistic outcomes are to be generated. The fragmentation modeller is caught between excessively simple rock mass descriptions for the empirical models and excessively complex data requirements for the mechanistic models.This paper briefly reviews the basis of a range of fragmentation models and the rock mass properties on which they rely. Shortcomings in the way that the mining industry tends to characterise the blasting properties of rock are discussed and some practical approaches are described to quantify these properties in both operating and greenfield mining environments. Case studies are presented where specific additional breakage properties and modelling features have been needed to generate a useful description of the fragmentation achieved.CITATION:Scott, A and Onederra, I, 2015. Characterising rock mass properties for fragmentation modelling, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 149–160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By J Westh, S Rashleigh, L Gallagher

Mining companies are moving towards automated haul trucks and other equipment. One reason for this is that if automated trucks can operate in a standard pattern over and over again without variation, then human error is reduced, if not eliminated.The challenge for mining production leaders/managers is to ensure operators follow standard operating procedures for load and dump operations, with each operator doing the same thing, every time. However, operators are only human and inconsistent performance is rife at every mine site. The finger may be pointed at the operators for not doing as instructed. The clarity and variability of trainer instructions may be considered causal to the problem. Herein lies the problem. Almost all operators believe they are following the procedure very closely; moreover, they all demonstrate a strong desire to conform to instruction.Using video analysis and feedback, each operator can be shown where and by how much they differ from the benchmark set by their company. Operators, often for the first time, can see definitively what they are doing, compared to industry best practice.The technology utilised by real-time video (RTV) crews measures time, distance and angles. It can overlay the video of the operator at the load site, with video of the perfect pass. Operators are amazed when they see how near to, or how far they are from best practice.The footage and data gathered by RTV assists operators in understanding exactly what adjustments are required to increase proficiency. It also assists load and dump superintendents to identify where in the process they are losing time. When translated to overburden removal or mineral/resource extraction, the result is large production economies without the need for large capital investment in new automated technology.CITATION:Westh, J, Gallagher, L and Rashleigh, S, 2012. Improving safety and mine productivity using real-time video technology, in Proceedings International Mine Management 2012, pp 173-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By G du Toit, P L. Gillot, M Swanepoel

Randgold Resources’ Loulo-Gounkoto Complex is one of the largest gold mining operations in Mali, West Africa. The mine, which is situated on the western border with Senegal, treats more than 4 Mt/a of ore through a conventional three-stage crushing and ball milling circuit followed by a carbon-in-leach plant. Ore supply is achieved by a combination of open pit and underground mining, with the majority of the ore supply sourced from the Gara and Yalea underground mines situated approximately 2 km and 6 km respectively from the gold plant.In 2011, Randgold Resources commissioned Golder Associates to perform an evaluation study for providing structural backfill to both the Gara and Yalea underground mines using the current gold plant tailings. The test work performed as part of the evaluation study concluded the need for a tailings cycloning and dewatering facility capable of producing slurry at a solids concentration of 65 per cent with a particle size distribution that had minimum 25 per cent passing 20 µm and less than 5 per cent of -5 µm material. Tailings desliming was required to ensure a consistent feed quality to the paste preparation plants and to ensure that the system would be capable of handling variation in the feed composition from the gold plant.WorleyParsons, previously TWP Projects, was contracted by Randgold Resources to complete the engineering design for the slurry preparation plant, whilst Golder Associates was retained to complete the engineering design of the two paste preparation plants.This paper discusses the test work, design considerations and engineering design of the slurry preparation plant, termed the ‘intermediate plant’, as well as all ancillary facilities required for the delivery of the deslimed slurry to the paste preparation plants located at the two underground mines.CITATION:Swanepoel, M, du Toit, G and Gillot, P L, 2014. Case study – engineering design for a slurry preparation plant for a paste application in West Africa, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 477–486 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By E Forbes, G V. Franks

"This study investigates the dual function of a temperature responsive anionic co-polymer of poly (N-isopropyl acrylamide) (PNIPAM) as a selective flocculant/flotation collector. PNIPAM is used for separating hematite from 50:50 mixtures of hematite and quartz, at a variety of particle sizes. The performance of PNIPAM in this system is compared to that of conventional flotation collectors: sodium oleate and sodium dodecyl sulfate. The results of the study demonstrate that anionic PNIPAM used at 50¦C (above the lower critical solution temperature (LCST)) is the most effective flotation collector for hematite particles in the size range between 10 and 20 ¦m. This is attributed to the increased probability of both particle/bubble collision and particle/bubble attachment through the formation of hydrophobic hematite aggregates. Anionic PNIPAM used at 50¦C also produced the highest hematite recoveries for very fine hematite particles (circa 1 ¦m). However this recovery was completely unselective. This lack of selectivity is partially attributed to the activation of quartz particles by PNIPAM, but is thought to mainly occur as a result of entrapment of quartz particles within the matrix of hematite aggregates.CITATION:Forbes, E and Franks, G V, 2013. Selective separation of hematite from quartz by flotation using a temperature responsive polymer, in Proceedings Iron Ore 2013, pp 381-390 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 12, 2013

By P A. Jenkins, I W. O Jones

WMC has mined the Perseverance disseminated orebody exclusively by SLC (sublevel cave) methods. Deteriorating ground conditions in the vicinity of an orebody inflection forced a re-evaluation of future mining at Perseverance and a strategy to drop down below the inflection zone and recommence the cave was implemented. This strategy has led to increased production at higher grades, resulting in lower costs and better mill recoveries. This paper describes the evolution of mine planning, development, support and production strategies through the successful process of implementing the ædrop-downÆ and re-establishing the SLC.

Jan 1, 2000

By H R. Phillips

During the 1980s and early 1990s, the South African coal industry experienced a series of methane explosions in which well over 200 coal miners lost their lives. In addition, a fire and an explosion in the gold mining sector claimed a further 240 lives. These tragic incidents resulted in the establishment of a research facility at Kloppersbos dedicated to explosion and fires research and the funding of an extensive research program, and almost certainly influenced the government of the day in its decision to establish, in 1993, the Leon Commission of Enquiry into Mine Health and Safety. The results of this focused research program, the wide-ranging recommendations of the Leon Commission and the determination of the coal mining industry to improve its safety record all combined to result in the past 20 years without a major explosion.This paper lists some of the research outcomes and, through three case studies, illustrates what can be learnt from investigations following explosions. The paper concludes with an evaluation of some of the findings of the Royal Commission on the Pike River coal tragedy. Many of the Commission’s conclusions are pertinent and relevant to the coal mining industry worldwide and their implementation could significantly improve coalmine safety; however, a careful study of the available facts indicates there could well be an alternative explanation of the source of the methane, the location of the ignition and the size of the explosion at the Pike River coalmine.CITATION:Phillips, H R, 2015. Lessons learnt from mine explosions, in Proceedings The Australian Mine Ventilation Conference, pp 19–28 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

A study was conducted to evaluate the effectiveness of the three types of sample grinders routinely used in the mining industry for the sample preparation of gold ores with particular emphasis placed on testing their capacity to produce a representative assay sample of coarse gold ores. The grinders used in this study are the Labtechnics LM5, the Mixermill 4010 ringmill and the Keegor vertical spindle pulveriser, commonly called a Keegormill. The study was based on the preparation of samples from two sources of known coarse gold ore, the Union Reefs Gold Mine and the Brocks Creek Gold Mine in the Pine Creek region of the Northern Territory of Australia, and a fine gold ore which was from the Macraes Gold Mine in New Zealand. The Union Reefs Mine contains visible coarse gold with 30 per cent to 40 per cent of the gold in the plus 75 μm fraction of milled ore. Discreet particles up to 5 mm have been recorded, Hellsten (1994). Union Reefs Gold Mine recovers 40 per cent of its bullion production through a gravity circuit, Riches (1997). Brocks Creek ore contains visible coarse gold with gravity bullion production fluctuating between 50 per cent and 65 per cent, depending on the mill feed. Average gravity bullion production from the Brocks Creek Mine is 55 per cent, Wilke (1997). The average gold grain size of Macraes Mine ore is 20 μm with 40 per cent of the gold in sub 10 μm particles. No gravity bullion is produced from the Macraes Mine, O'Keefe (1997). The testwork demonstrated conclusively that it is possible to prepare a representative sample for assay, of a coarse gold ore, when a Keegormill is used to pulverise the sample to a nominal 100 μm particle size (90 per cent passing a 100 μm screen by wet sieving). Both the Mixermill and the Labtechnics LM5 failed to prepare a representative sample, even when ground to a nominal 75 μm particle size.

Jan 1, 1998

By M Schmid

German hard coal mining operations have decreased for more than 40 years. Current political decisions are leading to a discontinuation of subsidised black coal mining by the year 2018. This decision will, however, be reviewed once again in the year 2012. The enormous increases in productivity, which were achieved in previous years, have so far not led to an achievement of market requirements. Coal mining at depth of more than 1200 m in multiple seam environments is not yet competitive in global comparison. In 2008 the 24 faces left in eight mines produced about 20 million tonnes of usable steam coal. Management and the workforce will be reduced in parallel; from today until 2012 by more than half. The average age of personnel is increasing dramatically and nearly no new personnel are recruited. With this background in mind, increasing continuously coal mining productivity becomes more and more difficult. Above all, this goal was reached by mechanisation, then by increasing the mining machine power and then by enhanced machine control systems. The first attempts to automatically operate full face equipment from above ground were in the early 1980s. After successful automation of the face equipment, the emphasis is now on mine logistics. Autonomous monorail transport was introduced and tested in 2007. Since the development rate of machine improvements has its limits, the focus is on the full interaction of the total production system. Here information technology (IT) becomes important; the driver for more productivity. Actual developments aim for the complete and general homogeneous IT infrastructure both above ground as well as underground. The explosive environment needs high level investments in safe technology, eg access points for WLAN and fibre optics for underground use (ATEX certification). New technology availability also drives the enhancements of management and process control systems. Innovations in the mining industry often comprise technology advances through the adoption of well-known technologies. With virtual reality (VR) teaching and training systems advanced computational instruments, both in software and hardware development, were applied in the German coal mining industry for ten years. Widening lists of applications as well as the encouraging achievements show the economical benefits of investing in virtual reality technology both for teaching and training and for knowledge management. The paper discusses the actual technical achievements as well as in IT infrastructure utilisation and also in employment of virtual reality based systems. Special focus and deeper insight will be given to the fibre optics and WLAN hardware integration as well as software developments. The pocket personal computer (PC) is used to enhance underground material transport and data acquisition. The knowledge-based maintenance system (KBMS) integrates real-time virtual reality knowledge elements, such as repair process descriptions. It gives access to expert documentation by intelligent search algorithms and 3D representations of major mining machinery.

Jan 1, 2008

Legislation introduced for Queensland and New South Wales Coal mines provides different levels of prescription regarding specification of mine seals û generally in relation to capacity to withstand overpressure. In Queensland, the Coal Mining Safety and Health Regulation (2001), Section 341 (d) places a further onus on the statutory ventilation officer to æensure all ventilation control devices at the mine are properly constructed and maintainedÆ and that the ventilation officer æmust ensure a ventilation control device mentioned in the regulation à and installed at the mine meets the design criteria statedÆ for the ætype of deviceÆ. Based on the experience of the author, it appears that risk management and life cycle approach to seals has not been adopted to the same extent as for other aspects of operations. Further, because of the number of disciplines and personnel involved that may influence various factors affecting seal integrity, the opportunity for oversight or unclear allocation of responsibility is considerable. While suppliers can provide explosion or design rated seals, this should only be a starting point for application of the product in a coal mine. Application is often considered by mine planning staff (taking into consideration mine environment parameters such as water, control of gas, spontaneous combustion risk, etc) in conjunction with the colliery ventilation officer, and then construction completed by contractors under supervision of operational staff. After construction, seals often are managed by operational personnel with input from the ventilation officer. Input of the geotechnical engineer into pillar design, roadway opening size, ground support specification and most stable seal location is also required. The need for a customised design approach for each seal site is proposed in order to take into account the many and variable factors that may influence a site so that improved seal performance reliability and predictability can be developed. A program of quantitative as well as qualitative monitoring of performance and triggers for rectification or maintenance action is required, and would provide support to the aforementioned proposal. Many mines rely on visual/audible inspection and periodic bag sampling as the primary means of assessment. Other significant factors such as seal material properties, rib degradation, convergence, floor heave, effects of water on both structural integrity of the seal as well as the air tightness of the seal do not generally receive the same level of attention. Based on the above observations, the author has compiled a reference checklist in regard to the above matters, including aspects of and approaches to mine and pillar design, geotechnical modelling and data collection, civil engineering design, site evaluation and practical options available.

Jan 1, 2005

By J Mar·n, R Anderson, S Strohma, R Harvey

Xstrata is the operator of both Minera Alumbrera Ltd (50 per cent Xstrata, 50 per cent Wheaton River) and Ernest Henry Mining Pty Ltd, (99.99 per cent Xstrata), both copper-gold deposits, using conventional SAG/ball milling at current capacities of 36 Mt/yr and 10.3 Mt/yr respectively. Alumbrera is located in Catamarca Province, in the north west of Argentina. Ernest Henry is located in Cloncurry, north west Queensland, Australia. Both operations started in late 1997, with commercial production achieved in early 1998. Different designs and equipment are in use for both operations, however the evolution of SAG milling performance, although logically related to their specific features, reflect similar trends of consistent increases in throughput. This paper will discuss the main changes to the SAG mill liners in both operations and the results achieved to date. A summary of the operating strategies will be included.

Jan 1, 2003

By N M. Player, R P. Varden, E Jones

"An effective geotechnical design provides an accurate and appropriate assessment, balanced with a mining company’s risk profile. Justifying the cost of slope assessment requires an understanding of the input sensitivities, and resultant risk, to achieve a slope of a required functionality. As a project progresses from Scoping to Feasibility, the geotechnical risk becomes better resolved through increased expenditure on drilling, testing, analysis and modelling as long as the input data is appropriately spatially distributed. Providing accurate and appropriate geotechnical assessments in the early stages provides confidence in all following stages, especially where initial analysis indicates difficult geotechnical conditions. It is also in the early stages of project definition that there is most opportunity to maximise the value of the deposit through investigations into optimal mining methods.This paper examines the advantages of geotechnical engineering input through a project study period. Early geotechnical involvement allows the Scoping and Pre-Feasibility Studies to be more effective. Operational risks can then be better understood and dealt within the Feasibility Study phase, also ensuring that the correct risks and management controls are put in place.With commodity price pressure and cost of resource recovery in a downturned industry, reducing the risk to cash flow, resource recovery and safety should be a primary goal for all mining companies. Reduced risk can be effectively achieved through geotechnical design of slopes to achieve a required performance as part of an integrated study to the Reserve definition and mine design.Citation:Varden, R P, Player, J R, Player, N M and Jones, E, 2016. Justifying Slope Design Risks and Costs, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 185–201 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By G Bubner, C Gaughan

Magnetite mineralisation within the South Middleback Range has been known since the early 1930s; however, it was not until 1989 that BHP (then owners of the Middleback Ranges mining leases) drilled 10 700 m of diamond core into what was then known as the Iron Duchess low-grade deposit. In 2002 a review of Iron Resources left in the Middleback Ranges and the identification of downstream processing benefits using magnetite as a primary feed source led to the commencement of an 18 000 m resource drilling program of the high-grade core of the Iron Duchess low-grade orebody (renamed the Iron Magnet deposit). This paper describes the geology, processes and procedures used since drilling recommenced in early 2003. The Iron Magnet deposit is located 53 km southwest of Whyalla in the South Middleback Range, South Australia. It is a Paleoproterozoic stratabound magnetite deposit that lies down-dip and lateral to the Iron Duke hematite deposit, hosted within the Lower Middleback Iron Formation of the Hutchison Group meta-sediments within the Cleve subdomain of the Gawler Craton. Magnetite bearing host units within the Lower Middleback Iron Formation can be divided into a æmixedÆ basal sequence, a lower iron carbonate unit, a middle iron talc unit and an upper iron silica unit, all units grading up sequence and laterally into one another. The magnetite mineralisation is hydrothermal in origin. The strongest consistent mineralisation coincides with the iron carbonate unit, and the hematite orebodies of the Iron Duke are interpreted to represent up-dip supergene enrichment of the same unit. The Iron Magnet occurs within a large-scale parasitic syncline-anticline pair on the west limb of a larger syncline. Major bounding north-south shear zones occur on the east and west sides of the deposit. Cross-cutting west-northwest, northwest, northeast and east-northeast trending faults displace mineralisation. The commencement of drilling in 2003 lead to the migration of geological and geochemical databases, re-logging and re-assaying of all old cores that intersected the deposit, updating of logging codes and procedures, and strict Qa/Qc procedures to ensure the study satisfied JORC standards. External consultants were used for auditing and bench marking. The strong geophysical responses of magnetite and the wealth of close spaced ground magnetic and gravity data already completed over the Middleback Ranges allowed for refining of drill hole targets for the drilling program. It also provided an indirect method for ascertaining magnetite grade and tonnage volumes.

Jan 1, 2005

By G Nicholas, S Coward, J Vann, R Wolff, S Jackson, S Moayer, A Bye

"A new approach to mineral project evaluation is described called Scenario-Based Project Evaluation (SBPE). SBPE incorporates well established æscenario planningÆ and æscenario thinkingÆ approaches, which are used extensively in other industries,?most notably the?petroleum industry. While most scenario planning is qualitative and non-probabilistic, the approach described here includes both quantitative and qualitative aspects. SBPE is complementary to optimisation approaches and allows mining firms to build and operate projects that are more robust in the face of adverse changes as well as proactively respond and exploit the upside offered by a realistic assessment of variability. The approach has potential to improve project performance and decrease operational risk. It also has important applications for currently operating mines.Conventional evaluation of metalliferous mineral deposits uses estimates of metal grades and deleterious attributes in singular æorebody modelsÆ, usually 3D block models, which fail to capture two critical aspects that underpin the realised value of mining projects: the inherent uncertainty of the estimated attributes the spatial variability of attributes, at the scale of mining selection, which impact on downstream processing steps and fundamentally drive realised value. While singular models are appropriate for estimating block averages, conditional simulation (CS) models of the relevant attributes are needed to represent uncertainty and capture spatial variability. Any attributes that can be either built into CS models and/or modelled in the envisaged mining/processing steps, can be evaluated fully through to highly ægranularÆ (ie detailed and un-smoothed) cash flows. A complete view of SBPE relies on selected strategies being tested against plausible æscenariosÆ of factors external to the project and thus outside management control. æExternalitiesÆ captured in such scenarios include market prices, costs and taxes. Via SBPE, project managers may demonstrate that there is material value in preserving or purchasing options that provide future flexibility to respond to the changing externalities or changes in orebody performance. Such flexibility generally comes at a cost but is very difficult to value. It is argued that full value chain evaluation using SBPE can help to value these options for a mining company. A case study for a gold mine is presented.CITATION:Vann, J, Jackson, S, Bye, A, Coward, S, Moayer, S, Nicholas, G and Wolff, R, 2012. Scenario thinking - A powerful tool for strategic planning and evaluation of mining projects and operations, in Proceedings Project Evaluation 2012, pp 5-14 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By V Srinivasan, P Knights, C T. Farrelly

By 2025, with the widespread industry adoption of remote operation centres and advanced analytics, mining companies will find themselves making better, more informed decisions across the value chain. Process automation will drive significant business integration and reorganisation. Better collaboration between functions will make cross value chain optimisation a reality. Wherever possible decisions will be automated, based on analytical models and embedded in an enterprise decision management (EDM) architecture. This will take care of many of the minor day-to-day or the minute-to-minute decisions that consume operators and managers today. More flexible information technologies and architectures derived from the extensions to Web 2.0 and service oriented architecture (SOA) will solve many of the integration issues of today. The ongoing business imperatives for doing more with less people will make true collaboration with partners such as mining contractors, equipment vendors, transport providers, suppliers and maintenance contractors commonplace throughout the industry. All these organisations will be linked in and share common goals and objectives in real-time while providing visibility of internal constraints and available capability, allowing optimised decisions to be made across the extended enterprise. Humans will increasingly move to a more supervisory role and will use advanced collaboration to quickly solve complex abnormal issues that span the value chain out to the extended enterprise. The open collaboration and communication models instilled in the workforce through the widespread use of social networking technologies will drive thought leadership far beyond current æbest practiceÆ thinking. This will encourage the mining industry to extract the business value from rapidly converging fields of study such as environmental sciences, neuroscience, psychology, engineering, information technology and business finance. The future of mining will see a more uniform distribution of data savvy workers between the ages of 20 - 40, forcing a change in current operations. This group will drive the adoption of ubiquitous computing, augmented reality, presence and digital labelling. The enterprise will shift from a relatively static disparate set of functions to a digitally aware, integrated and interactive environment with information available, in context and just in time, to those who need it. The networked virtual enterprise will therefore be a reality.

Jan 1, 2008

By C F. Stokes

The Trident Gold Deposit has been successfully developed by Alacer Gold (formerly Avoca Resources Limited) into a 1.3 Mt/a operation in the space of four years from discovery to first gold pour (2008). The current in situ Resource for Trident is estimated to be 5 900 000 t @ 5.0 g/t for 940 000 ounces at a cut-off of 1 g/t or 2 g/t depending on ore style. Production to date (Alacer and previous owners) is in excess of 500 000 ounces. The deposit lies towards the southern end of the Norseman-Wiluna Greenstone Belt in the Archaean Yilgarn Craton, where it is centred on the historical Higginsville Mining Centre, midway between the world class gold centres of St Ives (+15 Moz) and Norseman (+6.5 Moz). Trident is hosted primarily within a thick, weakly differentiated gabbro with subordinate mafic and ultramafic lithologies and comprises a series of north-northeast trending, shallowly north plunging ore zones. The deposit comprises two main mineralisation styles; large wallrock-hosted ore-zones comprising sigmoidal quartz tensional vein arrays and associated metasomatic wall rock alteration (Eastern Zone, Western Zone and Apollo) hosted exclusively within the gabbro; and thin, lode-style, nuggety laminated quartz veins (Athena and Artemis) that formed primarily at sheared lithological contacts between the various mafic and ultramafic lithologies. The initial interpretation of the Trident Deposit was based on steeply-dipping structures controlling the zones of mineralisation, with much of the targeting and drill-testing aimed at this style of orebody. Subsequent exposure of the orebodies has identified a series of shallow-east dipping mineralised systems (interpreted to be large reverse shears) that at their intersection with the steep-dipping structures cause significant gold enrichment. It is postulated that both orientations are primary fluid pathways with the intersection between the two resulting in zones with significantly high concentrations of gold mineralisation (in excess of 300 000 ounces). This new understanding on ore controls at Trident has identified that the thin lode-style shear-hosted laminated veins are continuous for over 1700 m along strike as they step en echelon down-plunge. In addition, a repetition and periodicity to the intersection between these steep dipping lode-style systems and the shallow-dipping mineralised zones (estimated to be 700 - 900 m down-plunge) has been identified which has considerably increased the down-plunge potential of the Trident Deposit.

Aug 22, 2011

By J Vann

The philosophical context of many activities in mine geology can be an important lever in adding value to operations. For mine geologists (including resource and grade control geologists) we argue that the tasks of problem formulation, observation and data collection, interpretation and modelling invoke various philosophical considerations whether the practitioner is aware of them or not.Constructing testable models to explain reality is the definitive aspect of any activity claiming to be ‘scientific’. A primary goal of mining geology is to build models that accurately predict reality to an acceptable degree and these include litho-structural, stratigraphic, grade control, resource or reconciliation models. What’s more, in mine geology we are often able collect additional drill samples or access new underground openings, for example, that can provide relatively rapid feedback on how predictive, and therefore useful, our models are. In this paper, we describe the key philosophical frameworks proposed for conducting scientific investigations, including falsification, the method of multiple working hypotheses and structural concepts of scientific theory. The strengths and weaknesses of these approaches are discussed and an attempt is made to relate them to activities undertaken by mine geologists. Common perceptions of what constitutes the scientific method have been dominated by how scientists do experimental physics and chemistry in particular. There are very important differences in the types of problem confronted in these experimental sciences compared to the ‘historical sciences’, such as geology, where the processes studied are unique and only evidential traces of past events are available. The philosophical implications of attempting to validate numerical geological models, such as resource estimates are also briefly considered.Some practical conclusions are drawn about how mine geology activities can be better implemented if practitioners are cognisant of the importance of philosophical considerations when attempting to gain new knowledge through a scientific investigation. We believe that the implications for creating additional value to a project or operation can be very significant when geology is applied by a practitioner with an understanding of the philosophical basis of the activities we think of as constituting a scientific investigation.Remember that all models are wrong; the practical question is how wrong do they have to be to not be useful? (Box and Draper, 1987, 74 p).The demand that theories be highly falsifiable has the attractive consequence that theories should be clearly stated and precise. If a theory is so vaguely stated that it is not exactly clear what it is claiming, then when tested by observation or experiment it can always be interpreted so as to be consistent with the results of the test. (Chalmers, 1999, 67 p).

Aug 22, 2011

By S Dunham

A cross-discipline approach combining geology, metallurgy and mine planning, geometallurgy is seen as the next logical advance in improving the design and operation of mining businesses. This rapidly evolving field is focused on realising the value that has often been lost in the chasms between the aforementioned technical silos. When successful, the geometallurgical approach promises the ability to tailor mining and mineral processing development and operational options more closely to the characteristics of the resource with resulting lower costs (both capital and operating), improved recoveries and fewer project failures.As with any technological (or managerial) change, there will be side effects from the success of the geometallurgical approach that will impact areas beyond obvious linkages between geology and processing. Some of these effects have the potential to be beneficial to the resource industry and society in general. Beyond the basic geometallurgical promise of closer alignment between processing design/strategy and the multivariate 3D spatial characteristics of the mineralisation, this paper discusses the broader implications and ramifications of the emergent geometallurgical approach: enhancing exploration and discovery; improving project development success; achieving sustainability in an industry working with non-renewable resources; in a world of increasingly hard won license to operate, improving the management of potentially harmful by-products and waste materials (with knock on effects for proactive management of closure issues); smarter approaches to energy management and thus optimisation of projects with respect to carbon footprint; and potential to re-value assets and thus realise a strategic advantage in the area of acquisitions, divestments, mergers and take overs. The authors strongly believe that companies that actively engage with the above issues (and ensure that technical efforts in the area of geometallurgy are not isolated from the larger value chain activities of the firm) will be able to exploit the opportunities that consequentially arise. These early adopters will gain first mover advantages. Firms taking the broad view of geometallurgy will have an opportunity to maximise stakeholder value and win greater success than their less insightful competitors.

Sep 5, 2011

By D J. Kilkenny

Work practices involved in shaft construction can be aligned with current industry standard operating practices. However, the working environment during conventional shaft construction introduces unique conditions which can not always be overcome by hard engineering controls. To provide an improved working environment, future shaft diameters will generally be greater than has historically been the case for the Australian hard rock mining industry. This paper aims to explore both what can be constructed from the contractors perspective, and how does an owner extract maximum business efficiency from an asset that in many ways is likely to be larger, more complex and more expensive than initially envisaged.Newcrest Mining Limited, or an associated company, has constructed two major shafts over the last seven years. In both cases, Byrnecut Mining, or an associated company, was the contractor engaged for the shaft sinking activity. The first is the 1127 m deep, 7.0 m diameter production and intake airway at the Telfer Gold Mine, the second is a 295 m deep, 5.5 m diameter split shaft at the Gosowong Gold Project in Indonesia that was primarily designed as both an intake and exhaust airway. Importantly both shafts are designed to provide emergency egress from the respective underground operations.From an Australian shaft sinking perspective, the construction of these two shafts resulted in the following learnings: •constructability is of equal importance to desired functionality;•allow six months of interactive design between the owner/engineer/contractor/regulator to get it right;•shaft sinking and equipping are intimately entwined, therefore engineering of both needs to be complete prior to any activity commencing; and•the mobilisation of both equipment and experienced personnel to a new shaft sink takes up to eight months.Shaft sinking is not extinct in the Australian hard rock mining industry. But, if you are considering constructing a shaft, approach it as a long life asset, front end planning to a high level of detail is required to unlock its full value. Think – plan – think and remember it’s going to take 12 months to get from the whiteboard to firing the first cut.

Mar 21, 2011

By F Rashidinejad

Iran has had an active mining sector for some 7000 years. Exceptional in terms of its mineral diversity, Iran produces 62 minerals, and is ranked among the world’s 15 most mineral-rich countries. Many people around the world know Iran as one of the major petroleum exporters. Oil and natural gas dominate Iran’s economy, and oil exports provide the principal source of income, contributing more than 80 per cent of foreign exchange earnings. Transformation of Iran from an oil exporter to an independent country to oil has been on the table for many years, even before the Islamic Revolution of 1979. Development of the Iran’s mineral industry is one of the major replacements for petroleum exports. In the last decade, Iran invested billion dollars in the mining and mineral industry sectors and to increase the added value, tried to export processed minerals instead of the raw materials. In accordance with the ‘20-year Perspective 2025’ that targeted by the Supreme Leader, Iran will be a country with the first rank in economy, science and technology in its region. The objectives over this perspective include briefly increasing annual production to 55 Mt of crude steel, 800 000 tonne of copper cathode, 1.5 Mt of aluminium, 200 Mt mineral products, 300 000 tonne of zinc and 5 000 kg of gold. These goals are achievable in normal circumstances, but concurrency of the 20-year Perspective 2025 with commencement of the UN Security Council sanctions against Iran, frustrated objectives of the perspective, at least the ones related to the mining and mineral industry sectors. This paper tries to elaborate the development programs and following challenges for the mining activities of Iran by 2025.

Nov 22, 2011