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By D Corley, J Moore, M Grant, A, W R

Resource estimates are the corner stone of technical and investment decision-making. Prior to mining, resource estimation uncertainty has the greatest potential to lead to poor investment decisions, despite a significant component of resource estimation uncertainty being unknowable at this critical stage in the mining cycle. This presents a conundrum to the resource geologist in terms of risk evaluation and resource classification. Ahead of mining, there is normally considerable focus on drill hole spacing analysis to determine the ‘optimal’ drill hole spacing, taking grade and geological continuity into account; cost-benefit analyses balance improved resource definition against cost; the law of diminishing returns and the exponential cost increases acting together as spacing is reduced. Typically, a lower limit to the drill hole spacing is identified. After completing the resource drilling to an agreed spacing, resource estimation is then undertaken. At this point it is common to attempt to bracket the resource estimation uncertainty. In many cases conditional simulation is used, based on a modelled, but largely assumed, variogram model. It is also assumed that the histogram of the available drill hole sample data is representative of the in-ground mineralisation. The purpose of this paper is not to diminish the importance of drill hole spacing and simulation studies, but rather to illuminate an important aspect of estimation uncertainty that, although previously recognised, is typically overlooked – the question of how representative the available data set is in characterising the true (but unknown) distribution of mineralisation. To do this, we lift the lid on one of OceanaGold’s former operations, the mined-out Globe Progress Mine, by resurrecting a high quality, close-spaced, reverse circulation (RC) grade control data set. The Globe Progress Mine is within the West Coast Region of New Zealand, it was closed and transitioned to rehabilitation in 2016 and is now known as the Reefton Restoration Project. The exhaustive Globe Progress grade control data was used to repeatedly ‘redrill’ the deposit by extracting 35 m × 35 m spaced subsets from the original 5 m × 5 m spaced grade control data. Utilising closely spaced grade control data removed the need for assumptions regarding short range continuity, which are necessary with forward-looking analyses that are based upon broader spaced resource drilling. The extraction process used a nearest neighbourhood algorithm, repeatedly moving the origin in 5 mE, or 5 mN increments. Individual resource estimates were then completed for each of the extracted drill hole data sets (49 in total) as well as a grade control estimate based upon the exhaustive data set. Whilst the data unpinning each of the 49 estimates changed, the geological assumptions, variography, and modelling parameters remained constant. This approach was taken to isolate the impact of changing the input data. The 49 estimates were then compared against each other and the grade control estimate. The mean of all 49 sensitivity estimates was close to that of the grade control estimate in terms of contained gold, tonnes and grade. Whilst it is acknowledged that the grade control estimate itself is subject to some degree of estimation uncertainty, the close match between the average of the 49 estimates and the grade control estimate suggests that the resource estimation methodology is reasonable and appropriate. Whilst this comparison is important, the focus of this study is on the component of estimation uncertainty related to the underlying data, and this is reflected in the spread across the estimates. The spread across the 49 global estimates (highest to lowest) for this particular Mineral Resource Estimation Conference 2023 | Perth, Australia | 24–25 May 2023 142 case study was found to be significant (approximately 20 per cent in grade and metal) and that is attributable solely to the underlying data. This exercise quantifies a component of the estimation uncertainty that is inherent to all drill hole data and is distinct from the uncertainties associated with modelling methodology choices, sample and subsample quality and drill hole spacing-related interpolation uncertainty. Importantly, this uncertainty is unknowable prior to mining; we can only directly compare the resource drill hole data against grade control data after mining has taken place. For the case study, approximately 65 per cent of the estimates fell within 5 per cent of the grade control estimate for contained-gold, suggesting that for many projects the histogram of drill hole data is unlikely to differ noticeably from that of the in-ground resource. However, about 15 per cent of the estimates in this study differed by more than 7.5 per cent, suggesting that a not-insignificant proportion of estimates will be materially compromised. Whether or not the available drill hole data is representative comes down to the ‘luck of the draw’ and cannot be known at the time of resource estimation. Given the challenge of attempting to evaluate forward-looking estimation uncertainty, a component of which that can only be quantified retrospectively, what should we do as resource geologists? What are the implications for risk evaluation, resource classification and reconciliation? Furthermore, without rigorous post-mining data checks, resource geologists may conflate suboptimal modelling with the shortcomings of the underlying data. An example of this problem is discussed in the following section.

May 24, 2023

In the mid-1990s, after a long period of antipathy between the company and its detractors, Rio Tinto embarked upon an ambitious cultural change program that sought to transform the fundamental basis of its relationship with global, national and local stakeholders. This has evolved into a broader pursuit of positive cultural change within Rio Tinto as part of the mining industryÆs Sustainable Development initiative. Initially driven from the top down, the communities component of this program comprises an architecture of policies, value statements, social research and verification systems. The commitment to better community relationships is best exemplified in Australia by the scope and scale of the GroupÆs Aboriginal land access agreements, community development programs and the work of the Rio Tinto Aboriginal Foundation. While collectively these form the core elements of an evolving set of internal social competencies, development of second-tier competencies is required to organically embed a culture of sustainable relationships with local and regional communities. Second-tier competencies will include appreciation of social dynamics, social science and diversity at middle management level; rigorous social research that properly informs development options for companies and host communities; career paths and recognition within the mining industry for young professionals both generally and from stakeholder communities; proper community-needs assessments, research into such things as purchasing power and other economics data, and inventories of public goods such as land-carrying capacity and water availability. Without this information it is difficult to gain an appreciation of and to alert people to the consequences of change brought on by a mine. The next decade will see second-tier social competencies promoted within successful mining companies. Measures to achieve this include a range of Human Resource (HR) incentives such as recruitment and career advancement based on broad competencies rather than narrow technical proficiency, humanities training for mining professionals and performance rewards that recognise social competence. A sustainable future for mining in a globally connected social landscape requires selection of people who can listen, relate and act in an open social system. The challenge for the mining industry, its professional organisations and educational institutions is to acknowledge this and develop these new aspects of mining industry professionalism. This cannot be left to individual companies if the industry is to have a sustainable future.

Jan 1, 2002

By J Araya, O Leiva

The mine evaluation process, composed of the designing, planning and valuation of a mine project, is, among other variables, based on an estimated orebody model. However, as the information from the drill holes is limited, it is impossible to know with certainty the mineral content in each block within the estimated block model. Consequently, uncertainty about the value of metal grades, or other geological attributes, arises because of the lack of information at unsampled locations. This is one of the reasons why, in any mine operation, there will always exist a divergence between estimated and real values. Cut-off grade optimisation is the process used to determine the operating mining strategy (long-term production scheduling) that will maximise the total profit value (normally referred as the net present value (NPV)) of a mine operation. This is done by defining a dynamic cut-off grade policy which is constrained by the production capacity of the mining, mill and refining.Real options is a type of contract, written on real assets such as mining, oil and other natural resource industries, that gives you the right but not the obligation to exercise the contract. It is based on operational and managerial flexibility, which allow mine decision makers to react to either good or bad operational and economic events in the future. But, what do geostatistics and cut-off grade optimisation have to do with the application of real options in a mine project evaluation process? The objective of this paper is to answer the previous question by showing how geostatistics combined with cut-off grade optimisation are key tools for corporate/managerial decision makers, which allow them not only to analyse the resource/reserves of their projects, but also to generate operational strategies that can maximise project value by minimising the downside risk due to ore tonnes and grade uncertainties, while achieving operational and physical constraints such as mining and processing capacities. A real copper grade open pit mine project is used as a case study.

Sep 26, 2011

By Mowat B. A

I lamata is within the Morobe Goldfield (7¦ 25' S, 146¦ 39' E) on the Wau (SB 55-14),1:250,000 scale map sheet (Fig 1). The deposit is 13 km SW of Wau, within the headwaters of the Upper Watut River, at an average elevation of 2000 m. The steep mountainous terrain is covered by dense tropical rainforest and access is by helicopter or by foot track. The deposit has been described previously by Wells and Young (1991) and 1)enwer. Leach and Mowat (1995). Data collected to late 1996 have been used to estimate an Inferred Resource of 9.2 Mt at 3.1 g/t gold using a cutoff of 0.5 g/t. This contains a high grade portion for which an Inferred Resource of 1.2 Mt at 9.7 grt gold has been estimated using a 5.0 g/t cutoff.

Jan 1, 1997

The Hail Creek coking coal deposits are situated in Central Queensland, inland from the port of Mackay. A joint venture of Australian and Japanese companies has been formed to examine the feasibility of developing these deposits for sale on the overseas markets. The project envisaged involves large scale mining operations and on site benefic- iation to wash the coal to marketable quality. Infrastructure items include a 140 kilometre railway to the coast, a port facility, and at Ilail Creek, power and water supplies, roads and communications, and accommodation for a substantial workforce. The need for town development and the responsibility for the development are established. The town planning implications of coal production at the rate of five million long tons of washed coal per annum from open cut and underground mines are considered. A procedure for estimating the size of the town is expounded and the town size is determined. The factors influencing site selection are explained and a site is suggested. A method of designing the town is described and comments are made on developmental aspects. Spaciousness and preservation featuring the natural environment will be the theme of the town development.

Jan 1, 1973

The Ardlethan tin concentrator had dete riorated considerably in metallurgical per- formance, maintenance and plant availability. This problem was compounded by low tin prices and International Tin Council quotas. Mid- 1976 figures were: throughput - 1300 tonnes per day, availability 83% and metal recovery 537. Major problems existed throughout the circuit from crushing to tailings disposal and with morale, staffing, and housekeeping. With the lifting of the quotas in June 1976, management provided funds to implement a major rehabilitation programme and some fifteen major projects, at a cost of about $1.3 million have been completed to date. The change in performance has been dram- atic, and end of 1977 performance figures are: throughput - 1700 tonnes per day, availability 90% and metal recovery 65%.

Jan 1, 1978

Aspiring to be excellent makes you a good leader as it shows a capability for strategic thought, defining and implementing a vision, making a job easier, more efficient and effective. Every great business leader can generate additional revenue or cost savings for their company. Becoming excellent requires the desire and action to follow it through. There are many established methods of excellence: benchmarking, target setting, supply chain and market analysis, employee suggestions and knowledge sharing forums. In BHP Billiton, practices benchmarking is a key tool in generating improvements for functional areas such as processing, mine operations and mine planning. Practices Benchmarking involves organisational and technical questions that allow the site to self-assess their maturity and generate a prioritised improvement path. Not only does it benchmark and identify gaps, but the approach also facilitates networking, education and team building. For new leaders it is important to remember that you are not alone. Chances are your problem has been solved before. Networks û internal, external, formal and informal can get you started and often save you time and effort. Any leader can achieve success in excellence through a proper process of problem formulation, data and analysis. Again, using key players can make the process more effective. It is important to remember that the people side of the solution is the key to success and that monitoring will ensure the solution will work. In the words of BHP BillitionÆs CEO, Chip Goodyear: Excellence is a mind set. ItÆs something that comes when people get rewarded forthinking outside the box and applying their skill and knowledge. It happens, not in$50 million chunks, but in hundred thousand and million and $2 million chunks.When you get 35 000 people thinking that way, then youÆve really got somethinggoing.

Jan 1, 2005

By C K. Suzuki, J A. Yanaguizawa, D M. F de Santana, L R. P Leite, A H. Shinohara

In the present work, the microstructure and mechanical properties of structural mortar from glass insulators were studied by X-ray fluorescence, X-ray diffraction, infrared spectroscopy, microhardness and compression testings. The investigated glass insulators were manufactured between the 1960 and 1990 years and had been used in 230 kV transmission lines. The results evidenced that the structural mortar of glass insulator was replaced from Portland to aluminous cement along the years. The crystalline phases of the mortar were identified and mechanical properties were correlated.

Jan 1, 2008

Continuous improvement in environmental management assists in the achievement of sustainability goals for the mining and processing of minerals. The use of regular internal environmental audits (scored or unscored) which form an integral component of an Environmental Management System (EMS), provide demonstrable evidence of this improvement. The audits described in this paper involve working with site personnel to develop and implement major improvement projects, providing advice on how to improve environmental practices and facilities, and disseminating innovative ideas and practices across the site and to other operations within the same group. Essentially the lead auditor assumes the role of a æskills coachÆ as opposed to a æpolicemanÆ, which is quite often the case for many audits. The audit process has been developed from involvement with a number of major coal mines in the Hunter Valley, where regular internal environmental audits have been undertaken every two to three months, over periods varying from 18 months to five years and more recently, with a metalliferous mine in the Northern Territory. Examples of the benefits of improved environmental performance (driven by the audit process) to sustainable development are provided. The auditing process as described is applicable to metalliferous mines, the processing of mineral ores, coal mines, coal handling and preparation plants, quarries, and oil and gas projects.

Jan 1, 2004

The mine manager is one of the oldest jobs in the world. Over many centuries the fundamentals of how this job was approached did not change much. However since the later part of the 1980s there has been a dramatic shift in the expectations and role of the mine manager as the pressures of globalisation and consolidation have increased the size of companies and the production levels of mining operations. The changes have been dramatic, with demanding requirements on mine managers to continually improve the skill levels of people, to apply and develop rapidly changing technologies and to consider far broader business issues that need to be managed in a truly globally connected world. This paper will attempt to outline some of the issues, the complexity surrounding them and some of the approaches that have been made to manage them. There is not a single correct answer or approach, but there are many key success factors that have led to some amazing levels of performance being achieved as we go deeper, broader and literally move mountains to meet the customerÆs needs for today and tomorrow. This contrasts with many mining operations in developing countries that still have a traditional approach to how they mine. Society is the river of life that continually flows and changes the environment that surrounds it. The pressures from the customers and world growth, shape and force alterations to be made in an industry that has to live with the far greater primal and uncompromising forces of the earth we mine. This has led to some paradigm shifts in how we accept what we manage. TodayÆs mine manager must manage a far broader range of issues, than just how do we get tonnage out of the mine and product out of the ore. These include but are not limited to technical, commercial, product quality and end use understanding, employee and community issues, environmental and the ever increasing complexities of sustainable development. Organisations will have to look at how they structure their management of the business to manage functions to meet the complexity of different stakeholders needs û the business, the employees, the customer and the broader community within an environment that is becoming more attuned to the harm impacts to the world in which we operate. The attraction and retention of skilled people that contribute to the value and worth of the corporation, will become critical to sustain a companyÆs growth. One of the fundamental elements of successfully doing this will always be the skills of the mine manager and his/her extended team with the continued development and support that they will need to meet these demands.

Jan 1, 2006

By Plamer D. J, Newman O. M G

The Effluent Treatment System at Pasminco Metals - EZ (PMEZ) was commissioned in December, 1991 and has operated satisfactorily, ensuring that aqueous discharges from PMEZ comply with the Tasmanian Environment Protection Act. The system treats both spills and run-off from the Zinc Plant, and acidic liquor generated in the gas cleaning section of the Sulphuric Acid Plant. The spills and run-off from the Zinc Plant are collected in a large catchment pond. The pond liquor, after partial neutralisation with sodium hydroxide to pH 4, and removal of suspended solids, is preferentially recycled to the Zinc Plant, for example, for washing of residues. Liquor which cannot be recycled, is treated in the Lime Neutralisation Section. The other input to the Lime Neutralisation Section is the acidic liquor from the Sulphuric Acid Plant from which mercury has been removed by contact with aluminium pellets in a fluidised column. In the Lime Neutralisation Section, the liquors are blended and neutralised to pH 10 by the addition of slaked lime. The heavy metals and most of the fluorine are precipitated. The precipitated solids are removed in a thickener with part of the thickener underflow being filtered. Most of the thickener underflow is recycled to generate solids that settle rapidly and filter well. The filter cake is returned to the Zinc Plant for the recovery of contained heavy metals while the thickener overflow is discharged to the Derwent River.

Jan 1, 1993

By A L. Stewart, M Baatar

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.The Middle Palaeozoic Gurvansaikhan Belt (Southern Mongolia) of the Central Asian Orogenic Belt is one of Central Asia’s most significant emerging porphyry copper provinces. The belt has become the focus of extensive exploration for porphyry copper-gold deposits over the last decade following the discovery of the giant Oyu Tolgoi porphyry copper-gold deposit. The Gurvansaikhan Belt is known to host porphyry deposits of Late Devonian (~370 Ma) and Early Carboniferous (~320 Ma) age. The characteristics of Early Carboniferous porphyry systems are poorly known compared to their older counterparts, despite their probable abundance and potential economic significance. Exploration within the Kharmagtai porphyry breccia complex has identified multiple cogenetic gold-copper-porphyry centres and late-stage mineralised magmatic-hydrothermal tourmaline breccias emplacement within a composite high-K calc-alkaline quartz monzodiorite intrusive complex. Early porphyry alteration and mineralisation at Kharmagtai are zoned around vertically attenuated early- and inter-mineral quartz monzodiorite dykes and stocks and comprises a complex sequence of calc-potassic, potassic and propylitic assemblages. Hematite dusting is a common alteration product that gives intrusions and the host rocks a distinctive pink-orange colour. Several of the systems have bornite-rich cores, where mineralisation is characterised by high gold grades (0.7 to >5 g/t Au) that zone outward to chalcopyrite-rich and then outer pyritic halos. Early stockwork mineralisation is overprinted by magmatic-hydrothermal tourmaline breccias. High-grade magmatic-hydrothermal tourmaline breccias form part of a major copper-gold mineralised breccia system with significant exploration potential. The Early Carboniferous porphyry copper-gold systems of the Gurvansaikhan Belt represent a substantial exploration challenge in an area of increasing exploration maturity. This paper summarises the characteristics of the Kharmagtai porphyry system that have helped to define the Early Carboniferous porphyry province of the Gurvansaikhan Belt and discusses implications for future exploration.CITATION:Stewart, A L and Baatar, M, 2015. The Kharmagtai porphyry breccia complex – characteristics of early Carboniferous porphyry mineralisation in the Gurvansaikhan Belt, Southern Mongolia, in Proceedings PACRIM 2015 Congress, pp 383–388 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

The key to the successful debt funding of a new mining project, whether in economically established or developing nations, is the submission of a comprehensive feasibility study. The feasibility study forms the basis from which the resource banker can construct financial models which govern the amount of available funds, the conditions which control the supply of such funds and the time period over which the loan may be repaid. The bank will wish to ensure that the feasibility study is the best representation and confirmation of reality possible because this model is the basis of the loan security package. Thus the study will be vigorously interrogated by independent experts in all its elements including the ore reserve, mineability, metallurgy, operating and capital cost profile, environmental factors and management.

Jan 1, 1995

The Australian bulk explosives industry has matured significantly over the last five years and it would appear that the rest of the world is following suit. This maturity is characterised by the technical sophistication of modem bulk explosives, an increase in the technical competence of the explosives consumer and a greater openness in the debate on the quality and performance of explosives. The principal mechanism by which these advances have been made is undoubtedly commercial competition in the market place although a new element, technical competition between manufacturers and independent professionals, has and will continue to play an important role in the development of the industry. The relationship between the explosives manufacturer and consumer is necessarily both complementary and competitive. This paper identifies the need for the consumer to take a more prominent role in the critical analysis of the performance of explosives and to use his commercial influence to direct explosives manufacturers at least in the direction required for the future technical development of the industry.

Jan 1, 1990

By Blackham M

West Wallsend No. 2 Colliery is a new mine that is presently being developed in the New- castle Coalfield by J. & A. Brown & Abermain Seaham Collieries Ltd., a subsidiary of Coal & Allied Industries Ltd. It is situated near Barnsley and is some 15 miles by rail from the port of Newcastle. The mine will produce coal from both Bore- hole and Young Wallsend seams. The Borehole seam has a working seam thickness varying from 7 ft to 5 ft while the Young Wallsend seam presents a choice of two distinct working thick- nesses, i.e. 5 ft. or 8 ft, the upper 3 ft containing much high ash material. The inter- seam interval varies from 10 ft on the western edge of the area to more than 70 ft in the central portion. The Borehole seam lies at a depth varying from 550 ft to 750 ft and the overlying surface terrain is gently undulating bushland with limited surface development.

Jan 1, 1972

The Jacobs Sliding Floor (Floor) is experiencing a surprisingly long competitive life. The first Floor was used on the Camino Tunnel in California in 1960. At that time the Robbins Company had built only seven TBMs, and the future for such machines was considered doubtful by many, as compared to drill and blast methods. This was then, and still is, commonly called the "conventional" method. Robbins' TBM No. 8 was for the Hydro Electricity Commission of Tasmania (HEC) for their Poatina Hydro Project in 1961. In this writer's view, the Poatina experience was the start of successful hard rock boring machines. But, by coincidence, the HEC is using the newest Floor for their King River Hydro project, where driving with the Floor started in July 1986 on the King Tunnel. This paper examines the history and developments in both Floor design and other "conventional" tunnelling equipment, and the site specific conditions that have allowed this old concept to still be competitive in certain select situations. Parametric costing data and some actual progress records are included.

Jan 1, 1987

The Porgera gold deposit in the Papua New Guinea highlands contains about 387 tonnes of gold. The results of its exploration show the benefits of persistence and commitment to this difficult deposit. The mineralization consists of a complex intermix of auriferous and argentiferous sulphides, gold tellurides and free gold as disseminations, veins, stockworks and breccia matrix. Its deposition was structurally contolled within a system of mafic diorite intrusions and adjacent sediments. Two styles of alteration accompany the mineralization. Gold grades vary erratically throughout the deposit. Over a period of 22 years nine phases of exploration have been undertaken by six companies or consortia of companies. Surface rock chip sampling, geological mapping followed by scout and systematic grid diamond drilling have been the most successful exploration tools. Exhaustive metallurgical process investigations and economic evaluations of mining options have been invaluable in guiding the exploration towards defining the ore body. Impetus was given to the project during times of flagging enthusiasm by several important discoveries and a breakthrough in the metallurgical processing approach. The discovery of high grade ore deep in Zone VII in 1984 turned this marginal deposit into a potentially very large gold mine.

Jan 1, 1987

By McLaughlin R. G, Brammer R. A J

King Island Scheelite had been using dealer modified front end loaders for two years when in 1974 it started to increase production. Suppliers were then quoting long deliveries for underground diesel trackless mining equip- ment, and the Company was forced to modify surface machines which had become redundant as production from the open cut phased out. The results were generally successful and encouraged further adaptations. Drill jumbos excepted, the Company now uses only converted surface machines in areas worked by diesel engined equipment and for all support and auxiliary functions.

Jan 1, 1977

Up to 80 per cent of the copper in a bornite ore can be quickly leached with percolating acidified ferric sulphate solutions. The upper limit for rapid copper extraction is set by the conversion of bornite to slowly dissolving chalcopyrite. The dissolution occurs in two stages: a rapid linear initial stage, followed by a slow, non-linear stage. The initial step is largely controlled by the rate of oxidant supply (Fe2(S04)3); temperature is not an important variable during the initial reaction. The second leaching stage is controlled by chemical and physical factors and is temperature dependent. The initial copper leaching rates are insensitive to both the concentration of the ferrous sulphate reaction product, and the sulphuric acid concentration.

Jan 1, 1973

By E de N, B H. Usher, F D. I Hodgson

Due to the haphazard application of static tests in South Africa, several methods and interpretations have been followed. This has resulted in confusion amongst practitioners and regulators in the use and validity of these methods. Research was done over a two-year period to define standardised methods and interpretation of results. This included laboratory testing and continuous consultation with all interested parties throughout the country. The research yielded a modified ABA, based on several existing methods. The methodology includes AP determination using hydrogen peroxide, and an analysis of the supernatant by ICP. This has the advantage of not only registering reactive sulfur, but also provides the NAG pH, that enhances the interpretation and QC of the tests. Analysis of the supernatant provides an indication of heavy metal solubilisation, should acid conditions arise. One hundred and seventeen samples were compared to Leco S analyses and provided a good correlation. The Leco values were slightly elevated due to the reporting of total S as opposed to æreactive SÆ. The NP method deviates from the usual methodology, in that H2SO4 is used (to provide a field analogy) and the fact that a 24-hour stabilisation period is allowed before back-titration. The latter modification appears to prevent psuedo-buffering by transient phases. These methods have also been tested for repeatability and prove to be robust. A very simple macro-driven spreadsheet, æABACUSÆ, was also developed. This spreadsheet allows the entry of basic data and provides a detailed interpretation and graphical display of typical ABA data. In cases where drill holes are used, the Pennsylvanian approach of volume calculation can also be done with ABACUS. The results of the research have been distributed to interested parties in South Africa and it is hoped that these methods and their application will find widespread acceptance.

Jan 1, 2003