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By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By C A. Chaves

During most of its history, the metallurgical industry has been seen as a source of pollution for the environment. However, during the second half of the 20th century, as the world environmental legislation became more protective and the global environmental conscience consolidated, this landscape began to change. Metallurgical activities have become increasingly related to the social and environmental impacts caused by human activities. With the adoption of environmental management in steel plants, there has been a significant change in steel-related activities which have begun to introduce modern plants, managed with environmental, social and productive efficiency. More and more, steel companies search for a decrease in negative impacts of their industrial operations on the environment, fitting them to the current environmental legislation and even increasing productivity and profitability. The steel industry has started to become a clean and more efficient industry. This work presents a case study of a sustainable steel plant project, located in an environmental preservation area. The project includes treatment and reuse of industrial liquid effluents, air emissions control, noise control, recycling, recovery and adequate waste management. It also incorporates production processes using clean technologies, capable of coproducing energy resources which may be used in the plant showing how is it possible to produce steel with environmental and social responsibility and even increase the enterpriseÆs profitability.

Jan 1, 2009

There is an increasing demand for refrigeration as mines progress deeper. Mine refrigeration plants have special requirements in terms of their duty and application. There are no national or international standards applicable for the testing of these plants. There have been numerous examples of plants failing to meet their required nominal capacity, but with the plant owner being unable to enforce the design duty on the manufacturer, due to a failure to unambiguously specify testing or accepting criteria. This paper discusses some of the reasons for performance shortcomings and describes a methodology for developing and specifying performance criteria, when inviting design and/or construction tenders, and a method of performance and acceptance testing once the plant has been built and commissioned. These guidelines encompass the full range of performance duties expected from a mine plant, including stable operation at maximum and minimum plant capacity, and under the various combinations of extremes of high and low condensing and evaporating pressures. A description of a methodology for developing a computer-based mine refrigeration plant model is also presented as part of the performance testing criteria. The methodology is illustrated with reference to the actual performance and acceptance testing process used on the worldÆs largest bulk air cooler (R67) at the Enterprise mine at Mount Isa, Australia.

Jan 1, 2005

By M D. Uttarwar, R R. Yerpude

India is the world’s third-largest producer of coal and is endowed with the fifth-largest coal reserves in the world. Surface mining straddles the entire domain of the Indian coal mining industry, yielding over 88 per cent of production. With continually rising domestic demands, it has to shoulder the responsibility of sustaining the requisite increase in coal production and chasing commensurate stripping targets. Such an ambitious task calls for the deployment of smart technologies. In such a demanding situation, cast blasting of overburden has emerged as a promising alternative for enhancing production and productivity of dragline pits.The cast blasting technique reduces stripping costs significantly as it utilises the chemical energy of explosives in place of mechanical energy to move large volumes of overburden quickly. Proper application of cast blasting not only reduces overall mining costs but also increases coal production. This paper investigates and evaluates the potential of the cast blasting technique, with special reference to dragline pits employing the rehandle method of extended bench. The economic feasibility of the technique is also ensured under different scenarios so that considerable benefits would accrue to the individual surface coalmines. To underline the efficacy of the technique, different cast blasting models have been formulated under a range of operational and economic scenarios that resemble present day practices in India. In order to test for economic variability in the application of the technique, a risk analysis of all the formulated cast blasting models is performed using net present value.CITATION:Uttarwar, M D and Yerpude, R R, 2015. Potential of the overburden cast blasting technique in Indian surface coalmines – a modular approach and its financial implications, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 655–664 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By A Hosseinzadeh Barforoosh, A Abedi, M Taji

The effect of blast loads on beams is one of the main issues in the analysis of steel structure. In this study, experimental tests on steel beam under blast loading, and also numerical simulation by the Autodyn software to analyse these structures, is discussed. Experiments on steel beam size of 12 by Emulite4 explosive with 30 mm diameter and cortex is done. The patterns of cutting and bending generated in the two tests (empirical and simulation) show a good match.CITATION:Taji, M, Hosseinzadeh Barforoosh, A and Abedi, A, 2015. Comparison of experiment and simulation of blast loading on the steel beam, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 161–168 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By A G. Sheard

Fire safety requirements inside tunnels have become more demanding as tunnel designers consider the impact of potentially larger fires. Tunnel ventilation equipment is required to clear hot gases in the event of a fire. This is vital to maintain smoke free escape routes for people trapped in the tunnel and to facilitate safe access for emergency services. As the fire becomes larger, the temperature of clearing hot gases increases. Traditionally, engineers have taken into consideration gas temperatures of 250°C when designing tunnels. Because of larger fires, engineers must now design equipment to clear hot gas up to 400°C.Increasing the temperature of hot gases to 400°C requires tunnel ventilation equipment that goes beyond historic limits. As temperature rises, material strength reduces, consequently mechanically constraining fan aerodynamic performance. Developing tunnel ventilation equipment suitable for clearing hot gases at 400°C requires a fan technology that is more typical of industrial turbomachinery. The standards EN 12101-3:2002 and ISO 21927-3:2006 defi ne the necessary design criteria and testing methodologies to verify that a range of tunnel ventilation equipment is capable of extracting hot gases.This paper describes the process by which the authors certified in accordance with EN 12101-3 and International Organization for Standardization (ISO) 21927-3 a range of powered ventilators suitable for clearing smoke and hot gases at 400°C for two hours. Proving the high temperature capability of the new range provided a challenge as a consequence of the large physical sizes and high motor powers involved. Additionally, the need to install vertically, as well as horizontally, imposed high thrust loads on motor bearings, further complicating both mechanical design and testing. The paper presents the methods by which the authors overcame these challenges.

Mar 8, 2011

By N A. S Webster

The reaction sequences involved in the formation of iron ore sinter phases were determined using in situ synchrotron-based X-ray diffraction. Experiments were carried out using a synthetic sinter mixture containing 77.36 per cent Fe2O314.08 per cent CaO, 3.56 per cent Si.O2 and 5.00 per cent Al2O3 corresponding to a basicity of ~4. The alumina content represents the upper level of alumina concentrations measured in phases formed in industrially produced plant sinter. Data were collected during heating of the sample to 1350°C under an atmosphere of 0.5 per cent O2 in N2, equivalent to an oxygen partial pressure of 5 × 10-3 atm. This temperature was sufficientto ensure melting. Data were also collected on cooling of the sample back to room temperature to examine recrystallisation of phases from the melt.Results showed the sequence of reactions initially involved the formation of calcium ferrite phases C2F and CF. These subsequently reacted with the silica and haematite leading to the solid state formation of SFCA and SFCA-1. SFCA and SFCA-1 were the last phases to form in the system and were both stable up to ~1260°C. Above ~1260°C, melting of the SFCA phases and reduction of the remaining haematite occurred producing the assemblage magnetite + melt.During cooling, both SFCA phase types recrystallised from the melt initially coexisting with magnetite until secondary haematite formed. This is the fi rst study to demonstrate that both SFCA and SFCA-1 are precipitated from the melt during cooling of iron ore sinter. Future work will extend the range of compositions studied to examine the effect of basicity and alumina concentration on the phase assemblages as a function of temperature and oxygen partial pressure.

Jul 11, 2011

By Y Cui, G Cao, H Zong, J Zheng, J Wang, S Yue, J Zhao, B Li

The iron (Fe) concentration in nickel slag is high, making its recovery and utilisation a hot and challenging topic. In the nickel smelting process, using CaO instead of SiO2 to adjust slag’s composition, and then directly reducing Fe from the output of molten slag is a more feasible method in practice for Fe recovery in nickel slag. The adjustment of slag’s composition in the nickel smelting process will have an impact on the distribution of impurity elements such as Pb, Zn, and As. In this paper, the slag adjustment of nickel smelting process was carried out with the oxygen-enriched topblowing system. The distribution of impurity elements in the smelting products with each composition slag was conducted by using thermodynamic software. Experimental verification was performed with rich oxygen top-blowing, and the distribution characteristics of impurity elements in the smelting products were characterised to explore the differences in mineral phases of impurity elements with each smelting conditions, elucidating the distribution patterns of Pb, Zn, and As in each phase. The results indicate that after slag adjustment, impurity elements are more easily to volatilisation and removal into the gas, reducing their total concentration in slag and matte. In the slag, the existence form of Pb, Zn is changed from silicate to ferrate, and As is changed from arsenate to low-valent arsenic oxide. It is easier to decompose the impurity-containing mineral phase and remove the impurity elements in the subsequent iron extraction process.

Jun 19, 2024

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

Mar 1, 2010

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

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

Oct 10, 2016

By D J. Brake

The underground metalliferous mining industry continues to change under the influence of many factors including, to name a few, new mining techniques and equipment, new approaches to risk management, more stringent safety and health standards, new employment practices and orebodies become deeper and often lower grade. In addition, the same technological revolution and plummeting cost of technology that has brought the GPS, smart phones and digital cameras to the general population is also working its way through the mining industry impacting on communications, automation and process control as well as introducing major efficiency and productivity dividends. However, not all factors are positive including, in particular, the issues of carbon costs and electrical power. This paper explores some of the trends affecting ventilation in hard rock mines, some of the existing and likely future challenges and some of the potential future solutions to these issues.CITATION:Brake, D J, 2013. Ventilation challenges facing the metalliferous sector, in Proceedings The Australian Mine Ventilation Conference , pp 3-12 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By G S. Anderson, N W. McDonald

"The IsaMill™ was originally developed to address liberation issues at Mount Isa Mines (now Glencore) operations, McArthur River and Mount Isa in the early 1990s. Following on from the industrial success at those operations, the IsaMill™ was commercialised. In the year 2000, Kalgoorlie Consolidated Gold Mines (KCGM) became the first external user of the technology with a 1.1 MW M3000 IsaMill™ installed to supplement the roaster capacity at its Gidji Processing Plant. The IsaMill™ was used to ultra-fine grind about 10 t/h of pyrite flotation concentrate to 10–12 µm prior to gold cyanide leaching. Based on the success of the Gidji installation, another was installed at the processing plant at KCGM’s Fimiston operation in 2002 in a similar duty.In 2014, a 3 MW M10 000 IsaMill™ was selected to replace the roasters at Gidji as part of the A$98 M emissions reduction project. The mill was commissioned in April 2015 at the design 30 t/h, allowing the immediate shutdown of the two roasters. Replacement of roasting with ultra-fine grinding completely eliminated air emissions at Gidji while maintaining overall plant production rates.This paper details the history of the IsaMill™ at KCGM from the original M3000 to the latest M10 000. It covers the basis of the process selection, circuit design, operating and maintenance data.Citation:Anderson, G S and McDonald, N W, 2016. IsaMill™ at Kalgoorlie Consolidated Gold Mines - from the M3000 to the M10 000 and Replacement of the Roasters at Gidji Processing Plant, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 29–38 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By H Utama, hi, A Suw

PT. Indo Muro Kencana (PT.IMK) is gold and silver mine located in Central Kalimantan province, Indonesia. Mining activities in PT.IMK is conducted in Bantian pit area by applying surface mining method and using combination of excavator and hauler (articulated dump truck and rigid haul truck) as the transportation for ore to the crushing plant and waste material to the waste dump. Current blasting practice is ore-waste blasting. Ore-waste blasting is the term where the ore and waste rock are blasted in the same blasting process. Blasting is conducted by using nonel initiation system. By multiple pits operation, monthly powder factor is varied from 0.23 kg/t to 0.27 kg/t. Emulsion blend with density 1.15 g/cc is used as bulk explosive. At this stage, the concept of geoblast is proposed as an engineering tool for Drill and Blast engineering practice in PT.IMK. In addition, there is a need to maintain rock fragmentation by blasting, to maintain monthly powder factor, and to maintain excavator’s productivity. Next, the concept of scaled depth of burial (Chiappetta and Treleven, 1997) and the concept of blastability index (Lilly, 1986) are proposed as geoblast’s tools to improve blasting practice in PT.IMK. It is expected that rock fragmentation by blasting, explosive consumption and excavator’s productivity will be maintained by integration of geoblast and drill and blast engineering. Furthermore, the objective of this paper is to integrate geoblast and drill and blast engineering in order to create an engineering guideline in PT.IMK. Additionally, blasting trials with air decking application is proposed in order to support the geoblast’s improvement. It is planned that these blasting trials will be conducted in 2022. In conclusion, it can be seen that integration of geoblast and D&B engineering in PT.IMK is relevant to improve current drill and blast current practice and applicable to maintain rock fragmentation by blasting.

Nov 29, 2022

By C Harrison, A Bowskill

The Ambuklao hydroelectric dam was originally constructed in the 1950s in the remote and mountainous region of the northern Philippines. Following its construction the dam has suffered heavily due to siltation and a partial collapse of the intake structure due to a 7.8 magnitude earthquake that struck the region in 1990. Between the years 1990 and 1999 the power station progressively lost its capacity to generate power. In 1999 the owner took the power station out of commission. The power station remained idle over the next 12 years. In 2008 the power station was sold to a new owner who commissioned the rehabilitation works.The rehabilitation project restored the operating status of the power station in June 2011 and increased its capacity from 75 MW to 105 MW. The civil contract of the rehabilitation project required the construction of a new intake structure behind an in situ rock coffer dam on the edge of the existing reservoir, new 6.2?m diameter × 124?m deep blind sunk shaft behind the intake structure, which connects to a new 6.8?m horseshoe profile headrace tunnel that ultimately connected onto the existing vertical penstocks which feed three No 35 MW Horizontal Turbines rated at 155?m head.The unique challenge in rehabilitating this existing hydropower station involved finding solutions that would conclusively deal with the challenging geological and hydrogeological conditions associated with excavating new tunnels and a drop shaft beneath a live dam.McConnell Dowell was awarded the civil works package for the rehabilitation works in August 2008. The Ambuklao rehabilitation program took 33 months to complete.Over 600?m of tunnels were excavated in highly weathered and often challenging geotechnical conditions via drill and blast with the extensive use of high-pressure fissure grouting to control groundwater ingress that was surcharged by the dam.This paper focuses on the use of high-pressure fissure grouting that took place to enable the excavation of the new waterway system and intake structure.CITATION:Bowskill, A and Harrison, C, 2014. High-pressure fissure grouting for drill and blast tunnelling, Ambuklao, Philippines, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 141–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By A Grigg, L Hackett

Alcoa operates two bauxite mines at Huntly and Willowdale, located within the jarrah forest south-east of Perth in Western Australia. Ore reserves are shallow but extensive, and mining pits averaging around 20 ha in size are distributed across a mining region in a mosaic pattern, linked to a centrally-located crusher by a radiating network of haulroads. A mining or crusher region is defined partly in terms of economic haul distances, and new regions are opened once the current regions’ reserves have been mined. Since commencing in 1973, the Huntly mine has constructed and progressively closed three previous mining regions and is presently in a transition from the fourth and current region of McCoy to the new region of Myara. At present rates of production, approximately 450 ha is cleared, mined and rehabilitated each year.The value of topsoil in returning a diverse mix of native jarrah forest plant species and supplying nutrients, organic matter and soil biota to rehabilitated areas has long been recognised. Managing the topsoil resource is therefore a critical element in the success of rehabilitation outcomes, but the distribution and dynamic nature of mining operations pose significant planning and logistical challenges. The regionalised approach to mining at Huntly also presents a range of issues for what are, in effect, soil management plans for episodic mine closure. The nature of mining and rehabilitation operations are described, together with the planning processes that Alcoa follows to quantify, track and report on soil movement. A case study of the Huntly mine demonstrates that an integrated operational and life-of-mine planning process is essential for successful and cost-effective mine rehabilitation.CITATION:Hackett, L and Grigg, A, 2014. Topsoil management for long-term mine operation and closure – a case study from Alcoa's bauxite mining operations in south-west Australia, in Proceedings Life-of-Mine 2014 , pp 609–614 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By N S Melkoumian

While improvements in occupational health and safety (OHS) in the mining industry have decreased fatalities and accidents, little attention has been paid to the cultural confound of 'safety' in the increasingly multicultural mining industry. Occupational health and safety processes often contain assumptions of cultural understanding that may not be shared or understood by mining employees. There are potentially dangerous and costly implications of cultural difference in the mining environment. Some people have been enculturated with high levels of anxiety concerning catastrophe and uncertainty while others have a more laissez faire attitude to accidents and disaster. The level of cultural anxiety about uncertainty can be a major factor in the acceptance of OHS processes. OHS manuals based on a comprehensive set of rules and procedures may assume that the authority of 'rules' is shared by all employees regardless of a variety of cultural understandings when this may not be the case. Similarly, cross-cultural employees may not share a background or acceptance of expensive technological innovation and so resist/avoid the application of new safety equipment. Then too, OHS staff may not realise the significance of religious belief or personal responsibility on employees' attitudes to safety in the workplace environment. A lack of consideration of these cultural elements could have fatal and expensive results. This paper explores the impact of cultural difference in the understanding of OHS in the Mining Industry, presents a model to improve the understanding of the cultural confound in safety, improves analysis of OHS in practical multicultural situations, provides assistance for those involved in OHS training and may become a basis for developing OHS policy and procedure.

Dec 6, 2010

By Kuganathan K, Potvin Y

Enterprise Mine at Mount Isa is to expand ore production from the current 1.4 to 3.5 mtpa by mining the 3500 Orebody, from which production is scheduled to start in February 1998 making this the deepest underground mine in Australia with its lowest mining horizon at nearly 1.6 km below surface. The following fill requirements were defined for the 3500 Orebody during the feasibility study: 1. a minimum filling rate of 250 ma/h, 2. a curing time of 28 days, and 3. minimum free fill water. This paper mainly describes the investigation of high density and paste fills for the 3500 Orebody. The investigation covered all the key issues relating to fill option selection, including design criteria, material supply and demand assessment, drainage modelling, tailing dewatering method, mix design and a pump loop test. Results of the investigation indicate that both high density fill and paste fill are technically feasible. The investigation has led to the selection of a blended tailing paste for the 3500 Orebody as the paste option has significant advantages over high density fill in stope filling rates and fill reticulation. The blended tailing for paste fill is finer than Isa deslimed tailing but coarser than full plant tailing. The paste fill selected has minimum binder and tailing dewatering requirements while a relatively high filling rate is achieved.

Jan 1, 1998

By J Barnes

During September 2000, Nabalco management identified the need for a corporate system to deliver its key performance indicators (KPIs). In June 2001, a need was also identified to replace the existing metallurgical accounting system. After a review of the technologies available, the decision was made to develop the systems in-house, in preference to purchasing commercial software packages. This would allow much greater control over the structure, and provide for an iterative, concurrent development process between software and key business developers. This has proven invaluable in the development process. The purpose of the KPI system is to provide a unified reporting tool for all performance indicators. These indicators include production, safety, health and environment, personnel, costs, continuous improvement initiatives and opportunity losses. All of these disparate measurements are brought together into the KPI system and used to determine the performance for each department or area. The general principles of the balanced scorecard business approach (Kaplan and Norton, 1996) are applied to achieve a performance measurement for each area within Nabalco. The new metallurgical accounting system (MA) is a SQLServer database with web page and Excel interfaces. The database is structured around daily inputs of all measurements and calculations. The data is stored and adjustments and reconciliations can be made to this data as required. The focus is on accounting rigour, with all adjustments recorded in the database to allow for full auditing. The structure of the data focuses on the five input/output streams (bauxite in, caustic soda in, fuel oil in, residue out, and alumina out). In-circuit inventory provides a secondary measurement on which to check and calibrate the MA system. The KPI and MA systems were developed using Web technologies and are available to any internet-enabled device with Internet Explorer installed. This removes the need for software rollouts and user training. This will promote the wide use of the systems throughout Nabalco and Alcan.

Jan 1, 2002

By Mizuta T, Sakurai M

The Pine Creek Inlier produced 12 440 kg of gold in the period from the first gold discovery in the 1860s to the early-1900s. During the 1930s renewed large-scale prospecting took place and gave a foothold for today's gold mining operations. The rise of the gold price and improved mining methods in the 1970s and 1980s made possible low cost, bulk low grade mining operations. Various gold deposits including vein, network and stratiform types occur in the Pine Creek Inlier (Nicholson and Eupene, 1990). The Tom's Gully deposit is located 100 km south-east of Darwin in the Northern Territory. It is hosted in the early Proterozoic Wildman Siltstone and lies north-east of 1800 my old Mt Bundey Pluton (Figure 1). Around the Mt Bundey Pluton, there are several prospective base and precious metal deposits such as Quest 29. The Tom's Gully gold deposit was discovered in 1986 and yielded a total of 3070 kg of gold from ore averaging 9.35 g/t gold between 1987 and 1990 when the mining operation was terminated.

Jan 1, 1994

By J M. Nel

Richards Bay Minerals (RBM) has recently undertaken an exercise to improve orebody basal definition. Older mineralisation bases (pre-2005) were highly erratic using old protocol reverse circulation (RC) (also known as Air Core) drilling and interpretation. The erratic nature of this estimation tool, resulted in impractical modelling towards the end of mineralisation (EOM), difficult mine design and unrealistic reconciliation. New protocol drilling, which includes high definition SONIC drilling data, has provided more data to be available for more accurate interpretation. Recent advances in drilling methodology has allowed for better penetration depths for SONIC drilling, which was previously restricted to approximately 80 m (pre-2005). This improved data set allows more emphasis on geological interpretation with factors such as lithology, slime content, and mineral species distribution. These factors when in unique combination enable more accurate and realistic EOM data points. These points are modelled into surfaces using conditional simulation techniques and result in a vastly smoother surface and consequently, a more representative resource.

Oct 5, 2011