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Gold has been known and mined in Australia for over 150 years. It occurs and is mined in all States and the Northern Territory. In the past 30 years approximately 8300 t of gold has been mined and gold exports have contributed over $106 billion to the Australian economy. In the first three quarters of the Australian financial year 2006 - 07 (ending 30 June 2007) gold exports were valued at $7.3 billion, which was 13 per cent of the value of all minerals exported and five per cent of AustraliaÆs total goods and services exports over the period. Clearly gold has been and remains a very important component of the Australian economy.

Jan 1, 2007

By B A. Mowat, T M. Leach

The Morobe Goldfield inPapua New Guinea has produced in excess of 120 tonnes of gold from predominantly alluvial sources. Hardrock gold has been mined historically at Wau (23 t) and Edie Creek (4 t) and geological resources have been established at Hidden Valley (78 t), Kerimenge (36 t) and Hamata (30 t).Numerous prospects have also been identified within the goldfield. Primary gold mineralisation is related to intrusion of dacitic to andesitic Edie Porphyry (2.4 to 3.8 Ma), often with associated diatremes, which have intruded along major regional structures. A full spectrum of deposit styles from proximal (mesothermal) to distal (epithermal) to the porphyry source is recognised. The transition between the proximal and distal styles is recognised both between deposits and within an individual deposit. The deposit styles should be termed porphyry related gold mineralisation rather than given the generic epithermal and mesothermal labels.   It is proposed that magmatic fluids which evolved from parent melts to the high level Edie porphyry stocks mixed with convecting meteoric fluids and were channelled along major structure and diatreme contacts. Proximal to the intrusives, gold mineralisation is associated with deposition of pyrite-hematite-quartz+/-magnetite-gold (Hamata) and pyritebasemetals-quartz-gold (Wau). The mineralising fluids were hot, and periodically saline due to pulses of magmatic fluid. Gold is non-refractory and occurs as 20 to 30 micron blebs within the pyrite.   More distal from the intrusives or under late cooler conditions, mixing of cool dilute meteoric and magmatic fluids resulted in gold deposition associated with arsenic rich pyrite-and arsenopyrite-mineralisation (Kerimenge, Hamata and Edie Creek). Gold is refractory and occurs within the sulfides either as sub-micron inclusion or within the lattice.   CO2 and H2S gases which evolved off the upwelling hydrothermal fluids as a result of boiling and pressure reductions, condensed within superficial groundwater and formed cool oxygenated bicarbonate fluids. These fluids percolated back down the structures depositing manganocarbonate in the upper parts of the hydrothermal system. At deeper levels in the system mixing of the descending bicarbonate fluid with upwelling mineralised fluids deposited manganocarbonate-quartz-sulfides nonrefractory gold (Hidden Valley, Wau and Edie Creek).   At Kerimenge the cool bicarbonate fluids have also quenched a late stage magmatic fluid rising along high permeability structures. The quenching has resulted in deposition of non-refractory gold mineralisation associated with hessite (Ag2Te)-tennantite-chalcopyrite deposition.   Within the Morobe Goldfield, a transition from deeper level pyrite-quartz+/-hematite-magnetite to intermediate level quartz sulfide and quartz-carbonate-sulfide deposition to upper level, massive manganocarbonate deposition is recognized. Gold mineralisation can occur within all levels up the system.

Jan 1, 1995

By White A. H, Gillies A. D S

In recent years the Australian gold industry has gone through a major expansion phase. The need for finance has led to adoption of different approaches such as the well known gold loan, forward selling, equity participation by suppliers and equipment leasing. During early periods of the expansion, significant new equity was raised chiefly for high risk exploration ventures. The major form of new equity finance was ordinary shares, often in 'No Liability' companies. The increasing capital requirement of the huge new development projects of the 1980s also spurred the use of debt finance. This trend was accelerated as high inflation and the taxation advantages of debt finance made borrowing attractive. This paper reviews major financing techniques used by the Australian gold industry with particular emphasis on the innovative financing techniques initiated recently. An analysis has been undertaken of the effects on the industry of issues such gold loans, forward selling, equity participation by suppliers, fly-in fly-out operations, contractor mining and equipment leasing. In order to achieve a better understanding of the innovative financing techniques, a survey of already published financial data from well known Australian gold mines was carried out. Data was collected from various published financial reports of gold mining companies. In addition, a questionnaire survey was sent to gold mining companies to assist the collection of further information. The results of this study show that there are a significant number of gold mines variously using gold loans, forward sales, contractor mining and fly-in and fly-out arrangements to finance their projects. Only four operations have vendor suppliers investing capital funds in their projects. Based on the findings of this study, conclusions and recommendations are drawn that these approaches are likely to be with Australian gold industry for some time in the future and will continue to be intensively applied to finance gold projects.

Jan 1, 1994

By B Leisemann, M Watkinson

Coal augering is an ideal method for recovering coal from the highwalls of open cut coalmines. Coal augering is a simple process whereby additional flights are added to the auger cutting head and auger holes are drilled at 1.9 m diameter up to 200 metres deep. Traditional monitoring was located at the mouth of the hole and if methane was encountered above two per cent, inert gas was delivered into the mouth of the hole to deplete the oxygen content at the auger cutting head below 12 per cent. The auger operator was asked the question ‘how do you know that this is the case?’ Trials were undertaken to prove that the oxygen content at the cutting head did drop below 12 per cent (the lowest limit for methane to ignite, also known as the oxygen nose point). Initial trials showed that the oxygen content in the mouth of the hole did not drop below 12 per cent and modifications were made to hold the inert gases in the mouth of the hole so that the auger flights could take this inert gas into the hole. In-hole monitoring, after completion of mining and after extracting the auger flights, showed that the atmosphere quickly returned to fresh air. In-hole monitoring was also tried during the augering process and yielded valuable results. This paper will discuss the results of the monitoring, information on the gas results obtained and the methodologies used to optimise the oxygen content at the auger face.CITATION:Watkinson, M and Leisemann, B, 2017. Inertisation of coal augering holes, in Proceedings Australian Mine Vent Conference 2017, pp 293–298 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 28, 2017

By G Lumley

Gold miners have been underperforming the price of gold for a number of years. So why has the æmarketÆ undervalued our gold miners relative to what they have been mining? The low valuation ascribed to gold mining companies is largely attributable to their profit performance. In the period since 2006 the price of gold in A$ has risen about $900/oz, but the real cash margin (operating cash costs + cost of finding and/or acquiring deposits + the cost of bringing them into production) has only risen about A$100. Rising operating costs are a major part of this reduction in real margin. Energy and labour costs have risen more than the inflation rates across a number of countries as have taxes, royalties, etc. There are however, more significant contributors to the rising cost base. Firstly, in 2006 the average gold grade was 2.0 g/t; today it is 1.3 g/t. Secondly, strip ratios (for surface mines) have increased by 19 per cent during this time. Open cut mining equipment unit output across the world has dropped by 26 per cent during 2006 - 2012. Finally, costs have risen by 55 per cent during this time period. Consequently, there is now 3.8 times more mining cost required to produce an ounce of gold from surface mines compared with 2006. The decline in gold grade looks to be a permanent trend as does increasing strip ratio if output is to be maintained. Costs will continue to rise although cost control will be necessary. Reversing the decline in equipment performance and closing the gap between median and best practice provides the hope for a sustainable reversal of cost increases. The current gap between best practice and median performance has grown to 112 per cent for mining trucks, 168 per cent for excavators and 169 per cent for front end loaders. Closing this gap is the potential for a more profitable future. For most gold mining companies improving mining efficiency is not an option; it is an imperative.CITATION:Lumley, G, 2013. How many gold mines will inefficiency kill?, in Proceedings World Gold 2013 , pp 267-276 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By P Velletri, N Gaylard

The management of wear surfaces in mining operations has remained largely unchanged since the inception of mining. Sacrificial wear liners are installed on the inside of chutes, hoppers and other equipment used to transfer bulk ore to protect the asset from abrasive wear caused by the flow of material. These liners are generally replaced at fixed intervals which may be determined based on historical wear rates or may be driven by other maintenance requirements for that asset. This approach does not always yield satisfactory results, especially for critical assets where the impact of downtime on production can be substantial. For such assets, a condition-based maintenance strategy has the potential to significantly increase productivity and reduce the total cost of ownership associated with the asset. However, for such a strategy to be successful, timely information on the actual condition (remaining thickness) of the wear liners is essential. This paper describes the development and implementation of a wear monitoring system that can be used to remotely and continuously report on remaining liner material thickness in real time. It details some of the challenges that were overcome when developing the system, including the design of a patented thickness measuring system that can be used in a variety of liner materials and is tolerant to the presence of ore on the wear surface. The paper also explains how a cloud-based approach enables data from the wear sensors to be integrated into external systems such as a data historian, which has been demonstrated through a collaborative project with one of the largest iron ore producers in the Pilbara. This ability to combine real time liner thickness information with other data sources, such as throughput, provides the foundation for the transition to a condition-based maintenance strategy.

Nov 8, 2021

By L Mariano

Three selected iron ore samples from the major bedded and channel iron deposits of Western Australia were analysed using a scratch test commonly used in the oil and gas industry. The portable commercial equipment dubbed Wombat cuts a groove on the surface of the sample with a cutter under imposed depth of cut and cutting velocity. The normal and tangential components of the force acting on the cutter are recorded with a high degree of precision (about 1N) at fine spatial resolution of about 20 measurements per millimeter.The intrinsic specific energy inferred from the scratch test measurements is found very well correlated with a classical measure of strength such as the uniaxial compressive strength, for over 300 sedimentary rock samples.The results obtained on the iron ore samples are comparable to those obtained on oil and gas sedimentary rocks. This method could provide an objective and semi-automated measurement of material strength and brittleness in iron ores that can possibly be correlated to the lump to fines ratio.

Jul 11, 2011

This evening I intend to explain the position of the gold mining industry in the light of post war trends and events.I propose initially to comment on gold production throughout the World and then proceed to the state of the industry in Australia, with an account of the efforts made within the industry to maintain levels of production. This will be followed hy a statement on assistance granted to the industry by Federal and State Governments.Annual World gold production is estimated at 51,000,060 fine ounces, made up as followsSouth Africa - 27,300,000 fine ouncesCanada 4,200,000 " "U.S.A. 1,500,000 " "Australia - 1,000,000 " " Others 5,000,000 " "----- 39,000,000 " "Estimated Russianproduction - 12,000,000 " "Total 51,000,000 " "The opening up of new highly payable mines during the post war years has contributed to the preponderence of production in South Africa.In 1962 some 24 new mines produced 73 per cent of South Africa's gold, and contributed almost 90 per cent to the industrial profits.At the same time, 20 old mines were struggling to main...

Jan 1, 1964

Very little has been written about the discovery and early history of prospecting of ironstone deposits in the Iron Knob-Middleback Range area of South Australia, the main source of supply of ironstone (hematite) for the Australian steel industry, and scanty though the record is, much of it is wrong or misleading.With the help of several people, to whom acknowledgement is made at the end of the paper, the writer has unravelled some of the story, but not the whole story. It is hoped that publication of this paper will stimulate interest in others, who may be able to supplement this account from family records, from the files of newspapers, or from archives.

Jan 1, 1969

CONTENTS: Broken Hill The mixing stations.Operating and mixing apparatus.Pulp distribution.Stope preparation.Filling procedure.Consolidation of old fill.Drainage:Pulp density tests. Life of sand pipe lines.Results.Advantages and disadvantages.Conclusion and acknowledgments.General remarks on South Limited.Mining methods.History of stope filling in Broken Hill.Need for a new and better filling method and transport system.Initial experiments with hydraulic stowing.Source of the sand.Water Supply.Signalling system.GENERAL REMARKS ON BROKEN HILL SOUTH LIMITEDThe South Mine, property of Broken Hill South Limited, is situated at Broken Hill, N.S.W., Australia, towards the southern end of the main lode.The leases (M.L's 7 and 8)' cover a length of 2,400 feet along the lode outcrop and the workings extend, at this date, to a depth of 1,940 feet below the collar of the original main shaft and to 825 feet below sea level.Mining operations have been continuous for about 58 years and during this period nearly 12.5 million tons of ore have been mined. The monthly tonnage extracted approximates 30,000 tons in normal times.The ore is a mixed sulphide containing galena and marmatite; the gangue minerals are principally calcite, rhodonite, quartz and garnet.A typical assay for a monthly period is 14·40/0 Pb., 5·6 ozs. Ag., and 11· 60/0 Zn. The whole of the ore is concentrated on the property by combined gravity and flotation methods. The lead and 'zinc concentrates produced are railed to other centres for the extraction of the contained metals.MINING METHODSMining practice throughout the field varies only in minor details. The ore-bodies forming the Broken Hill Lode lie within complex folds arranged along a shear and vary in size and mineralogical associations, but all the mines have similar types. Some of the ore-bodies have weak walls, but the chief difficulty in mining is caused by "heads" and "flaws" in the ore.Besides these local weak areas there are ground movements-referred to later-of varying magnitude extending throughout the central portion of the lode where the large ore-bodies, several hundred feet wide, approached the surface.

Jan 1, 1944

Exerting the Advantages of National Key Discipline, Outstanding the Training of Engineering Capability, Cultivating Talent to be with Innovation Ability

Sep 13, 2010

By C S. Szentesy, K Howie

The Rosia Montana gold deposit is located within the æGolden QuadrilateralÆ area in the Apuseni Mountains of Transylvania, Romania. The deposit is situated approximately 85 kilometres north of the regional centre of Deva, within the province of Alba, at elevations of up to 1100 metres above sea level. The Rosia Montana deposit contains a current resource of 344.07 million tonnes at an average grade of 1.3 grams per tonne (g/t) gold (Au) and 6.0 g/t silver (Ag) for a total (measured, indicated and inferred) contained resource of 14.29 million ounces of gold and 67.00 million ounces of silver. The resource was calculated using a 0.6g/t Au cut-off, a 10 x 10 x 10 metre block size and multiple indicator kriging. The low sulfidation style epithermal mineralisation at Rosia Montana is hosted within Tertiary age dacite intrusions and related vent breccias. Mineralisation is generally disseminated and associated with silica, adularia, illite, pyrite and carbonate alteration of host rocks, with minor late carbonate-base metal veins. Precipitation of precious metals is generally considered to have occurred as a result of over-pressurization, boiling and subsequent brecciation. The dacite intrusions are hosted in Cretaceous shallow marine and deltaic shales and slates, which overlie older Paleozoic sedimentary and metamorphic rocks within uplifted sections of oceanic sea floor.

Jan 1, 2002

Review of the mining legislation in New Zealand has coincided with a number of radical changes. These include a redirection of economic management towards a more open and competitive economy; major reform of the state sector aimed at greater efficiency, transparency and accountability; a new environmental administration; and a fundamental review of policy for management of natural and physical resources. These changes provide an opportunity to develop a consistent and coherent approach in the minerals and related statutes that will achieve objectives of economic efficiency, equity, practicability and good environmental management.

Jan 1, 1987

In a modern economy there is a compelling case why governments should not own property rights to mineral deposits. Assuming they do, however, governments will use these constitutional rights to raise revenue. They have two basic instruments to achieve this; a royalty charge on price or a rent tax on income/profits. On the one hand, a royalty charge creates a 'deadweight loss' to society by increasing cut-off grades and decreasing the life-of-mine. They are also regressive. However, they are easy to administer. On the other hand, a rent tax avoids the problem of 'deadweight loss'; it does not impact on the life-of-mine because the tax structure is neutral. But, they are difficult to administer correctly, particularly in the determination of rents and the definition of mining per se. If rents are incorrectly determined capital markets are distorted. And, if mining activities are incorrectly defined, downstream activities could be adversely affected.

Jun 1, 2010

By Robson W. D, Irwin D. A

In November, 1932, an investigation of silicosis was undertaken at the, McIntyre Porcupine Mine, Schumacher, Ont., atfer a discussion of the problem with Sir Frederick Banting and his, staff. As a result it was decided to carry on dusting experiments with animals at the mine in a manner that would duplicate as far as possible actual industrial conditions.At that time 50, guinea pigs were placed in the crusher nouse tunnel of the mill where a considerable quantity of fine dust, containing approximately 35 per cent., of free silica, was being constantly produced. These animals lived in this atmosphere for periods up to one year, and, while on autopsy large amounts of dust were found in the lungs, not a single case of silicosis had developed. These negative results suggested, among other things, that the mine gases might be a predisposing factor in the production of silicosis, and the results of this investigation led us to undertake the study of the hydrogen-ion concentration of the condensate of the atmosphere, both in the mine and in various sections of the mill.The C02 combining power of blood serum on a series of 400 miners was also studied at this time. While these results were inconclusive, the variation in the hydrogen-ion concentration of the condensate between the surface and underground atmospheres encouraged us to investigate the effect of neutral, weak acid and alkaline solutions on the solubility of silicious materials. Gye and Purdy were the first to point out that the chemical reaction and not the physical presence of silicious material was responsible for the production of the fibrosis in silicosis. This work was investigated by Gardner and Cummings who showed that the tissue reaction to quartz was definitely proportional to the size of the particle. They found that 1-3 micron particles of quartz produced an acute proliferative fibrotic response while the 10-12 micron particles produced only a foreign body reaction up to a period of three years. It is accepted that the dangerous silica particles retained by the lung are under 5 microns in diameter. We assumed that if the solubility of the silicious material retained in the lung could be reduced sufficiently by the addition of some non-toxic element or compound the usual fibrotic respohse would be modified. We found that the addition of certain compounds to silica would reduce its solubility in the beaker to a slight extent. But these compounds, when mixed with quartz...

Jan 1, 1945

The Bureau de Recherches Geologiques et Minieres (BRGM) (a French Government-sponsored geological and mining agency), through international experience gained over many years, has become very skilled in alluvial prospection, particularly for diamonds. The research laboratories within the BRGM have also been active in creating new mineral processing equipment, some of which is directly applicable to such prospection. One such development, the mobile prospection unit, is described and its application in mineral exploration is demonstrated by a consideration of the diamond search in Australia and the general exploration of the Massif Armoricain (France). Because this latter study was fundamental in the development of the concept of 'mineral-geochemistry', and its application in mineral exploration, it is also briefly described.

Jan 1, 1971

By D J. Logan, J Jackson

"As of 1 December 2014, the 2012 edition of the JORC Code requires Ore Reserves to be defined by studies at the pre-feasibility or feasibility level. This paper examines how the pathway for most mining developments is determined in the Pre-Feasibility Study and how a trade-off must be made between the need to make the best decision, the constraints of limited time and resources, and the level of the project’s accuracy and uncertainty in terms of value. Issues considered include framing the scope of the study, planning for robust decision-making and ensuring effective communication between the diverse disciplines within the team.An inherent conflict exists between the immediate value added to a mining business from an increase in ore reserves resulting from a ‘quick’ Pre-Feasibility Study and the long-term value of pursuing a development strategy based on proper investigation and evaluation of the options. Recognition and resolution of this conflict is necessary if a project is to progress into future development stages, both in a timely manner and with the optimal development alternative and strategy.The challenge for project developers and those conducting the Pre-Feasibility Study is to understand what the key deliverables are (ie an Ore Reserve statement, option selection, business evaluation, forward work plan or risks) and how to follow good practice to ensure that these deliver value.CITATION:Logan, D J and Jackson, J, 2016. The pre-feasibility study – big choices, little time, in Proceedings Project Evaluation 2016, pp 122–132 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

The stability of parallel underground coal mine galleries and pillars have been investigated using two- and three-dimensional (3D) numerical stress analysis. Anisotropic horizontal in situ stresses and the direction of the excavations have been considered in the numerical analysis. The stability of the tunnels driven in a coal seam at various working depths has been investigated taking into account different strata conditions and then results from two- and three-dimensional numerical modelling studies were compared. Maximum principal stress components have been chosen in three various directions: vertical, parallel and perpendicular to the tunnel axis. Analysis have shown that in the anisotropic in situ stress field, the favourable direction of underground mine openings which have different strata conditions depend not only on the horizontal in situ stresses but also on the vertical in situ stresses. Furthermore, 3D numerical modelling studies have been carried out to investigate stability of multiple entry longwall panel gate roads and pillars with various width-to-length ratios (W/L). Results of the modelling studies have shown that the critical dimension of coal pillars depends on their width and the direction of maximum horizontal stresses.

Dec 6, 2010

By A Prinsloo, R Tewu

Automatic control of semi-autogenous grinding (SAG) mills has often been considered complex. Recent experiences at Century Zinc (worldÆs second largest open pit zinc mine) refute this. Together with operating knowledge and appropriate control techniques high quality control is achievable. In this application model-based, constraint, and multiple output control were employed. The control was implemented using standard blocks in the plant DCS. The resulting overall control strategy fulfils the operating objectives and controls the mill with minimal operator involvement over 95 per cent of the time. Previous campaigns using expert systems and complex DCS based control have lacked durability. Their fall into disuse is briefly discussed.

Jan 1, 2009

By I Minniakhmetov, J Ashford

Orebodies constitute naturally occurring, commonly highly variable concentrations of minerals in the earth’s crust formed through varying and highly unpredictable processes. Orebody knowledge is a core foundation of a mining company’s asset base underpinning all decisions about Mineral Resource and Ore Reserves, future production, development and ultimately the profitability and competitiveness of a mining enterprise. The decision to invest in a mineral project is usually based upon a techno-economic evaluation of the project and having clear approval pathways to gain local community support and address social and environmental impacts. The main objective of the techno-economic evaluation is to determine the optimum development sequence for the particular orebody in question and to estimate the economic viability of the project and the future return on investment to its stakeholders, balancing the inherent value of the mineral in the ground against the costs of development and market pricing. With the exception of market-driven commodity prices, virtually all revenue and cost estimates fundamentally stem from the understanding and subsequent modelling of the orebody. A reliable estimate of the ore deposit grade and other geological value-drivers is the foundation upon which the business case for future mine development and operation is intricately dependent. Orebody knowledge is, therefore, the fundamental driver of the mineral project cycle, influencing the progression of studies and consequently, the resource company’s ability to declare Exploration Results, Mineral Resources or Ore Reserves which govern the source and cost of funding available to the project. Drilling provides a ‘vector’ to the true nature of the orebody and effectively buys time to manage the technical risk associated with the orebody. Despite its perceived high cost, in both time and money terms, drilling is the only available technology for acquiring the necessary orebody knowledge to support technical and economic studies and to minimise orebody-driven cash flow uncertainty and volatility. However, like all costs, pressure to minimise drilling budgets is ubiquitous across the minerals industry. Paired with inappropriate key performance indicators, drilling is often regarded as a cost to be minimised, rather than an investment to be optimised. Furthermore, as future deposits get deeper and more complex, the collection of orebody knowledge is increasingly on the critical path for project development. The increasing cost of data collection pertaining to these deposits increases the temptation to minimise orebody knowledge gathering at the cost of long-term value as the reduction or postponement of drilling results in greater orebody knowledge risk at all stages of the value chain. Indeed the true cost of the decision to drill less is rarely known until the mine is in operation, well after the mine project evaluation team has moved on. This paper aims to promote orebody knowledge as the fundamental source of endogenous project financial risk and, consequently, its critical importance in project financial evaluation. Furthermore, the report documents experimental research into the development of an econometric model for valuing orebody knowledge. Using the density of drilling data as a proxy measure of orebody knowledge, the proposed approach integrates well-established stochastic grade modelling techniques with the mathematical mechanics of Decoupled Net Present Value (DNPV) which, combined with stochastic grade modelling (conditional simulation), lends itself to the financial International Mining Geology Conference 2022 | Brisbane, Australia and Online | 22–23 March 2022 3 assessment of orebody knowledge risk. Based on this approach, a metric is formulated, representing the minimum value of the orebody knowledge added by additional drilling

Mar 22, 2022