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By E C. Holloway

"The financial valuation of mining assets has a number of fundamental differences to the valuation of many other asset groupings. One such difference is that typically, the greater proportion of both the cost and revenue sides of the cash flow are inherently governed by systemic market forces.As a result, the range of outcomes for the valuation of each mining asset is more unpredictable, with higher levels of risk and uncertainty. In contrast, the management function of many other non-mining businesses or industry groups can control at least a portion of the cash flow by maintaining the margin or controlling the sales price. The management teams of mining businesses and operations typically have limited options, and are thus price-takers for both costs and revenues. As mining is an inherently cyclical industry, large, long-life operations can exist through several price cycles, making valuation both subjective and challenging.The outcomes of both static- and stochastic-based valuations, as well as the internal probabilities of the associated cash flow statements, are significantly impacted when the correlations between the appropriate parameters are quantified, modelled and incorporated into the valuation framework. The appropriate parameters for correlation modelling primarily include those that are governed by systemic market forces. Applying this process results in a different risk profile for the asset by allowing the risks resulting from systemic market movements to be more accurately quantified and then objectively minimised. This process also reduces the level of residual uncertainty in the valuation outcome.This paper presents a valuation methodology to pragmatically incorporate this level of valuation sophistication and statistically quantify the associated increase in the level of confidence of the valuation outcomes reported.CITATION:Holloway, E C, 2016. Correlated valuation methodology, in Proceedings Project Evaluation 2016, pp 181–200 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By S Kakara, A Kamaraj, S S. Varanasi, B V. R Mandalika, M B. Shaik

The properties of top slags play a very important role in secondary steelmaking. Fluxes should be chosen based on the ladle furnace (LF) slag requirements like viscosity, melting temperature, sulfide capacity, etc. CaF2 and CaO-Al2O3-based synthetic slags are the most used fluxes in secondary steelmaking to improve slag fluidity and interfacial chemical reactions. CaF2 is obsolete due to fluorine pollution and CaO-Al2O3 based slags have 40–50 wt per cent Al2O3 and 30–40 per cent CaO which is not beneficial for desulfurisation. Yet another drawback is that LF slag disintegrates into fine powder during cooling due to phase transformation C2S (2CaO.SiO2). Hence, there is a need for the development of low melting fluxes with high CaO content and the capability to prevent slag disintegration. The current work studied the effect of 0–9 wt per cent B2O3 on physico-chemical properties and characterisation of LF slags. X-ray diffraction (XRD) analyses were carried out to identify mineralogical phases present in slag and Fourier-transform infrared spectroscopy (FT-IR) analysis was done to understand the changes in bonds of B2O3 added LF slag. The characteristic temperature of slag was determined by a hemispherical method using high-temperature microscopy. Empirical models were used to calculate viscosity, break temperature, and sulfide capacity. FactSage™, ver 8.2 (by GTT-Technologies) simulations were carried out to find the equilibrium phase fractions and percentage of liquid slag at different temperatures. New phases such as Ca11B2Si4O22 and Ca2B3O5 were formed in LF slag with B2O3 addition. Based on the results, 0.5–1.0 wt per cent B2O3 was found to be sufficient to prevent C2S-driven disintegration of LF slag. Also, the melting temperature and viscosity of LF slag were reduced by adding 3–8 wt per cent B2O3 due to the formation of BO3 planar triangular structure and low melting eutectics in slag. Liquid slag started forming at a temperature as low as 800°C when B2O3 is >6 wt per cent. It was found that the sulfide capacity, viscosity, and break temperature of the slag decreased with increasing wt per cent B2O3. Based on the analysis carried out, B2O3 can be a promising fluxing material in secondary steelmaking, for improving the desulfurisation kinetics and valourisation potential of LF slag.

Aug 21, 2024

By C M. Ramotsabi, F Bornman, W Erasmus

Spiral concentrators are gravity based separation devices used for the preparation of coal, iron and heavy mineral ores (Wills, 1992). Gravity concentration remains the main separation method for fine iron ore and is used extensively for treating many minerals. Gravity concentration methods separate minerals of different specific gravity by their relative movement in response to gravity and one or more other forces, the latter often being the resistance to motion offered by a viscous fluid such as water or air (Wills, 2006).The main operating variables for a spiral concentrator are the feed rate, the slurry concentration, the wash water addition and the position of the splitters used to separate the tailings, middlings and concentrate streams (Sadeghi, Bazin and Renaud, 2014). Wash water is an important control variable used to wash away entrapped light minerals from the concentrate stream (Burt, 1984; Bouchard, 2001). Sadeghi et al concluded the spiral operation to be sensitive to the wash water flow addition and resultant economic trade-off. Increasing the wash water flow rate increases the concentrate grade at the expense of the iron recovery.The paper addresses the effects of dripping wash water onto the concentrate stream of a spiral processing fine iron ore. The dripping wash water system offers a low flow alternative and could possibly provide a good balance between grade and recovery of valuable minerals without using excessive water. The Multotec SC20HC/7 WW spiral was used for the experimental test work. The spiral was tested at varying solids concentrations; the wash water rate and the splitter positions were kept constant.The use of wash water at 30 per cent, 35 per cent and 40 per cent solid concentration improved the Fe grade in the concentrate by about 1.5 per cent, six per cent and eight per cent respectively. The additional SiO2 rejected by the wash water is approximately three per cent, nine per cent, and 11 per cent at 30 per cent, 35 per cent and 40 per cent solid concentration respectively. Addition of wash water is shown to have minimum effect on grade at 30 per cent solid concentration, and Fe upgrades obtained with and without wash water were found to be similar. Notable upgrades were observed at 35 and 40 per cent solid concentration with wash water. The results obtained suggest that the additional SiO2 rejection by wash water increases with an increase in solid concentration. This suggests that the benefit of using the drip system is notable at higher solid concentration. It is believed that at lower solid concentration SiO2 particles are reasonably free to move around and are possibly less entrapped than at high solid concentration.The Fe grade/recovery and solid concentration relationship with wash water showed a non-linear correlation. The Fe grade increases with an increase in solid concentration up to a somewhat optimum point and then drops as solid concentration increases further. The recovery of Fe on the other hand follows a converse relationship with solid concentration, the recovery decreases from 30 per cent to 35 per cent solid concentration and then increases again at 40 per cent solid concentration. The increase in recovery at higher solid concentration could possibly be explained by the fact that the mass yield to concentrate also increases with solid concentration. Since recovery is a function of both grade and mass yield, the higher recovery at 40 per cent solid concentration is likely due to the high mass yield obtainable at 40 per cent solid concentration.The drip system could therefore possibly offer a safe guarding against grade and solid concentration variations without using excessive water, and possibly ensure that a product within specification is maintained.CITATION:Ramotsabi, C M, Erasmus, W and Bornman, F, 2015. Optimisation of wash water on an iron ore spiral to improve grade, in Proceedings Iron Ore 2015, pp 175–184 (The Australasian Institute of Mining and Metallurgy: Me

Jul 13, 2015

By G Capes, L Morizzi, N Mitkas, E Jones, D Grant

This paper describes the mining setting for the sub-level open stoping (SLOS) mining method used at Olympic Dam (OD), and investigates the range of stope performance conditions encountered over 30 years of production, using a qualitative description of the factors influencing performance. Utilising a continuous improvement tool, the Plan-Do-Check-Act (PDCA) process, and a forward-looking rock mechanics program, the intent is to identify the key factors driving productivity and performance to create a stable and achievable long term mine plan.

Mar 15, 2021

By P Myers, T Elkington, S Wonday

Sierra Rutile LimitedÆs (SRL) heavy mineral sand mining operation in Sierra Leone, West Africa, is embarking on a new phase of its life. After confronting many challenges during the 1990s and 2000s, SRL is embarking on a strategy of growth to recover maximum value from the mine over the rest of its life. Sophisticated linear programming techniques have been used to develop an optimum strategy for extracting SRLÆs many known deposits of economic grade, while considering options for expansion and for a variety of mining and processing methods and combinations. CITATION:Myers, P, Elkington, T and Wonday, S, 2012. Strategic optimisation at Sierra Rutile - A case study in maximising project value, in Proceedings Project Evaluation 2012 , pp 59-66 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By Z Zhao

Coal dust is hazardous to underground coal workers and water spray is the most common and economic method for controlling coal dust. Previous studies proved that the addition of surfactants can improve the performance of water spray on coal dust suppression. The evaluation methods for surfactants vary from different studies. The zeta potential test is a common method for evaluating surfactants with ionicity. Generally, the suspension of coal dust with pure water usually showed a negative value of zeta potential. The addition of cationic surfactants can increase the zeta potential to a positive value with a small dosage, while the addition of anionic surfactants can only lower the zeta potential. However, there is a lack of comprehensive study to investigate the relationship between the zeta potential and the suppression performance for coal dust. The aim of this study is to reveal the consistency and discrepancy between the zeta potential and the suppression efficiency of a surfactant. Firstly, the mixture of cationic surfactant solutions and coal dust would be evaluated by the zeta potential test. The wind tunnel tests would then be conducted for the same surfactant solutions to measure and calculate the suppression efficiency. It was found that the addition of surfactant can increase the zeta potential and the suppression efficiency and it reached the greatest efficiency when the zeta potential approached to zero. The equilibrium of zeta potential can benefit the suppression performance of surfactants in the wind tunnel test. The result of this study can achieve a better understanding of the mechanism for coal dust suppression. The selection of surfactants will also be suggested for researchers or industries in terms of coal dust control. It would be more economic if a similar performance could be achieved by less consumption of surfactants.

Oct 12, 2022

By M P. Sandy, J B. Albrecht

"Narrow vein mining can be loosely defined as mining operations involving orebodies with a true thickness of less than 4 m. Some authors have limited the term to steeper-dipping orebodies where the ore will rill under gravity. However, ænarrow veinÆ can also legitimately refer to some of the flatter orebodies, such as many of the platinum, chrome and gold deposits of Southern Africa, and several in Australasia including Bullen (at Norseman), Sunrise Dam, Telfer (Patterson, 1993) and the famous æflatmakesÆ at the Emperor Gold Mine in Fiji (Gordon and Harmse, 1993). Where the orebody dip is less than about 40¦ additional effort is usually required to remove the broken ore, including the use of scrapers, hydraulic monitors or remote-operated excavators (Tombs, Buckingham and Hancock, 2008).Working in such narrow orebodies presents particular operational and geomechanics challenges. A range of mining methods have been developed or adapted to exploit narrow orebodies including:cut-and-fill,narrow vein bench or longhole stoping,Alimak stoping,shrinkage stoping, and methods for shallow dipping orebodies (including Airleg and mechanised methods).The paper discusses some of the advantages and disadvantages of each method with a focus on geotechnical aspects including mining sequence options, stress management, ground support requirements, dilution and recovery.CITATION:Sandy, M P and Albrecht, J B, 2012. An overview of geotechnical issues in narrow vein mining, in Proceedings Narrow Vein Mining 2012 , pp 185-194 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 26, 2012

By Bure R

Approximately 2.4 million ounces of gold and 11.3 million ounces of silver have been produced from the Umuna Lode by Misima Mines Pty Limited between June 1989 and the end of Decemeber 1996. Reserves remaining at the end of December were 32.1 million tonnes at 1.0 gram per tonne gold and 9.7 grams per tonne silver. To attain precious metal production of this volume, an estimated K60,000,000 (1996 Kina) was spent on exploration alone. from the 1940s to the present day. Exploration expenditure for the 1996 calendar year was approximately K4,400,000. With such a large investment in exploration, large quantities of data were generated and stored in various forms. To make best use of this data, it was necessary to organise and systematically store this data in a form compatible with a modern Geographical Information System (GIS). The Umuna Lode on Misima Island is a low sulphidation gold- silver deposit dated at 3.5 ¦ 0.2 Ma. The deposit is controlled by the 50 to 100 metre wide Umuna Fault- a moderate dipping, brecciated clay- chlorite- carbonate altered, normal fault zone. There is approximately 230 metres of mostly dip slip offset on this fault, which is measurable by the offset of the Cretaceous schist, marble and greenstone host sequence. Late Miocene microdiorite spatially related to the Umuna Lode does not appear to be genetically related to the gold- silver mineralisation. GIS was introduced to Misima at the end of 1995 and until recently has been mostly used for data storage and retrieval, the over- laying of various data sets to assist in targeting prospective areas, and as a drafting tool. The use of data-driven, predictive data analysis is the most recent effort in maximising the use of the extensive Misima database. By characterising the key controls and properties of the Umuna- type mineralisation, a Weights of Evidence, data-driven analysis produced a prospectivity map of Misima Island. The purpose of this map was to identify prospective areas yet to be explored and to assess the effectiveness of exploration to date.

Jan 1, 1997

By D Baas, D Bennett

This paper describes how Brisbane-based PanAust Limited develops process control strategies that are implemented at all operations and are used in functional descriptions for plant upgrades and new projects.The process control strategies are determined by operating management philosophies designed to maximise returns from the company’s assets.The approach is endorsed in the project planning and design phases to ensure facilities and equipment that form the major production assets are fit for purpose and capable of enabling the production managers and operators of the projects to maximise shareholder returns.PanAust’s process control approach has been to develop sets of process control standards which focus on two key areas. The first area covers hardware requirements and architecture, software objectives, control models and individual loop tuning methods. The second area defines control room layout, graphic standards and the alarm philosophy. The application of these standards in a new plant or upgrade decreases the time required to achieve design capacity and optimal performance.The PanAust process control strategy changes the operator’s role from one that controls a number of individual loops to one that sets the control objectives of the processing plant. To achieve optimal performance, all the process areas of the plant are analysed to identify opportunities to improve throughput, recovery and stability. Once a key opportunity is identified, a process control strategy is developed which defines the objective of the control, its functionality and how an operator will interact with it. After development of the control model the operators assist engineers to test and debug it. Once the model is robust, it can then be duplicated throughout the group and developed as a group process control standard.CITATION:Baas, D, Bennett, D and Walker, P, 2014. Developing process control standards for optimal plant performance at PanAust Limited, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 325–334 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By D Reid

Characterisation of non-plastic segregating tailings presents a number of challenges: the material cannot typically be sampled in an undisturbed state, remoulded samples exhibit different behaviour to undisturbed samples, penetration test interpretation methods suffer from uncertainty in their application to many tailings and the tailings gradation changes considerably over relatively small lateral distances and depth. In addition, the process liquor of many Western Australian tailings contains large quantities of salt and other dissolved solids, which can further complicate laboratory test programs. To provide an insight into the variability at a typical gold tailings facility, four gradations of the material were tested to obtain critical state parameters. Historic surficial tube samples were collated and organised by gradation to establish the range of densities typical after settling and air drying. These were then compared to laboratory-accessible densities. Finally, tube samples were tested in the laboratory to observe if the large-strain material behaviour was consistent with the inferred critical state parameters for similar gradations. Site pore fluid was used in the testing of the tube samples in an attempt to assess if the pore fluid modified the critical state conditions of the material.The tube samples tested all exhibited strongly dilative behaviour in undrained shear. Of the four samples tested, only one exhibited behaviour consistent with the inferred location of the critical state line relevant to the material’s gradation. The reasons for the unexpected behaviour of the other three samples include layering within the samples, the potential influence of large quantities of salt in the pore fluid and likely differences in the gradation of the fines components of samples taken from mid-beach and the decant area.CITATION:Reid, D, 2015. Observations on the behaviour of a gold tailings with hypersaline pore fluid, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 191–200 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By G W. Swana

Elastoplastic parameter is a parameter that describe how much materials behave elastically up to certain stress states and plastically thereafter (Hudson and Harrison, 1997). In the continuum analysis, two main parameters of the elastoplastic parameter are modulus elasticity and Poisson’s ratio. In the slope, elastoplastic parameter holds the main role for stability related to deformation in ductile type of rock. There’s a limitation to determine elastic or plastic deformation at the field for ductile rock type. Field manifestation commonly showed that there was no accumulation zone during and after the sliding failure mechanism, in other hand, at the research area, manifestation of deformation at the toe of slope only indicated by bulging shape. This paper will focus at the sliding failure occurred at Coal mining Pit Y owned by Arutmin Indonesia, which according to failure investigation report similar with the condition described above. This paper also will be based on two hypotheses, first hypothesis is claystone rock mass has not been reached plastic deformation yet and the second hypothesis is there is a chance that elastoplastic parameter of the rock mass has been changed during the deformation/sliding failure process. Research method of this paper are back analysis using probabilistic analysis in Finite Element Method (FEM), which conducted before and after failure. Then, the result of the displacement or deformation of the analysis will be checked with the actual deformation shape. Meanwhile, the change of the elastoplastic parameter will be analysed and interpreted. This paper hopefully able to be developed to study about elastoplastic behaviour of rock mass in actual condition and the influence of another uncertainty factor which determine the slope stability.

Nov 29, 2022

By T J. Sullivan, H Pinkster, G Swarbrick

From 2002 to 2006, longwall mining was undertaken directly beneath the Cataract Tunnel, which is a 100-year-old, heritage-listed tunnel in Hawkesbury Sandstone responsible for delivering 20 per cent of Sydney’s annual water supply. At one location, undermining resulted in movement of at least 350 mm along a known fault that transects the tunnel. During this movement, the continued operation of the tunnel was ensured through a careful system of planning, monitoring and management.Of key importance to the success of the operation was the use of advanced numerical modelling to guide operations at all levels, including feasibility assessment, pre-mine mitigation works, monitoring design, operation performance and post-mining condition. This allowed many aspects of the potential impacts to be explored, including joint movements, rock mass deformations and changes in permeability. A key challenge was to successfully model near-field influences on adverse geological structure due to very far-field effects. This paper explains the model’s conceptual development, calibration, performance and limitations.Modelling provided the confidence to manage the impacts of large mining-induced movement on key infrastructure and ultimately predicted fault movement accurately. The fault movement remains one of the highest ever recorded due to mine subsidence.CITATION:Swarbrick, G, Sullivan, T J and Pinkster, H, 2014. Longwall mining beneath critical infrastructure – prediction versus performance of the Cataract Tunnel, New South Wales, Australia, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 157–166 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By M Podreka, P Merry, L van den Berg

Anglo Gold AshantiÆs Sunrise Dam operation is located in Western Australia approximately 55 km south of the town of Laverton. Currently, the mine is producing from both its open pit and underground operations and is planning a significant step change in underground production as the pit phases out. The mine ventilation system is arranged in three independent ventilation districts: Astro, GQ and Cosmo. The future ventilation infrastructure requires significant upgrades to keep up with the increased tonnage. In the short term, increased production is planned for the GQ district as well as for Vogue, which is an extension in the Cosmo ventilation district. In the long term, however, Vogue is likely to become the centre of attention for mining activity.This paper explores several ventilation scenarios which include upgrading the existing fan stations, rentals, establishing a common ventilation backbone, and establishing new upcast infrastructure for GQ to support the short-term production increase. These developments were modelled using ventilation network simulation software to determine airflow distribution and fan operating points for each option. For the GQ area, with its short-term increase in production, each option is evaluated for total owning cost by considering capital and operating costs over a three-year period. For Vogue, which is to become the main focus of mining in the future, a different strategy is followed in analysing the ventilation requirements. Instead of considering different short-term options, a number of staged upgrades are considered to achieve the desired production rates.This paper summarises the planning criteria, airflow requirements, ventilation infrastructure requirements, and economic analysis associated with the conceptual ventilation system design. It highlights how the best short-term ventilation infrastructure upgrades can be selected when considered in isolation but highlights that long-term production planning can have an effect on the decisions made in the short-term.CITATION:van den Berg, L, Podreka, M and Merry, P, 2013. Sunrise Dam short- to long-term ventilation planning, in Proceedings The Australian Mine Ventilation Conference , pp 107-114 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By C D. Rose

A review and summary of the results of 120 coal sampling system bias tests is presented. This review supports new methodology using multivariate statistics currently being considered by ISO TC27 SC4. The current difficulties with ISO 13909-8 are explained and the logic behind the current new working draft is discussed in detail. Bias was detected in nearly 36 per cent of tests reviewed, suggesting that much improvement is needed in designing, maintaining and monitoring the performance of sampling systems in order to avoid sampling bias.CITATION:Rose, C D, 2012. Bias testing of mechanical sampling systems for coal - A review of test results and call for use of multivariate statistical analyses, in Proceedings Sampling 2012 , pp 185-192 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

There is an increasing demand for refrigeration as mines progress deeper. Mine refrigeration plants have special requirements in terms of their duty and application. There are no national or international standards applicable for the testing of these plants. There have been numerous examples of plants failing to meet their required nominal capacity, but with the plant owner being unable to enforce the design duty on the manufacturer, due to a failure to unambiguously specify testing or accepting criteria. This paper discusses some of the reasons for performance shortcomings and describes a methodology for developing and specifying performance criteria, when inviting design and/or construction tenders, and a method of performance and acceptance testing once the plant has been built and commissioned. These guidelines encompass the full range of performance duties expected from a mine plant, including stable operation at maximum and minimum plant capacity, and under the various combinations of extremes of high and low condensing and evaporating pressures. A description of a methodology for developing a computer-based mine refrigeration plant model is also presented as part of the performance testing criteria. The methodology is illustrated with reference to the actual performance and acceptance testing process used on the worldÆs largest bulk air cooler (R67) at the Enterprise mine at Mount Isa, Australia.

Jan 1, 2005

By H Law, M Muller

Mount Isa Mines (MIM) Copper Concentrator currently utilises Agitair 120 banks for its roughing flotation circuit. Apart from a rotor change, the only other significant work completed to the Agitair banks since their installation and commissioning over 40 years ago has been a like for like refurbishment in 2016. The Agitair banks at the MIM Copper Concentrator currently utilise the Pipsa rotor design which progressively replaced the original Chile X rotor design in the 1980’s and 90’s in the copper concentrator. Since the development of the Pipsa rotors, modern rotors such as the Dorr-Oliver (DO) high shear rotors have been released to the market with proven recovery and concentrate grade improvements over previous rotor designs. This paper aims to detail the installation, testing and comparison of Pipsa versus Dorr-Oliver rotors in two different flotation sections of the MIM Copper Concentrator.CITATION:Muller, M and Law, H, 2018. High shear rotor trials in the Mount Isa Mines Copper Concentrator, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 393–402 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By T Hill, J Everingham, P Clark

Currently, social impact assessment (SIA) is used to determine social impacts across the life-of-mine (LOM) to closure. This paper draws on recently completed SIA reports from the Martha gold mine in Waihi and qualitative interviews in the community that explored post-closure options, to review the challenges mining companies face when engaging with iwi4 through the SIA process and what that may mean for closure planning. The Maori of New Zealand consistently lobby to have a distinct voice in resource management issues. This is in line with the evolution of indigenous participation in SIA globally and with New Zealand policies, not least of which, the Treaty of Waitangi (the founding document of New Zealand) makes provision for Maori self-determination with regard to natural resources. Land use for mining has been a source of conflict for Maori and mining can have profound cultural and social impacts on the Maori community, yet despite Treaty intentions their representation in SIA has been comparatively limited. With this in mind, the Waitangi Tribunal has released the Ko Aotearoa Tenei (Wai 262) report, which recommends far reaching reforms to laws and policies affecting Maori culture and identity including natural resource management. This landmark report seeks to move the Maori-Government relationship beyond grievance to partnership. Given suggested policy changes in Wai 262 and the risks of poorly conceived closure planning, it is timely to review where Maori currently fit into the SIA process. The findings of this research suggest that improvements to the outcomes of this process will require companies to act beyond compliance. However, these improvements may also ensure mining companies maintain their social license to operate and to ensure continued influence across the life of a project to closure.CITATION:Hill, H, Clark, P and Everingham, J, 2012. æThere is an emptiness for Maori here in WaihiÆ - Understanding indigenous perspectives on post-mine land uses in closure planning, in Proceedings Life-of-Mine 2012 , pp 153-160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By H Arvidson, J Vann

When only wide-spaced drilling is available, for example at concept, prefeasibility and feasibility stages, properly implemented linear estimation (including ordinary kriging) predicts grade tonnage relationships that are over-smoothed compared to final production estimates (and production). Non-linear estimation and conditional simulation are alternative geostatistical approaches that can provide more reliable estimates of the recoverable tonnage and grade from wide-spaced drilling. Non-linear estimation and conditional simulation have been rarely used on iron ore deposits. However, these techniques have had wide application in other commodities such as gold and base metals. Conditional simulation has been used in the iron ore industry (eg Guibal et al, 1997); however, its use here is outlined as a means of generating non-linear estimates, not just its use for variability and drill spacing analysis. As a rule, regardless of commodity, the decision to use non-linear geostatistics will necessitate increased skills and require more time. This decision must therefore be justified in terms of cost-benefit. Such cost-benefit analysis is not straightforward, and to help an approach for determining when linear estimates are inadequate is presented. Recommend in this paper is a well-established non-linear geostatistical approach, the global ædiscrete Gaussian modelÆ (DGM) of change of support, as a tool to establish whether moving from linear to non-linear estimates will materially improve estimate results. Also discussed is the additional use of DGM as a block model validation tool. One specific factor contributing to the lack of application of non-linear geostatistical methods in iron is the added difficulties that arise when conditional simulation and non-linear estimates are required to reproduce the numerous and often important correlations between variables in iron ore deposits. Consequently, presented in the paper is a synoptic review of non-linear estimation and simulation methodologies applicable to correlated variables.

Jan 1, 2007

By H Rossiter, C Simpson, J Market, P Jeanneau

Downhole Assay tools are a geophysical method to collect an instigated response from the material surrounding a drill hole and deliver a multielement proxy-assay. They were first tested in the Pilbara at the turn of this century, however since 2011 they have seen a more focused testing and implementation regime with multiple companies across multiple Pilbara mine sites. The increase in the volume of data has led to advances in the measurements and significant improvements to the efficiency of the calibration process. Pulsed Fast and Thermal Neutron Activation Analysis (PFTNA) downhole assay tools collect gamma photon spectra which are characteristic of elemental signatures. One of the key components of the technique is calibrating the spectral signatures to lab assays. Each tool is slightly different due to the organic nature of the crystal detector and therefore responds slightly differently. Environment and hole conditions as well as ore characteristics are among other external influencing factors. Thus, a unique calibration is required for each tool. In addition, not all elements are measured directly, but some are actually characterised by proxy, meaning that if the signal-to-noise ratio for an element is small, it may be easier to identify the mineral or geology in which that element is found and thus infer the concentration of the element. These proxies may differ for each site or geology type within a site. There is a large advantage to build a unique calibration per tool at each site rather than a universal one to be used across the whole province. This then delivers the accuracy and precision of measurements that mining companies require for modern operations. Early work with the tool required several thousand metres of calibration data and several weeks of analysis to build each calibration. This process has now been streamlined to significantly reduce the amount of data required and the analysis time to make it much easier to introduce new tools to a site with an existing model or to create new models. This paper details the calibration process, illustrating the increasing accuracy of the models as training data are acquired as well as the methods for transferring a calibration from one tool to another.

Nov 8, 2021

By W Patton

Investment decisions in the mineral resources sector are made on the basis of an assessment of the economic potential for a mineral deposit. Given the supporting information for the location, scale, and quantity of the commodity of interest, miners and investors aim to make risk-informed decisions when considering further investment. The objective of resource classification is the synthesis of various types and quantities of geologic information used in resource model construction to assign confidence categories to the estimated mineral resources, which can then be used to support informed economic decisions. In this paper a risk-based classification scheme for iron ore mineral resources using conditional simulations is presented. The method involves categorisation of each block according to a confidence level, considering expected recoveries from a kriging model over mining production volumes. The realisations of the simulated model are used to assign risk-based confidence categories to zones of the ore deposit. One motivation for this work is to assess the sensitivity of the scheme to geologic uncertainties. Specifically, that which uncertainty in the layout of mineralising alterations and weathering overprints influence variabilities of associated rock properties and the likelihood of obtaining expected ore recoveries. It is shown these risks have material implications for a project’s economic potential. How the scheme can be extended to the grade control context and the value subsequent grade control activities is also quantified.

May 24, 2023