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A new gold cyanidation assay technique has been proven for a range of ores, where it has demonstrated benefits of being: ò Accurate (reduces the typical range of assay scatter almost three-fold, and avoids common fire assay interferences). ò Fast (under one hour, providing a quantum shift in space requirement and equipment utilisation each bottle roll can provide over 15 determinations per day). ò Simple (suitable for field application, no high skill or experience requirements). ò Profitable (reduced drilling, drilling time, ore misclassification and/or double handling after mining). ò Cheap (far lower cost than Fire or Aqua Regia Assays, ie LeachWELLTM costs around 10ó for a 20 g sample at 50 per cent solids, proportionately greater for larger samples eg $1 for 200 g samples which address most nugget effect problems). ò Relevant (distinguishes economic. ie cyanide-extractable gold, the only unequivocal value to use for true resource definition, mine planning and grade control). ò Robust (rough bucket chemistry of samplers does not seriously affect results). A new development is the provision of LeachWELLTM CAS, a solution, which also contains optimum cyanide and stabiliser concentrations; and offers greater: ò Safety (the dilute cyanide solutions are stabilised to avoid generating toxic HCN vapours; and present no cyanide dust or flying chips to deal with). ò Ease (a single squirt dispenses precise quantities of the entire reagent suite, avoiding multiple weighings). ò Reduction in total reagent costs. An inter-laboratory comparison on nine ore types, using two assay techniques (Fire Assay and Aqua Regia) involving 45 laboratories, has demonstrated that LeachWELLTM 60X assays for the samples tested, were equally or more reliable than typical Fire or Aqua Regia Assays. There is particularly great benefit in applying LeachWELLTM 60X assays to richer ores in comparison to Aqua Regia assays, which appear to be prone to very significant underassaying depending on individual analyst skills, and which often suffer greater nugget effects. The major impacts for heap leaching are that: ò Using the LeachWELLTM assay technique for grade control, ore of marginal grade is not accidentally discarded to waste or visa versa due to the scatter of assay data inherent in typical small charge (25 g) fire assays. ò LeachWELLTM assays very importantly report only that gold which will be recoverable in the heap, viz that which is liberated - an important factor where the coarse crush often leaves ten per cent of gold unliberated. These impacts are of particular importance for many ores (ie most of those recovered from open pit operations and at the margins of rich ore subject to slurry processing) subjected to heap leaching as the oxide zones often present major problems of nugget effects as well as mineralisation that cannot be accurately assigned through interpretation of clear structural controls.

Jan 1, 1994

By T N. Little

The grade control process undertaken at mines aims to maximise the value of the ore (valuable product) mined and fed downstream for processing or sale. The full range of grade control activities includes: reserve estimating, drilling/sampling, assaying, modelling, ore block design, blasting, ore mark out, excavating, stockpiling, processing and reconciling. Over the last 25 years, the grade control process has undergone significant improvements and this is in part due to the developments in grade control blasting. This paper discusses the development and classification of grade control blasting applications in surface mining. A review by the author in 1988 (Little and van Rooyen, 1988) is used as a benchmark for discussing the very significant progress that has been made.Two major technology initiatives have enabled this development. The first was the development of a method for the measurement and analysis of total displacement during the blasting process. Currently, the Blast Movement Monitor (BMM®) is a practical tool that has been used around the world to improve the industry’s understanding of three-dimensional blast movement dynamics. The second technological enabler was the development of electronic detonator systems. The unique aspects of electronic detonating systems are their higher accuracy and that all detonators are activated at time zero (initiation). From a grade control blasting perspective these features and other improvements allow experimentation and, ultimately, more complex, multiobjective blasts to be designed and implemented.This paper reports on a classification and review study undertaken by the author. In all, five selective blasting methods and nine bulk blasting methods are classified and reviewed. Five important observations are made: there is value in classifying the range of grade control blasting strategies, and the blasting objective framework presented is helpful in this regard the range of strategies available to designers is increasing as enabling technology develops, so too do the ambitions of blast designers and the expectations of downstream customersgrade control blasting and Mine to Mill concepts are merging, and this paper caters for this trend using multiple blasting objectiveshaving a technical primary blasting objectives framework, combined with the classification system presented here, should assist practitioners and stakeholders with lateral thinking in regards to future technological innovations, grade control blasting and Mine to Mill initiatives.CITATION:Little, T N, 2015. Classification and development in grade control blasting for surface mines, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 343–354 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By I Thomson, L D. Black, R G. Boutilier

The social license to operate (SLO) began as a metaphor for the ability of communities to stop mining projects. Soon people began to speak of levels of social license and the ability of communities to raise costs without completely stopping exploration or mining activities. Today the concept has spread to other industries and is evolving towards becoming a general management perspective on the socio-political rights and responsibilities of the corporation. The business case underpinning the SLO perspective on management is the need to assess and manage socio-political risk. For mining companies, socio-political risk has been steadily rising for several reasons, including the efforts of non-government organisations (NGOs) to pre-empt government policy options; the entry of mining companies into jurisdictions weak in the rule of law; and the weakness of global economic and financial regulation. In this perilous world beyond the comfort zone of effective government, mining companies must build their own socio-political stability by engaging directly with stakeholders to develop a strong SLO. In order to become a practical management perspective, the SLO needs to be measurable, which amounts to measuring the socio-political risks and opportunities presented by stakeholders. We present the results of efforts since 2009 to develop a globally reliable and valid measurement tool at the project and industry levels, validated in studies in Australia, Bolivia, Mexico and the USA. A factor analysis suggested four factors that mine management can address to raise their SLO level. The most chronically neglected factor involves the political right of the corporation to foster more equitable social contracts locally and regionally in both developed and developing countries. We conclude with recommended steps to earn and maintain the social license at the project and industry levels.CITATION:Boutilier, R G, Black, L D and Thomson, I, 2012. From metaphor to management tool - How the social license to operate can stabilise the socio-political environment for business, in Proceedings International Mine Management 2012, pp 227-238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By M Aros, L Reilly

Iron ore is normally sold in bulk at certain specifications. These include iron grade and specific contaminant grades, typically silica, alumina, phosphorous and sulfur. These target grades are normally agreed between the mining company (producer) and the steelmaking company (customer).This study presents an alternative to traditional cut-off grade calculation, using linear programming that maximises the total ore inventories within a predefined mining envelope while meeting the specified targets. Providing a feasible mining sequence that maintains the target grade is not covered in this study.The method was applied to Fortescue’s operations. The complexity arising from differing ore quality within each mining horizon, variable yields and upgrades and the need to control iron and contaminant grades provided a good opportunity to test an alternative method of ore selection. The new method significantly reduced the time spent in cut-off selection and sensitivity analysis, and provided an optimised solution.CITATION:Aros, M and Reilly, L, 2014. Ore selection optimisation for an iron ore deposit using linear programming, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 345–350 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By M S. Powell

In this paper it is argued that we are entering a new mining era, based on considerably more challenging orebodies as we rapidly expand minerals production by exploiting previously uneconomic deposits. Rapidly increasing production costs cannot be sustained by continually increasing commodity prices, as illustrated by the recent downturn in the industry.Driven by reduction in grade, requiring the processing of 50 to 100 per cent more ore to recover the same amount of metal, often accompanied by finer grain structure - necessitating a finer product size and more challenging recovery - the productivity of the mining industry is dropping in real terms. The author suggests that tweaking current technologies and relying on economies of scale will not turn the industry around, but rather a switch to considerably more efficient processing is required.It is imperative to utilise the properties of the orebody, especially in terms of variability, in revolutionising our processing techniques. Our new mantra may be æselective mass mining with flexible processingÆ. This paper explores how this may be implemented using current technology and equipment in order to change the cost profile of the new mining industry. Orebody knowledge, based on the underlying process drivers, rather than proxies, is required. These properties and their variability will need to be propagated into the orebody through utilising the geological data rather than smoothing block averages, which destroys information on variability.Novel flexible circuit designs are presented that can respond to a wide variability in ore properties and throughput requirements in order to slash processing costs and energy utilisation, while enhancing overall recovery. The success of these circuits will be based on an ability to predict at both design stage and in everyday processing the variable ore properties, which is dependent upon reliable orebody knowledge that caries variability and underlying processing properties.CITATION:Powell, M S, 2013. Utilising orebody knowledge to improve comminution circuit design and energy utilisation, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 27-36 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By C Simpson, J Market

The process of sampling blasthole cones utilising personnel to manually shovel material into sample bags is a long-standing industry accepted process. However, this method has several drawbacks, including the safety issues around having personnel performing manual sampling in a harsh environment and the variability involved in getting a human to repeatedly get a ‘shovel full of dirt’, and make it always representative. Geophysical blasthole sampling, or utilising a Downhole Assaying Tool (DHAT) has been tested and has now begun implementation at many iron ore sites throughout the Pilbara region, Western Australia. This method uses a geophysical tool to capture data within blastholes, and together with a semi-autonomous logging platform to minimise risks around manual handling, delivers a multielement proxy-assay which can be utilised by the mine geology team to accurately domain the orebodies. Logistically, the combination of a specially designed tool and semi-autonomous truck are the way forward for a safer and more data-robust blasthole sampling practice. The method utilises a neutrongenerating geophysical tool and linked elemental spectroscopy sensor, which measures the response of the material surrounding an open hole. This delivers results at submetre intervals. These results are then utilised, similar to blasthole sample results, to map out areas within the blast pattern that are ‘ore’, ‘waste’, or ‘other suitable grade’. This paper outlines a project that has been in ‘proof of concept’ at selected Fortescue sites over the last few years with testing of these tools carried out on reverse circulation (RC), diamond drill and blastholes. The method is now being implemented at operational hematite mine sites. Fundamentally, the method adds more than enough value to justify its implementation. The aim is that these learnings will enable the greater industry to adapt, implement and improve their mining practices. Ultimately, the outcome will be greater value in mining for the industry by having a larger volume of good quality data to make reliable decisions on material movements, minimising ore-loss and dilution, and maximising the value of our current and future orebodies.

Nov 8, 2021

Visual computing opens the design process to a wider audience and allows rapid communication of mine plans to all stakeholders. The integration of software and hardware technologies that take advantage of a graphical environment will continue to improve both long-term and short-term mine design (Figure 1). A good design must be adaptive to respond to decision changes as the mine develops and more information becomes available. The constraints on mine design predicate careful analysis in order to operate the mine as efficiently and safely as possible.Continuous improvement in mining is assured by developing innovative technologies that target mine survey, drill and blast, modelling, short-term design and pit and stope optimisers. The design life of a mine has to be sufficiently long to ensure the mine is commercially successful, justifying the high start-up capital costs. Being able to execute a plan so that it honours the design realises the rewards of computerised mine planning and the long-term investment in data acquisition.

Sep 26, 2011

By D Audeyev

The Cooljarloo North Mine has been shaped not only by operational and processing challenges, but by climatic and economic factors. This paper outlines some of these challenges and discusses how the operating strategy has been altered over time to mitigate the impacts.Since commissioning the wet concentrator in 1999, there have been many typical operational challenges to maximising valuable heavy mineral (VHM) recovery. These include: varying in pit feed grades, different slimes types and volumes, sizing extremes between VHM and trash minerals and decreased equipment reliability handling rocky ore. These issues were successfully mitigated by: in pit extraction strategies, upgrade of the de-sliming circuit, thickener modifications and flocculent changes, installing upgraded and additional spiral capacity, and various Feed Preparation Plant screening initiatives. Combined with the ingenuity, persistence and patience of the operating team, VHM recovery >95 per cent has been achieved.However, typical processing challenges have not been the only hurdles. Reduced rainfall and water availability has necessitated the strategic co-disposal of tailings and slime to increase the speed of water recovery: groundwater abstraction and water storage strategies have also been altered. With an observed reduction in the speed and magnitude of groundwater recharge, overburden backfill scheduling has become a priority mine planning function.Combined with the above challenges, the prevailing foreign exchange rate and mineral product prices have impacted profitability. At the height of the Global Financial Crisis in 2009, major changes to the operating strategy were made to maintain a viable dry mining operation in 2010. Working with the mining contractor the existing scraper and semi-fixed Feed Preparation Plant set up was replaced with a movable in pit dozer trap facility. The end result of changes to the mining method and primary screening was a ten per cent reduction in unit costs. This article will elaborate on some of the above mentioned challenges and successes achieved over the past ten years of operating the Cooljarloo North Mine.

Oct 5, 2011

The profitability of individual ore blocks can be classed as clearly profitable, clearly not profitable, and those in between which are by nature quite sensitive to their major cost and revenue drivers. It is often the case that the most effort goes into the least profitable ore blocks to ensure that these will in fact not generate a loss. In these cases a cut-off grade policy is often not sufficiently live to separate individual sources given the volatility of financial markets and individual circumstances of some sources particularly in remnant operations such as Mount Isa MinesÆ Lead Mine. Standard sensitivity analysis can determine which factors stope profitability is most sensitive to. However, this does not usually indicate the likelihood of any input change, nor the combined effect of multiple inputs changing. The author attempted to modify the Lead Stream financial model that determines cash margin by inserting probability distribution functions and then using Monte Carlo simulations to determine the probability of any particular ore block making a profit. This effectively demonstrates the combined effect of varying a number of inputs simultaneously to provide a probability of making a profit. The limitations of this analysis lie in the accuracy that individual probability distributions can be specified. Attempts to generate valid functions from first principles have proved difficult for a number of reasons and these are discussed along with some practical alternatives.

Jan 1, 2002

By P J. Fairfield

This paper reflects on the author’s experience working in site-based technical and management roles over a 29 year period, and the past 12 years in internal and external consulting roles. It discusses the author’s experiences and observations of operations management, and the significant value of the technical specialist’s role in providing management with information on what to base tactical decisions, which may or may not be part of a defined strategy.The landscape of mine management changes with the cyclical nature of commodity prices driving operating and capital prudence, as operations change their focus from expansion and growth to staying in the game. The role of the mine manager and management team in navigating through these changing times, attitudes and stages of the project life can influence the success or otherwise of many projects.Technical knowledge is one of the key drivers in realising or destroying the value of a project or operation. As managers focus on people management, management systems and processes, recognising and understanding value in underlying technical knowledge, and getting back to the fundamentals/basics, can be overlooked. In reaction to the fluctuating commodity cycle, managers implement changes through optimisation, fast tracking or parallel streaming, expansion projects and changes in the application of technology. These responses occur against the background of changes in the appetite for risk, acceptance of project uncertainty and changes in personnel which result in a loss of knowledge and experience – often at critical times.This paper shares the author’s experiences and lessons learnt in dealing with and observing these issues. The author questions whether we really understand our projects and are valuing the most important asset, our people and, in particular, the technical specialist and their experience and knowledge.CITATION:Fairfield, P J, 2016. Staying in the game – the importance of engineering-based decisions, in Proceedings International Mine Management Conference, pp 67-74 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

By B Olsson, B Reynolds, R Norman

An unprecedented growth in demand for coal exports has placed pressure on multi-user coal chains to guarantee that their capacity expansion projects will meet the required demand. These projects, however, are taking place in an increasingly complex commercial and technical environment - competing rail and coal terminal service providers as well as a myriad of competing mine operators, all needing to operate in an increasingly integrated manner to get the most out of expensive shared assets.Increasing system complexity and integration has driven the need for more holistic and sophisticated analysis tools. The capacity of coal chain subsystems, such as mine, rail and port, can no longer be determined effectively in isolation. Understanding the nature of the interactions between these subsystems, their sensitivity to uncertainty and the resultant capacity of the integrated system is the key to both maximising value and minimising risk.Recently, TSG has worked closely together with the Integrated Logistics Company and a number of key stakeholders in the Dalrymple Bay Coal Chain to develop independent system master plans. These master plans have provided a quantitative and rational assessment of coal chain capacity in its current state and a prediction of its capacity once a pipeline of committed capacity improvements is in place. This paper provides an overview of the study and a comprehensive guide to the process required to effectively achieve valuable strategic insights in a challenging multi-user stakeholder environment.CITATION:Reynolds, B, Olsson, B and Norman, R, 2012. Using independent system simulation to mitigate risk in the Dalrymple Bay Coal Chain, in Proceedings Project Evaluation 2012 , pp 77-84 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Salaries for mining professionals have gone up substantially in the last two years across most vocations and there has never been a better time to enter the industry, in terms of career opportunities and salary packages. With so many offers on the table and companies outbidding each other to attract the best talent, many new professionals are being lured in by the big money, sometimes at the expense of a satisfying career and a sustainable lifestyle. What should we consider when accepting a new position? What are our values, and how do these drive our decision making? This paper examines our core values as people and makes some observations about what it takes to really succeed in the mining industry.

Jan 1, 2006

By N Anderson

With traditional grade control processes, geological models are created by geologists at the completion of the data collection stage and wireframe construction is closed off at a set date to allow for time to complete the estimation process. Any issues identified at earlier stages or the addition of new data requires the estimation process to be started again. Alternative interpretations are explored only if time allows and often in a limited fashion. An alternative workflow has been developed at the Waihi Underground Gold Mine utilising Leapfrog Edge and Seequent Central. Geological and grade control models are created, dynamically linked, and saved as separate branches. A project geologist is able to work on the grade control model and a mine geologist on the geological model simultaneously. This allows for a non-linear modelling workflow with continual review and feedback. The introduction of new data can occur right up to the model due date, with data collection, validation, alternate interpretation, and review happening incrementally. Models are categorised and stored in Seequent Central according to project status. An approved version of the geological model and grade control estimate are uploaded at the time of release and transparently capture all data used at a point in time, as well as the review process. Dynamically updating models for grade control has reduced turnaround time while increasing accuracy and quality. Estimates of individual domains are vastly improved from being able to rapidly evaluate the effects of model parameter changes in real time and 3D. Development and stope design directly benefit from these streamlined processes, with higher quality, timely production occurring as a result.

Mar 22, 2022

By N Cusworth, W R. Mackenzie

"In 2007, the authors presented a framework for the conduct of resource project feasibility studies and provided guidance on minimum standards and best practice (Mackenzie and Cusworth, 2007).This paper will present the authors’ observations in relation to feasibility studies undertaken to support investments made during the unprecedented period of resource project capital investment since 2007. It will also provide comments on general trends in the mining industry’s approach to project assessment and update recommendations on best practice.CITATION:Mackenzie, W R and Cusworth, N, 2016. The use and abuse of feasibility studies – has anything changed?, in Proceedings Project Evaluation 2016, pp 133–148 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By L Galisson, E Audigé, D Sowers

Establishing a robust geotechnical instrumentation and construction monitoring plan is one of the keys to the successful delivery of the world’s largest soft-ground bored tunnel in Seattle, Washington. The paper describes and provides a return of experience on current and best practice for monitoring tunnelling projects in urban areas. The owner’s contractual approach is discussed to highlight the flexibility of the design-built contract in achieving equal or better solutions by allowing for the use of innovative technics. Special attention is given to the management and involvement of third parties (building owners, utility owners), including the public, to overcome all challenges faced during the installation of the monitoring system in downtown Seattle for over 1000 instruments. Finally, the authors present the strategies implemented for managing the monitoring data and communicating with the owner, contractor and stakeholders.CITATION:Sowers, D, Galisson, L and Audigé, E, 2014. Current and best practice for monitoring tunnelling projects in urban areas – Alaskan Way bored tunnel, Seattle, Washington, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 441–450 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By K Eglinton

The extractive industries response to community engagement due to social and political pressures in the 1980s and 1990s was the starting point of development leading to the modern function of corporate social responsibility.Challenged by communities who have greater access to information, demand greater transparency and responsibility of corporate organisations and who possess greater awareness of the communities they participate in, the mining sector faces another step change in how it approaches and integrates corporate social responsibility, transparency and engagement.Mining is seeking reserves of lower grades, in more sensitive environments and in countries with minimal transparency and governance. Not only are the locations changing but so to the stakeholders to engage with and issues to contend with. An increasingly savvy opposition, including not just the ‘green hippies’ but the Gen-Ys interested in the wider sustainability debate and Baby Boomers moving to life style environments, are now questioning mining’s behaviour and encroachment into ‘their space’. Issues including effect on lifestyle amenity, property value, energy efficiency, social provision; concepts such as ‘doing more with less’, participatory engagement, increasing transparency and balancing economic, environment, cultural and social aspects are becoming the norm.The traditional model of supporting local communities, communicating plans and providing employment, community investment and indigenous support programs is not enough. Our industry faces challenges on multiple fronts. It must now be able to address these from a personal/community perspective if it is to remain relevant within communities and play a role in addressing the global sustainability issues.This paper draws on corporate social responsibility trends, integrated functions and implementation approaches through the application of activities within Newmont operations across Asia Pacific.The approach presented works on the philosophy that communities do not necessarily have to like what we do, but should be able to identify and recognise the way in which we involve them in decision making, communicate our intentions and respond to issues.

Nov 22, 2011

Shane is enjoying his new work. Six months ago, he was stocking shelves at his local supermarket and decided to make the big move to a job in mining with more challenge and, of course, more dollars. He's been through his inductions, received his training tickets and is now working in a crew of eight underground at a fly-in, fly-out (FIFO) operation. There are many more systems and processes here than in his retail job, and Shane's comfortable that his safety is being looked after. He is enjoying the continually changing work and conditions, it makes the job interesting. It's taking some time to get used to the roster and he is worn out by changeover, but he gets more time with friends and family during R & R.   Generally, the mining industry has a maturing safety culture and well developed systems. This sometimes lulls people into a false sense of security. Safety systems cannot anticipate every possible situation, nor can they replace people's perception, thinking and decision-making. To manage safety, it's critical to find the right balance between dependence on systems and a healthy fear and respect of risks we face.   As safety standards are raised, systems tend to get more thorough and complex. When a new person joins a mining crew, we induct and train them to provide the information they need. As labour availability again becomes short, and many new people join our industry, we shouldn't assume they know the fundamentals. We need to explain not only what they are expected to do, but why doing what we ask and expect will keep them safe. We must equip people to deal with both the routine and the unexpected.   This presentation explores the challenges of balancing a structured, systematic approach to safety with the need to also equip people to deal effectively with risks everyday in dynamic and extraordinary situations.   Session purpose Introduce participants to a way of looking at risk from a different perspective, as a force for change and progress, if managed well. Demonstrate that risk is something we need to engage with emotionally as well as physically, if we want our risk management efforts to be successful. This purpose will be achieved through an entertaining and engaging presentation, using photos and case studies. The session will initiate interest to explore new ways of thinking about risk and generate discussion about the balance between people and systems. What is the right balance and why getting it right enhances the safety culture, while getting it wrong can impact on safety, business performance and sustainability.

Jun 1, 2010

The JORC Code contains a mandatory classification system for Mineral Resource and Ore Reserve estimates for public reporting. The classification is a statement of the Competent PersonÆs confidence in the estimate and an attempt to convey that confidence to the various users of the resource estimate. In general the classification process is either largely subjective, relying on the Competent PersonÆs experience, or relies on statistical measures derived from the estimation process, or is derived from an estimated level of confidence in the outcome. However, the statistical measures may not necessarily relate to the overall confidence in the resource or reserve which must take account of the confidence in the geological inputs to the estimation.In addition to the traditional deterministic interpretation and estimations adopted by geologists, semi-quantitative techniques are now available to improve the estimation of confidence while continuing to involve the Competent PersonÆs experience in the process. Methods for quantifying confidence in mineral resource estimates for advanced projects and operating mines have also been developed.Classification is undertaken primarily as a communication tool between the estimators and the other stakeholders in the process. A brief examination of the stakeholdersÆ requirements is included.

Sep 26, 2011

By O C. Aitken

Mining project developers are committed to taking on all the challenges and obligations of financial risk management. It is interesting that our current models of project finance have not changed markedly in principle for some 700 years, yet the rules which prepare the way for effective project assessment and subsequent loan management still do not seem to be well understood by project or corporate developers. Probability and gravity fill the opposing trays of the golden balance of financial risk. Understanding the relationship between these opposing, but intimately related elements is critically important for successful risk management. It is important to move beyond the qualitative approach and use quantitative methodologies to measure the financial impact of the occurrence of each major risk. We live in a world where the only constant is change and thus it is not surprising that a bankerÆs life is still governed by assessing, measuring and pricing risk. Banks are attracted to funding well managed companies with strong cash flow projects. But we are more risk averse compared with the credit appetites of late last century. This attitudinal shift has resulted in tougher term sheets for the early 21st century, encompassing more conditions, warranties, undertakings and stronger cash sweep provisions. Banks require well balanced portfolios to achieve an acceptable spread of risk, thus there is a more restricted market for small company lending than that available to large multi-project corporate entities with less concentrated risk profiles. Because of this focus, junior company debt finance remains comparatively expensive and especially so for more challenging geographical and political environments.

Jan 1, 2004

By P Williams

The Sunrise deposit is one of AustraliaÆs largest and most profitable gold deposits. It has consistently and spectacularly outperformed every resource model created. Currently over the life of the Sunrise pit there has been a 50 per cent under estimation of ounces mined. Without a solid basis for predicting the tonnes and grade or the spatial location of mineralisation, mine planning becomes problematic. Recently, through a better understanding of the mineralising processes the reconciliation of the resource model has improved to be in the order of ten per cent under on ounces mined. This paper will describe how the mine geologists at Placer Granny Smith have implemented the changes required to improve the resource model. Work began with the development of a three-dimensional lithological and structural model based on historical drilling and pit mapping. Continual updating of the geological model with grade control logging, assays and in pit face mapping, now allows for the on-going improvement of the resource model and the planning of mine development drilling.

Jan 1, 2000