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DCF Valuations are very important to individuals and companies involved in the mining industry. Such valuations are critical to investment decisions in relation to new and existing projects. In particular they provide fundamental information to shareholders in the event of a capital raising or takeover and to financiers supporting mining companies and projects. Also, DCF Valuations are often used to support asset carrying values in the financial statements of mining companies. This paper presents a Chartered Accountant's (CA's) perspective on the main issues to be considered in preparing, analysing and relying upon DCF methods in mineral valuations and provides some practical examples relating to key issues. The paper makes the important point that DCF methods involve making assumptions about future events and circumstances that inherently contain uncertainty which results in a valuation prepared on a DCF basis providing a range of values that are not perfect or accurate. In order that DCF valuations provide meaningful information the underlying methodology used and assumptions made must be consistent, sound and well supported. Credibility of those involved in preparing mineral valuations is vital and this paper supports the adoption of sound practices by all concerned.

Jan 1, 1994

The design and selection of components for belt conveyors is a well known procedure and many handbooks, catalogues and design manuals offer a wide range of detailed information which can be applied to most of the known conveyor problems. The aim of this paper, however, is to investigate the various methods of conveyor drive configurations, and incorporate the latest technical achievements in the control systems, particularly for high capacity conveyor systems carrying ore from pit to processing plants where the lowest maintenance, operating and initial costs are of major importance. Past experience has proven that multi pulley drives can reduce initial capital cost of a conveyor; this leads to the need for better torque control during startup, running, stopping and load sharing. Many methods of torque control are available and have been used in the past. All types have their advantages and disadvantages and must be considered when designing a conveyor or conveyor system. However the recently developed solid state electronic soft start controls utilising AC squirrel cage induction motors are gaining acceptance, especially for a conveyor system where the same control and logic system can be used to transmit startup commands to more than one

Jan 1, 1978

By Savidis G

The characteristics of 'Z' (Back-over run) and 'R' (Reverse) ventilation systems are dis- cussed in relation to their suitability for longwall mining. Experience in European mines has been described as a basis for comparison with Australian conditions. In assessing the merits of each ventilat- ion system, such factors as longwall layout (pillar design, number of headings and gateroad stability), the need for gas drainage and bleed- er systems, as well as the influence of seam dip have been considered relevant. The R system is generally applicable for single and two heading development in seams where gas emission is a less serious problem. In contrast, the lower extraction to development ratio of the Z system (which arises from using three or more heading layouts) is considered more favourable where high gas emission occurs. The Z system provides greater flexibility with respect to the provision of refreshing air at the tailgate end, access of men and materials, installation and retrieval of gas drainage systems and the ability to interchange main- gate and tailgate roadways in cases where roof strata loads are difficult to control, or where cpam in hac an influrnra

Jan 1, 1983

By J Vann, C Seymour

Geology is generally treated as a æfront endÆ step in mine development. After infill drilling, the majority of resource estimation, mine-planning, development, mineral processing strategies and operational procedures are planned and implemented with little geological input, particularly in open pit operations. However, significant benefits in overall costs, cash flow, and technical risk reduction can be realised when sound geology is utilised more rigorously throughout the mining process. This under-utilisation of geology in the mining process has arisen due to a combination of factors:A lack of interest in, or knowledge of the full mining process by geologists. Few geologists fully understand where their inputs make critical impacts on downstream users. As a result of this, geologists generally do not focus their inputs towards areas of greatest value added, ie addressing issues critical for other members of the mining team. Most importantly, few geologists effectively communicate their results to the downstream users of their geology models. The results are that the potential benefits of geology, and the appropriate status of geology in the mining industry, are not fully realised. It is fundamental to realise exactly what geologists do. Geologists constrain geological processes and geometry. All geoscientific tools at the geologistsÆ disposal are geared towards one of these goals. An emphasis on geological processes is present throughout the exploration process, whereas in the resource estimation and mine development process an emphasis on geometry is required. The mining process is a web of disciplines that are attempting to optimise development of a resource to provide value to shareholders. Yet few people within these disciplines have a full appreciation of this web, and where sound geology inputs can add value through various feedback loops. Geology inputs do not end at the resource estimation stage, nor are they relegated to grade control implementation. If geologists have an appreciation of the mining process and close liaison with the other disciplines such as geostatistics, geotechnical engineering, hydrogeology, and mining engineering, they can significantly benefit project costs, timelines, and constrain technical risk by addressing their issues at the earliest possible stage. Furthermore, the mining process is not a single pass timeline, but an iterative process where the exploration, resource definition, mine planning and mining loop is continually repeated over the life of a project. Therefore, the potential inputs of geology are critical throughout the mining process. Effective communication of the impacts of geology inputs on downstream users is often lacking on mining projects. The most effective way to communicate geological results is through where it impacts most û project risk. Focussing all geology inputs and communication in terms of potential material risk allows the geologist to be more effective in contributing value to the mining process, and allows the downstream users of geology inputs to better constrain the risks associated with their aspects of the mining project. Through a program of geologists:taking an interest in the entire mining process and identifying critical areas for geology inputs to downstream users (the geologistsÆ clients); focussing geology inputs to address the potentially material issues on mining projects; and communicating their inputs to the æclientsÆ in terms of technical risk, geology will be much better integrated into the mining process. As a result, the potential benefits of geology throughout the mining process will be realised, and the status of geologists within the mining process will be elevated to a more pivotal position.

Jan 1, 2000

Fluid inclusions and sulfur isotopic compositions were studied in a possible extension of the Toyoha polymetallic vein deposit. The objective of this work was to gain a better understanding of the ore depositional conditions, sources of ore constituents, and distribution of mineralizing fluid in the region. Fluid inclusions in sphalerite and quartz show that most homogenization temperatures range between 190¦ and 290¦C. Most salinities range from 0.0 to 3.4 wt per cent NaCl equiv. Sulfur isotopic compositions of ore minerals (pyrite, sphalerite and galena), determined by a conventional technique, range between 1.3 and 7.7 per mil. The mineralizing fluids were characterized by relatively low and various temperatures and low to moderate salinities compared to those at the southeast region of the main ore bodies (Izumo and Shinano veins) where rare elements such as tin, tungsten and indium occurred. Obtained temperatures and salinities were attributed to the mixing of hydrothermal fluids with groundwater. Sulfur isotopic data suggest sulfide sulfur was of magmatic origin. Isotopic temperatures, estimated from the isotopic fractionation factor between sphalerite and coexisting galena, are between 195¦ and 322¦C. The temperatures are only consistent with fluid inclusion homogenization temperatures in sphalerite or coexisting quartz when sphalerite was a honey-yellow coarse crystal lacking conspicuous colored growth bands. This suggests the detailed classification of mineral pairs growth textures will be necessary for precise in situ measurements to obtain reasonable eothermometric results.

Jan 1, 2002

By J Ranford, A Harris, K Laughton

The Angas Zinc Mine (Angas) is a poly-metallic, underground mine in the Adelaide Hills that has been developed through arguably one of the most volatile financial time periods in living memory. From boom times during the commencement of the project, the global financial crisis (GFC) through the stabilisation of the operating period and then a subdued capital market for the period where mine life extension was targeted, the financial environment has always presented a different set of challenges. Indeed even the Underground Operators’ Conferences that have been held across the span of the project allude to these changes: ‘Boom and Beyond’, Launceston (2008); ‘Safe, Innovative and Sustainable’, Canberra (2011) and ‘Managing the Margin’ in Adelaide (2014).Angas gives a rare opportunity to see the entire life-of-mine of a project and its economic performance within a relatively short time frame. Angas, owned and operated by Terramin Australia Ltd (Terramin), will have undergone resource estimation drill out, feasibility study, permitting, commissioning, operating and completion and rehabilitation all within a period of approximately ten years. A number of sensitivities of the project were tested, particularly in the bankable feasibility study (BFS) stage and the aim of this paper is to identify the factors that impacted the operations profitability the most, whether they were identified preproduction or not. The key sensitivities assessed in the BFS were typical of similar studies, including operating costs, metal recoveries, capital costs, zinc prices, lead prices and exchange rates. The manner in which these sensitivities presented themselves in real life were not as anticipated and modelled in the feasibility study and were also heavily impacted by technical challenges.CITATION:Harris, A, Laughton, K and Ranford, J, 2014. Feasibility to mine completion – the real impacts on project economics, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 99–110 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By Waller M. D, Whittaker B. N, Singh R. N

This paper overviews the recent research progress in predicting cutting performance using fracture mechanics principles. It is emphasised that rock fragmentation due to cutting is mainly a process of chip formation resulting from crack initiation and propagation or crack interaction for multi-tool cutting. This process can be simulated by using the well developed fracture mechanics criteria coupled to numerical methods. Fracture toughness is shown to be an important and useful parameter in quantifying cutting performance and in designing cutting tools. The paper concludes with discussions on the dynamic effects involved in rock cutting processes which should be taken into account for optimum cutting efficiency and tool design.

Jan 1, 1992

By T C. McCuaig, D B. Mapleson

The Wannaway Deposit is a structurally modified komatiite-hosted nickel-sulfide deposit. Until recently, nickel sulfide accumulations surrounding the Widgiemooltha Dome had been studied with a focus on understanding volcanological aspects of komatiite flow regimes and nickel-sulfide accumulation. Although volcanological features can be observed at Wannaway they are overprinted by several generations of structures associated with multi-phase deformation of the Dome. On the mine scale, two significant deformational events can be distinguished that control ore distribution. The first deformational event is represented by the formation of a layer parallel foliation within the footwall metabasalt and boudinaging of the ore into two distinct orebodies (mega boudins) during a north-south compressional event. Evidence of a second compressional event (east-northeast-south-southwest) is defined by reverse > dextral thrust-folding of the ore zone. The latter deformational event focussed the sulfide ore into thrust front positions where folded ore sequences are mined with stope widths up to nine metres wide. Later stage compressional and extensional deformation phases are observed but have minor, localised effects on the geometry of the ore zone. Four orders of control on the geometry and distribution of ore are interpreted through a combination of primary and secondary features observed at Wannaway. Extending the structural aspects of the secondary overprint features into areas of potential mineralisation has not only defined targets for extensions to the Wannaway Deposit, but has also aided to delineate high grade mineralisation and aid mining decisions. Obtaining an understanding of the volcanological conditions of formation, and more importantly, the structural evolution of the Wannaway region has been an integral part in optimising production.

Jan 1, 2003

The products from beneficiation present themselves at opposite ends of the spectrum, and yet numerous synergies exist in the preparation of coking coal and hematite iron ore products for their common export markets. Returning to the coal side of the business with Anglo Coal following a five-year sojourn in WA with Hamersley Iron, has provided the opportunity for comparing and contrasting some of the key synergies of the supply chains of both bulk commodities.Comparisons include consideration of things like: resource evaluation (especially quality aspects), run-of-mine handling and preparation, beneficiation, product handling and transportation, quality assurance and customer awareness, value-in-use and impacts on iron and steelmaking, and supply chain environmental aspects.Inherent within these are several other notable contrasts including: æseamsÆ and æorebodiesÆ, rocks and minerals, rejects and tailings, oxidation and weathering, suppliers and users, and marketing and purchasing, to name but a few.This paper covers some of the more interesting of these synergies and raises some potential opportunities for sharing knowledge and innovation between the two areas of activity in the future.

Jan 1, 2005

By A G. Thompson, E Villaescusa, D Howard

The Western Australian School of Mines (WASM) has developed a facility for the static testing of full-scale ground support elements (Morton et al, 2007). The test facility consists of several stiff steel frames used to support the sample and a screw feed jack is used to load the sample. A large-scale punch test method has been developed to load various shotcrete configurations. The shotcrete is sprayed on to a rock substrate containing a centrally located circular disc. The rock and shotcrete sample is placed on to the sample frame and restrained on all sides. The circular disc is displaced at a constant rate by the screw feed jack which in turn loads the sample. Instrumentation measures the displacement and the load being applied to the sample through the loading disc. The testing method is described in detail and the results from the testing program are presented. The results show that it is possible through laboratory testing to simulate some of the mechanisms of shotcrete support reactions better than conventional beam and panel tests.

Jan 1, 2008

The paper describes a computer model developed within the State Electricity Commis- sion of Victoria for use in open cut planning. The purpose of the model is to simulate all the typical occurrences in, and influences on, the coal supply and overburden disposal systems in order to be able to assess their performance. The model incorporates much of the long term and day-to-day operations planning logic required for the allocation of resources within an open cut. This logic takes account of power station demands, bunker stocks, plant and crew availability, the balance of reserves between dredgers, planned maintenance, etc. The perfor- mance of plant within the system is simulated using random selections from statistical distri- butions of Time to Failure and Time of Failure for each plant item. The application of the model in selecting a suitable bunker capacity in a notional open cut development is described to illustrate the potential of the model in optimising plant selection.

Jan 1, 1982

By Bond W. F, Sharry P. V, Onley P. G

The use of Decision Analysis is becoming more widespread in industry as a whole, and there is considerable scope for its application in the mining industry. Wherever decisions have to be made, whenever risks have to be taken, whenever uncertainty exists or whenever judgements have to be made, then Decision Analysis can be used. In the mining industry we daily make many decisions involving risk, uncertainty and judgement. Expansion and diversity will only increase the need for balanced decision making techniques. This paper seeks to describe the history and principles of Decision Theory, and to illustrate the various modelling approaches using three fictitious yet realistic case studies. Decision Analysis logically integrates the quantifiable and seemingly non-quantifiable aspects of a decision problem into a coherent, explicit and rational solution. It also allows the decision-makers to see the full impact of each variable or uncertainty, and hence focus on the key aspects that influence the solution.

Jan 1, 1996

Iron formation-hosted iron ore deposits account for the majority of current world iron ore production and consist of three classes: unenriched primary iron formation with typically 25 to 45 wt per cent Fe; martite-goethite ore formed by supergene processes, with abundant hydrous iron oxides containing 60 to 63 wt per cent Fe; and high-grade hematite ores thought to be of hypogene or metamorphic origin overprinted by subsequent supergene enrichment with 60 to 68 wt per cent Fe.Individual iron ore deposits range from a few millions of tonnes to over two billion tonnes at >64 wt per cent Fe, although most are within the range of 200 to 500 Mt. In the Hamersley Province of Western Australia, martite-goethite ores are largely developed in the Marra Mamba Iron Formation, although high (>0.08 per cent P) phosphorous mineralisation is also well developed in the stratigraphically higher Brockman Iron Formation. Whilst the vast majority of high-grade microplaty hematite ore is best developed in the Brockman Iron Formation, this paper provides the first textural evidence of locally significant microplaty hematite mineralisation in the Nammuldi Member of the Marra Mamba Iron Formation, in the Chichester Ranges at the Christmas Creek, Cloud Break and Mount Nicholas prospects. Petrographic studies have identified a high-grade Fe texture composed of nanometre scale plates of hematite in mineralised sections of primary microplaty hematite deposits in the Pilbara and elsewhere, well below the normal depth of weathering or dehydration. The population of nanometre to micrometre scale hematite plates is interpreted to represent various stages of nucleation, crystallisation and progressive growth of hematite from the primary ore-forming fluid in areas that were once iron-rich carbonates or silicates in the BIF.

Jan 1, 2005

By G D. Carman

White Rock is a reduced tungsten-tin skarn deposit near Rye Park, New South Wales. This abstract summarises the depositÆs mining and exploration history, and current exploration by Paradigm Metals Ltd targeting an economic resource at the deposit. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

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 P Pelletier, J Tessier, C Duchesne

This paper summarises research into the study of the control of flotation processes based on froth images. A review of the froth flotation operation background and the relevance and role of the froth phase are presented. The use of numerical image analysis techniques for the extraction of significant patterns from industrial flotation froths is discussed. First, the froth was analysed by the use of the multivariate image analysis (MIA) method to extract the spectral variation contained in a RBG image. The partial least squares (PLS) method was applied to develop an empirical model for the prediction of froth grade. The results of this application are illustrated using an industrial case study. Second, the froth was also analysed by grey-level co-occurrence matrix (GLCM) and wavelet transform analysis (WTA) to extract features related more to morphological aspects. Since there is useful information hidden in froth texture, these methods are used as texture descriptor to classify different types of froths. They also provide qualitative information on the changes in the visual appearance of the froth. The pros and the cons of those methods are highlighted. Third, a control strategy based on a froth structure indicator was developed and implemented on an industrial zinc flotation circuit. The feedback controller uses the reagent flow-rate in order to maintain the froth structure at its set point. Process improvements obtained from the implemented control strategy are highlighted. Finally, the feasibility of implementing a hybrid control strategy consisting in a froth structure supervision controller based on the froth concentrate grade estimated by MIA and recovery inferred by image analysis is discussed.

Jan 1, 2005

Mining is a high risk, high capital and potentially high reward undertaking. A large proportion of the risk comes from a lack of definition of the orebody (which also provides some of the potential) and the unpredictable nature of the market. This makes the planning process difficult but encourages the development of a robust yet flexible mining system. The system should be capable of absorbing some deviation from the anticipated concept without a significant impact on profitability. The mine planning process tends to consist of a series of related but discrete stages. For instance, the pit shells are designed, a schedule for the pit shells is created, a plant fleet is chosen to achieve the schedule and a financial analysis is carried out on that scenario. It is likely a few iterations are carried out using various mill throughputs to produce a favoured financial result. The problem is that handing results from stage æBÆ for use in æCÆ doesnÆt encourage a flexible system. æCÆ is likely to be built for exactly æBÆ. Unfortunately, in mining, æAÆ (the orebody) has the highest potential for variability and impacts everything else downstream. æDÆ the market also has high potential for unplanned variability. These variations can spread and æreverberateÆ through the whole mine process. For example an unexpected increase in ore oversize impacts all downstream mine processes to the primary crusher which may in turn create problems back æupstreamÆ by restricting throughput rate. Also an unexpected drop in demand or price could require modifications to the planned production rates. This paper looks at how mining process simulation can be used to support the development of strategies to counteract unforseen circumstances or alter production to match fluctuations in demand and price.

Jan 1, 2003

Mining is a high risk, high capital and potentially high reward undertaking. A large proportion of the risk comes from a lack of definition of the orebody (which also provides some of the potential) and the unpredictable nature of the market. This makes the planning process difficult but encourages the development of a robust yet flexible mining system. The system should be capable of absorbing some deviation from the anticipated concept without a significant impact on profitability. The mine planning process tends to consist of a series of related but discrete stages. For instance, the pit shells are designed, a schedule for the pit shells is created, a plant fleet is chosen to achieve the schedule and a financial analysis is carried out on that scenario. It is likely a few iterations are carried out using various mill throughputs to produce a favoured financial result. The problem is that handing results from stage æBÆ for use in æCÆ doesnÆt encourage a flexible system. æCÆ is likely to be built for exactly æBÆ. Unfortunately, in mining, æAÆ (the orebody) has the highest potential for variability and impacts everything else downstream. æDÆ the market also has high potential for unplanned variability. These variations can spread and æreverberateÆ through the whole mine process. For example an unexpected increase in ore oversize impacts all downstream mine processes to the primary crusher which may in turn create problems back æupstreamÆ by restricting throughput rate. Also an unexpected drop in demand or price could require modifications to the planned production rates. This paper looks at how mining process simulation can be used to support the development of strategies to counteract unforseen circumstances or alter production to match fluctuations in demand and price.

Jan 1, 2003

This paper examines the various stages of development and design work which were necessary to develop the cemented rock fill system for copper mining at Mount Isa. The reason for a cemented sand fill development program together with details of the test work undertaken are briefly outlined. The testwork associated with the selection of a suitable local rock to supple- ment the cemented hydraulic fill is discussed, as is the method for underground placement and mixing of the graded rock with the cemented hydraulic fill. The design features of the final system which incorporates a graded rock handling system and a cemented hydraulic fill reticula- tion system is outlined.

Jan 1, 1973

By J Hunt

A critical aspect of geometallurgy is quantifying mineralogical and textural relationships that affect mineral processing (eg, liberation and recovery). However, to date, this has been an expensive and time consuming venture and only minimal amounts of this type of data are typically available to be included in the mine planning process. Our research is focused on developing methods that will produce the required mineralogical and textural data rapidly and inexpensively. New methods of characterising liberation potential from image analysis of coarse particulate material and direct small-scale flotation measurement are compared with measurement of liberation at final grind size (ie conventional tests on MLA). The new tests are designed to rank the liberation potential of samples in order to classify an ore deposit into domains of low, medium and high liberation potential. This parameter can then be used to adjust the cutoff used to differentiate ore from waste. Results to date show that all tests provide the same ranking for the samples. The measurement based on coarse particulate material compares favourably to the results from MLA analyses on the same samples. Further work is being carried out to determine which of the tests will be the most effective in terms of time, effort and cost

Sep 5, 2011