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The objectives of this paper are two-fold. First, it will show what problems can arise when single estimated values are substituted for a distribution of values when evaluating an open pit mine project in the face of uncertainty. Secondly, it will show how the ability to deal with uncertainty and risk in mine project evaluation can have a significant impact on the ownersÆ and stakeholdersÆ investment decision-making. Here a new mine evaluation framework, the integrated valuation/ optimisation framework (named IVOF), is introduced as an alternative tool for mine project evaluation where uncertainty and risk are incorporated in the evaluation process.

Jan 1, 2009

By P McCarthy

"This paper is based on 30 years of involvement in feasibility studies as a participant, study manager and the leader of a firm that provides study components and overall study management. The following topics are discussed:the purpose of feasibility studiesaligning the goals of the study team with those of the ownerthe difference between optimisation and designhow the types and levels of studies affect the organisation of the studythe relative merits of various management structures and contractual arrangementssetting scopes of work and tendering the work outthe selection of a study manager and the study management teamcommunications within the study team and externallythe project management trianglemanaging scope changes and maintaining flexibility to respond to study findingsprogress paymentsmanaging a study crisisinnovation, risk aversion and bankabilityreporting the resultsthe dangers and benefits of value engineering.CITATION:McCarthy, P, 2016. Making studies work – organisation, communication and management, in Proceedings Project Evaluation 2016, pp 20–30 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By M E. Barley, A D. George, M Kneeshaw

Detailed pit and outcrop mapping of sedimentary rocks and their alteration is providing insights into fluvial processes that operated during deposition of the world-class Yandi channel iron deposit. Five prominent rock units are traceable along the strike of the Yandi deposit and permit correlation of open pits and mesas. These units are the Eastern Clay Horizon (ECH), granule-pebble conglomerate (GPC), Main Ore Zone (MOZ), Basal Denatured Zone (BDZ), and Basal Conglomerate (BCONG). The upper part of the deposit is characterised by a transition from spheroidal grains with well-defined rims and nuclei to larger, subangular grains with poorly developed rims. The distribution of rock types and sedimentary features such as lateral accretion surfaces, channel scours and fills, graded bedding, cross-bedding, reworked horizons, and slumped strata are common at Yandi and indicate deposition in a fluvial system. Bedding is well preserved despite modification of original grain shapes and textures and introduction of secondary silica and alumina in the upper part of the deposit. The high lithic and clay content of the GPC and ECH possibly reflect changes in source area or a hiatus in deposition of the Marillana Pisolite. The MOZ and the BDZ may be the same depositional unit with the latter recording alteration by groundwater and destruction of primary textures and other sedimentary features. The BCONG is a channel lag deposit reworked during deposition of the MOZ. This interpretation is supported by the dominance of basement-derived lithic clasts, the presence of BCONG clasts, the variable thickness of the unit along strike and the presence of BCONG clasts in the BDZ.

Jan 1, 2002

The sulphide ores of the principal lodes of the Boulder Mines are mainly composed of a schistose guess with a varying proportion of silica and lime, containing tellurides of gold, silver and mercury, associated with iron pyrites. It is a great difficultyto obtain pure and homogeneous samples of the tellurides for analysis, and from a number of tests made with excellent specimens it was found hardly possible to procure two to agree in analysis, the precious metals being found to be combinedwith tellurium in most varying proportions indeed, a close inspection of a partially crushed specimen will reveal, even to the naked eye, the various shades of colour characteristic...

Jan 1, 1901

Experimental results are presented for the anode overvoltage as a function of current density for different alumina concentrations in an alumina reduction cell. Voltage changes due to the electrolyte resistance and also the decomposition voltage, have been evaluated as a function of alumina concentration and anode current density. From these values of voltage, changes in the total cell voltage have been derived for changes in alumina concentration for different anode current densities. The results show that for each operating current density there exists a discrete alumina concentration that defines a minimum reduction cell voltage. Discussion is made about potential savings in power consumption when the alumina concentration is controlled.INTRODUCTIONThe standard procedure in the aluminium industry when analysing the cell-voltage required for the Hall-Heroult process for reduction of alumina, is to subdivide the total voltage into the following components (e.g. Pearson, 1955; Maritell, 1960).1. ohmic drop through busbars and joints2. ohmic drop through cathode lining3. ohmic drop through anode4. ohmic drop through electrolyte5. overvoltage at anode6. electrolytic decomposition voltage.(Overvoltages ,at the cathode are of negligible magnitude at all practical current densities.)It is understandable that the voltages assigned for each factor invariably differ for different workers...

Jan 1, 1965

By Greaves M. C

X-ray fluorescence spectroscopy used for the analysis of mill samples results in improved control of flotation concentrators.Techniques and equipment for sampling pulp streams, filtration and drying, grinding, briquetting and X-ray fluorescence analysis of samples have been developed.The current methods in use permit the analysis for lead and zinc in six pulp samples within 30 min total elapsed from the start of sampling. The X-ray method gives a precision at least equal to the former routine wet-way assay methods.The equipment is used also for pilot plant control, as a means of solving complicated analytical problems and in the rapid qualitative analysis of exploration samples.INTRODUCTIONIn milling and concentrating operations, classical methods for the assay of lead and zinc have been mainly of use for accounting purposes and for the post-mortem examination of plant operations, but have been of little value for rapid mill control. Where attempts have been made to apply these methods to control assaying, it has been necessary to modify the procedures and introduce short cuts which have tended to reduce their reliability.Even with these shortened procedures, the time taken to obtain a limited amount of information rendered them of little value for the control of milling operations where sudden, large fluctuations can occur. In recent years, a number of new and rapid analytical techniques, based on physical rather than chemical principles, have been introduced.These include direct reading emission spectroscopy, x-ray fluorescence spectroscopy and atomic absorptionspectroscopy.

Jan 1, 1964

In 1984/85 financial year Australia produced 529 thousand barrels per day (kbd) of crude oil. By far the major contribution (453 kbd) was light waxy oil from offshore Gippsland, Victoria. When these discoveries were made in the latter 1960s, imported oil was available in abundant supply and at low prices. Because of this, the Gippsland producers persuaded Government to control the marketing and pricing of their crude, and thus provide the required security of offtake. Political events in the middle East created supply shortages during the 1970s, and dragged up government selling prices for OPEC crude oil. Thus Arab Light crude that sold for less than US$2/barrel (bl) in 1970 reached $34/bl in 1981. Following the consequent decline in world oil demand, in 1982, Australian refiners sought to evade their obligation to lift Gippsland crude. Hence, in 1983, the Government was forced to introduce a floor quota of 385 kbd of Gippsland crude liftings and to allow producers to export any additional production refiners did not require. On expiry of the old arrangements, Government introduced a partial free market from January 1985, whereby the balance in excess of 350 kbd may be sold to Australian refiners at negotiated prices, or exported as before. In 1984/85 exports were some 90 kbd and will be higher in the current year. About half this total has been exported by BHP, providing valuable experience and lessons which are described in the paper.

Jan 1, 1986

The uptake of zinc, lead, and copper by the flora of the Tui Base Mine area near Te Aroha is described.Vegetation and soil samples were taken from two traverses across the Raukaka Lode. Results. after statistical analysis, indicated that Beilschmiedia tawa was a suitable species for biogeochemical prospecting for lead and that SchefJlera digitata was satisfactory for zinc.The tawa showed a negative anomaly for lead over the vein itself but not over the adjacent dispersion halo. It was concluded that lead concentrations greater than 230 p.p.m. in the wood ash of the tawa and zinc concentrationsgreater than 540 p.p.m. in the leaf ash of S. digitata denoted threshold values for anomalous mineralization in the soil beneath. Although both species contained copper, neither indicated a soil anomaly for this element.

Jan 1, 1969

The oxidation of ferrous sulphate to ferric sulphate with air and oxygen in a gas lift percolator was investigated with initial Fe2+ concentrations in the range 0·01 M to 1·0 M,temperatures in the range 20-80°C, and pH in the range oto 2.The rate of formation of Fe3+ was found to be well described by the rate expressionEquation 1and a consistent mechanism is proposed.The presence of Cu2+ was found to cause an increased rate of oxidation, the effect being greater with Cu2+ concentrations increasing in the range 0·001 M - 0·01 M in 0·2 M Fe2+. The effect of other solutes containing Ni, Zn, Mn, Co, Hg, Cl, Mo, NH4, As, Cr, or Na at a concentration of 0·001 M in 0·2 M Fe2+ was negligible.

Jan 1, 1972

Frother-Depressant Interactions in Two and Three Phase Systems

Sep 13, 2010

Implementation of Fine-Screening in Preparation of KGHM PM SA Sandstone-Carbonate Copper Ore for Flotation

Sep 13, 2010

By Met M. E, Worner H. K

During the past two years, a large number of creep tests has been carried out on electrolytic lead, special assay lead and ordinary refined (Port Pirie) lead. Some of these tests have already been reported.1§ In addition, an attempt has been made to estimate the influence of the individual elements present in small traces in Port Pirie lead. The present paper gives the results obtained when small additions are made to "U" lead of the composition shown in Table 1.(which has been used throughout these investigations during the past few years). The additions were silver, antimony, bismuth and zinc. The results of the addition of tellurium have already been communicated. This investigation was intended to run parallel with a similar one using electrolytic lead as a basis and adding one element at a time.Actually, the experiments using "U" lead have got rather ahead of the others. The important point has emerged, however, that the effect of a .given addition may be appreciably influenced by the presence of traces of other elements.In most of these tests, an initial stress of 500lb. per sq. in. has been used. Whilst it is fully appreciated that this stress is higher than those used in practice, it has to be borne in mind that an improvement in creep resistance was *Manuscript received December 11th, 1936.

Jan 1, 1936

By S Love, M Anderson, M Boland

"The high rate of failure of new mine developments to meet feasibility study expectations has been the subject of many fine technical papers. Yet failure rates remain stubbornly high.Similarly, the common occurrence of disastrous acquisitions resulting from failed due diligence on projects is well known. Yet such mistakes continue to be made.The authors argue that project and due diligence failure are caused at least partly by cognitive biases. These biases pervade decision-making throughout project evaluations.A wider understanding of these biases (and their effects) is necessary. Only then can mitigating actions be taken.The opportunity for this wider understanding exists. A number of best-selling books have been published on the topic in recent years. With wider understanding of key concepts and terms, cognitive biases can be recognised and discussed. They can also be challenged and mitigated.The authors believe that these concepts should be entry-level, required knowledge for anyone evaluating, developing, reviewing or financing mining projects.Perhaps the most prevalent biases in project evaluation failure are the ‘over-optimism’ biases. In particular, the planning fallacy and confirmation bias.The anchoring effect is also pervasive. This bias propagates unrealistic assumptions from scoping and prefeasibility studies through to so-called definitive feasibility studies. Unrecognised anchoring biases also undermine the validity of many ‘independent’ due diligence reviews. They are also prevalent in corporate acquisitions.The availability heuristic refers to a mental shortcut that can lead to a number of biases. One of these is the narrative fallacy. The mind constructs coherent narratives and opinions, regardless of the amount and quality of the information that support them. Narrative fallacy commonly occurs in the evaluation of social and political risk. Another is disaster neglect, which is especially common in the failure to assess risks associated with tailings management.This paper outlines the relevance of these biases to mine project evaluations. It also provides examples where the authors have observed their effects.CITATION:Love, S, Boland, M and Anderson, M, 2016. Influence of cognitive biases on project evaluation, in Proceedings Project Evaluation 2016, pp 226–235 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By J B. Gemmell, D R. Cooke

Recent mapping at the Kelian epithermal gold deposit in East Kalimantan, Indonesia has delineated intrusive and extrusive-phreatomagmatic breccias, their magmatic roots, and late-stage endogenous domes of a maar-diatreme complex. The Kelian epithermal system is characterised by a wide variety of mineralised and unmineralised breccias, which include tectonic, hydrothermal, phreatic and phreatomagmatic varieties. Phreatomagmatic breccias and associated igneous rocks post-date early stage alteration and mineralisation, and pre-date main stage precious and base-metal mineralisation. This study emphasises the spatial, temporal and genetic links that have been drawn between diatremes and both epithermal and porphyry systems in volcano-plutonic arcs.

Jan 1, 1999

By G DeschOnes, M Fulton

The Eleonore property (James Bay district of Northern QuTbec), owned by Goldcorp, hosts gold within stockworks of quartz-tourmaline-arsenopyrite veins and veinlets contained within microcline (potassic alteration) and brown tourmaline replacement zones. The preliminary investigation to recover gold from drill core samples showed that flotation followed by ultra-fine grinding and cyanidation is the preferred option. Ultra-fine grinding is used to liberate gold finely disseminated in sulfides. The flotation concentrate used in the investigation had a P80 of 11 ¦ and contained 75.5 g/t Au, 5.0 g/t Ag, 10.3 per cent S, 0.07 per cent Cu and traces of antimony (0.03 per cent). The mineralogical characterisation showed the presence of 65 per cent gangue minerals, 23 per cent pyrrhotite (hexagonal), 9.6 per cent arsenopyrite, 2.2 per cent pyrite and 0.08 per cent chalcopyrite with trace amounts of galena (0.05 per cent) and sphalerite (0.03 per cent). Gold was in the form of native gold and electrum. A straight cyanidation conducted at pH 11.0, DO of 3 - 5 ppm, 2000 ppm NaCN, 20¦C and for 72 hours extracted 97.0 per cent Au and consumed 31.5 kg/t NaCN. The equilibrium was reached within 24 hours. Increasing the dissolved oxygen to 16 ppm reduced the consumption of cyanide to 22.0 kg/t with 96.7 per cent Au extraction. A 16-hour pretreatment with 2.0 kg/t lead nitrate, followed by a 24-hour cyanidation reduced the cyanide consumption to 6.0 kg/t with a gold extraction of 97.5 per cent. Increasing the lead nitrate addition to 6.0 kg/t reduced the cyanide consumption to 1.2 kg/t by passivating the surface of pyrrhotite. The gold extraction remained at 97.0 per cent. It was possible to decrease the concentration of cyanide to 800 ppm NaCN without compromising gold extraction. The associated cyanide consumption was 1.2 kg/t NaCN. The passivation of gold grains was an issue when the cyanide concentration was decreased to 550 ppm NaCN. The gold extraction decreased to 92.2 per cent. The average lime addition for all the tests was 7.4 kg/t and the average silver extraction was 80 per cent. Efficient cyanidation of an ultra-fine sulfide concentrate with only 800 ppm NaCN represents an advance in leaching of ultra-fine sulfide concentrates. The high addition of lead nitrate would certainly make cyanide destruction easier; consequently reducing the effluent treatment costs and making possible to meet the discharge regulations criteria.CITATION:DeschOnes, G and Fulton, M, 2013. Design of a leaching strategy to extract gold from Eleonore Mine ultra-fine sulfide concentrate, in Proceedings World Gold 2013 , pp 71-78 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

Two of the problems long associated with the complete extraction of level pillars in the wide ore bodies of Broken Hill have been: (1) The high cost of maintaining level gangways through areas of slow subsidence to provide adequate trucking roads for the transport of sand filling; and (2) The difficulty and high cost of completely filling depleted areas. This paper deals with the experiments conducted to devise an apparatus for transporting, with the aid of compressed air, sandfill from the underground sand passes to the stopes and describes the sand blower which has been developed. This apparatus has to a large degree overcome the difficulties and removed much of the hazard associated with the rapid extraction of level pillars.Special attention is drawn to the sizing analysis of the sand and to the fact that it is not dry material. It was early found that these factors were determinants in the design and development of the apparatus described.Acknowledgment is made to the General Manager of Broken Hill South Limited for permission to present this paper, to the engineering department for assisting in the design of the apparatus, and to the underground staff for their co-operation in training the operators and in bringing to success this method of stope filling.PREVIOUS FILLING METHODSThe South Mine, with a monthly production of approximately 32,000 tons of lead-sHver-zinc sulphide ore by cut-and-fill mining methods, requires about 11,000 cubic yards of filling per month. With the exception of a small and variable quantity of developmental mullock, all this filling is...

Jan 1, 1941

Satellite Image Based Strategies to Evaluate the Impact of Dismissed Mine Site - An Application to the Mae Moh Coal Mine Area in the Lampang Province, Thailand

Sep 13, 2010

By M W. N Buxton, M T. Bootsma, J Benndorf, C Alford

Research in the field of cut-off grade optimisation has shown a relationship between cut-off grade, project life and net present value (NPV). Lane’s theory demonstrates that cut-off grades can be optimised in order to maximise project profitability. Although the theory forms the basis for many open pit mining projects, application of the theory in underground mining remains limited to-date. The main reason for this is the complex interaction between all processes in underground mine planning, which makes it difficult to apply Lane’s mathematical optimisation approach.Recently a new stope optimiser product was released. The AMS Stope Optimiser automates the design of underground stopes at user-defined cut-off grades and allows for rapid evaluation of mine designs at different cut-off grades. Using this software, an optimisation approach was developed and validated on an underground gold deposit in northern Sweden. Potential project NPV increased by approximately 30 per cent when using this new approach.Spatial grade uncertainty in mineral resources was identified to be a major risk in underground stope design. The optimisation approach was further extended to account for grade risk using estimated and stochastic simulated resource models. The resulting optimisation process accounts for grade risk early in the design process and reduces the risk of a stope not meeting the cut-off grade with subsequent financial loss.CITATION:Bootsma, M T, Alford, C, Benndorf, J and Buxton, M W N, 2014. Cut-off grade-based sublevel stope mine optimisation – introduction and evaluation of an optimisation approach and method for grade risk quantification, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 281–290 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

The 8 ft by 91/2 ft drive which joined No. 7 Shaft with Browne Shaft on the 1,480 ft level was extended from both ends and met at a point approximately 12,000 ft from No. 7 (2,000 ft from Browne).The surveying required for this 2 1/2 mile haulage drive called for greater accuracy than was obtainable from South Mine standard methods. Procedures and devices from published information were tried and modified as required to suit local conditions. Several new methods were applied and improved as the drive advanced. The control of angular, linear and level measurements was perhaps considerably in excess of the requirements, but this was offset by abnormally large discrepancies resulting from shaft plumbing. The accuracy of the final breakthrough, although not to the standard desired, was sufficient to complete the connection without inconvenience and added cost.INTRODUCTIONThe acquisition of the Browne Shaft leases in January 1962 presented the management of Broken Hill South Limited with the problem of transporting ore from these leases to its mill. It was eventually decided that diesel locomotivehaulage through a 2t mile drive on the 1,480 ft level between the two mines was the best solution. The drive was advanced from both ends after Browne Shaft was deepened by 80 ft to reach the 1,480 ft level horizon. Each end advancedabout 15 ft/day with the miners working three 7 hr shifts. Blasting was restricted to the end of the shift.The survey work involved five shaft plumbings and 78 theodolite stations in a traverse, underground and surface,of more than 5 miles. Because of the exceptional length of the drive, an unusually high degree of reliability was required.The aim was for a maximum error at breakthrough of 1 ft 1 in 30,000, and to secure this, precise methods of linear measurement were necessary. Shaft plumbing in particular posed special difficulties.

Jan 1, 1965

By A Kitchen

For the past decade, demand for Australian resources has reached unprecedented levels, thanks mainly to the emerging superpowers of China and India. Meeting demand has meant miners and governments alike have ploughed billions into capital expenditure projects for logistics infrastructure such as roads, rail and ports, to support the ever expanding number of mines and mineral volumes. In more recent times, however, the effect of the global economic crisis has led to a decline in demand for Australian minerals. The downturn has seen companies lay off workers in droves, and delay or cancel expansion projects, in an attempt to preserve cash flow. Whilst the current economic cycle has hit the mining sector hard, it is an opportunity for companies to take stock of their existing operations and plan for the future. As mining companies grapple for scarce capital resources, it is inevitable that industry consolidation will ensue. This presents challenges and opportunities for both buyers and sellers alike, looking to expand operations, or sell off assets to raise cash.

Jan 1, 2009