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By H M. Ahmed, W S. Dunbar

Construction of cave mining systems requires significant capital expenditure and long-term commitment of human, equipment and material resources before production commences. Risks and uncertainties of these large-scale mining projects are significantly higher than for small-scale projects. This is due to the complexity and interactions of the construction schedule components and the large scale and uniqueness of such projects. One way to successfully manage construction uncertainties that would lead to schedule delays is to include a reasonable cost contingency in the budget estimation. A real options approach based on the least-squares Monte Carlo (LSM) method is used to estimate cost contingency associated with schedule uncertainty in mass mining projects. Cost contingency is estimated as the cost of potential project crashing (acceleration) decisions, which pays for not extending the schedule. While such a significant undertaking is expected to be subject to some delays, these can have an enormous impact on the economic value of such projects. The value of the crashing option was explicitly formalised into the process of valuation, as it is assumed to be a single option being considered in the valuation at every decision point prior to the construction completion date. As a part of the proposed method, a stochastic function for the percentage of remaining scope of work for the remaining duration of the entire project was integrated into a framework of numerical simulations. This ensured that this function can implicitly account for sources of schedule uncertainties for projects represented by multiple and overlapping work packages. The LSM method was applied to a real case scenario in an operating block cave mine, with modified scale and features. The results yielded by the LSM method indicated that significant changes in capital budget allocation stem from variation in a contractor’s risk perception and confidence level of estimated delays.CITATION:Ahmed, H M and Dunbar, W S, 2016. Budget estimation and contingency allocation of block cave construction using least-squares Monte Carlo real options, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 801–808 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By B A. Mowat, T M. Leach

The Morobe Goldfield inPapua New Guinea has produced in excess of 120 tonnes of gold from predominantly alluvial sources. Hardrock gold has been mined historically at Wau (23 t) and Edie Creek (4 t) and geological resources have been established at Hidden Valley (78 t), Kerimenge (36 t) and Hamata (30 t).Numerous prospects have also been identified within the goldfield. Primary gold mineralisation is related to intrusion of dacitic to andesitic Edie Porphyry (2.4 to 3.8 Ma), often with associated diatremes, which have intruded along major regional structures. A full spectrum of deposit styles from proximal (mesothermal) to distal (epithermal) to the porphyry source is recognised. The transition between the proximal and distal styles is recognised both between deposits and within an individual deposit. The deposit styles should be termed porphyry related gold mineralisation rather than given the generic epithermal and mesothermal labels.   It is proposed that magmatic fluids which evolved from parent melts to the high level Edie porphyry stocks mixed with convecting meteoric fluids and were channelled along major structure and diatreme contacts. Proximal to the intrusives, gold mineralisation is associated with deposition of pyrite-hematite-quartz+/-magnetite-gold (Hamata) and pyritebasemetals-quartz-gold (Wau). The mineralising fluids were hot, and periodically saline due to pulses of magmatic fluid. Gold is non-refractory and occurs as 20 to 30 micron blebs within the pyrite.   More distal from the intrusives or under late cooler conditions, mixing of cool dilute meteoric and magmatic fluids resulted in gold deposition associated with arsenic rich pyrite-and arsenopyrite-mineralisation (Kerimenge, Hamata and Edie Creek). Gold is refractory and occurs within the sulfides either as sub-micron inclusion or within the lattice.   CO2 and H2S gases which evolved off the upwelling hydrothermal fluids as a result of boiling and pressure reductions, condensed within superficial groundwater and formed cool oxygenated bicarbonate fluids. These fluids percolated back down the structures depositing manganocarbonate in the upper parts of the hydrothermal system. At deeper levels in the system mixing of the descending bicarbonate fluid with upwelling mineralised fluids deposited manganocarbonate-quartz-sulfides nonrefractory gold (Hidden Valley, Wau and Edie Creek).   At Kerimenge the cool bicarbonate fluids have also quenched a late stage magmatic fluid rising along high permeability structures. The quenching has resulted in deposition of non-refractory gold mineralisation associated with hessite (Ag2Te)-tennantite-chalcopyrite deposition.   Within the Morobe Goldfield, a transition from deeper level pyrite-quartz+/-hematite-magnetite to intermediate level quartz sulfide and quartz-carbonate-sulfide deposition to upper level, massive manganocarbonate deposition is recognized. Gold mineralisation can occur within all levels up the system.

Jan 1, 1995

By A C. Edwards

The Mongol-Okhotsk belt consists of detached fragments of the Circum Pacific fold belt which have been trapped within the Mongol-Okhotsk fold belt. In its western part, the structures of the belt form an east-facing loop that is not connected with the other orogenic structures of Central Asia. In the eastern part of the belt (the Mongol-Okhotsk suture zone) the terranes form a zone between the Siberian craton to the north and the Bureya composite terrane to the south, that is linked with the Circum Pacific belt. The accretionary terranes, together with their Precambrian backstops, form a series of consistently-stacked, paired units that are bounded by northwest and north trending sinistral strike-slip faults. The ages of the rocks forming these accretionary complexes vary from Late Precambrian - Carboniferous in the west to Cambrian - Jurassic in the east. The terranes developed due to a progressive westward stacking of the accretionary complexes during the process of accretionary growth. The magmatic rocks young eastward indicating that migration of the magmatic front of the arc followed the eastward growth of the accretionary complexes. The accretionary terranes may be differentiated by their Paleozoic lithological assemblages. Only the Selemdzha, Niman, and Kerbi terranes located in the eastern part of the Mongol-Okhotsk suture zone contain significant amounts of black shale, and it is these terranes that host the bulk of the hardrock and placer gold mineralisation that is present within the suture zone. Gold mineralisation is present both as vein style and disseminated mineralisation within structural duplexes.

Jan 1, 1999

By A Hollweg, K H. Esbensen, M Lischka

Two new splitter designs for intercepting moving streams of matter are presented, the variable cross-stream splitter (vCSS) and the rotary stream splitter (RSS), which are intended for implementation in a fully automated modus. The vCSS facilitates obtaining up to three subsamples with different splitting ratios from automated laboratory flow paths, while the RSS divides the intercepted sample into 16 equal analytical aliquots. The splitters can process a wide range of dry, granular and free-flowing materials (<5 mm). The required weight for each subsample can be set without mechanical adjustments in the case of the vCSS. Typical applications are subsampling/splitting for X-ray fluorescence pelletisation (or fused beads) or splitting for average shift composite sampling or grain size analysis. The vCSS combines the advantages of riffle splitting (three user-defined subsample masses) with miniature bed blending and can accept up to 15 kg in total incoming sample mass. In practice, the automated vCSS can deal with unlimited ingoing mass fluxes, while the RSS is designed to operate at a user-defined fixed subsampling rate (1/16th in the tested version). Both splitters have the potential to be optimised and evaluated according to an application/user-defined total sampling error (TSE) + total analytical error (TAE) threshold. Both splitters were tested under adverse conditions and with compositions involving three components with properties representing typical mass fluxes and components concentrations in industrial and technological systems: phosphate concentrate 89.00 per cent (<500 µm), slag ten per cent (>2 mm) and glass spheres one per cent (750–1000 µm). The slag particles vary widely in particle shape, aspect ratio and surface roughness, while the glass spheres are extremely prone to bouncing and segregation (spillage). This test system is extremely difficult to split and thus constitutes a realistic worst-case scenario. While the vCSS does not comply strictly with Theory of Sampling demands for correctness, both splitters may well be able to deliver fit-for-purpose representative results if/when tested properly. Average relative mass deviations ranged from 1.89 per cent for phosphate concentrate (relative standard deviations of 20-fold repeated splitting) to 4.72 per cent for glass spheres and 13.04 per cent for slag. For the RSS, the average replication experiment splitting variation was 2.89 per cent for phosphate concentrate, 4.82 per cent for glass spheres and 11.1 per cent for slag. Both new automated online splitters would therefore appear to be able to be tuned to fit-for-purpose representivity (defined here as maximum relative reproducibility <5 per cent) for many non-extreme materials; however, it is always imperative to test every new type/class of material empirically. There is a wide commercial potential for important materials and commodities sectors, including food, feed, drugs (pharmaceutical), secondary raw materials, recyclates, agricultural products and seeds.CITATION:Lischka, M, Hollweg, A and Esbensen, K H, 2017. New online/atline splitter designs for laboratory automation – feasibility results, in Proceedings Eighth World Conference on Sampling and Blending , pp 159–166 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By A D. Campbell

Sublevel caving (SLC) is a mining method adopted in a wide range of mining depths and ground conditions with various layouts adopted to suit orebody geometry. Sublevel caving offers more flexibility and versatility compared to other cave mining methods and is a low cost alternative to open stoping. SLC also has the advantage that stopes are not required to remain stable during production, and no backfill is required. This flexibility combined with increasing pressure on mines to target deeper and lower grade mineralisation has led to increased uptake of the method. The implementation of SLC mining methods across a wide range of mining depths and rock mass conditions has led to ground control practices which vary globally from mine to mine. To date, there has been limited documentation of ground control practices in SLC mining and few benchmarks available in the literature. This paper describes the main findings from a global benchmark of sublevel cave mines conducted over three years as part of the Caving 2040 research consortium. The purpose of the project was to document and compare operational practices, technical aspects and hazard management techniques across SLC mines around the world. The review included 21 mines spread over four continents and 17 different mining companies. This paper provides an overview of geotechnical conditions, challenges and ground control practices at each of the benchmarked SLC mines. Mine design and sequencing practices adopted for ground control purposes and hazard mitigation are provided with case studies. The impact of depth and rock mass conditions on mining productivity and development rates is also described.

Nov 29, 2022

By S F. Simmons, J Fleming

Alteration and mineralisation at the Island Copper deposit is related to the intrusion of Early Jurassic quartz feldspar porphyry dykes into surrounding comagmatic Bonanza volcanic rocks. The pyrophyilite alteration zone forms an upward flaring cone, largely hosted within a breccia body that cross-cuts the Co, Mo, and Au-rich ore shell. This alteration zone contains pyrophyllite, dumortierite and diaspore and resembles alteration occurring in some high-sulfidation deposits, but which is barren. Fluid-mineral equilibria and fluid inclusion studies indicate formation at approximately 300 ¦C from fluids dominated by steam and gases. These fluids appear highly acidic, but sulfur poor, leading to extreme base leaching within the breccia body and surrounding rocks.

Jan 1, 1995

Flotation of Phosphate Gangue from Magnetite Fines - Non-Ionic Surfactant as Atrac Collector Modifier

Sep 13, 2010

The New Zealand microcontinent is relatively well endowed with gold deposits; its past gold production per unit area of 3.2 kg/km2 ranks high on a world scale. Total recorded production (1857 - 1986) is about 854 000 kg and most of this gold was mined between 1861 and 1920. There has been a strong revival in gold exploration and mining since 1979, with exploration expenditure of around $15 million per annum and a declared gold production in 1986 of 1265 kg (886 kg in 1985). In addition to numerous alluvial gold recovery plants working small to medium sized deposits (mainly in Westland and Otago), there are five medium to large projects that have started production (Martha Hill), or have reached advanced stages of construction (Grey River dredge), permitting (Golden Cross and Macraes) or exploration (Globe-Progress). This summary paper is taken from reviews by Brathwaite et al (1986) and Brathwaite (1988).

Jan 1, 1988

By G Liu

Seventy-nine gold deposits and prospects have been discovered in theJiamusi region of northeast China, and constitute one of the most important gold metallogenic belts in China. All these endogenic gold occurrences can be subdivided into three main deposit types: 1. porphyry related; 2. metamorphic-intrusive hosted, and 3. sediment-hosted deposit.   The first two types of gold deposit are spatially and temporally related to Mesozoic Yanshanian granitoid intrusions with hydrothermal activity channelled along crustal-scale fissures. The ultimate cause of the Yanshanian magmatism is considered to be the subduction of Pacific oceanic lithosphere beneath the Eurasian continent. In contrast, the chemical sediment-hosted deposit is typified by the Dongfengshan gold deposit, and genetically related to Proterozoic sedimentation and Mesozoic igneous activities.

Jan 1, 1995

By A J. Cornah

Critical decisions in iron ore project evaluation and production are based on global and local spatial estimates of primary mineral deposit properties (such as in situ geochemical grades) and geometallurgical responses (such as screened, washed or concentrated product yields and grades), which are derived from limited sample data. These spatial estimates are typically made using classical geostatistical techniques, which fundamentally assume that the attributes of interest behave additively. This assumption is generally appropriate for æprimaryÆ variables but æresponseÆ variables may behave non-additively and therefore their direct linear estimates may be biased.In this paper an existing additivity testing mechanism is used to quantify the bias resulting from direct linear estimation of a non-additive iron ore attribute. Data from a magnetite project are used to determine the circumstances under which such biases may be of material impact. The implications for iron ore resource estimation, geometallurgical modelling and grade control are outlined and discussed.CITATION:Cornah, A J, 2013. Assessment of the impact of non-additivity in the estimation of iron ore attributes, in Proceedings Iron Ore 2013 , pp 129-136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By S McKinley, S Juras, E Uludag

More and more, today’s mining geologists are asked to identify and create 3D value domains for multidisciplinary usage: grade definition, geometallurgical performance and geotechnical characteristics, to name a few. Often, that domain shape is the result of an assumed or conjectured value as a surrogate to a set of conditions (eg kaolinite-rich, sericite alteration). Would it not be instead better to create the respective domain through identification of a consistent quantifiable geologically-based pattern as its basis?Critical to the identification of patterns is the transformation of 3D point data into a model by a method that uses few, if any, preselected thresholds. Too often we complicate the reviews of the modelled data by prejudging the value range of interest. And when we do revert to 2D views (ie sections and plans), we tend to only examine numbers or line traces. These hinder and obscure identification of geological patterns particularly in deposits of complex geology. Instead, these data should be looked at with minimal prejudgment and interrogated in 2D space by one of the best and most eye-catching display types: filled contour plots.Here we present two different processes that transform data with minimal preselection into formats that allow for pattern recognition by filled contour plots. These are: probability assisted constrained kriging (PACK) and multiple interval interpolant formation (Aranz Geo’s Leapfrog® software). The former creates a 3D model of probabilities on a threshold value; the latter creates numerous (=10), regularly-binned 3D interval interpolants. The results of each method are examined as filled contours over numerous sections or plans. Any distinct patterns are quickly discerned thereby readily identifying the best value to base the creation of a domain. These processes therefore provide a way to marry recent advances in software tools with what is supposed a geologist’s core skill: pattern recognition.CITATION:Juras, S, McKinley, S and Uludag, E, 2017. Pattern recognition in transformed data – the search for domain shapes in mine geology data, in Proceedings Tenth International Mining Geology Conference 2017, pp 37–42 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

Although auriferous beach and fore-dune sands at Five Mile Beach south of Okarito township had been intensively mined by hand and primative mechanical methods drilling of the sandspit by the Gold Development Corporation in 1929 indicated that the grade and quantity of undisturbed black and grey sand below the water table was sufficient to support a mining operation. Worked sand above the water table also contained fair prospects. The Okarito Five Mile Beach Gold Dredging Co Ltd, was formed and an hydraulically powered, bucket ladder, sluice box dredge built. In 13 years of operation (1931 - 1943) the dredge returned 556.39 kg (17 890 oz) of gold at a recovered grade of 225.4 mg/m3. A total of ú42 000 was distributed as dividends on the ú30 000 capital investment. Recent drill and bulk sampling at the northern end of the beach has confirmed that reworking of the historic tailings by a modern gravity recovery plant would not be economic.

Jan 1, 1993

The Hishikari gold deposit, discovered by the Metal Mining Agency of Japan, has become a giant class epithermal gold deposit with the highest grade of gold yet recorded in the world through detailed exploration and development by the Sumitomo Metal Mining Co Ltd. The exploration strategy involved a regional approach combining geological and gravity surveys over a 900 km2 area which had historically produced over 120 t of gold. These surveys were carried out to grasp the common geologic features of epithermal gold deposits in the survey area. A genetic model for epithermal gold deposits in the area under regional survey was also considered based on detailed research of the Kushikino epithermal gold deposit which was in operation at that time. This model was applied to the targeted areas, and important relationships between mineralisation, host lithology, intensive propylitic alteration and gravity highs became apparent. The Hishikari block was selected in this way and bonanza gold was discovered during drilling. Since the development of the Hishikari mine, information useful for further exploration for the same type of deposit has been accumulated.

Jan 1, 1995

Treatment of the Siirt-Madenk÷y Ores by Flotation

Sep 13, 2010

By P E. H Gregg, D Horne, R B. Stewart, N Bolan

The Tui mine site is situated on the NW flank of Mt. Te Aroha, at approximately 400 m altitude. During underground mining operations two lead-copper-zinc ore bodies were exploited and processed on site. The legacy of the mining operation is a barren dam containing over 100 000 mm of sulphide-rich tailings. The Tui mine site is arguably the worst case of environmental degradation resulting from past mining activity inNew Zealand. Although the impacted area (approximately 4 ha) is extremely small by international standards, acid mine drainage (AMD) emanating from the abandoned tailings dam and mine adits has severely contaminated local streams and prevented natural plant recolonisation of the site for more than 20 years.   The suitability of the tailings as a potential plant growth medium was assessed with the end view of revegetating the tailings dam and alleviating AMD. This paper outlines characterisation work conducted on the tailings and summarises preliminary results from plant growth trials. The tailings contain up to 5% Fe, 1.15 % Pb, and 0.45% Cu in the form of sulphide minerals. The distribution of heavy metals, sulphate and total sulphur with depth indicates that the top 200 - 300 mm of the tailings have been extensively weathered since their deposition. The oxidation of sulphide minerals, particularly pyrite (FeS2 ) has reduced the pH of the tailings to nearly 2 in places. Below 300 mm the sulphide minerals are largely unweathered and the theoretical acid generating potential of the tailings exceeds 170 Mg CaCO3/1000 Mg tailings at certain depths. Plant growth trials were conducted to study the effects of lime and organic matter addition on the establishment of vegetation on the Tui mine tailings. Several plant species were assessed including some cultivars bred for their tolerance of heavy metals.

Jan 1, 1995

Active geothermal fields show many of the characteristics seen in hydrothermal ore deposits but there are important differences as well. There are, for example, many differences in geology and chemistry between individual geothermal fields, even some nearby, and these include variations in host rock types (volcanic, sedimentary, plutonic and metamorphic), structures controlling fluid flow (normal, lateral, and, rarely, reverse faulting occur) and hydrological setting (valleys to elevated terrain).

Jan 1, 1986

The emergence of China as a global economic power has not been without its birth pangs and the current coal market is testimony to this. Traditionally the coal market has been controlled by mature economies that functioned along balanced lines of supply and demand. The emergence of China and India as major forces in the international market has shifted this balance of power from mature economies to the developing economies of China and India. Of late Chinese Central Government policy has caused wide swings in the supply of Chinese coking coal and thermal coal to the international Asian markets. This has resulted in huge increases in demand for coal from producers in Australia, Canada, Indonesia, USA and Russia. Additionally since the late 1990s the liberalised Chinese economy has been growing by between nine to 12 per cent per annum. The corresponding rise in the standard of living of their 1.4 billion people has resulted in a strong demand for raw materials, initially met by domestic production and more recently met by the importation of raw materials including iron ore, oil, coking coal and thermal coal. Commensurate with this growth in China has been the emergence of India (pop one billion) as another major developing economy in the region. Whilst the Indian standard of living is lower than that of the Chinese, this subcontinent still has some 300 million people with middle class consumption demands. India is a major importer of oil, coking coal and thermal coal. It exports iron ore to China with growth parallel to China (seven to nine per cent per annum). These combined new demands from India and China have put unprecedented pressure on the global supply of coking and thermal coals. These pressures are reflected in the current world spot prices for coking and thermal coals which are at historically high levels. Whilst current demand from China and India is high it is anticipated that new projects will partially satisfy this increasing demand. Expectations are that overall thermal and coking coal prices will rise steadily. This paper seeks to identify the potential effects of Chinese and Indian economic growth on the international markets for coal.

Jan 1, 2004

This paper presents a resume of the likely profitable mining areas in New Zealand. It covers the main 'minerals' û gold, coal, oil and gas, ironsands, silica sands, clays, lump silica, perlite, sulphur and limestone. The potential mining projects are depicted on a map of New Zealand together with the associated works involved in hydro-electric and geothermal power development requirement for industries such as aluminium, nickel ferro-silicon or silicon carbide production. The political need for mining development to relieve unemployment and reverse emigration is stressed. A case is made for exploration and development assistance by government in labour re-training, energy supply and transportation, if the tremendous losses through lack of use of human and industrial resources are to be rapidly reduced. These losses are currently estimated at $10 000 000 000 per year. The need for protection of the sanctity of contract and security of tenure of all mining operations is touched on briefly as is the need for a reasonably balanced view on conservation. However, as both of these are more properly covered in papers on the legal and environmental aspects of the mining climate, they are presented here only as they affect the economy of the mining operation. Finally, there is a brief comment on the mining climate in New Zealand relative to Australia and South Pacific mining operations.

Jan 1, 1990

By A B. Christie

Known epithermal deposits in the Coromandel region belong to the low-sulphidation type, represented by three subtypes: (1) andesite-hosted epithermal Au-Ag, (2) rhyolite-hosted epithermal Au-Ag, and (3) andesite-hosted polymetallic veins. Paleo-depths for a range ofdeposits are estimated using various features including: paleo-surface indicators (e.g. sinters), hydrostatic pressures estimated from homogenisation temperature measurements on fluid inclusions, and alteration mineralogy. Paleo-depth estimates to the base of the ore zone for the rhyolite-hosted Coromandel deposits are in the range 200 to 500 m. Andesite-hosted Au-Ag deposits have more variable paleo-depths, and are deeper (up to 950 m) in those deposits with base metals at depth. The majority of Coromandel Au-Ag deposits have limited depth extents (<200 m) of economic grade mineralisation, although Waihi and Karangahake are notable exceptions with depth extents of 575 m and 700 m respectively. Limited depth extents of economic ore are a feature of epithermal systems worldwide and are commonly attributed to gold deposition from boiling fluids. Under hydrostatic conditions in epithermal/geothermal systems, boiling in an up-flowing hydrothermal fluid is controlled by the boiling point for depth (BPD) curve. From fluid inclusion studies of many low-sulphidation epithermal systems, deposition of electrum in economic concentrations appears to be confined to a temperature window of 260 to 180¦C. This means that for dilute, gas-poor fluids that follow the BPD curve, gold deposition is limited to a vertical depth zone of about 400 m, with its upper boundary at about 100 m below the ground surface. The greater depth extent at Waihi and Karangahake, can be explained by mixing of/a deep, hot (300¦C) fluid with cooler (c. 200¦C) heated ground waters. This has the effect of lowering the 260¦C isotherm by up to 300 m, thereby increasing the depth range of economic grade gold deposition within the 260 to 180¦Cwindow of electrum deposition.

Jan 1, 2000

Assessment of the Consistency Between Different Laboratory Froth Stability Measurements

Sep 13, 2010