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By Y Gu, R Fandrich

Traditionally, characterisation of the mineralogy and textures of ore and rock samples were based on observations of hand specimens and thin sections using an optical microscope. The extent of the data collection was limited by the available tools and thus variations in mineralogy and texture were generally not described by quantitative data. These qualitative to semi-quantitative approaches, even though well established over the years, resulted in variable observations and data sets. The data were unlikely to be representative of a sample and limited statistical validity meant the results could not be reliably used in modern digital mining design and planning. With recently developed SEM based quantitative mineralogy tools and the corresponding methodologies, ore textures can be quantified and compared numerically. The numerical data can not only enhance the understanding of an orebody in geological terms, but can also be used in the creation of metallurgical models for mine and mineral processing design and simulation. These capabilities provide valuable inputs to risk assessment studies and the evaluation of mineral projects.

Jan 1, 2007

By I Canbulat, J Emery, L Yao and C Zhang

This paper documents a process of data analytics and machine learning applied to coalmine roof convergence data. It follows a publication documenting the formation of the database. For each set of analyses Python scripts were utilised to extract data from an SQL database, with subsequent analyses also executed in Python, utilising open-source tools such as scikit-learn. Preliminary analyses with classic machine learning algorithms included multiple logistic regression, K-nearest neighbours, decision tree, random forest, support vector machine, kernel support vector machine, artificial neural network (ANN), naïve Bayes and multiple linear regression. Results indicated that relationships were complex and non-linear, with the artificial neural network most suitable. An ANN model was then refined through a standard process of hyperparameter optimisation and data augmentation to arrive at a final model. Due to the black box nature of the ANN further insight into how the parameters interacted was sought and found with Shapley additive explanations (SHAP values). SHAP values utilise Game Theory, where each input parameter or feature is a ‘player’ while the data set is the ‘team’. The SHAP value is the impact of each player on the target value, essentially establishing the contribution of each input parameter. The results from all analyses are delivered in the paper, together with insights, applications, strengths, and limitations of the methodology.

Nov 29, 2022

By P Vaikkattil, K Li, J Bullock

Unlocking maximum value is essential when designing a stope and the associated drill and blast packets. This is becoming increasingly important at Olympic Dam as the operation continues to expand south into the new mining areas away from existing infrastructure, increasing operating costs and required capital investment; into areas with less competent ground conditions, requiring smaller stopes and increased interactions. The introduction of Orica’s WebGenTM system is one way in which Olympic Dam can continue to unlock value into the future by decoupling traditional drill and blast limitations. The Lime 390 stope was the first stope at Olympic Dam to trial the new technology on the last blast packet. This paper reviews the drill and blast design of the Lime 390 stope, including the technical and operational challenges associated with the stope and the trial of the Orica’s WebGenTM system for the firing of the last blast packet.

Mar 15, 2021

By A Querzoli, B Williams

In late 2014 the Flinders Power Management Team was executing business improvement plans to ensure continued electricity generation until 2028 and beyond. Six months later, in June 2015, the Board announced the closure of the Flinders Power South Australian business, including the Leigh Creek Coal Mine, the Northern and Playford Power Stations located at Port Augusta and the 250km railway line. The announcement was preceded by a brief period of internal planning. A date was soon set for ceasing coal mining operations, being November 2015. The mine is unique in many ways. Located approximately 550km north of Adelaide the site has over 100 years of history and was formerly operated by the South Australian Government. Privatisation in 2000 saw the mine continue operation under Perpetual Leases from the South Australian Government. The leases included exemptions from multiple sections of the Mining Act 1971, obliging primary regulation under the Mines and Works Inspection Act 1920. The coal, being a low rank sub-bituminous brown coal, is prone to self-heating and spontaneous combustion. The mine and company town Leigh Creek were the economic and cultural heartbeat of the community. Facilities at the mine were shared by the community and vice versa. While many mines across Australia and the world enter periods of care and maintenance, few have been actively closed to the point of relinquishment (Bennett and Lacy, 2016). A swift decision to close, followed by a short mining operations shutdown period, presented significant technical and regulatory challenges for both the mine operator and for Regulators. The subsequent joint risk mapping process employed by Flinders Power and South Australian Mining Regulators was a unique real-world example of collaborative mine closure planning and execution. Lessons learnt are valuable for all mines, production facilities and for Regulators, even for those who may wrongly assume that closure is many years away. CITATION:Williams, B and Querzoli, A, 2018. Risk management for minesite closure planning and execution – start now! Lessons from the closure of the Leigh Creek Coalfield, South Australia, in Proceedings Life-of-Mine 2018, pp 68–72 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

By S Kowalczuk, S V. L Barrett

The potential for adverse surface settlement during tunnelling in soil and rock poses a significant risk to the successful completion of any tunnelling project. Undesirable ground movement may lead to unacceptable level of damage to surface infrastructure, buildings and the environment, resulting in safety concerns as well as causing significant delays and costs to a project. One of the empirical methods which is commonly used to predict surface settlement in the early stages of a project’s development is the volume loss approach as described by Mair, Taylor and Burland, 1996. This method was developed for use in soft ground; however it has also been applied in weathered and soft rock to provide an initial indication of potential surface settlements along a proposed tunnel alignment. This paper presents some initial thoughts on the use of this method in weathered and soft rock and the associated limitations which need to be taken into consideration when interpreting the results. This includes complex weathering profile cases where the strength and stiffness of the ground does not necessarily increase with depth.CITATION:Kowalczuk, S and Barrett, S V L, 2014. Initial thoughts on application of the volume loss approach for estimates of surface settlement due to tunnelling in weathered rock, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 641–646 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By M Graham, R Brunning, C Andringa-Bate, S Westergren

In 2010, Rio Tinto Iron Ore’s operations commenced the planning and design of a sampling and analysis system for the new 50 Mt/a Cape Lambert Port B (CLB) facility. Current sampling systems at the ports consist of automated robotic, mass-based sampling protocols employed at Dampier, and semi-automated, time-based sampling systems operating at Cape Lambert Port A.The new sampling system at CLB has brought together a fully automated sampling and analysis system utilising time-based sampling, with the capacity to sample ore products of medium quality variation as defined in ISO 3082 (ISO, 2009). The CLB system is required to sample at shiploading rates from 6000 t/h to 13 440 t/h and provide full load-port analysis. The sampling approach is to proportionally extend primary increments (of varying mass relative to shiploading rate) to a standard length using variable speed aero-belt conveyor systems. This enables a fixed number of secondary cuts to be achieved for all primary increment masses and to be delivered to the automated cell. The cell is required to be capable of concurrently processing four individual shipments, each containing multiple cargoes.Achieving the target sampling precision for all export cargo sizes has culminated in the planning, design and construction of the largest automated iron ore port laboratory in the world. The CLB sampling and analysis cell was commissioned in Q3 and Q4 2013. This paper discusses the sampling philosophy and commissioning outcomes.CITATION:Brunning, R, Andringa-Bate, C, Graham, M and Westergren, S, 2014. Cape Lambert Port B shiploading, sampling and analysis, in Proceedings Sampling 2014 , pp 79–90 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

In practice a sampling solution is a compromise of many requirements: the sample should be representative; the sampling system should also be reliable, less than 95 per cent availability restricts the use of the assayed sample for process control purposes; no sample is the worst sample, and investment costs and installation space/layout are frequently a restriction. For instance, online X-ray analysers for process control introduce a delimitation error by the nature of X-ray physics. Thus only in special cases a relative accuracy better than three per cent relative, as one standard deviation, is achieved. A sampling system for process control needs not to be, as representative, for so many sample properties, as one for composite laboratory analysis samples. Sampling system maintenance is also an important issue. There are many sampling systems in the industry which have been difficult to maintain and are in disuse for lack of resources or incentives to keep them running. Pierre Gy developed the most generally accepted sampling theory. One of the main principles is that all particles in a one-dimensional process stream should have equal chances of being included into the sample. A correctly designed and operated transversing cutter comes close to this goal but has limitations in temporal representativity. For slurries an acceptable solution in many cases is to use a fixed vertical cutter(s) in a position where the slurry is well-mixed by turbulence and other means. For online analysis, reliability problems are mostly related to faulty design or installation of the piping system to the analyser. Properties of material processed, process flow sheet and piping details before and after the sampler have to be taken into account when deciding on which sampling arrangement is appropriate. Guidelines and some solutions to these issues are presented in this paper.

Mar 1, 2010

By C A. Chaves

During most of its history, the metallurgical industry has been seen as a source of pollution for the environment. However, during the second half of the 20th century, as the world environmental legislation became more protective and the global environmental conscience consolidated, this landscape began to change. Metallurgical activities have become increasingly related to the social and environmental impacts caused by human activities. With the adoption of environmental management in steel plants, there has been a significant change in steel-related activities which have begun to introduce modern plants, managed with environmental, social and productive efficiency. More and more, steel companies search for a decrease in negative impacts of their industrial operations on the environment, fitting them to the current environmental legislation and even increasing productivity and profitability. The steel industry has started to become a clean and more efficient industry. This work presents a case study of a sustainable steel plant project, located in an environmental preservation area. The project includes treatment and reuse of industrial liquid effluents, air emissions control, noise control, recycling, recovery and adequate waste management. It also incorporates production processes using clean technologies, capable of coproducing energy resources which may be used in the plant showing how is it possible to produce steel with environmental and social responsibility and even increase the enterpriseÆs profitability.

Jan 1, 2009

By I Gray

This paper examines the practical limitations that affect the measurement of stress in rock. As most rock stress measurement is conducted through the invasive process of drilling a hole in a rock mass, the nature of the rock and its response to being drilled form the basis of the stress measurement process. The prime techniques to measure stress down a borehole are to conduct hydraulic fracturing and its variant hydrojacking, overcoring, and the examination of the borehole wall for breakout or tensile fracture. It is also possible in some circumstances to use the sonic velocity within the rock mass as an indicator of the stress situation. Other structural indicators of stress such as joints, faulting and intrusions are useful but may not reflect the current stress situation within the rock mass. The variability of stress within the rock mass also needs to be considered as it is quite unusual to have a monotonic stress situation throughout any rock mass. The outdated concept of measuring the far field stress in a few measurement for use in a numerical model is quite dangerous. It is essential to make multiple measurements and to generate an understanding of its distribution in some form of model before stress can sensibly be incorporated into underground design. CITATION:Gray, I, 2018. The practicalities of effective stress measurement in rock, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 360–374 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By A Parbhakar-Fox, S C. Dominy

The prediction of acid and metalliferous drainage (AMD) from mine waste materials is critically important during all stages of the mine value chain. However, to determine such geoenvironmental characteristics static and kinetic testing of individual waste units must be performed on representative samples. The importance of sample selection cannot be underestimated; it is the single most critical aspect of any geoenvironmental investigation. Poor sampling techniques and inadequate sample selection will contribute to excessive variance, difficulties in interpretation and incorrect assessment. By undertaking mesotextural characterisation based on hyperspectral mineralogical data (with sulfur assay data if available), opportunities to improve sampling strategies are presented. Such data will inform the selection of samples for low-cost total sulfur, paste pH and geoenvironmental logging, which collectively will allow for accurate AMD forecasting and improved sampling practices to be achieved. Once sampled, robust quality assurance/quality control (QA/QC) protocols must be developed where the use of international certified reference standards become obligatory. This is currently not practised, resulting in inter-laboratory discrepancies when undertaking waste classification. Further improvements in geoenvironmental characterisation testing lies in the adoption of blended static testing protocols, whereby blends of waste materials can be efficiently tested so as to give an early forecast as to whether they will produce acidic or metal-laden drainage. Such information is integral in developing a waste schedule that will allow for a non-acid forming waste landform to be constructed right from the start of the operational phase. Ultimately, improvements in this discipline lie in technological innovations with regards to mineralogical characterisation, and by offering geoscience and minerals engineering students a competent education in the discipline. Collectively, this will empower a step-change in AMD prediction and waste handling, and will make the realisation of the United Nations Sustainable Development Goals a reality, rather than a dream.CITATION:Parbhakar-Fox, A and Dominy, S C, 2017. Sampling and blending in geoenvironmental campaigns – current practice and future opportunities, in Proceedings Eighth World Conference on Sampling and Blending , pp 45–54 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By C Harrison, A Bowskill

The Ambuklao hydroelectric dam was originally constructed in the 1950s in the remote and mountainous region of the northern Philippines. Following its construction the dam has suffered heavily due to siltation and a partial collapse of the intake structure due to a 7.8 magnitude earthquake that struck the region in 1990. Between the years 1990 and 1999 the power station progressively lost its capacity to generate power. In 1999 the owner took the power station out of commission. The power station remained idle over the next 12 years. In 2008 the power station was sold to a new owner who commissioned the rehabilitation works.The rehabilitation project restored the operating status of the power station in June 2011 and increased its capacity from 75 MW to 105 MW. The civil contract of the rehabilitation project required the construction of a new intake structure behind an in situ rock coffer dam on the edge of the existing reservoir, new 6.2?m diameter × 124?m deep blind sunk shaft behind the intake structure, which connects to a new 6.8?m horseshoe profile headrace tunnel that ultimately connected onto the existing vertical penstocks which feed three No 35 MW Horizontal Turbines rated at 155?m head.The unique challenge in rehabilitating this existing hydropower station involved finding solutions that would conclusively deal with the challenging geological and hydrogeological conditions associated with excavating new tunnels and a drop shaft beneath a live dam.McConnell Dowell was awarded the civil works package for the rehabilitation works in August 2008. The Ambuklao rehabilitation program took 33 months to complete.Over 600?m of tunnels were excavated in highly weathered and often challenging geotechnical conditions via drill and blast with the extensive use of high-pressure fissure grouting to control groundwater ingress that was surcharged by the dam.This paper focuses on the use of high-pressure fissure grouting that took place to enable the excavation of the new waterway system and intake structure.CITATION:Bowskill, A and Harrison, C, 2014. High-pressure fissure grouting for drill and blast tunnelling, Ambuklao, Philippines, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 141–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By Stokes WPC

The capital requirements to develop a new mining venture are becoming very large; amounts of the order of US$1,000 million are not now unusual among estimates to bring new mining complexes into production. At the same time prevailing political and economic conditions are making it increasingly difficult to determine whether or not a project is likely to be viable. These factors emphasise the need to carry out thorough evaluation studies of all mineral prospects before making major investment. Additionally with the rapidly changing economic climate existing at the present time, it is becoming more and more necessary to carry out reappraisals of existing mines. An important function of both initial evaluations and reappraisals is to provide the operators of the mine with effective mining plans to ensure that the operation will meet its required economic targets. P, p M. tl p b, c v, s c 1 n 1 f r d c e c e u w Modern computers are well equipped to store and manipulate large amounts of data with speed and reliability. Their use in the mining field r is increasing and this trend serves to free f technical staff from much of the time consuming m and error prone hand calculations which were o formerly required in determining reserves and w carrying out all forms of mine planning. r Nevertheless, computers are not a universal

Jan 1, 1980

No paper available.

Jan 1, 1996

By W Newns

This paper describes laboratory and in situ tests and determines a set of parameters for stiffness and strength properties for a weak sedimentary rock mass, the East Coast Bays Formation of Auckland. The parameters derived are discussed in relation to peak strength and in respect of deformation limits associated with sequential excavate and support (SEM) or conventional tunnelling.

Mar 8, 2011

By T Roberts, S Talu

Steel wire weld mesh is a common industry standard surface support used in underground mining, traditionally installed with mining drills during the bolting cycle. As underground mining depth and stress increase, mining methods and their sequences at these depths place challenges on conventional surface support options. These challenges have provided a need for high capacity surface support options that improve development efficiency, reduce the need for secondary ground support installation and is easily installed with current mining equipment. A 5m2 mesh testing machine was built, suspending a 9500kg concrete slab, designed with multiple hold down points to test varying bolting patterns. Mesh load and displacement is accurately measured using a data acquisition system which pushes against the restrained mesh module with an available 200kN load and 1200mm displacement capacity. A testing program comparing conventional surface support, straps and combinations of both were tested for baseline results. New module designs incorporating existing mesh types and new design concepts were manufactured to allow for single pass installation during a bolting cycle. Nine mesh types, mesh/strap combinations and new mesh module designs were compared using the same test method. Based on these results, two high capacity mesh module types are produced. This paper will detail the test program, load and displacement results and underground mesh module performance, describing the two high capacity mesh modules function within the development cycle and manual handling. CITATION:Roberts, T, Talu, S and Wang, Y, 2018. Design and testing of high capacity surface support, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 303–322 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By R Bradford, W Gift-Agbey, T Vorster, P Morgan, E Grobler

The Asanko Gold Mine in Ghana started processing ore from the Nkran pit in January 2016 at a production nameplate of 3 Mt/a. The flowsheet is a conventional SAG, ball mill and pebble crusher (SABC) with gravity-gold and carbon-in-leach (CIL) recovery. The nameplate production was comfortably achieved within 3 months, so much so, that it was clear the SABC circuit was capable of processing more than the downstream section of the plant. Consequently, a program of de-bottlenecking was initiated to rectify volumetric capacity constraints. This program was later referred to as ‘Project 5 Million’ (t/a) or P5M. Having completed the de-bottlenecking exercise, it became evident that the SABC circuit could not reach 5 Mt/a solely on hard rock from Nkran. The new challenge was therefore to increase the capacity of the milling circuit through a focused comminution initiative that would address the following: geometallurgical treatment plan; upfront fragmentation requirements; installation of feed and mill monitoring equipment; and integration of a knowledge-based control strategy. This paper takes the reader through the various measures implemented to increase the milling rates and to create a stable/ sustainable control philosophy. As a result of the implementation of advanced mill performance monitoring technology (MillSlicer) and the collaboration between a team of experts in comminution, control and operations, the Asanko Gold Mine process plant feed tonnage has successfully increased from 3 Mt/a to 5 Mt/a.CITATION:Bradford, R, Gift-Agbey, W, Grobler, E, Morgan, P and Vorster, T, 2018. Optimisation of Asanko’s Obotan SABC circuit to achieve ‘Project 5 Million’, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 477–484 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By K Ehrig, V Liebezeit, E Macmillan

The results from metallurgical test programs are used in feasibility studies for design of new plants and brownfield expansions, in long term mine plans, and to make decisions in an operating plant. There are many elements which contribute to a well-constructed test work program. Ultimately, understanding the accuracy and precision of the test work results is critical to ensuring good decision-making at various phases of a project.Every resource drilling and associated assaying program will have a quality assurance / quality control (QA/QC) component, however this often seems to be overlooked in metallurgical testing programs. The principles of “international standard” or “certified reference material” samples and replicate/duplicate testing can be applied to metallurgical programs, although there are metallurgical-specific considerations in both generating and analysing the data.This paper will describe the QA/QC program carried out within the Olympic Dam geometallurgy program. It will present results in the form of case studies from ten years of testing of replicates and bulk reference samples for industry-standard comminution tests as well as laboratory flotation and leaching tests. The Olympic Dam geometallurgy quality control program has enabled quantification of the precision of metallurgical testing and improved our understanding of the best possible modelling results given the underlying dataCITATION:Ehrig, K, Liebezeit, V and Macmillan, E, 2017. Metallurgical QA/QC – who needs it? The Olympic Dam experience, in Proceedings MetPlant 2017, pp 31–44 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By M G. Millad, M Zammit

The Kipoi Central (KPC) copper project is located in the Katanga Province in the Democratic Republic of the Congo and is presented here as an example of an operating mine where the Mineral Resource was initially estimated by uniform conditioning (UC) and subsequently updated to localised uniform conditioning (LUC). This paper discusses the implementation of an estimate run using LUC and compares the results based on resource definition drilling to those obtained by close spaced grade control drilling and actual mill production.UC is a nonlinear geostatistical technique designed for recoverable resource estimation, typically using wide spaced exploration and resource definition drilling. The primary output of UC is the grade, tonnage and metal above a series of user-defined cut-off grades for a particular selective mining unit (SMU) block size. The UC approach is considered to provide a more accurate representation of the recoverable grade and tonnage at SMU support for non-zero grade cut-offs than would typically be achieved by a traditional linear estimator such as Ordinary Kriging. LUC is a relatively new approach involving the post-processing of a UC estimate and is used to spatially present the grade distribution predicted by UC at the SMU scale.This study demonstrates that the calculation of a more accurate and realistic grade-tonnage relationship for small SMU sized blocks is possible at the exploration stage using LUC, provided that the necessary theoretical and practical conditions for implementation of this technique exist.CITATION:Millad, M G and Zammit, M, 2014. Implementation of localised uniform conditioning for recoverable resource estimation at the Kipoi Copper Project, Democratic Republic of the Congo, in Proceedings Ninth International Mining Geology Conference 2014 , pp 207–214 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By D Semini, B Newcombe

Base-metal sulfide refractory gold ores often contain a portion of ‘free’ gold that is amenable to recovery using gravity concentration methods, whilst the refractory portion of the gold is better recovered using flotation. The decision as to whether a plant treating a refractory gold ore should utilise gravity concentration or a flash flotation circuit (or a combination of both) within the grinding circuit is usually made at the design stage of flow sheet development. Very limited data is available in the published literature which provides an industrial scale comparison on which to base such a decision and conventional laboratory testing methods are often the only way of obtaining such data. The optimum processing route will also be mineralogy dependent.This paper presents the findings of operating a refractory gold plant with either flash flotation (normal operation) or a combination of flash and gravity recovery methods treating the cyclone underflow stream and will demonstrate the regions of the recovery profile that each contributes to. Size-by-assay analysis has been performed on a number of streams around the operating plant to gain an insight into the changes that occur when the gravity circuit is in operation in addition to the flash flotation circuit. A discussion around the implications to overall plant operation in combining the use of a batch process (gravity concentration) with a continuous process (flotation) is presented.CITATION:Newcombe, B and Semini, D, 2014. Interactions between flash flotation and gravity concentration – an industrial case study of a refractory gold concentrator, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 427–436 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By I Minniakhmetov, J Ashford

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

Mar 22, 2022