Search Documents

The optimisation of capital in the total planning context has broadly two components: ò maximising the efficient utilisation of capital against competing capital demands; and ò maximising the efficiency with which the industry's capital requirements are sourced. This paper focuses on the latter of these two concepts, as I wish to highlight that within the coal industry the inefficient sourcing of capital has resulted in the inefficient utilisation of capital. In discussing the optimisation of capital within the coal industry I would like to outline three fundamental issues which currently impact the industry and its application of capital: Initially, from the perspective of an independent investor, the perceived risk associated with investing in a volatile industry cycle has not permitted appropriate funding structures to be created thus leading to an inefficient utilisation of capital. Secondly, investors seeking out a windfall gain have established a practice of trading in the assets rather than encouraging recapitalisation. And lastly the mismatch of supply and demand leading to the establishment of new projects which include a percentage of offshore investment has fostered an environment of lower returns and subsequently a dilution of capital.

Jan 1, 1991

By N Tuffs, R Peace, S Xue

Mine gas control is a major issue in most of the gassy underground coal mines, due to its direct impact on safety, production delays and cost of production. Analysis of the gas data, from different collieries in Australia showed that longwall gas emissions have increased substantially over the years. Simply increasing the number of goaf holes in the panel or decreasing goaf hole spacing seems not to be effective, in controlling high goaf gas emissions. A major research project has been undertaken by CSIRO in collaboration with mine sites to address this goaf gas control issue with the aim of developing effective and optimum goaf gas drainage strategies. The project has combined extensive field studies with computational fluid dynamics (CFD) models, to characterise goaf gas flow patterns and develop effective gas control strategies. The research work specifically involved review of gas control issues at field sites, goaf gas monitoring, tracer gas tests, CFD simulations and extensive field trials. Field demonstration studies of the new optimum strategies have been conducted at two collieries in Australia. The project results have shown that the optimum strategies were highly successful, in improving the overall efficiency of goaf gas drainage systems, at both the field sites. Results of the goaf gas flow characterisation studies and field demonstration studies are summarised in this paper.

Jan 1, 2005

By E Ahern

In exchange for issuing minerals rights from the Crown Mineral Estate to explorers and miners, the Crown expects a æfair returnÆ on this investment, ultimately for the benefit of all New Zealanders. In the case of mining permits, this return is in the form of a tangible asset û royalties from mining activities. But for exploration activity, the return sought by the Crown is an intangible asset û information. The information obtained serves three purposes û in helping Crown Minerals to set work programme conditions during permit allocation, for monitoring the performance of permit holders in accordance with permit conditions, and for archiving and making available for future interested explorers and other parties. Difficulties can arise during the allocation and monitoring process when either party has more information than the other that is not shared. To date not enough emphasis has been placed on the intrinsic value and content of the information generated by explorers and the importance this information can have in the exploration process leading to new mineral discoveries. For attracting exploration investment, the quality and availability of such information, combined with other geoscientific data, is a fundamental determinant for potential explorers when choosing to explore in a global market, and strongly defines the mineral prospectivity for a country. This is something the Australian States and other jurisdictions seeking mineral investment learnt long ago, and who now provide substantial amounts of cheaply or freely available packaged geoscientific datasets, increasingly over the Internet. To have a vibrant mineral exploration industry so that the benefits from the mineral estate can be realised for all New Zealanders, a shift in emphasis to the value of its mineral information base itself is required. Such an approach is befitting of a true Knowledge Economy, and would enable the Crown to make better-informed decisions regarding utilisation of its natural resources.

Jan 1, 2002

Distal air-fall ashes are widespread deposits that may record volcanism many hundreds of kilometres from their source. They are characteristically thin, fine-grained and have a low preservation potential usually being either eroded, or reworked and incorporated in overlying sediments following deposition. The most likely sites of accumulation are deep sea, lake and swamp environments where low energy conditions favour preservation. Post-depositional alteration of predominantly glassy volcanic ash is commonly extensive hampering identification of such layers in the geological record. As a result air-fall tuffs are poorly represented in the rock record and furthermore are commonly misinterpreted. Southeast Queensland during the late Triassic hosted active silicic volcanism and a number of fault-controlled basins in which coal-bearing sediments were accumulating. Silicic volcanics of late Triassic age are represented by the Brisbane Tuff in the Brisbane city area, the Chillingham Volcanics to the south of Brisbane and extending into New South Wales, the North Arm and Mount Byron Volcanics to the north of Brisbane, the Aranbanga Beds exposed around Gayndah and the Agnes Waters and Muncon Volcanics which occur northwest of Bundaberg. Stephens (1986) interprets these Volcanics as the remnants of a major silicic igneous 'province which he likens to modern continental orogenic margins. The Ipswich, Tarong and Callide Basins of southeast Queensland all contain coal measure sequences of late Triassic age that accumulated in alluvial plain environments. A Dicroidium flora is common to all and palynol.ogical evidence indicates a late Triassic (Carnian) age (de Jersey, 1975; Stevens, 1981). The coal seams of the three basins are characterised by their thickness (up to 25 m) and the presence of abundant thin, laterally persistent, kaolinite claystones (tonsteins) that show a marked similarity of morphology, texture and mineralogy. Detailed studies of the Ipswich Coal Measures (Falkner, 1986) suggest a volcanic air-fall origin for the tonsteins of the Ipswich Basin. Similar.tonsteins from the Tarong and Callide Basins provide evidence for widespread silicic volcanism during the late Triassic in southeast Queensland.

Jan 1, 1987

By L S. Barbour, M K. Meiers

Soil covers for mine waste are subject to changes in structure as a result of root development, and wet/dry or freeze/thaw cycling. The purpose of this study was to evaluate the changes in the hydraulic conductivity of three non-compacted clay covers over time. The covers are located on a sodic/saline overburden fill (30-Dump) at the Syncrude oilsands mine in Fort MacMurray, Alberta, Canada. Monitoring of these covers for temperature, matric suction, and water content by the University of Saskatchewan has been ongoing for more than three years. The three covers (D1, D2, and D3) were constructed in 1999 and are 50 cm, 35 cm, and 100 cm thick. The covers are comprised of a surface layer of reclaimed peat/mineral mix over a secondary reclaimed mineral soil (glacial till or glaciolacustrine clay), placed over a sloping shale surface. Field measurements of hydraulic conductivity within the secondary layer were obtained using a Guelph Permeameter during the 2000, 2001, and 2002 summer field seasons. Repeated measurements were made within the D1, D2, and D3 covers at depths of approximately 40 cm, 30 cm, and 60 cm, respectively. The values of hydraulic conductivity for the covers were similar to each other during each of the field study seasons. The mean hydraulic conductivity of the secondary layer increased every year: 2.5 + 10-6 cm/sec to 2.1 + 10-4 cm/sec to 4.3 + 10-4 cm/sec from 2000 to 2001 to 2002. Soil temperature data shows that one freeze/thaw cycle occurred each year at the measurement depths.

Jan 1, 2003

By G W. Wilson, C Panidis

Potentially acid forming (PAF) waste rock contained in dumps formed as a result of open cut mining of metalliferous orebodies are conventionally sealed or covered using a near-saturated, low permeability compacted clay layer, protected with a mulch layer and/or vegetated growth medium. The purpose of the compacted clay layer is to limit oxygen diffusion and the infiltration of rainfall into the dump. Where the aerial extent of the PAF waste rock dump is large, or where suitable clayey material is in short supply, it may be difficult to source sufficient suitable clayey material to form the cover. The paper describes a laboratory-based investigation of combining inert waste rock and tailings to form an alternative seal or cover material. The inert waste rock was sourced from the trafficked surface of a non-acid forming (NAF) waste rock dump, with a maximum particle size of about 100 mm. This was combined with NAF thickener underflow tailings slurry in various mass ratios, and the resulting mixtures tested for their particle size distribution, compaction characteristics, soil water characteristics (relationship between suction and volumetric moisture content), and saturated hydraulic conductivity. The mixtures tested ranged in consistency from those dry enough to be compactable, to those with the consistency of wet concrete that lend themselves to placement without the need for compaction. The laboratory test results showed that the suitability of the mixtures as seal or cover materials is very dependent on the particle size distribution of the mixture, with well-graded mixtures having substantial fines performing best.

Jan 1, 2003

The Pacific Rim and its environment involves a vast array of natural phenomena, and a vast array of situations which show the impact of man. Almost half the world's population of over five billion live in nations" which border the Pacific, but the concentration is focussed in the North. Great experiments are occurring in this region, the industrialization and energy development in- Japan and China, the growth of Indonesia, (now 168 million - soon 368 million; Brown and Jacobson, 1986), the enormous developments of agriculture and the metals resource base in Australia and China. At the same time, the Pacific Rim does not project images of hopelessness, the mood is upbeat. Over the past decade, incomes have increased substantially in most of the major countries of Pacific Rim (e.g. over the period 1980-86, + 58% in China, + 21% in Japan, + 34% in South Korea; Brown and Jacobson, 1986). In September, 1986, at the general assembly of the International Council of Scientific Unions (ICSU) in Bern, Switzerland, representatives of over 50 nations approved a new initiative, "The International Geosphere Biosphere Programme: A Study of Global Change". The focus of this new program is "To describe and understand the interactive physical , chemical , and biological processes that regulate the total Earth system, the unique environment that it provides for life, the changes that are occurring in this system, and the manner in which they are influenced by man. The IGBP will be a tightly-defined programme of research, directed at providing fundamental knowledge that will serve as a basis for assessing likely future changes on the Earth in the next 100 years" (ICSU, 1986). For the earth scientist, and all resource scientists, there is an emerging agenda; new priorities are appearing, new questions are being asked. The recent report of the World Resources Institute (1986) focusses on this emerging agenda. Topics which are at centre stage in this report include the following: The environment and human health Tropical deforestation The atmosphere as a shared resource and climates Soil-degradation Rural-urban migrations Food and agriculture The diversity of species-ecosystems Freshwater as a finite resource Coastal areas and resources

Jan 1, 1987

This paper provides a brief fundamental insight regarding the fabric media concept for liquor filtration. The subject matter will be of interest to metallurgists and engineers with professional responsibility for world class design of solid liquid separation processes and efficient lowest cost operation of existing mineral process plant. Avocet Mining commissioned the worldÆs first mineral liquor clarification process incorporating a fabric media liquor filter at their Lanut gold mine in Sulawesi, in 2004 with design consulting provided by the Australian company SLS Technology Pty Ltd. Development of the technology continues with applied research focused on selecting textile parameters to apply filtration to a wider range of particle and contaminant types, higher solids concentrations, and different process liquors. Liquor filtration with the Fabric Media technology offers an array of attractive benefits. For Avocet Mining, filtration of pregnant liquor directly from the heap leach pad has enabled removal of the sediment pond and sand filters from the traditional process flow sheet, thus providing significant cost and installation time savings. Avocet Mining has recently expressed confidence in the technology indicating selection preference of the technology for the expansion at Lanut and for a new project. The application design window for the Fabric Media concept is extremely flexible with the technology now successfully applied to many different liquor chemistries and application objectives around the world. Potential cost savings for solid liquid separation process plant, such as counter current decantation circuits, clarifier vessels and thickener tanks can be calculated from laboratory measurements or pilot plant demonstrations.

Jan 1, 2008

By R M. Tosdal

Intrusion related ore deposits are widespread in the Central Peruvian Cordillera Occidental and adjacent high-plains to the east and include porphyry Cu (-Au, Mo; eg Morococha), Cu-Zn (Pb-) skarn (eg Antamina), Pb-Zn-Ag carbonate hosted vein deposits (eg Uchucchacua), cordilleran base metal (eg Cerro de Pasco) and epithermal deposits (eg Quicay). Geochronology and petrochemistry of intrusive rocks associated with mineralisation reveals that: most ore deposits were emplaced in the late middle to early late Miocene; and are related to calc-alkaline granodioritic igneous rocks with Sm/Yb >3, Sr/Y >40 and Y/Th <1.5. The largest deposits, including Antamina, Colquijirca and Cerro de Pasco are associated with intrusions with Sm/Yb >4 and which, as indicated by Pb and Sr isotopic data, have undergone relatively moderate middle and upper crustal assimilation. The chemical signature of igneous rocks related to mineralisation likely reflects melt equilibration in the lower crust at a crustal thickness of more than 45 km. Mineralisation was favoured by a change from normal to flat subduction, resulting in increased compression, crustal thickening and subsequent cessation of the magmatic arc. Premiocene ore deposits do occur, but are restricted to a broad E-W corridor between Uchucchacua and Milpo and probably were controlled by a crustal-scale structural discontinuity across the strike of theAndes. Not all igneous rocks with high Sm/Yb and Sr/Y ratios did acquire their trace element signature in the lower crust. Petrographic and Pb isotopic evidence indicates shallow crustal hornblende fractionation or assimilation of pelitic material as possible causes for high trace element ratios in some rocks. These are apparently unrelated to polymetallic mineralisation. Thus, critical evaluation of petrographic and geochemical data in metallogenetic studies, especially in areas with complex basement architecture such as Central Peru is critical and should not be reduced to simple trace element ratios. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

IN preparing a sample of refined lead for analysis, it is necessary to exercise great care to avoid contaminatien, as the amounts of the various impurities present in market lead are very small. The lead is cut into convenient-sized pieces, which are flattened out with a hammer, so that, on putting tbe lead through the rolls, strips of about one inch in width and Ij32iu. in thickness are obtained. The hammer, anvil, and rolls should be carefully cleaned before use. The strips oflead are cut up into pieces of about one inch square. If the lead is roIled out very thin and cut up into small pieces there is considerable risk of the acid acting too violently and causing loss through frothing over. A blank assay on all the reagents used should becarried right through, along with the actual analysis of the lead. This is of the greatest importance, particularly with regard to the determination of such impurities as iron, sulphur, arsenic, and antimony.METHOD OF ANALYSISThe method of analysis is as follows: Take two lots of 600 gIm. each, place in a large beaker, add 2000 cc. distilled water and 750 cc. concentrated HNOs. Cover with a clock glass and warm on a hot asbestos plate until all action ceases. (If any white precipitate forms, filter off and examine for Sn and Sb.) Add 420 cc. H2S04 (1-1), and stir well while adding the acid: Allow PbS04 to settle, pour off the clear liquid into a 12-in. porcelain evaporating dish, and start evaporating down, the dish being placed directly on an 8-in. ring gas burner. Wash the precipitate three times by decantation using approximately 1200 cc. hot water for each washing, and stir well...

Jan 1, 1922

Conventional blasthole sampling for grade control has acquired an extremely bad reputation for the last 50 years. The introduction of many sources of bias is a structural reality. Delimitation biases are devastating. Extraction biases are of great concern as well. Weighting biases aggravate an already bad situation. Furthermore, preparation biases are many. Some of these biases are due to the type of drilling machine that is used and are nearly unsolvable. Some of these biases are due to the sampling tools that are used and often unsatisfactory. Attempts to automate blasthole sampling at the drilling site have failed, not because it cannot be done, but mainly because it interferes with drilling productivity. As a result the miner most often rejects the idea after a few weeks of practice. Manual sampling of blasthole piles is a disaster for many reasons; some are related to the methodology, some to the selected sampling protocol, some to the training of operators, some to limited manpower available, and some to limited supervision. Furthermore, with blasthole sampling a time logistic problem is unsolvable as the miner wants the ore grade control geologist to make up his mind within two or three days at most; as a result not enough time is allowed for samplers, preparation facilities, laboratory, and resources department to perform a good job as everyone is working under unreasonable pressure. The economic impact of poor blasthole sampling for grade control has been vastly underestimated by mining companies. The resulting ore grade misclassification is responsible for severe reconciliation problems and massive financial losses every year. This paper suggests areas along this grim scenario where things can be greatly improved; however it is clear that too many problems are unsolvable. An alternative using reverse circulation drilling for grade control is suggested. A thorough analysis of the respective advantages and disadvantages for blasthole and reverse circulation drilling for grade control is presented in this paper.

Jan 1, 2008

Looking back 25 years, the role of the drill and blast engineer in an Australian mine seemed relatively simple, with the primary focal points being scheduling of the drill rigs, oversize control, and budget control with respect to consumption of both explosives and drill consumables. The choice of explosive selection was relatively simple, though many mines were becoming involved in trials of slurry explosives, emulsion blends, and low density ANFO blends. Guidelines to assist the engineer towards specific fragmentation targets were scarce, environmental constraints were light, and computers were rarely found on the desks of any mining engineers. Wall control blasting was in its infancy, with the bulk of attention being given to appropriate slope design and little real attention given to factors such as explosive distribution, and optimum delay timing and sequencing. Quantitative measurement of blasting performance was rare. The science of blasting, for fragmentation control, wall control, and environmental impact control was about to be born, and was heralded in those years by intense efforts by the explosive manufacturers and a proliferation of research centres throughout the world. Since the early 1980s, the role of the Australian drill and blast engineer has gone through a major metamorphosis, and currently requires a greater depth of scientific understanding than any other specialisation within mining engineering.

Jan 1, 2004

In this paper presented are the criteria used when assessing the harmfulness of shocks affecting the buildings. Those criteria are based on the value of speed or accelerations of building vibrations. Presented is the scale of harmfulness of vibrations of Langefors and Kihlstrom, Bureau of Mines, and SWD contained in the Polish Norm PN-85/B-02170. The parameters of the mining shocks measured by the Lubin coal mine station were compared with the parameters calculated as per the correlations (regression curves). The average acceleration calculated from the correlations for eight measurements is only two per cent higher than the actual one. But the average frequency of vibrations calculated from the correlations for eight measurements is as much as 2.22 times lower than the actual one. In order to analyse whether that takes place in the whole range of the energy of shocks compared were the results of calculations from the correlations for various magnitudes of shocks and various distances from their epicentre with the results of the measurements. From that it follows that only for the shocks of the highest energies the lowering of the frequency of vibrations by two times causes movement from the higher zone of harmfulness to the lower one (for example from the IV to III). In the one-family houses in Lubin there were the damages that are characteristic for not only for the III but also for the IV sphere of harmfulness as per the SWD scale. That should be explained via further research and maybe it would be feasible to draw out a new correlation to determine the frequencies only for high values of energy of shocks and determine the preciseness of the acceleration and frequency correlations used presently.

Jan 1, 2003

By J Webb

Anoxic limestone drains (ALDs) have been widely used in the passive treatment of acid mine drainage (AMD), but their effectiveness has often been less than anticipated. Iron hydroxide often precipitates around limestone particles and inhibits neutralisation. To determine the conditions under which iron hydroxide precipitates, a small-scale laboratory ALD system was built to enable a detailed examination of the chemistry of iron within the drain. For one experiment, a mixture of limestone and quartz was introduced to the drain to assist in the determination of the key mechanism governing iron precipitation. Synthetic anaerobic acid mine drainage containing Fe2+ (~130 ppm), SO4 2- and H+ was pumped at a rate of 30 mL/min up a 90 cm tall, 15 cm diameter vertical column filled with limestone gravel of 98 per cent purity. Three sampling ports were fitted at equal intervals along the column; water was periodically extracted for analysis at the sampling ports over an 11-hour period. Experiments were run at influent pH levels of 2 and 4. Results show that acid neutralisation to pH greater than 6 occurred at the inflow end of the drain. The greatest amount of iron precipitation (19.5 per cent) also occurred in this area. The lack of iron precipitation on the quartz surfaces in the quartz/limestone mixture indicates that neutralisation is the key mechanism for the precipitation of iron hydroxide on limestone particles. A pe-pH stability diagram derived for the laboratory ALD system indicates that ALDs will not be effective for AMD with pH 2. Influent waters with pH 2 require a pe of -2 (Eh: -118.4 mV) to avoid Fe precipitation upon neutralisation. Influent waters of pH 4 require a pe between -2 and -4.

Jan 1, 2003

Mr Chairperson, respected leaders of the mining industry, ladies and gentlemen;   Good morning, Kiora, Nihao.   I am very honoured to give a speech to the 2005 New Zealand minerals conference. I would like to take this opportunity to express my sincere thanks to the Ministry of Economic Development to invite me to be part of this important event.   Today, I am going to talk about two themes: a brief introduction of ChinaÆs economic development, including ChinaÆs energy strategy; the good bilateral relations between China and New Zealand, its potential for further development and its relevance to our cooperation in the field of minerals and energy.   It is a well-known story that over the past 27 years, great changes have taken place in China. In 1978 when ChinaÆs reform and opening up just started, its gdp was near to only 150 billion usd dollars. By the year of 2004 it reached to 1.6 trillion usd, an average of yearly growth rate 9.4 per cent.   ChinaÆs great achievements are widely appreciated both in China and abroad. ChinaÆs development has not only improved the living standard of its own people, but also produced a huge market and brought about great opportunities for the world. Since ChinaÆs entry into WTO in 2001, China has imported near to 1.8 trillion usd dollars of goods, averaging a yearly imports of 500 billion usd dollars, creating for other countries and regions more than ten million jobs.   Our prediction is that in the next five years, ChinaÆs imports will be well over three trillion usd dollars. China will continue to serve as one of the leading growth engines for the future world economic development. Now China is on its great strive to achieve the goals of improving living standard for all the Chinese people. We are trying to reach a quadruple gdp of 2000 by the year of 2020, namely to reach gdp four trillion usd, a gdp per capita 3000 usd dollars.

Jan 1, 2005

By O Pasca, B Hogg

Consistent slag blow end point detection remains one of the challenges in the Peirce-Smith converters at Mount Isa MinesÆ Copper Smelter. Under blowing results in foaming on copper blow and carry forward of oxide skims to the anode furnace. Over blowing results in high copper losses to the slag. Both present safety issues and contribute to lower copper production. The end points of the slag making phases are assessed by inspection of a bar sample. A bar sample is a thin accretion layer that adheres to a steel bar when it is inserted into the tuyere while the converter is blowing. This method is biased and subjective, so there is heavy reliance on operator experience. The Semtech Optical Process Control (OPC) system was installed in early 2002 for converter slag blow end point detection. Initial plant trials did not improve all aspects of converter operations, and uptake by operators was poor, so the system was not used. In early 2005, the Semtech OPC system was re-visited and another short trial was conducted to evaluate the permanent use of the system for slag and copper blow end point detection. During this trial, the Semtech OPC method was found to be superior to bar sampling for slag blow end point detection. The implementation and refurbishment of the Semtech OPC system has resulted in plant improvements and given a better insight into converter operation during blowing. Oxide skim generation carried forward to the anode furnace has been shown to decrease with increasing compliance with Semtech OPC. Some of the expected improvements to converter operation were not found to be significant. Semtech OPC is now well received and utilised by converter operators. Individual paper available only. Not included in book or CD ROM Proceedings.

Jan 1, 2005

By S Brochot

In cases where coarse gold is present in a deposit, it is usual to use the screen fire assay (SFA) method to analyse the samples. There is no doubt that this method is more accurate than the standard fire assay (FA) and reduces the risk to have a systematic bias. Nevertheless, the difference between the analytical errors of both methods can be glossed over when the overall sampling error is added to obtain the measurement error. In that case, the advantage of the SFA cannot justify its higher cost.The current paper attempts to address this question in the case of a gold ore deposit with visible coarse gold in various sampling situations (drill core sampling in exploration, blasthole or chip sampling in mining exploitation). The overall measurement error is estimated taking into account the analytical error and all the sampling error components following the Pierre GyÆs theory of sampling.Firstly, only the last sampling stage is considered when the pulverised sample is processed either to obtain one analysis sample for a FA or to be screened and subsampled for a SFA. The calculated measurement error clearly shows the advantage of the SFA specifically in presence of coarse gold. Secondly, the half core sampling is studied to explain the observed discrepancies when controlling the second half core. Finally, the blasthole sampling is treated using in situ heterogeneity models to show that the relative advantage of the SFA is hidden by the large overall sampling error.In conclusion, the choice of the assaying method is discussed at the light of the overall measurement error and in accordance to the analysis objective.CITATION:Brochot, S, 2012. Standard fire assay or screen fire assay? Application of the overall measurement error approach to choose the most appropriate method, in Proceedings Sampling 2012 , pp 135-142 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

In general the iron ore industry has been slow to adopt the Whittle Pit optimising software in the evaluation of iron ore deposits. The reasons for this are two-fold:the iron ore industry has developed techniques, usually bespoke software residing in the corporate offices of the respective iron ore companies, to establish their final pit limits; and the fact that the Whittle software doesnÆt easily lend itself to estimating a sales product of constant quality without maximising grade (metal content). The Whittle software is based on the work done by Lerch and Grossman (in the early 1970s), which proposed that graph theory be used to establish an optimal surface that maximises the revenue from a deposit. The maximised surface created in the pit optimiser is translated into a proposed optimal final pit shape that can be used by the mine design engineers as a target outline to lay out the final practical pit. By treating a geological and ore resources model that was created for an iron ore deposit as a subset of the recoverable resources estimation (RRE) type of geological models, the evaluation of an iron ore deposit and establishing the final pit is greatly simplified in the Whittle 4-X optimiser. Instead of trying to optimise the iron content of the deposit, the emphasis swings to maximising the extraction of a finished and saleable iron ore product. This is achieved by treating the finished saleable iron ore as an element in the multi-element Whittle optimiser. The quality of the finished sales product is represented, and the material that cannot be used in the blended product is also shown. Proposals for enhancing the functionality in the Whittle 4-X optimiser to make the evaluation of iron (and coal) deposits easier includes the creation of a new reporting function that will allow the user to specify which field(s) can be used as the divisor(s) for the reporting of the element grades in the model.

Jan 1, 2007

The Porgera gold project is now in its seventh year of operation as one of the world's prime gold mining projects in one of the most underdeveloped and remote regions of the world. The unique gold deposit was development in stages to its present size of operation with an underground mine of 2000tpd, an open pit operation moving 210,000tpd and a complex metallurgical plant treating an average of 16,500tpd of ore. During the past years the operation had to address an array of issues relating to the "development" of the region and this is still ongoing. Development means different things to different people and though the parties that signed the different agreements relating to the Mining Development Contract were aware of this, none has real- ised the extent to which this is true. The developing company (a joint venture between Placer Pacific as the Manager, Goldfields Porgera, Highlands Gold and the Government of PNG), provided funds for risky exploration and the capital for development of the project. Its shareholders ex- pect an economic and viable mine operation from the deposit to ensure them returns on their investment. The local people gave up their land, their isolated way of living and accepted to be out of their comfort zone for some time in anticipation of a better lifestyle and economic benefits in support of that lifestyle. The PNG Government has a leg in both camps and expects both outcomes at the same time. The Government is also the regulator and expects compliance on top of that. If development in general is to be successful, all parties must substantially satisfy all expectations. It is evident that the outcome of some elements of development are reasonably defined (i.e. develop a viable mine to exploit the deposit), whilst other elements are moving targets (i.e. a better lifestyle). The seeds for conflict are thus abundantly present and to resolve them requires the will of all parties in all areas to come to a solution. This path to problem solving is many times torturous as each party comes from a different culture and background and has a different understanding of the parameters in the equation.

Jan 1, 1997

Mineral resource estimation is commonly based on the accumulation of a series of local estimates. At times, the distribution of these grade estimates is not appropriate to the grade distribution of the data on which the estimates are based. Mineral resource grade estimation has an increased potential of being in error as the grade variability increases. As the mineral commodity value increases, greater grade variability within the mineral resource is tolerated. This paper directs its attention to mineral properties where the data average grade is 20 per cent or more than the data median grade at a specific cut-off grade. A mineral resource estimate is enhanced if it is supported by graphs which demonstrate that the sample data have been separated into appropriate geological domains. Each geological domain has a unique grade distribution signature, which can be graphically demonstrated simply and objectively. This signature will usually be evident well before the Indicated mineral resource estimates are available. The paper looks at the use of the log probability and MedAve plots to assess how effective domaining has been. It further outlines how the MedAve plot can be used to assess the integrity of the mineral resource grade estimate within a geological domain with the data on which it is based. The paper suggests that the overall grade of a mineral resource at any cut-off grade will be closer to the data median grade rather than the data average grade. Tips are provided to ensure that the odds reflected in the data grade distribution are not ignored and hence the risk that the project is affected by unrealistic estimates of the overall mineral resource grade is reduced.

Jan 1, 2003