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By C Tomlin, C Gimber

Historically, key closure risks have been studied during operations and then further assessed as cessation of mining approaches. Only in the past couple of decades or so has progressive rehabilitation and closure become an integral part of regulatory frameworks, sustainable mine planning and more recently, new project and development planning. It is now broadly accepted that the best closure outcomes occur when rehabilitation and closure are properly considered upfront, during the early stages of a mine development project and well before mining occurs. Increasingly, regulatory processes are requiring more diligence on early closure planning, often as part of the environmental impact assessment (EIA) and approvals process, rather than later in dedicated closure study phases. There is an opportunity to use the information generated during this phase to make better decisions on project selection, design, mining methodology and all other facets of the mining operation.

Aug 2, 2023

By L McCallum, G Dale, B Silverwood, T Roscoe, A Costin

The introduction of Progressive Closure and Rehabilitation Plans (PCRPs) in Queensland from 2019 places greater importance on planning and implementation of mine rehabilitation activities. The progress and outcomes of progressive rehabilitation activities is monitored and reported upon to demonstrate success in achieving progress towards the approved post-mining landform, and to inform corrective action where required. The requirements of PCRPs place additional emphasis on mine sites to quantify the risks of successfully achieving planned outcomes. This is particularly challenging given mined-land rehabilitation is a complex process involving decisions on multiple inter-acting management interventions, climatic conditions and spatially variable site characteristics.

Aug 2, 2023

By A Harburg, A Dendys, G Green

Dugald River Mine (DRM) is located approximately 85 km north-east of Mount Isa, and 65 km northwest of Cloncurry, in the north-west Queensland Minerals Province of Australia. DRM is an underground operation and includes an above ground processing area, a 200 ha tailings facility, two waste rock dumps and associated infrastructure. The mining method is conventional underground longhole open stoping and downhole benching of a lead/zinc deposit within a black slate environment. The deposit is estimated to contain ~53 Mt of zinc and lead, which will be mined over a 30-year period. During operations, waste rock is segregated into either Potentially Acid Forming (PAF) or Non-Acid Forming (NAF) based primarily on the sulfide concentration of the rock. In particular, the NAF waste rock is an asset and is used for various small construction projects during operation; however, its primary use is for rehabilitation work at closure. Since beginning operations in 2017, DRM has generated more NAF than was originally anticipated. Whilst this is an excellent asset to DRM, it did pose a logistical problem of where to store the additional NAF for the life-of-mine and how to manage the run-off. DRM experiences distinct wet and dry seasons with hot conditions and periods of rainfall between November to April, and relatively dry and mild conditions between May to October. Majority of rainfall is received between January and February with an annual average rainfall of 501.1 mm. Short and intense rainfall events are common. DRM’s above ground infrastructure is land-locked between two large ephemeral watercourses, making the significant expansion of any assets challenging from a permitting/regulation and cost perspective. MMG is also a member of the International Council on Mining and Metals (ICMM) and is committed to adapting to a changing climate through operations and closure. Following extensive studies DRM opted to store the additional NAF material into the adjoining NAF Dam and concurrently upgrade a previously minor sediment basin into a highly engineered sediment basin which relies on automatic flocculant dosing to meet the required discharge quality limits. This basin is climate-resilient in that the dosing system can be adjusted to counter high intensity extended rainfall events which produce highly variable inflow water quality. This abstract broadly describes how DRM designed and implemented an engineering innovation to enable the site to meet the changing climatic challenges. The abstract then describes the process to design the sediment basin and how the dosing rate was established and validated. Finally, the abstract comments on the effectiveness of the sediment basin and how it has revolutionised DRM’s approach to water treatment and management; all whilst minimising the disturbance footprint of the operation

Aug 2, 2023

By M R. Lane, M L. Cramer, N P. Wines

Increasing attention is being focused by regulators and industry on the residual environmental liabilities associated with mining projects following site relinquishment (termed surrender in Queensland). Even sites that have been rehabilitated to a high standard and to the satisfaction of the regulator are not completely risk free and may require some degree of ongoing management. As well as ongoing monitoring and maintenance costs, considerations should include how costs associated with potential risk event occurrence can be quantified and, if considered material, how provisioning should be undertaken to minimise the risk to the state and to taxpayers. In Queensland for example, once a resource site is fully rehabilitated and meets its environmental authority conditions or rehabilitation completion criteria, the tenure and environmental authority can be surrendered. During the surrender process any ‘residual risks’ resulting from the use of the site for the resource activity must be considered, and, if requested, a payment given to the government to cover any ongoing management and risk costs. Accent Environmental, in conjunction with Lane Associates, was engaged by the Queensland Government as part of the government’s financial assurance framework reforms to develop an innovative, ‘one-size fits most’ Residual Risk Calculator for the Queensland resources industry. The calculator is an Excel-based tool that uses detailed user inputs to estimate post-surrender management requirements and liability at resource sites. If residual environmental risks associated with rehabilitated mine sites can be identified, quantified and managed through pragmatic regulatory tools and effective provisioning, site relinquishment/surrender can be achieved without compromising environmental and social outcomes or exposing the state to unreasonable financial risk. The effective management of residual risk can also help facilitate operations as well as relinquishment/surrender of sites where a ‘walkaway’ solution may not be otherwise technically feasible.

Aug 2, 2023

By G Stephenson, G MacDonald, A Yeomans, S Sinclair, V Knott

Rio Tinto has actively committed to progressive reclamation, concurrent with commercial operations, at its Diavik Diamond Mine. The most significant piece of progressive reclamation undertaken at Diavik to date has been the construction of an engineered thermal rock cover for the mine’s largest waste rock storage area. This 80-metre-tall and 2000-metre-long area is known as the Waste Rock Storage Area – North Country Rock Pile (WRSA-NCRP) and contains the operationally segregated potentially acid-generating waste rock mined over the last 20 years. As part of the mine plan, an opportunity was recognised where a limited 1.5 per cent of the WRSANCRP surface area was required for storage of the balance of life-of-mine generated waste rock and a decision was made to advance the closure design almost a decade ahead of final closure. With over 12 860 000 tonnes of material placed and 57 443 dozer hours logged since cover construction, progressive reclamation on the WRSA-NCRP is scheduled to be complete in mid-2023, three years before planned cessation of commercial operations in 2026. The progressive closure of the WRSA-NCRP demonstrates Rio Tinto’s commitment to not only closure, but modern best practices with integrated mine closure. Over the past seven years, Diavik has overcome multiple implementation hurdles for this project including the psychology of operational standby, the financial mechanisms required to support closure, working within the constraints of a mine plan and the associated operational organisational structures. This paper outlines the lessons learned to provide an example of successful integrated mine planning for closure. The North Country Rock Pile project had three major learnings which resulted in an effective organisational structure that allowed for the execution of an integrated planning model for progressive closure. The initial hurdle the project faced was adapting the psychology of an operational open pit mining team. The team was an experienced mining group who came in with the perspective to target the shortest haul possible resulting in the initial perception that the longer haul of material to the NCRP was an un-necessary task impacting operational performance metrics. After the installation of an improved dispatch tracking system and performance metrics, it was possible to demonstrate that the mine was shovel constrained. This showcased the short haul was generating an increase in queue time not production. With updated performance metrics, the team was aligned to target a decrease standby through haulage to the NCRP. These performance metrics had to be reinforced by financial mechanisms. The operations team was able to offset costs by charging time to the capital project set-up for the closure of the NCRP. This allowed the operations team to receive credit for time that would have otherwise likely been standby. As well, the progressive closure project was able to receive the benefit of not having to incur costs for the drill, blast and load as that was done as part of the operation. This was a significant benefit to the project and one of the primary drivers for the early approvals of the work as the project costs were limited to the incremental haulage distance and placement of the material. Life of Mine Conference 2023 | Brisbane, Australia | 2–4 August 2023 114 While the combined operational and progressive closure approach provided financial advantages, it did result in the project being constrained by the operational activities. A traditional capital project is managed through a linear execution plan where the deliverables within a project are within the realm of control of the project execution team. However, the NCRP project had to be continuously adapted to the outcomes of the pit operations. This included geotechnical constraints, ore delivery, and other operational delays. To adapt, the planning module had to be dynamic but not reactive to allow for adjustments on a shift-by-shift basis. Based on this requirement the Diavik Closure Projects structure adopted a mine planning format. The team executed a similar planning timeline and reporting structure as the mine operations team, allowing planning to be integrated into the operational planning structures on a daily, weekly, monthly and quarterly basis. This resulted in the Projects team as a core pillar of the mine planning team. The process of continuous improvement spanned six years and has resulted in the project being ahead of schedule and under budget for the project’s scheduled progressive closure completion date of June 2023. The North Country Rock Pile project supports the argument that bulk earthworks progressive closure projects should be integrated into the operational mine plan. If the project is aligned the mine plan it allows for dynamic adjustments which capitalise on evolving opportunities inevitable in an operating mine. These cultural and organisational alignments should be supported by appropriate performance metrics and financial mechanisms to ensure united priorities. The result of this alignment provides long-term financial savings for the business as well as delivery of closure objectives.

Aug 2, 2023

By A Maier, M Goldner, C Gimber

Given the ongoing global crises of climate change and nature loss, with the World Economic Forum (WEF) identifying them as the top risks to global economies in terms of both likelihood and impact in the coming ten years (WEF, 2022), there is increasing, pressing demand for companies to demonstrate they understand their climate and nature related risks and look toward contributing genuine beneficial environmental outcomes. Within the mining industry, mine closure is the obvious field in which climate and nature positive strategy can be linked with operations. To do so, there is a need to challenge long-held assumptions around closure in the mining and regulatory context; particularly, to shift the focus from closing individual mines to considering regional opportunity generation and value creation.

Aug 2, 2023

By K Baker, J Purtill

One of the key challenges for the mining industry globally is the rehabilitation of mine waste, and Queensland is no exception. Out of pit waste structures including waste rock dumps and tailings storage facilities, create novel landforms which require ongoing maintenance and pose risks to the environment and sometimes to communities. Where multiple mines co-exist, such as parts of Queensland’s Bowen Basin, individual mines can often be constrained by adjoining operations. This presents opportunities for broader rehabilitation strategies to be considered, more than the current single mine focus, that may provide better environmental outcomes for a region. Given recent global disasters involving tailings storage facilities, and our team’s endeavours to drive Queensland to achieve leading practice in mined land rehabilitation, we are exploring the potential to maximise in-pit tailings disposal opportunities for coalmines through shared waste management strategies. A shared waste management strategy is where two (or more) mines, owned by different companies and operated under different environmental permits, transport tailings from one mine to the other in close proximity, for disposal in a disused pit. This would reduce the number of waste structures to be built, operated, rehabilitated, and managed in perpetuity. Our objectives are to identify and remove barriers to tailings transfers between sites to:  minimise environmental risk  minimise long-term liability of managing mining waste and associated structures  support improved outcomes for the local community. To determine the scale of coal waste disposal practices in Queensland, internal data and publicly available imagery was analysed by the Department of Environment and Science in 2022. Approximately 6500 ha of land in Queensland is utilised for coalmine tailings storage facilities or codisposal areas, with ≈ 3700 ha of this being out of pit.

Aug 2, 2023

By S Wainio, P J. Beckett, T Miller

Lichens are a symbiosis of fungi and algae. Air borne elements and gases are absorbed very efficiently over the entire surface of the lichen, because they have no protective structures such as a waxy cuticle or stomata. A survey in 1977 (one year before the Sudbury Regreening program began), indicated that several Cladonia spp had invaded the soil in Sudbury’s open birch woodlands. Pollution sensitive species such as Cladonia rangiferina and C. mitis occurred 20–25 km from the smelters. It was anticipated that the improvements in air quality and reclamation efforts would allow a natural invasion of pollution sensitive species into what once was a lichen desert that surrounded the smelters. The purpose of this project was to study the invasion of terricolous (soil-inhabiting) communities of lichens and mosses on reclaimed land in the Sudbury region 45 years after commencement of the Sudbury Regreening Program.

Aug 2, 2023

By P J. Bangerter, J Pan

Optimising for Net Present Value (NPV) with a strategic optimiser such as COMET, Prober-E, Blaser or Minemax has hitherto lacked a dynamic method for analysing the so-called third-order outcomes (such as Carbon emissions) of optimisation within life-of-mine planning. Optimisation, per se, has natural effects on carbon emissions in a life-of-mine plan. Contemporary strategic planning employs a mathematical optimiser to make sense of non-linear data (ie a block model) and produces a best-NPV optimised mining schedule, within a set of constraints. The very act of optimisation influences emissions, and in a dynamic way.

Aug 2, 2023

By S Grant, S Emeric, P Baker, E Jones, D Clark

As we strive for a sustainable and resilient future, repurposing assets has become a top priority. In Australia alone, we have a significant number of mineral projects in the pipeline, extensive existing operations, and over 50 000 legacy sites. Collectively, this presents a unique opportunity to be a world leader in mine rehabilitation. Complex stakeholder landscapes, inflexible policies, aged regulatory frameworks, technical uncertainties and increasing liabilities are all barriers hindering effective transition of legacy assets. The impetus for change is further catalysed by shifting consumer preferences, workforces in flux and regional Australians questioning what the transition means for their local community. We need innovative approaches to take a leading role in the industry and support global efforts more broadly. Co-designing an ambitious, shared vision spanning projects, operations and legacy assets with all key parties is a fundamental step to unlock and realise maximum societal, environmental, economic and reputational value. Serious play and gamification can further enhance this visioning process.

Aug 2, 2023

By N McIntyre, R Trancoso, N Bulovic

Mining is essential for facilitating human development particularly as demand for critical minerals grows. However, over the mine life cycle, the environment is permanently changed. Once mining ceases, mine-affected land can leave significant legacy issues on the surrounding environment if not managed. Therefore, mine closure planning is critical. Mine closure occurs over large scales often with the aim of recreating resilient ecosystems over mined landscapes with mitigated negative impacts. The natural state of the landscape and the environmental risks over planning time-scales are largely driven by climate. Climate change is expected to impact different parts of the post-mining landscape, from stable landform design (soil erosion mitigation) to revegetation efforts and pit lake management. Consequently, mine closure plans may need to account for a non-stationary and uncertain future climate, that may be both different to the current climate and evolve during the mine life and post-closure. Here a new data-based approach is presented for incorporating climate change projections in mine closure planning, based on the recently released Coupled Model Intercomparison Project phase 6 (CMIP6) climate data used in the latest Intergovernmental Panel on Climate Change (IPCC) assessment report. The approach: (i) characterises closure-related attributes of the future climate, and (ii) identifies the amount (and direction) of change expected to occur, and its uncertainty, focusing on five metrics for demonstrative purposes and initially describing changes in erosive potential below. This provides information on the type of future environment (ie the changing baseline) that mine closure should plan towards, and identifies rehabilitation options that may be susceptible to increased risks from climate change.

Aug 2, 2023

By M J. Nimmo

extremely powerful tools for building predictive and generative models. ML can be used for building highly accurate regression and classification models. But without careful data science and statistical analysis, a regression or classification model could be highly biased and completely wrong – and we may not even realise. An example rock density estimation task will be used to illustrate the potential gains and possible pitfalls in using ML and AI in Mineral Resource estimation. What could possibly go wrong? Nothing! For most simple regression or classification problems, very little. For density estimation, using the global mean may be all that is possible, but the resource classification would need to reflect the uncertainty in global estimation of tonnage. Everything! From data collection and measurement, from selecting ML and AI techniques and designing the analysis workflow to our own cognitive bias. The things that could go wrong are vast and may include but not limited to asking the wrong question, not asking questions, data bias, measurement errors, insufficient data coverage, not collecting the right variables, not collecting enough observations, collecting clustered samples, unbalanced data, filtering out data without reason (outliers), clipping data (outliers), relying on automatic feature selection, including irrelevant variables, excluding relevant variables, geological interpretation, changing context, blindly following best practice, splitting small data sets, subsetting large data sets, using the wrong tool for the task, insufficient budget to complete the analysis, not allowing enough time for testing and experimentation (the science), focusing too much on building the model (the engineering), not learning from the data, our assumptions, our preconceptions, and our skill. This paper will explore the question of how training regression models to predict rock density are affected by gaps in the data (missing observations and missing variables). What could possibly go wrong?

May 24, 2023

By W Patton

Investment decisions in the mineral resources sector are made on the basis of an assessment of the economic potential for a mineral deposit. Given the supporting information for the location, scale, and quantity of the commodity of interest, miners and investors aim to make risk-informed decisions when considering further investment. The objective of resource classification is the synthesis of various types and quantities of geologic information used in resource model construction to assign confidence categories to the estimated mineral resources, which can then be used to support informed economic decisions. In this paper a risk-based classification scheme for iron ore mineral resources using conditional simulations is presented. The method involves categorisation of each block according to a confidence level, considering expected recoveries from a kriging model over mining production volumes. The realisations of the simulated model are used to assign risk-based confidence categories to zones of the ore deposit. One motivation for this work is to assess the sensitivity of the scheme to geologic uncertainties. Specifically, that which uncertainty in the layout of mineralising alterations and weathering overprints influence variabilities of associated rock properties and the likelihood of obtaining expected ore recoveries. It is shown these risks have material implications for a project’s economic potential. How the scheme can be extended to the grade control context and the value subsequent grade control activities is also quantified.

May 24, 2023

By L Bertoss, D Carvalho

In the last decade, the use of advanced implicit modelling software/algorithms in mineral resource workflows has become a best practice in the mining industry. In most cases, these workflows can easily replicate the level of detail of explicitly modelled geometries, even for very complex deposits. These techniques are flexible and can produce fast results since software is responsible for generating 3D surfaces and solids based on geological and interpretation data. Nevertheless, depending on how unique and complex some deposits are, intense manual editing and input are required to honour the geological context and produce the desired outcome. The current geological modelling workflow at George Fisher Mine (GFM) is based on the semi-automatic built-in tool that generates stratigraphic sequences (stacked lithology layers) based on logging and mapping data. This tool (stratigraphic sequence from Leapfrog Geo™) works for the majority of areas in the mine but fails to capture observed mineralisation pinch-outs in operational areas and at extrapolated boundaries of the deposit. These pinch-outs have the potential to negatively impact grade forecasts if not resolved manually. Using built-in software tools only, the alternative for a more accurate model is to generate each individual layer and adding tens of thousands of manual interpretation points to honour pinch-outs (based on the amount of existing drilling in the mine and number of layers). This approach would require an estimated minimum of two to four years of a full-time employee (FTE) to be exhaustively completed. This study presents an automated approach to generate pinch-out points using a set of Python scripts that only take a few minutes to run. The newly generated points are then combined into the commercial software workflow as interpretation points, honouring observed pinch-outs. The remarkable time difference between approaches removes chance of manual errors and allows mine geologists to spend valuable time in validation and testing of scenarios, ensuring they are more representative of the deposit’s geology.

May 24, 2023

By H Arvidson, V Chamberlain, R Marinho, B Parsons, T Rowl, M Noppé, M Mattera

With the introduction of CRIRSCO (2019) based mineral asset disclosure, Regulation S-K part 1300, 2019 (S-K1300) by the United States (US) Securities and Exchange Commission (SEC), applicable to companies listed on the New York Stock Exchange from 2021, Mineral Resource is now required to be reported Exclusive of Mineral Reserve, referred to here as ‘Exclusive Mineral Resource’ (EMR). EMR is equivalent to reporting Mineral Resource additional to Mineral Reserve, which has been permitted in jurisdictions outside the US for many years. Despite this, there are no practical guidelines in the literature or relevant reporting codes and rules for Competent/Qualified Persons to refer to, which creates a risk that disclosure of EMR estimates across the industry will be inconsistent and potentially ambiguous for analysts, investors, potential investors, and other stakeholders.With the introduction of CRIRSCO (2019) based mineral asset disclosure, Regulation S-K part 1300, 2019 (S-K1300) by the United States (US) Securities and Exchange Commission (SEC), applicable to companies listed on the New York Stock Exchange from 2021, Mineral Resource is now required to be reported Exclusive of Mineral Reserve, referred to here as ‘Exclusive Mineral Resource’ (EMR). EMR is equivalent to reporting Mineral Resource additional to Mineral Reserve, which has been permitted in jurisdictions outside the US for many years. Despite this, there are no practical guidelines in the literature or relevant reporting codes and rules for Competent/Qualified Persons to refer to, which creates a risk that disclosure of EMR estimates across the industry will be inconsistent and potentially ambiguous for analysts, investors, potential investors, and other stakeholders.

May 24, 2023

By I Sucholutsky, D M. First, D Mogilny, F Yusufali

Machine learning is creating value in all facets of the mining industry, from exploration to production. The authors provide an accessible, high-level introduction to artificial intelligence (AI), machine learning (ML), and deep learning (DL); the latter being widely recognised as one of the most powerful forms of ML. In particular, the authors will introduce deep learning models known as convolutional neural networks (CNNs), how they are applied, and the economic considerations necessary for determining when DL may be the right solution to de-risking complex block modelling problems. The authors present preliminary results from the mineral resource modelling study of the Jundee orogenic gold deposit, Yandal belt/gold province, Western Australia. The primary goal was to identify the direction and location of the narrow gold veins more accurately and demonstrate how non-linearly correlated elements are used as direct inputs to the resource model to assist with the target element’s grade prediction. This demonstrates that: (1) existing techniques for finding correlations between assayed elements do not adequately reflect the complex geology of the asset, (2) nonlinear correlations that are difficult to model as simple mathematical functions are representative of geological patterns in a deposit, and (3) non-linearly correlated assayed data, fed as inputs, increase the performance of the resource model as reconciled through blind tests. To conclude, the authors hypothesise that the patterns represented by the DL block models may be revealing the results of overprinting geological processes that generated mineral deposits. For example, the primary hydrothermal processes that deposited metals created depositional patterns that become particularly complex as a result of being overprinted, in part or in whole, by secondary physicochemical processes. This may explain why non-linear geochemical relationships have the capacity to generate more accurate block models of mineral deposits.

May 24, 2023

By A A. Latscha, D O’Connor

Increasing orebody complexity, restrictions in ground access, and longer lead times for disturbance approvals, have generated the need for the Resource Development Team within Rio Tinto Iron Ore (RTIO), to explore optimised drill design techniques that deliver resource conversion value while maximising program outcomes. In response to this challenge, the Team initiated a case study to produce an AI assisted/designed drill program using a non-machine learning AI. The case study involved the assessment and implementation of an AI generated drill program at one of RTIO’s Pilbara iron ore deposits, located in the Hamersley Province of Western Australia. The Mineral Resource is currently classified as 100 per cent Inferred. Access constraints inherent to topography, and the presence of exclusions zones have prevented adequate drilling coverage, resulting in lower resource confidence and a poor definition of the orebody extents and geometry. The drill campaign, planned in Q1 2023, needs to consider access constraints, complex topology and the limitations related to additional ground clearance, while addressing the requirement of improving orebody knowledge. The drill plan had to address two objectives. The first and main aim of drilling was to upgrade the Resource Classification to allow for possible conversion to Ore Reserve. The input for this objective was a volumetric representation of the areas currently not meeting pre-defined quantitative Resource Classification upgrade criteria. The second objective was to better define the orebody extents and geometry. For the second objective, the input to the drilling optimiser was a volumetric representation (blocks) of the areas of high uncertainty in the mineralisation/waste boundary, which were defined using an indicator conditional simulation technique. The drilling optimiser output was a range of compliant drill plans. A set of KPIs based on economic and orebody knowledge criteria were used to assess the plans and to select the most optimal drill design to be drilled in 2023. The geology and management teams were able to make better informed, objective decisions using the trade-off between cost and orebody knowledge gained. As part of the assessment, the AI generated plans were compared to our current planning practises. The AI assisted plans, when gauged against the project KPIs, showed clear and measurable improvements in both meeting project objectives and in managing operational risk.

May 24, 2023

By D Clarke, I Minniakhmetov

This paper describes the application of the SBRE framework to model the Olympic Dam deposit, one of the largest copper and uranium deposits in the world. Geostatistical simulations are the best practice for quantifying uncertainty in the mineral value chain and estimating resources. However, these simulations are currently undertaken on an ad hoc basis in the mining industry due to the high requirements in computing resources and capabilities in advanced geostatistics. The SBRE project provides a standard framework to test, build, and run conditional simulation workflows, which has been applied to the Olympic Dam deposit. Conventional geostatistical methods face challenges when modelling the Olympic Dam deposit, such as non-stationarity, non-linear correlations, and a large number of grid blocks to simulate. To address these challenges, a combination of methods was used, including projection pursuit multivariate transform, trend-residual decorrelation, pluri-Gaussian simulations, and turning-bands simulations. Various tools and applications were used to build the model, including in-house developed applications, Autovariogram software (Varify), and the RMSP python library. All computations were accomplished on the AWS cloud using the EC2-Batch service. The final set of simulations was validated using various methods, such as grade-tonnage curves, histograms, swath plots, and variogram reproductions, as well as validation using historical samples back-testing. The study highlights the importance of an automated, modular, and scalable framework in the development of conditional simulation workflows and describes the learning gained from trials of different combinations of methods and software

May 24, 2023

By C Artica

Two quantitative methods for Mineral Resource classification have been applied to a copper skarn deposit beneath a large open pit that is mining a world-class porphyry complex. A drill hole spacing study (DHSS) using the single block kriging method (SBK) and a conditional simulation method (CS) were applied to the skarn deposit and the results compared. Inputs to both processes included the proposed mining rate and stope designs to estimate the likelihood of achieving grade and metal production targets. Mineral Resource classification of the deposit considers the relative precision of tons, grade and metal predictions over quarterly and annual production periods. These relative precision estimates are calculated at 90 per cent confidence interval (CI). The SBK method represented the production period as a single large block. Kriging estimates were performed in the large block for various synthetic drill hole grids, and the estimation errors derived. The error was assumed to be normally distributed due to the large block size and quantity of samples, allowing CIs to be deduced. The CS method followed a conventional sequential Gaussian simulation workflow where grades were simulated with a 5 ft × 5 ft × 5 ft grid node spacing inside mineralisation domains. Each realisation was then averaged up to monthly production volumes represented by a combination of designed stopes, and the coefficient of variation (CV) for the averaged grade was calculated. CI on the relative precision of grade predictions were then deduced from the CVs. The two methods produced similar results; despite being calculated independently. CS results were used to report uncertainty in the proposed life-of-mine plan and highlight areas for additional drilling. SBK results were used as the basis for Mineral Resource classification as this method has been previously applied to the skarn deposit.

May 24, 2023

By H Arvidson, V Chamberlain, J Joughin, N Pollock, F Cessford, T Flitton, T Rowl

Environmental, social and governance issues (ESG) have become a defining feature in the marketplace to differentiate preferred investments. With the sustainability commitment and reporting landscape anticipated to evolve exponentially, it is now imperative to rapidly develop the approach taken by mineral companies to adequately identify and address ESG risks and opportunities in the reporting of Mineral Resource and Mineral Reserve (MRMR). MRMR cannot be effectively reported as technically and financially assured and realistically executable, if ESG is not integrated into the strategy, business model, input assumptions and process that defines and drives robust MRMR public reporting. Regulatory reporting codes across the globe are presently in various stages of being updated and modified to ensure ESG factors are appropriately covered as a key part of diligent and transparent disclosure. Security exchanges are making it clear that companies must not omit ESG risks from reports to investors. This paper discusses associated challenges for MRMR reporting and suggests avenues for improvement. Key themes include: the importance of procedure rather than prescription and checklists; how ESG criteria impact Modifying Factors and determination of Reasonable Prospects for Economic Extraction (RPEE); the need for financial models to account for material ESG commitments; the uniqueness of each mineral asset; the need for education, upskilling and accreditation of both ESG experts about MRMR reporting and equally Competent Persons in ESG matters; and the need for clear and balanced reports that meet the needs of end users. (RPEE is adopted here for simplicity and consistency, recognising that some reporting codes still include ‘Eventual’ in the term (ie RPEEE). Whilst RPEE and RPEEE are subtly different the intent is to point to the process of assessing ESG factors in determining reasonable prospects.) The principles of transparency, materiality and competence remain paramount when considering the impact of ESG matters on MRMR reporting, and this necessitates an inclusive, cohesive, and integrated approach to assessing ESG issues to ensure the necessary expertise and diligence is applied.

May 24, 2023