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Work undertaken in the field of cut-off grade optimization has not advanced much beyond the work undertaken by Lane in 1988. His definitive work is based on the calculus of the Net Present Value criterion which is the most widely understood, consistent, and appropriate method by which sequential cash flows arising from the extraction of mineral reserves from an exhaustible resource can be represented. Although the mathematics is not complex Lane’s method is not a widely appreciated or applied approach to maximizing the value of a mining operation through selection and balancing of operational cut-off grades. Three stages in a mining operation namely, mining, processing and marketing were defined by Lane and the economics of each stage are identified and isolated to provide an optimum cut-off for each stage. Points of intersection along the present value curves for each stage of a mining operation are used to identify balancing cut-off grades at points where the capacity of the mining, processing and marketing stages is fully utilized and the Net Present Value of the operation is optimized. Data that simulate a small, deep-level Witwatersrand-type gold mine with an average grade of 6 g/t Au and a logrithmic variance of 1.2,are applied to the model to illustrate the benefits of representing cut-off grades in terms of present value curves for different segments of a mining operation. Keywords: Cut-off grade, Net Present Value, grade-tonnage curve, balancing cut-off grade, mining, processing, marketing.

Jan 1, 2003

By P Ritchie, E H. Briese, N A. Currey

Kidston Gold Mines, located in semi-arid North Queensland, Australia is currently in its closure phase. Highly innovative and comprehensive rehabilitation strategies were employed at the site, including the direct revegetation of the surface of the tailings storage; the construction of a tailings sediment entrapment pond; the construction of a spillway to drain large rainfall events from the surface of the tailings; the construction of store/release covers over the tops of the waste rock dumps; the sheeting with oxide waste rock of the waste rock dump slopes; the partial back-filling of the initial Wises Hill Pit with waste rock and thickened tailings produced from the subsequent Eldridge Pit; the partial flooding of Eldridge Pit following the end of mining; and the construction of wetland systems to treat contaminated tailings and waste rock dump seepage. These closure strategies involved the careful consideration of water management. Specific water management issues included understanding the water balance of the tailings dam; the operation of the tailings dam sediment entrapment pond and spillway; understanding the water balance of the store/release waste rock dump covers; the importance and sustainability of vegetation on the tailings, store/release waste rock dump covers, and on the sheeted waste rock dump slopes; the level and quality of water in the partially flooded Eldridge Pit; and the treatment of contaminated seepage in the constructed wetlands. The seasonal and highly variable rainfall experienced in this semi-arid climate posed a number of challenges for the management of water on the site post-closure. The paper details these challenges and highlights how they were resolved over the period leading up to and following the end of mining.

Jan 1, 2003

By I. Melik-Gaykazov, N. N. Melnikov, V. A. Fokin, S. P. Reshetnyak

Kola Mining Institute has been carrying out investigations of the possibility to steepen the walls of the Kovdor open pit with the design depth of 600 m. Steeping (up to 60°) wall angles is done by double height (24 and 30 m) benches with vertical slopes. One of the safety factors of mining with such walls is choosing the width of the safety berms preventing against rock falling from the slopes into the pit working area. The test on rock falling from 24 m benches has shown that vertical slopes are not more dangerous compared to the inclined(60-75°) ones.

Jan 1, 2003

By Takao Yasugi

The majority of copper in the raw material migrates to the de-copperized dross that forms when the crude lead produced in the blast furnace is treated in the de-copperizing process. The de-copperized dross is treated in the electric furnace producing matte, speiss, and crude lead. The de-copperized dross also contains the silver. Therefore, it is important to improve the rate of silver migration to the crude lead. For this reason, the behavior of silver between the matte, speiss and crude lead phases was examined. At the same time, several tests to improve the percentage of silver migrating to crude lead were conducted.

Jan 1, 2003

By N. Kumar Kittusamy

The purpose of this study was to assess the adequacy of the cab design and to determine the percentage of musculoskeletal symptoms among workers. A questionnaire was designed to assess demographics, work information, job history, and musculoskeletal symptoms in operators of heavy construction equipment. Information concerning equipment included design of the seat/chair, levers, pedals, bothersome vibration, quality of egress from the equipment, proper preventative maintenance and repairs, and age of the equipment. The body regions that were evaluated included the neck, middle/upper back, low-back, shoulder/upper-arm, elbow/forearm, wrist/hand, hip, knee, and ankle/foot. One hundred and eighty nine operators completed the questionnaire. The results indicate that these workers are at risk for developing musculoskeletal disorders, the need to perform a larger survey to further substantiate the outcome, and the need to quantify risk factors (i.e., whole-body vibration and static sitting postures).

Jan 1, 2003

By P Bethune

Back Creek is a tributary of the Condamine River. It flows in a northerly direction across the existing Commodore coal reserves. The diversion of Back Creek was proposed to minimise sterilisation of the reserves. The approval process required a Waterworks Licence application, under the Water Resources Act 1989 (Qld), for the construction of a stream diversion channel and floodway. The diversion was designed using the æreference reachÆ approach, which mimicked existing properties of Back Creek. The following design standards were developed for the diversion: the diversion corridor width was 500 m; the diversion geometry was specified for both the low-flow channel, and the floodplain; material properties were specified for both the low-flow channel lining and the diversion bund; compaction standards for both the low-flow channel and floodplain were set; and the diversion rehabilitation included a riparian corridor and pasture land with clumps of native trees and shrubs. The following performance criteria were developed for the diversion: velocity regimes were replicated for the design events considered, in an attempt to avoid increasing the diversion flow velocities in comparison with the existing creek flow velocities; sediment transport calculations indicated that no significant change in sediment transport was expected within the diversion; overburden settlement estimates for the spoil placed in the corridor were summarised, and will be monitored throughout the construction process; geotechnical stability of the proposed Eastern Pit Buttress and the diversion bund configurations was confirmed; and groundwater impacts were assessed. Construction techniques, monitoring and further investigations are also discussed in this paper.

Jan 1, 2003

By Larry B. Smith

"Feasibility studies are the means by which mineral reserves are established prior to financing a project. However, guidelines are generally lacking for the content, data quality and accuracy of these studies. Regulators take a principle-based rather than prescriptive approach to the content of studies and look to the industry to define study content. Professional organizations, engineering firms and mining companies must eventually establish guidelines and best practices for this work. Most likely these will draw on standards or “stage gates” that have been developed by major mining houses and engineering firms. Engineering studies must: 1.,Define optimal mining and processing methods, production rates, infrastructure, product sales, environmental management and risk mitigation. 2.,Increase confidence in resources, reserves, production plans, processing performance, infrastructure design, environmental management, permitting, capital and operating costs, and financial performance to support financing. 3.,Provide engineering designs suitable for accurate cost estimates. 4.,Develop project execution plans with sufficient confidence that project delays and cost overruns will not occur. Conceptual (scoping, preliminary assessment) Establish the principal characteristics of the project from the geology, resources, metallurgy and development constraints. Assess different approaches to mining and processing. Identify project execution requirements. Test project viability with economic analyses. Recommend additional work to increase the confidence in geology, resources, metallurgical performance, infrastructure, operating and capital costs, environmental conditions and permitting to allow selection of the best development options."

Jan 1, 2003

By S. J. Neethling

"This paper examines the impact of several key variables on the performance of flotation cells. The study makes use of a simulator for the froth phase of the flotation vessel, as the main purpose of this study is to separate the impact of different variables from one another. In experiments it is very difficult to separate the effect of variables from one another as a change in a singe input parameter, such as air rate, invariably also affects many of the other key variables, such as bubble size and bubble bursting rates.In order to achieve this a base case simulation that is typical of many of the rougher cells found in sulphide flotation circuits was carried out. Four key variables, air rate, incoming bubble size, surface bubble size and the fraction of the bubbles flowing out of the cell unburst, were varied in order to obtain the system.s response.The most significant results were obtained when the bubble size was varied. An increase in the incoming bubble size has the effect of reducing the pulp zone recovery, but increases the froth zone recovery. If it were possible to vary the incoming bubble size without influencing the overflowing bubble size, the impact of the change would be unclear because of these two competing effects. The effect of a change in the overflowing bubble size has an opposite effect on the froth recovery, with larger bubbles resulting in lower froth recoveries.A final interesting result is that all the effects examined affect the process to a similar degree, which implies that none of these variables can be disregarded, either in industry or in further research."

Jan 1, 2003

By M Pizey, M Kingsbury

Since 1950 Stockton Open Cast Mine has excavated over 60 million tonnes of Brunner Coal Measures overburden sandstones and mudstones. The current operator, Solid Energy New Zealand, recognises that acidic drainage from this overburden and from historic underground mines has led to depressed pH levels and elevated levels of metals in streams draining the Stockton Plateau. These streams report to the Ngakawau River. To quantify the effects of mine site acid drainage remediation/mitigation on the lower Ngakawau River water quality, a catchment hydrogeochemical model has been field calibrated and ecotoxicology tests have been undertaken. The hydrogeochemical model indicates that pre-mining and present pH values in the lower Ngakawau River are similar but present aluminium and iron concentrations are elevated. Ecotoxicology tests have semi-quantified the critical metal concentrations and interim water quality targets to achieve ecological recovery are presented. Analyses of long-term total suspended solids (TSS) and turbidity monitoring in the lower Ngakawau River and St Patrick's Stream indicate that TSS of 120 mg/L and turbidity of 20 NTU are exceeded for <20% per cent of the time. Hence, specific criteria to protect migratory native fish from turbid water are currently met in the Ngakawau River and St Patrick's Stream.

Jan 1, 2003

By Ross D. Lawrence

"IntroductionOne of the methods used when applying the Market Approach to the valuation of a mineral exploration property is known as the Joint Venture Terms Method. The method is particularly useful for the valuation of early-stage exploration properties. Unfortunately, valuators are sometimes imprecise in distinguishing between joint ventures and other types of transactions.At VALMIN '94, Bob Appleyard1 proposed that, if one ignores the time value of money and the probability that the expenditure commitment would be completed, the formula to calculate the value ($V) of a property owned by Party B at the time of the deal would be:$V =$Ex (100-1%)/1% (Formula I)Where $V is the value of the property2Where $E is the expenditure commitment by Party A, andWhere 1% is the percentage property interest to be earned by party A.At PACRIM '99, Mike Lawrence and Graham Dewar3 referred to this method and suggested that there was an ambiguity in the formula proposed by Appleyard in 1994. Mike Lawrence referred to this problem again at VALMIN '014•Lawrence & Dewar suggested that the formulashould be:$V100% =($Ell%) x 100 (Formula 2)Where $V 100% is the value of the entire property,Where $E is the expenditure commitment by Party B, andWhere 1% is the percentage property interest to be earned by Party B.Subsequently, there has been considerable discussion in the AuslMM Bulletin5. In my view, this discussion has touched on a number of useful points, but generally has overlooked one essential element needed for an understanding of the correct application of the N Terms method. That essential element is to understand that there is a material difference between (1) entering into a joint venture arrangement and (2) the purchase of an interest in a property."

Jan 1, 2003

By Steve Kral

Worker safety is an issue that transcends industries, whether it be mining, construction, manufacturing or even general office work. In the mining industry, safety and training are particularly important because mining is a dangerous occupation. Throughout the years, federal and state safety regulations have been written and revised to keep up with the changing technologies. And mine operators have installed their own safety and training programs. They have come to realize that a safe and healthy workforce has positive effects on productivity and profitability —not to mention avoiding the high costs of injury-related absenteeism.

Jan 1, 2003

Reclamation of surface mines is a crucial environmental issue and a key challenge to the worldwide mining industry. One of the goals of reclamation is to ensure that the area is left in a condition permitting safe future use. Hence, the reconstruction of open pits, waste piles and tailings dams must satisfy appropriate geotechnical stability and safety conditions for the planned use. Landscaping in the final stages is highly relevant as the topography around the mining areas is sometimes dramatically modified by ore extraction. The reclamation strategies must be applied not only after ore exhaustion, but also during its extraction. This is a sound business strategy that leads to considerable environmental benefits and increased security of the mining operations.

Jan 1, 2003

By Mark R. Rybak, James Delmonte, Travis Hartman

The City of Phoenix, Arizona designed a 7.2 km (4.5 mi) long water transmission main from the South Mountain Reservoir to the Ahwatukee Foothills Reservoir to address the growing demand for drinking water in the southeast valley. The pipeline design called for a bored tunnel in a very environmentally sensitive area. The Reach3B contract included an 2.44 m (8 ft) diameter TBM excavated tunnel, 1,847 m(6,060 ft) in length. The geotechnical investigation revealed that the tunnel would likely pass through zones of loose to moderately cemented soils (caliche). The primary tunnel support would consist of rock bolts, circular steel ribs, hard wood lagging, and mine straps. A TBM that could handle the ground conditions and allow for efficient ground support installation was required. This paper describes the construction of a small diameter rock tunnel in challenging ground conditions.

Jan 1, 2003

By Greg Gosson, Larry B. Smith

"These are heady times for the mining industry, with strong metal prices, investor enthusiasm for the junior explorer and ready access to finance for mineral projects. Many projects were shelved in the past because of technical deficiencies — insufficient tonnes or grade, metallurgical problems, the deposit was too deep or too narrow, or the project was physically or economically under water. With the possibility of sustained metal prices, now is the time for those previously “challenged” projects to be re-evaluated and financing sought for continued development. The question is, do these deposits have reasonable prospects for economic extraction, as required by all mineral resource reporting codes? NI 43-101 defines a mineral resource as that portion of the mineral inventory that has reasonable prospects for economic extraction. However, a mineral resource is not simply an inventory of all blocks above a given cut-off grade. The spatial distribution and geological and grade continuity must also be considered. The qualified person (QP) must consider factors significant to project economics at the mineral resource estimation stage, and not just when qualifying mineral reserves. CIM Best Practice Guidelines for estimating mineral resources require the factors significant to project economics be current, reasonably developed and based on generally accepted industry practice and experience. In establishing the cut-off grade, it must realistically reflect the location, deposit scale, continuity, assumed mining method, metallurgical processes, costs and reasonable long-term metal prices appropriate for the deposit. Variations within the resource model (rock characteristics, metallurgy, mining methods, etc.) may necessitate more than one cut-off grade or economic limit in different parts of the deposit model. There must be sufficient knowledge of the metallurgical characteristics of the deposit, which should be supported by preliminary metallurgical test results."

Jan 1, 2003

By T Martin, M Martin

Mining of sulfide-based ore deposits typically creates a potential for release sulfate and acid to groundwater, and many operating mines are thus predicted to require long-term post-closure treatment of groundwater. Toward the goal of selecting an optimal treatment, this paper compares costs of four demonstrated technologies for long-term treatment of sulfate-contaminated groundwater: in situ biological reduction (ISR), in situ permeable reactive barrier (PRB) composed of compost and zero-valent iron (ZVI), and two ex situ æpump-and-treatÆ technologies ù ex situ biological reduction, and ex situ nanofiltration with lime precipitation. Costs for each technology are estimated for treatment of a model aquifer system containing sulfate-contaminated groundwater, with the goal of treating 1 m3/min of groundwater from 1500 mg/L sulfate to a target level of 500 mg/L. (Metal removal is typically achieved by these technologies, and thus excluded from this analysis.) Costs are estimated for each technology as a function of treatment duration (ten to 60 years) and, for PRB and ISR, required replacement frequency (ten to 60 years). Estimated costs include capital and operation and maintenance, using a seven per cent net discount rate. Results indicate that ex situ technologies (biological reduction and nanofiltration with lime precipitation) are the most expensive. In situ technologies may be much less expensive, with PRBs having by far the lowest potential cost, followed by ISR as the next least expensive. However, actual costs for the in situ technologies are very sensitive to poorly constrained parameters, particularly the ZVI content of the PRB, and the effective life of PRB and ISR systems. This large cost uncertainty supports delaying remedial actions where viable, and suggests that feasibility analyses are generally warranted for specific applications to focus on these sources of uncertainty.

Jan 1, 2003

By D Hunter

A production information management system (PIMS) was recently implemented at Queensland NickelÆs Yabulu Refinery. Although a strong business case was developed to justify the significant investment in PIMS some potential beneficiaries remained sceptical of the anticipated benefits. The decision to install PIMS was justified as the on-line availability of continuous production data enabled the optimisation of some crucial operations resulting in significant cost savings, improved throughput and final product quality. Furthermore the rapid access to extended historical data has allowed the cause of repeated failure of equipment to be determined. The investment is expected to pay for itself within two years and has already contributed towards significant savings. This paper focuses on some of the diverse production improvements gained and compares the anticipated benefits in the business case to those achieved. A brief outline of the phased implementation of the OSIsoft PI data historian and complementary client software at Yabulu is included, along with details of the lessons learned.

Jan 1, 2003

By E. Barsky

"The aim of separation is to obtain two products that are as distinct as possible from each other. It is currently believed that the most objective criteria for the quality of a separation are the Hancock criterion and the entropy criterion.1. Hancock criterion:- for yield of fine product"

Jan 1, 2003

By Jan E. Nesset, Phillip J. Mackey

"Studies have shown that there is a correlation between commissioning and start-up time, i.e. time to reach full plant design capacity, and the degree of innovation and technical/engineering uncertainty in the project design. The paper describes the types of start-up curves for plants according to the level of technology or uncertainty in the process design. The need to properly describe and understand the commissioning and start-up time is examined using these curves and the importance on project success is highlighted. A number of case histories of recent mining and metallurgical projects are also reviewed. Finally, the paper reviews how to better assess the level of start-up uncertainty associated with a project and makes suggestions for decreasing the commissioning time due to technological risk.INTRODUCTIOThe start-up of a new mining and metallurgical facility, a much anticipated event, is a critical step in the life of such a project. Achieving a successful start-up and reaching the design capacity on-time requires careful planning, a thorough understanding of the key technological and engineering components involved and a well-trained and adequatelystaffed start-up crew. In this paper, some of the aspects related to start-up of a mining/metallurgical project will be explored, and in particular, the impact of the technology component will be examined. In order to illustrate this, a number of case histories based on recent mining and metallurgical projects will be discussed. Ways of assessing and understanding the uncertainty associated with technological issues related to start-up of a mining and metallurgical plant will also be examined.The history on mining and metallurgy is full of success stories of great mines and mills that are now considered “company makers” (well known examples of such successes include the Horne mine for Noranda which had a 1 year start-up in 1926-27, the Dome mine for Placer Dome, the Grasberg deposit for FMI in Indonesia). Less well documented are specific studies relating to plant start-ups and what constitutes a success or a failure, however there are a few notable references in the literature and these will be reviewed."

Jan 1, 2003

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 Deborah A. McCombe

"There are a number of important dates that must be disclosed when a Qualified Person (QP) is preparing a technical report for securities purposes. The dates are discussed in NI43-101 and the Form of the Technical Report, NI43-101F1. •,Effective date of the technical report •,Possible revision date of the report •,Effective date of mineral resources and mineral reserves •,Date of the personal inspection (site visit) •,Signature date of the date report (execution date) •,Date of the certificate of the QP •,Date of the consent of the QP The effective date of the report is basically the cut-off date for the information that is included in the technical report. The effective date should be close to the signature date. If there is too long a period between these dates, the QP runs the risk of new material information becoming available and then the technical report would no longer be current. The effective date is disclosed on the title page of the report and on the signature page. If a technical report needs to be revised to correct problems or disclosure deficiencies identified by the regulators, the QP will normally need to include a revision date on the title page of the report to distinguish the revised version from the original version. In these circumstances, the regulators will request that the original date of the report remain on the title page and the revised date will be below it. When a technical report must be revised, the QP must resign and date the signature page of the report and provide a new certificate and consent."

Jan 1, 2003