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This paper focuses on the significant impact that geological information has in relation to the valuation, both equity market and accounting records, of mining companies. There are many different measures adopted by investors and analysts in valuing mining companies. In particular, focus is primarily on calculation of profit as it is the authors primary expertise. The importance of geological information to the calculation of profit (and to many other measures of a mining company performance) is not always understood by the geologist. The aim of this paper is to raise the awareness of geologists (particularly those who are competent persons under the JORC code) of the impact that reserve statements û and changes to û have on profits. This is the first time that this subject has been presented directly to geologists. Similar versions of this paper have been presented at other forums where other important users (directors, auditors, accountants, analysts, investors) or preparers of financial statements have been made aware of the importance of the geological information. In essence, all mining companies prepare annual financial statements, which are adopted by directors and audited. The major items that require judgement generally revolve around two areas û commodity price outlook and the accuracy of reserves and resources. Reserves and resources are important, and that there is undoubtedly a lack of understanding about the assumptions and accuracy of reserves and resources by accountants, directors and auditors, and a general lack of understanding by geologists as to how the information that they prepare is used. Across the globe the majority of mining companies are listed on stock exchanges (with the main exception being nationally controlled mining companies û eg Codelco). In a very simplistic manner, I have divided all mining companies into three types: exploration plays û these companies are still in the finding or proving modeÆ and typically the stock market and investors rely on geological information and remaining cash in determining their assessment of the company; single mine companies û the major items that investors and the stock market look for are reserves, inferred resources, commodity price outlook and discounted cashflow calculations; and multiple mine companies û the investment community and stock market are looking at reserves, inferred resources (generally to a lesser extent at this stage), commodity price outlook, discounted cashflow calculations and profit and loss accounts. Regardless of the type of company, the equity markets, including analysts, try to determine appropriate valuations for mining companies. In doing this the major two areas that require judgemental consideration are the commodity price outlook and the level of reserves and resources. Generally speaking, most mining companies have a strong understanding of their cost structures û in particular their cash costs as distinct from their accounting costs of production û and therefore this area generally gets less consideration than the other two matters mentioned above.

Jan 1, 2003

By Y Wan, L Liao

Organo-montmorillonites were synthesised by intercalating different amounts of dodecyl trimethylammonium bromide, cetyl trimethyl- ammonium bromide and stear trimethylammonium bromide into montmorillonite layers, and were used for the adsorption of 17b-estradiol in aqueous solution. The adsorption kinetics and thermodynamic of 17b-estradiol onto organo-montmorillonites and the effect of pH on the adsorption capacity of organo-montmorillonites for 17b-estradiol were studied. The adsorption isotherms at 20¦C, 35¦C and 50¦C were measured. Results show that organo-montmorillonite has a high affinity for 17b-estradiol. More 17b-estradiol can be adsorbed on to organo-montmorillonite and the adsorption is more rapid at a lower temperature. The montmorillonite intercalated with cetyltrimethyl- ammonium bromide with the amount equivalent to one times of its CEC has the highest adsorption capacity. For all organo-montmorillonites synthesised in this study, an optimum pH (around nine) for the adsorption of 17b-estradiol exists. Before this pH 17b-estradiol uptake increased with increasing pH. After that the 17b-estradiol uptake decreased with increasing pH. Simulation of the isotherms indicated that the adsorption of 17b-estradiol onto organo-montmorillonites is a spontaneous and exothermic process. Endocrine-disrupting chemicals (EDCs) are the focus of current environmental concern, as they can cause adverse health effects in an intact organism, or its progeny, subsequent to endocrine function. Most EDCs are man-made organic chemicals (industrial chemicals, crop protection products, antifouling compounds, pharmaceuticals and personal care products). In addition, EDCs can be naturally occurring in the environment (eg the natural female hormones estrone and 17b-estradiol). Therefore EDCs, especially estrone and 17b-estradiol, are ubiquitous in the aquatic environment receiving sewage inputs. Estrogen and 17b-estradiol are among the most potent of all EDCs and are sufficiently stable to survive present sewage treatment processes and are reactivated during those processes through deconjugation (Clara, Strenn and Saracevic, 2004; Zhang and Zhou, 2005; Fukuhara et al, 2006; Butler and Guilbault, 2006; Volpe et al, 2006; Ren et al, 2007; Zeng and Li, 2007). In comparison to traditional contaminants such as pesticides, the concentrations of the most potent EDCs are low, generally within ng/one range. The current sewage treatment processes have limited capacity in removing certain EDCs (eg 17b-estradiol, C18H24O2) It is therefore essential to install additional treatment processes to remove them from wastewater before discharge (Zhang and Zhou, 2005; Fukuhara et al, 2006; Lee, Jung and Kim, 2006). Adsorption is considered to be a possible way to remove EDCs from aqueous solution. Various adsorbents have been studied, including chitin, chitosan, ion-exchange resin, activated sludge, activated carbon (Clara, Strenn and Saracevic, 2004; Yoona and Westerhoffa, 2003; Zhang and Zhou, 2005; Fukuhara et al, 2006; Ren et al, 2007). Studies have shown that organo-montmorillonite has a high affinity for organic pollutants (Li, 1997; Zhu et al, 1998; Han et al, 2001). The aim of this work is to investigate the feasibility of removing 17b-estradiol from aqueous solution by adsorption onto organo-montmorillonite.

Jan 1, 2008

By B, G Strobos, J P. Maree, N Smit

In mining and processing operations where minerals, high in pyrite and low in calcite/dolomite are processed, acid is generated, which needs to be neutralised. Ticor at Empangeni in South Africa (SA) produces rutile (TiO2), leucoxene (TiO2 plus iron compounds), titanium (Ti), zircon (Zi) and ilmenite (TiO2 plus iron compounds). Neutralisation is required in the processing plant where acid is leached into the wash water. This water needs to be treated to a quality suitable for re-use in the metallurgical process or to a higher quality to make it suitable for discharge into the Empangeni sewage system (SA). For re-use the water needs to be neutral and under-saturated with respect to gypsum while for discharge into the sewage system the sulfate concentration needs to be reduced to less than 500 mg/L (as SO4). Acid mine water is generally neutralised with lime. Disadvantages associated with lime are the costs and maintenance of the slaking equipment as well as hazards, associated with handling of the alkali. The cost of powdered limestone (CaCO3) in South Africa, a by-product, is 50 - 60 per cent cheaper than lime. A technology has been developed where limestone is used for neutralisation of acid mine water instead of lime. This development includes: Limestone handling and dosing system. A novel, robust system has been developed where waste CaCO3 from the paper industry is slurried to a constant density. A full-scale plant was constructed to evaluate its performance (Figure 4). The dosing system consists of an inclined slab onto which the limestone is stored and from where it is slurried into a make-up tank. The density of the slurry in the make-up tank is controlled via a loadcell that measures the weight of the tank (operated at constant volume) and activates/deactivates the spray of the recycle slurry onto the slab. Integrated limestone neutralisation/lime treatment process. In this process powdered CaCO3 is used for neutralisation and partial sulfate removal of acid leached from the coal washing plant. The sulfate concentration can be further reduced to below the saturation level of gypsum (ie 1200 mg/L) through gypsum crystallisation by means of lime treatment, resulting in metal precipitation (eg Fe3+ and Al3+). CO2- treatment for CaCO3 precipitation. The pH of the lime treated water can be adjusted to pH levels of 8.5 and lower using CO2. The CO2, generated during limestone neutralisation (Equation 2), can be captured and used in this stage of the process. The first two stages (limestone- and lime neutralisation) of this technology have been implemented on full-scale at Ticor to treat the effluent of the process. The constructed plant is 80 m3/hr and differs from coal processing plants by way of not containing Fe(II) and Fe(III) in the water. The CO2-treatment stage (Stage 3) will soon be implemented at IHM as part of a program to optimise the technology for maximum benefits.

Jan 1, 2003

By Yu AB, Azahari HL

Indonesia has the largest coal reserves in the south-east Asian region. According to estimates from the World Energy Confer- ence, it has reserves of 18 billion mt lignite, 4.4 billion mt sub-bituminous coal and 774 million mt bituminous coal (Wyllie,1988). In recent years, substitution of coal for oil in power plants has been the goal of the Indonesian government since proven deposits of coal are about five times as large as national hydrocarbon reserves and most of Indonesia's power stations are still oil fired. Recently a coal fired power plant has been built in Java Barat, which will have a full capacity of about 3000 MW. It is intended to supply coal for this power plant from Bukit Asam mining area (South Sumatra). Coals from Bukit Asam - which are of the lignite or brown coal type - usually contain considerable moisture . It should be noted that reference to moisture in coal pertains to the total moisture content. This is comprised of what is commonly termed as equilibrium moisture and surface moisture. Surface moisture typically affects combustion process as well as pulveriser performance since it possibly influences the relative ease with which coal may be ground. In practice, the surface moisture produces agglomeration of the fines in the pulverising zone and reduces pulveriser drying capacity because of the inability to remove the fines as quickly as they are produced. This agglomeration has also the same effect as coarse coal during the combustion process because the surface area available for the chemical reaction is reduced, hence the combustion efficiency is also reduced. The influence of the moisture of some coals on their grindability (Hardgrove Grindability Index) has been previously correlated by several authors; some of them will be mentioned later. Those correlations, however, could not be immediately applied to any coal since it is still believed that there are other factors which influence the grindability of the coal, such as type and rank of the coal. The relationship between coal moisture content and its grindability has been investigated by Ellmann and Belter (1955). It was found that, for North Dakota lignites, the grindability varied as the moisture content changed. In Britain, Fitton, Hughes and Hurley (1957) stated that, for Bilsthorpe coal, over a wide range of free moisture content (from air-dried to about 30 per cent moisture), the Hardgrove Grindability Index (HGI) remains virtually unchanged. In addition to that, it was suggested that it would be slightly advantageous to dry the coal below its air-dried moisture content (at temperature ¦ 100¦C) to increase the ease with which coal could be ground, especially for low-volatile coal and high-volatile non-caking coal. Furthermore, it was also concluded that a broad relationship appeared between coal rank and Grindability.

Jan 1, 1993

By K Gilliland

The past decade has seen the widespread implementation of computerised real-time operational management systems in open pit mines. While these systems have made a significant impact on operational efficiency at a process level, surprisingly little work has gone into integrating these systems with other IT systems, including those used for tactical planning and enterprise resource planning. As a result of this gap in the information hierarchy, the goal of optimising an entire operation, or multiple operations, remains elusive. Implementation of computerised operational management systems in underground mines has been much slower. This is a significant, though often overlooked, reason why the productivity for underground mining is generally so much lower than for open pits. The historical reluctance to implement computerised operational management systems underground can in part be attributed to the underground environment, particularly the difficulty in establishing effective communications. Another factor retarding the implementation of systems underground has been the perception that the nature and scale of underground mining does not lend itself to computerised operational management. This perception can be challenged, not only by a process level examination of the underground mining, but also by a holistic examination of the entire industry. In recent years, the mining industry as a whole has destroyed rather than created wealth and underground mines are major culprits. The degree of value destruct has been more pronounced with underground mines, as the usual problem û low commodity prices û has been exacerbated by the harsh environment, low productivity and a æfog of warÆ no longer generally found in open pits. Faced with these realities, underground mines will have to adopt modern management tools or suffer extinction at the hands of an unsympathetic investment community. All is not gloom and doom, however. Technological advances have largely overcome the difficulties associated with the underground environment. As a result, there is a small, but growing, number of underground mines using computerised operational management systems to directly improve the bottom line. Much greater improvements can be realised if the industry takes advantage of the recent convergence in technology, to integrate process information with tactical and enterprise resource planning systems in order to provide a solid platform for all decision-making. This would result in the æeÆ mine. Given that the underground fraternity is essentially starting with a blank sheet, they have the opportunity to æsteal a marchÆ on open pit mines, who may be constrained by legacy systems. The benefits of the æeÆ mine are presented through a hypothetical case study that examines the shortfalls of the non-æeÆ mine. The paper ends by presenting a future vision for the æeÆ mine.

Jan 1, 2000

Comminution of solids is surely one of the oldest technologies which even in this day and age of DNAs, chips and space exploration continues to challenge our scientific acumen and engineering ingenuity. In essence, this challenge is two-fold. One, as much as three to four per cent of all electric power generated world-wide is consumed in crushing and grinding primarily because the utilisation of energy is woefully poor. Studies have shown that the efficiency of mechanical size reduction processes is of the order of 1.5 to 12 per cent only (Schoenert 1986). Two, with the grinding technologies available to us, we have, at best, inadequate and, at worst, almost negligible control over the shape of the comminuted particles, size dispersion of the ground mass, and the sharpness of mineral liberation. Low energy efficiency and lack of control in the sense mentioned above have far-reaching implications for resource conservation, performance of down stream unit operations, and damage to the environment. Our problem is in fact central to the mineral-energy resources triangle shown in Figure 1 which depicts the close interrelationships among mineral resources which are becoming poorer in content and more complex in mineralogy each day, energy resources which are depleting rapidly without any viable alternate on the horizon, and environmental concerns which can no longer be ignored. It is evident that any improvement in the efficiency of the comminution process impacts directly on the control of environmental damage, conservation of energy and the economics of the operation. These concerns have special relevance for the processing of non-ferrous ores.

Jan 1, 1992

THERE are few industrial and metallurgieal processes which do not require the application of heat energy, and the modern demand for increased working efficiency has resulted in attention being paid to temperature control as a means of ensuring fuel economy and more efficient plant operation. In general, mill accuracy required is not very contant in laboratory work, and few industrial operations are controlled to within less than 5° while in many cases greater limits are allowable. Almost every thermal property of matter has been suggested as a basis for the construction of pyrometers, but the thermo-electric type finds by far the widest application, and hence this paper will deal only with the principles, construction, and uses of this type of instrument. THERMOELECTRIC PYROMETRY.In the year 1821 Seebeek discovered that if the ends of two dissimilar metal wires were joined and one junction heated, a current flowed in the circuit, and the KMF (electro-motion force) set up could be measured by inserting a galvanometer at the cold junction. The phenomenon was not thoroughly investigated for many years, but, as the demand for high-temperature thermometers increased, several investigators, of whom Le Chatelier was one of the pioneers, successfully endeavoured to utilize the principle in pnometric construction. The couples which gave the most satisfactory results were discovered, improvements were made in material and design and the present-day type of instrument gradually evolved. The apparatus consists of three main parts, viz. (1) The thermo-couple itself of two dissimilar metal or alloy wires together at one end. (2) The leads which connect the terminal of the thermo-couple with the measuring instrument.

Jan 1, 1923

By T

THE Sulphide Corporation's works for the smelting of ores containing lead, gold, and silver are situated close to the Cockle Creek railway station, on the main Northern railway line, and are about 95 miles from Sydney and 10 miles from Newcastle. A branch line runs to the works, and siding accommodation and bins are provided for expeditiously handling all ores sent for treatment. The Corporation also possesses wharfage facilities at the port of Newcastle, where consignments of ores arriving by sea can be handled direct into railway trucks for conveyance to the works.The greater portion of the ore treated at Cockle Creek comes from the Corporation's mine at Broken Hill, but a large quantity of other grades is also purchased and treated.

Jan 1, 1918

By K Williams

Marvel Loch South Pit has had a number of stages of open and underground mining activities before acquisition by Sons of Gwalia. The historical pit had achieved a completed pit depth of 150 metres and the shaft and decline mine had reached approximately 220 metres in depth using open stope mining methods. The various mining methods reflect the various economics and industry practice at the time. The South Pit ore zones are medium grade (~2.5 g/t) but have a regular geometry and large tonnes per vertical metre. A number of studies have been completed up to a pre-feasibility stage looking at options to extend the pit depth and to lower the unit cost of gold production. The options considered were the re-optimisation of the pit to determine further cutbacks or the innovative use of an in-the-wall ramp. The in-the-wall ramp (tunnel) would permit the removal of the in pit ramp to expose additional ore that was within the footprint of the ramp design and to provide the opportunity to increase the final pit depth. Similar mining method has only been used at Three Mile (Coolgardie, WA) and Chalice Mine (Norseman, WA). The tunnel would serve as a gateway for further extension of the south mine and the central ore zone via underground mining methods. The ultimate depth of the South Pit has been extended to 310 metres below surface and significant additional ore has been recovered. This paper will give an insight into the various studies to optimise the Tunnel mining method, the determination of the various tunnel dimensions, and the phases of mining to arrive at the completed design.

Jan 1, 2003

By C J. Corbett

Many underground mining methods rely on blasted rock moving under gravity to report to extraction points. Mining of orebodies dipping between 20 - 45 degrees poses a unique challenge for mining engineers in that a dip angle in this range will not allow the movement of broken ore down the footwall to the mucking horizon utilising gravity. This is more so in cases where the natural angle of repose of the rock is less than the dip of the orebody. Hence, innovative mining systems are necessary to mine this type of orebodies. In Australia, the method of uphole retreat panel stoping is commonly used to extract orebodies in the dip range of 20 - 45 degrees and thickness range of 5 - 15 m. In the Zambian Copperbelt a method called continuous retreat updip stoping is used for orebodies with similar dips and thicknesses. The mechanised form of this mining method has potential for application in the metalliferous mining industry in Australia. In this study a comparison is made between mechanised updip (MUDS) and transverse retreat stoping (TRS) methods. A hypothetical nickel sulphide orebody located in Western Australia is used as case study. The net present value for mechanised updip stoping is seven per cent higher than that of transverse retreat stoping based on the assumptions applied. Initial results of this study indicate that mechanised updip stoping can be adopted for Australian mining conditions. However, lack of significant local experience with the method is often cited as a reason for not adopting it even in situations where it is clearly the best option.

Jan 1, 2003

Sampling and analysis of mineral deposits need to be executed without fear or favour of financial or personal impacts. Examples are given to illustrate the effects of departures, witting and unwitting, from correct use of appropriate techniques and/or equipment with emphasis on exploration and mining of porphyry copper deposits of the Pacific Rim. Some of the results of errors on the low and high sides of true value in exploration, resource or reserve estimations and in production caused by sampling and/or sample preparation mistakes, faulty practices, equipment and/or analysis are considered.

Jan 1, 2004

By D C. Franklin, C T. Farrelly

The future of human exploration in space is intimately bound to the future of mining and energy production on Earth. By 2025, one or more manned bases will probably exist on the Moon, exploring the lunar landscape and geology, and acting as a learning platform, and possibly a resource platform, for expeditions to Mars and beyond. Unless the mining and space industries take an active and cooperative interest in the technologies required to exploit minerals and fuels in and from hostile environments, the necessary advances to support permanent extraterrestrial exploration will not be ready in time. With the notable exception of using lunar Helium-3 as a fusion power fuel, no other reason has been identified for the mining industry to take any direct interest in the exploitation of extraterrestrial resources for the benefit of its customers on Earth. Ample reasons exist, however, for the industry to take a direct interest in supporting technological development of the extraterrestrial resources necessary to support the economical exploration of space. The mining industry has critical experience in the development and application of technologies for the discovery, extraction and processing of natural resources; experience that the space industry will need to create a viable permanent presence in space. The industry also understands the end to end process of resource development and utilisation. On the other hand, the space industry can directly benefit the mining sector by helping mature and advance the extractive and processing technologies needed to economically and sustainably develop resources in hostile terrestrial environments, such as those available in low concentrations, at extreme depth and/or inconvenient geographic locations. We propose that strategic partnerships be created between the mining, space and allied industries and research organisations. Such partnerships would develop a joint capability for mutual benefit, targeting the most significant advances in the least time. The space industry will learn how to exploit essential resources off-planet, and the mining industry will gain access to technologies to help extend their activities on earth.

Jan 1, 2008

By Ulvelin K, Antila K

Large scale cut and fill mining in narrow silver-lead-zinc orebodies began at Mount Isa in 1964. Initially each orebody was one stope and access was via raises from the level above. Upholing was the principal mining method, although flatbacking was employed where ground conditions were more difficult. Developments since have included access via footwall inclines and connection of all stopes with major crosscuts. Flatbacking is the principal method. The most recent cut and fill operation is now fully mechanised using drilling jumbos, rockbolting jumbos and load-haul-dump units. Improved ground support and drilling and blasting practices have enhanced safety, recovery and productivity in all cut and fill operations.

Jan 1, 1988

Reliable predictions of the long-term water quality and water level fluctuations in a final void are vital if mine operators propose to decommission final voids in open cut mining operations. The catchments feeding final voids typically comprise a large proportion of coal placed or re-shaped spoil piles. Spoil piles from open cut coal mining operations have distinctive hydrological characteristics, which result in unique run-off behaviour. There is a need to understand the nature of spoil hydrology processes in order to predict the long-term hydrological behaviour and water quality responses of such systems. Preliminary estimates indicate that it may take 20 or more years for a void to flood. It is impractical for mine owners and operators to wait until long-term hydrological and water quality conditions have been established in a void, before reaching agreement with regulators about mine closure conditions. Reliable simulation of the long-term water quality and water level fluctuations in a void are therefore. The adoption of an agreed modelling approach and sharing of results from field data programs could result in the establishment of a database that could be used, with regulatory approval, for assigning parameter values, without the need for a specific data collection program for every individual void. Industry and regulators should agree on the model adopted for predicting post-closure behaviour of spoil/void systems. This will require reliable, robust methods for field data collection. This paper describes the field monitoring, data collection, model preparation and simulations undertaken over a three year period for Australian Coal Association Research Projects (ACARP) Project C7007. It presents the findings of that research, and provides comment on aspects of the project that were undertaken well and on aspects that could have been done better. Limited data is presented in this paper due to confidentiality arrangements with the relevant mine sites.

Jan 1, 2003

By Lindner E, Bosio M

South Australian coals are all low in rank and generally poor in quality, with difficult combustion characteristics. This circumstance makes the selection of a fuel source for future power generation difficult, requiring careful study and detailed analysis of the various alternatives. Combustion characteristics can have a significant effect on plant design and costs, and need early attention in any exploration and evaluation programme. The physical location of the deposits, often remote from established infrastructure and centres of population, is also a major factor in the ultimate cost of power at the poirl use.

Jan 1, 1977

Curragh Queensland Mining Limited, a co-venture of Australian and overseas interests, operates a large multi-seam strip coal mine in Central Queensland. Coal uncovery is by four large walking draglines.Mine planning is an essential and strong component of the Curragh operations so that informed short- and long-term management and operational decisions are made.

Jan 1, 1992

The safety of mine winder systems with regard to overwind, underwind, rope factors of safety, winder brakes and the like is discussed. Many misunderstandings and poten- tially unsafe practices are discussed as well as variations between requirements of various Mines Departments. Various methods to improve safety are suggested and the formation of an industry committee to review present practice and foster development of improved safety and economy is also suggested.

Jan 1, 1984

Published information on technical and market developments in the uses of zinc tends to dwell very largely on two groups of uses of zinc - zinc coatings (mainly galvanising) and zinc casting alloys. These two groups account for two-thirds of primary zinc consumption. However, if total zinc consumption is taken into consideration, coatings and casting account for a little over half the total. Either way, the health - or otherwise - of these 'other' uses of zinc can have a substantial effect on the industry as a whole. The aim of this paper is to put the whole market picture for zinc into better focus, concentrating on the factors which can affect consumption in the 'other half' of zinc's markets: ò brass - the third most important market for zinc at around one million tonnes - responds to changes in the economic cycle. It has seen substantial changes in the balance between different forms of semi products, and, in Europe at least, some real market gains; ò zinc sheet - one of the original uses of zinc in Europe - has grown substantially in some countries, but remains almost unknown elsewhere; and ò zinc pigments and compounds are so numerous that - barring the substitution of zinc oxide in rubber - major overall changes in the market are unlikely. The paper examines these markets and assesses their potential and implications for zinc markets as a whole.

Jan 1, 1993

The mineralogy, maero- and micro-textures of Thackaringa ore are simple and have many counterparts among base metal-quartz-siderite vein type deposits elsewhere.The ore consists predominantly of galena, sphalerlte, chalcopyrite, tetrahedrite, and arsenopyrite in a quartz and siderite gangue. Silver minerals, as such, appear to be lacking and silver values are no higher than in other sulphide ores of this type. These features contrast very markedly with those of the A.B.H. Consols Lode which appears to have emanated from the north end of the Broken Hill Main Lode Horizon during high grade regional metamorphism. The Consols Lode has been regarded as of Thackaringa type, and both are regarded as possibly arising from the remobilization of Main Lode Horizon ore. Whilst this may yet prove to be so it appears that the marked differences in mineral composition between the Consols and the Thackaringa types, would require somewhat different modes of regeneration.Thackaringa ore, as well as A.B.H. Consols ore, on this basis, would necessitate the development of a metahydrothermal ore fluid to account for their present apparently hydrothermal (or pseudo-hydrothermal) constitution...

Jan 1, 1967

Interpreted geologic domains provide the geologic architecture of many current models used to estimate the potential economic resources in mineral deposits. The spatial extent of each domain is usually defined by a three-dimensional wireframe or triangulated surface.The set of geologic wireframes forming part of a resource model might generally be called a spatial interpretation of some set of geologic features coincident with the mineralisation, based primarily on logged and mapped properties of the samples and other exposures of the mineralisation. The interpreted spatial distribution of rock type, alteration and grade of drill hole samples above a particular grade threshold are commonly used criteria in constructing the geologic domain wireframes. Frequently, the grade threshold is closely related to the anticipated economic cut-off grade. The boundaries or spatial limits of different domains are most commonly defined as æhardÆ or æsoftÆ. A æhardÆ boundary usually means no dependent relationship of any kind is defined between the properties of samples inside a particular domain wireframe and those samples outside the wireframe. A æsoftÆ boundary commonly implies that some kind of dependent relationship does prevail between the properties of samples inside and outside the particular wireframe. Many ways are used to describe those relationships, few of which are based on spatial analysis of the continuity of sample attributes across the domain boundaries. In local estimation procedures such as ordinary block kriging, æhardÆ boundaries act as a total barrier to the influence of samples on either side of the boundary depending on the location of the block being estimated. In some instances, æsemi-permeableÆ boundaries are used in which the samples inside a domain wireframe are allowed to influence the estimates outside but not the reverse. This can lead to many undesirable effects in estimates of block grades.This paper discusses the value of this approach to geologic domaining from a viewpoint of model complexity, as well as in relation to the implications for both linear and non-linear estimation methods and contrasts it with alternatives. It also explores some important consequences of using æhardÆ and æsoftÆ geological boundaries with the commonly used modelling methods: excessive smoothing of estimates near domain boundaries and conditionally biased estimates of grade at the global and local scale.

Sep 26, 2011