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Valuers of mineral properties should be aware that accountants are a major user of their opinions of value. Reliance by accountants can range from obtaining comfort that book values in balance sheets are not overstated to establishing values by which to assess the fairness of a takeover offer. Accountants using mineral property valuations clearly can't be expected to have the same level of expertise as the valuer and ""second guess"" the valuation. But they do have an obligation, under the ASC guidelines and their own professional standards, to'check the logic and reasonableness of the valuation before being able to rely on it. This means reviewing the valuation report for general sensibility, discussing the methodologies and assumptions with the valuer and being satisfied as to his competence and independence. This paper outlines how accountants use mineral property valuations, the level of scrutiny applied to such valuations and the problems commonly encountered in practice by accountants seeking to rely on them. The paper also explains how values of-mineral properties are established in company balance sheets and why these often differ, quite validly, from fair market values.

Jan 1, 1994

By L P. Trout, D G. Reid

PanAust Limited (PanAust) has successfully constructed and commissioned two mining operations in Lao PDR over the past decade and undertaken major studies for three new mine developments. The management of potentially acid generating mine waste and tailings in close proximity of local communities sensitive to water discharge quality have been recurring themes that have confronted PanAust’s project study, development and operational teams. Further compounding challenges, such as the effects of intense annual tropical monsoonal conditions, staging of embankment raises and regular lifting of spillway structures, integrating mine waste and tailings management into production plans and ensuring the long term stability of structures, have been addressed by implementing leading practice management solutions.A recognition of the criticality of managing the substantial business risks associated with these crucial activities led to the early establishment of a governance structure to ensure that the highest standards are embraced for planning and execution. Importantly, these are guided and monitored by a panel of highly experienced and qualified international specialists reporting directly to PanAust’s Managing Director – the Tailings Independent Review Panel. The stewardship process has been effective in identifying potential shortcomings in management systems and has led to enhanced executive commitment to risk informed designs, assurance and overall process rigour.CITATION:Trout, L P and Reid, D G, 2018. PanAust Limited’s approach to mine waste and tailings stewardship, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 135–155 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

It is well known that the ability to influence project value reduces significantly as planning progresses and decisions regarding project parameters are made. However, at the prefeasibility stage in particular, where one of the main aims should be to evaluate a wide range of options in order to select the best for more detailed further study, there is often a reluctance to spend the time and money needed to do this rigorously. This paper demonstrates, by a number of case study examples, how significant increases in value may be obtained by fully evaluating the combinations of alternatives for various project design parameters, including (though not limited to) mining methods, haulage methods, mining rates, processing methods and rates, sequencing of mining, and cut-off grades, with changes and upgrades over time where applicable. The additional value unlocked is typically orders of magnitude greater than the additional cost of the more comprehensive study. The dangers of misuse of simplistic sensitivity analyses and failure to identify how strategies might change in response to changes in external factors are also illustrated, and the importance of selecting the best ægrade descriptorÆ is discussed.

Jan 1, 2007

Sampling protocols and metallurgical flow sheets should be designed to suit the style of mineralisation in question. In support, the a priori need for evaluation programs is the characterisation of the mineralisation type(s) and domain definition. The proportion and size of gold particles has a direct impact on the effectiveness of sampling protocols and metallurgical processes employed. Within the coarse- to-fi ne gold spectrum, the samplability of a deposit ranges from relatively simple for fine-grained disseminated particles, through to difficult for coarse gold mineralisation. Conversely, metallurgical processing may be relatively simple for coarse gold ore and more difficult for very fi ne gold ores. Most deposits contain a proportion of both particle size types. The nature of mineralisation, mineralogy and associated gold particle sizing can only be determined by preliminary sampling to facilitate testing. Mineralogical studies, focussing on ore mineralogy and gold particle deportment, size and distribution are required as part of wider paragenetic and geometallurgical investigations. This paper discusses key issues and presents a methodology for the determination of gold particle size in coarse gravity-gold ores to support sampling optimisation and which also contributes to metallurgical characterisation.

Aug 1, 2010

By S R. Williams

There is a sense of geometallurgy being new; a new methodology for mining project development and improved operational strategy. One of the main challenges that any ænewÆ technology faces is a validation of the value and the need to produce case studies. However, producing case studies can often be problematic particularly given the long cycle from mineral deposit project, through feasibility and construction to stabilised operation of a mine.However, the roots of geometallurgy go back quite some time. Successful practices with geometallurgy can be seen from as early as the 1980s. Many times those practices were not called geometallurgy but something else and, in other cases, what can be seen are various components of the geometallurgical ævalue chainÆ.This paper will analyse a selection of published past practices from a geometallurgical perspective to demonstrate the value realised from the application of this methodology. The paper will then make some general comments on where this history of work in geometallurgy has lead us to and what are the challenges today for the geometallurgical effort.CITATION:S R Williams, 2013. A historical perspective of the application and success of geometallurgical methodologies, in Proceedings The Second AusIMM International Geometallurgy Conference (GeoMet) 2013 , pp 37-48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 29, 2013

By R Araya, G Harbort, D R. Seaman, L Huynh, P D. Munro

In today’s operating environment many conventional cleaner circuits struggle to produce final grade concentrate with acceptable levels of non-sulfide gangue and/or penalty elements. This is primarily due to poor selectivity and the entrainment of gangue, and is further exacerbated by the processing of lower grade ores with more complex mineralogy that require finer grinding for liberation. In new concentrators, the standard approach to cleaner circuit design is to define the number of stages of mechanical cells required to achieve the desired concentrate grade. Residence time is the primary factor to size cells and to determine the number of cells required to attain target recovery. While it is required for recovery, a bank of mechanical cells is not the ideal solution to maximise concentrate grade. Relatively coarse bubble size means slow flotation of fines, requiring long residence times. The combination of long residence times and no froth washing means higher entrainment as the pulp becomes more barren and froth stability decreases down a bank.In recent years, the Jameson Cell technology has been retrofitted into a number of concentrators around the world to solve both cleaner circuit capacity and concentrate grade issues. Jameson Cells have been installed at the head of conventional cleaner circuits to produce final grade concentrate in a single step of flotation using a single cell (referred to here as ‘cleaner scalping’ duty). The experience gained from these installations has provided the platform for the design of improved and simpler cleaner circuits that will perform better and be more robust to operate. This paper analyses traditional cleaner circuit designs and explains the philosophy behind new hybrid cleaner circuits, which use Jameson Cells to produce final concentrate and mechanical cells for a ‘cleaner scavenger’ duty. The advantages of the new cleaner circuit design are demonstrated by a case study from an operating plant. Engineering studies show that the better metallurgical performance can be achieved with less equipment than conventional cleaning designs, reducing capital cost, operating cost, and with more than 30 per cent energy savings.Finally, the paper describes simple modifications to the standard laboratory flotation test procedures which accurately simulate this new cleaner circuit using routine equipment.CITATION:Huynh, L, Araya, R, Seaman, D R, Harbort, G and Munro, P D, 2014. Improved cleaner circuit design for better performance using the Jameson Cell, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 141–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By N Guresin, A Cooper, L Lorenzen, H Muller, S C. Dominy

Sampling and metallurgical test work during various phases of engineering?studies?is of?paramount importance for a robust processing plant design. When developing a process flow sheet, risks in achieving desirable financial outcomes are minimised by ensuring appropriate sampling and adequate metallurgical test work supports the engineering and cost estimation at each phase of project development.The quality and type of samples used for metallurgical test work are just as important as the metallurgical test work itself. The key characteristic required of any sample is that it represents some defined portion of a mineral deposit. Representivity should take into account the spatial orientation, lithology, alteration, degree of oxidation, mineralogy and competency of the ore such as hardness and abrasiveness. Statistically representative sampling procedures and an appropriate metallurgical test work program should be designed to bring metallurgical understanding up to feasibility study standard and to give a basis for process plant design.Snowden has observed that the quality of sampling and quantity of metallurgical test work carried out during the various phases of engineering studies are often insufficient to truly support a robust plant design. Some designs are often the result of the plant design based on benchmarks of apparently similar orebodies or buoyant metal prices supporting cash flows until rectifications can be implemented.The paper will discuss important aspects of sampling and test work required for engineering studies in designing process plants based on industrial case studies.CITATION:Guresin, N, Lorenzen, L, Dominy, S C, Muller, H and Cooper, A, 2012. Importance of effective sampling and test work protocols for process plant design, in Proceedings Sampling 2012 , pp 95-108 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 21, 2012

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

The long-term production schedule of open pit mines that maximises the net present value (NPV) of a given project relies on the proper design of phases (pushbacks) within the ultimate pit limits. There is not a phase design algorithm applied in the mining industry today that gives yearly production schedules that are optimum.The majority of phase design algorithms currently in use by the mining industry aims at grouping the blocks that fall within the ultimate pit limits into phases such that the average value of the blocks within each phase decrease as the size of the phases increase. Current phase design methods are typically based on a pit limit optimisation algorithm, originally introduced by Lerchs and Grossmann (LG) in 1965. To obtain multiple pit shells to be used for the phase design, the LG pit limit algorithm successively applied to economic block models by changing the price of the commodity or some other factor that properly parameterises the size of the pit. These modified economic block models are developed by predetermining the destination for each block in the model based on a breakeven analysis and highest economic outcome between alternative destinations. Phase designs determined by these existing algorithms may be suboptimal if a given project utilises multiple processing facilities for metal recovery and particularly if these facilities have restrictions (constraints) that require blending of attributes in the feed. To overcome these problems in obtaining phases that optimise overall production schedules, a new algorithm is developed at the Colorado School of Mines. The algorithm determines the phases of an open pit mine by taking into account multiple process options for the blocks and period by period blending requirements. This algorithm has been implemented within a software program (the software) and is being prototyped successfully in the design of improved pushbacks at a copper mine in South America and on a gold mine in Nevada. This presentation will demonstrate the shortcomings of the traditional phase design methodologies based on comparison of results coming from the new approach versus the traditional.

Dec 6, 2010

By N Cusworth, W R. Mackenzie

"In 2007, the authors presented a framework for the conduct of resource project feasibility studies and provided guidance on minimum standards and best practice (Mackenzie and Cusworth, 2007).This paper will present the authors’ observations in relation to feasibility studies undertaken to support investments made during the unprecedented period of resource project capital investment since 2007. It will also provide comments on general trends in the mining industry’s approach to project assessment and update recommendations on best practice.CITATION:Mackenzie, W R and Cusworth, N, 2016. The use and abuse of feasibility studies – has anything changed?, in Proceedings Project Evaluation 2016, pp 133–148 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By S H. Begg

There is strong evidence that many major oil and gas (O&G) projects are plagued by large cost and schedule overruns, or significant underperformance in productivity. Similar evidence exists for large mining projects. This paper claims that uncertainty is the underlying reason why projects fail to deliver the metrics used to justify their investment, or to deliver the economic value possible if alternative decisions had been made.Most technical and economic analyses are performed to reduce uncertainty to help make decisions. Decision-making is about ranking alternatives and choosing the best; rarely are precise predictions required, if this is even possible. Better uncertainty assessment is one of the keys to better decisions, thus better business outcomes. To get better decisions it is suggested that the focus or reward/penalty incentives be shifted away from the quality of outcomes to the quality of decisions. High-quality decisions are those that are generated from the skilled use of the tools, methodologies and processes from the discipline of decision analysis.Uncertainty is quantified by probability, which is a degree of belief in the truth/falsity of some proposition about a quantity relevant to a decision, such as volume of in-place resource, future price or action of a competitor. The probability a person ascribes to a proposition depends upon their information set; hence probability is subjective – it is not an inherent attribute of the quantity of interest or the physical system.The above simple observations have profound implications for modelling approaches, how they deal with uncertainty, the use of data to help assess uncertainty and the reliability of information provided by subject-matter experts. The limited circumstances under which frequency data (from spatial or temporal variables) can be used to assign probabilities is also reviewed.People, in general, are subject to a range of biases and cognitive errors. Research with O&G subject-matter experts shows that their expertise offers little or no protection from making errors in probability assessments and other judgements.CITATION:Begg, S H, 2016. Decisions, decisions – uncertainty, variability, modelling and psychology, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 9–18 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

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 May J. R

Exploration, including research, has fuelled the enormous expansion of the Australian mineral industry in the last three decades. Analysis of success and failure in exploration and research has therefore potentially powerful lessons and messages which may be used to influence the future shape and direction of the mineral industry. Research has been an integral part of organised corporate mineral exploration since its beginnings in Australia in the 1930s. In corporations, the activity generally called project generation or new project development is the main expression of exploration research but mostly it goes unidentified and poorly documented except perhaps when a successful discovery is made and reported on. The competitive nature of exploration means that extended and detailed analysis of corporate exploration research across the industry is impossible to achieve.

Jan 1, 1992

By A G. Noble

Tunnelling for hydro-electric power projects can be a very challenging component of the overall development. In contrast to urban transportation tunnelling where the logistics for access and supply of power, water and other essentials are readily available, hydropower projects are usually in very remote locations and all necessary plant, equipment, spares and materials need to be brought in and the site must function as a self sufficient unit.For a large scheme the river diversion tunnel(s) are usually on the initial phase critical path in order to meet the non-negotiable deadline of river diversion before the onset of the wet season. A newly formed tunnelling crew, once mobilised to the site for the project, will face the first major learning curve of the project’s systems and logistics during this critical tunnelling activity.Power tunnels convey the water to the turbines in the powerhouse and are usually on the critical path for the main works, especially if the scheme comprises a powerhouse located within an underground cavern. A modern cavern arrangement requires a complex warren of various openings: access adits, ventilation/cable tunnels, shafts, surge tunnels, etc.Hydropower tunnel construction tends to be dominated by tunnel boring machine (TBMs) or drill-and-blast excavation techniques and each has its challenges in very remote locations. TBMs still have long lead times as for any type of project, but additionally require a thorough roads and bridges infrastructure assessment of the country from the port of entry to the site to ensure a problem-free delivery. In some cases the project also requires the establishment of a complete precast concrete segment production facility and the space for creation of laydown areas; there is no ‘just-in-time’ delivery mechanism applicable to typical remote hydropower sites.This paper highlights the technical and risk management considerations in the planning, design and construction of tunnels for hydropower projects. It contrasts the typical factors that govern the design of urban transportation tunnels with those for remote hydropower tunnels. The perspectives of stakeholders are provided including those of international lenders. With examples from large and small scale projects across the globe it provides an insight to all parties and in particular, those tunnellers that are working in the hydropower field for the first time.

Mar 8, 2011

By S C. Dominy

Grade control programs aim to deliver economic tonnes to the mill via accurate definition of ore and waste. The foundation of a successful program is high quality sampling supported by geology and a suitable data management and modelling system. Underground sampling methods include chip, channel and panel samples; grab/muck pile samples; and drill-based samples. Grade control strategy is related to mining method and orebody type. Sampling protocols must be designed to suit the style of mineralisation in question. Holistic studies focussing on ore mineralogy and gold particle deportment, size and distribution are required for sample collection and preparation protocol optimisation through ‘Theory of Sampling’ application. Where possible, such programs should be undertaken early in the life of a project. Appropriate assaying procedures are also required. Program implementation will require suitably skilled individuals to train and mentor staff, with ongoing Quality Assurance/Quality Control (QA/QC) monitoring and review will allow protocols and staff to be updated as required.

Aug 22, 2011

By A Minchinton

With blasting, all far-field phenomena including, but not limited to, stress wave propagation, fracture, vibration and muck pile formation are intrinsically and irrevocably dependent upon near-field phenomena or mechanisms that we describe using physics-based mathematics typically transcribed into computer codes. The energetics involved in such near- to far-field transitions are not fundamentally relevant as they are simply progenitors of these processes.The notion of explosive energy as a descriptor for explosive or blasting performance is a case in point. These energies, which are generally used in blasting tables, are almost exclusively based on ideal detonation theory alone and do not include the influence of the rock, charge diameter, blasthole length and the late-time dynamic expansion that can be predicted using codes based on non-ideal detonation theory.With decoupled charges in presplits for example, the pressure drop between the charge and the blasthole wall can be simply described to first order using the energy relationship associated with adiabatic expansion. However, a more realistic mechanistic solution involves interacting fluids and turbulence leading to dynamic processes such as the channel effect.CITATION:Minchinton, A, 2015. On the influence of fundamental detonics on blasting practice, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 41–54 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By P Mesquita, A Nolan

Using a scientific-principled definition of global socio-ecological sustainability can be a useful basis for planning precious and base metal mining projects. The mining industry faces key challenges of; viability of the minerals industry; the control, use and management of land; national and local socio-economic development; environmental management; materials stewardship; and access to information. Using a framework for strategic sustainable development to assess the current reality of mine project development has resulted in identifying areas of strength and opportunities for improvement between current best practices and a desired vision of sustainability constrained by science based principles. These gaps indicate opportunities to strengthen current strategies, tools, and actions with a deeper understanding of socio-ecologic systems and a first-order, principled definition of sustainability, enabling success in moving towards achieving a sustainable society, ie sustainability. Evaluation of mine project development and their impacts on ecological and social systems using a systems perspective which recognises the underlying principles of operation, delays, feedback loops and response to change highlight specific opportunities to create value for social, economic and ecologic systems. Envisioning this future for mining projects within a sustainable society can be done by evaluating their development and operations guided by the sustainability principles. Performance indicators play a key role in measuring progress towards achieving sustainability goals yet it is necessary to consider whether indicators capture the whole systems perspective. Connected to this broader view, indicators can contribute much value to the mining industryÆs sustainability journey. This paper examines how current processes for mining projects can be developed using a whole systems perspective and measured using holistically designed performance indicators.

Jan 1, 2009

Solid EnergyÆs project evaluation process utilises a standard staged gate approach, with five levels leading ultimately to project execution (level 6). For a project to progress through each level, specific financial criteria need to be satisfied. Solid Energy primarily use value based (discounted cash flow) metrics to support investment decisions. Within this approach Solid Energy utilise a number risk-based techniques to quantify project uncertainty. This includes the use of risk-based probabilistic analysis using Monte Carlo simulation and probability-based scenario analysis. Figure 1 shows the net present value (NPV) cumulative probability. Project risks are identified through comprehensive risk workshops. The output of these workshops (list of key risks, ranges of uncertainty and probability of occurrence), is quantified within the financial models. Incorporating this risk information on a probabilistic basis allows an investment decision to be made with a robust knowledge of the range of possible project outcomes along with the likelihood (probability) of those outcomes occurring, for example 80 per cent confidence that the project value will be greater than NZ$10 M, 50 per cent confident it will be greater than NZ$50 M and ten per cent confident it will be greater than NZ$70 M. Incorporating risk implicitly into the financial analysis allows the business to easily evaluate/measure projects with different risk profiles. The detailed risk analysis does away with the complexity of arbitrary risk-based hurdle (discount) rates, as projects can be evaluated based on their specific risk characteristics. Whether a project will progress to the next level of investment and ultimately into implementation depends firstly on the value assessment in comparison with the associated risk/uncertainty, and secondly matching this with the businesses appetite for risk. At Solid Energy standard criteria are used for specific project evaluations, but in addition projects are considered on a portfolio or strategic basis also. Solid Energy attempts to maintain a mix of low risk (low value) projects with some high risk (high value) opportunities. The mix of projects must remain in line with the shareholdersÆ risk appetite. One of the keys to a successful investment decision is ensuring that the appropriate information is available to decision-makers so that they may proceed with a comprehensive understanding of the risks and impacts associated with the decision.

Jan 1, 2007

By D Craw

Middle and Late Cenozoic fluvial conglomerates and gravel in northeastern Southland record the transport of alluvial gold from Central Otago into Southland, and subsequent reworking and concentration of this gold into economic placer deposits. A corridor of geochemically distinctive, Hg-free gold derived ultimately from veins in Torlesse Terrane schist in Otago extends through the Caples Terrane and into Southland. The initial repository in Southland was fluvial sediment of the East Southland Group, specifically weakly auriferous, quartzose delta plain strata of the Gore Lignite Measures (GLM), a downstream equivalent of Dunstan Formation in Central Otago. Miocene uplift along the northwest trending Old Man Range beheaded the parent river system, isolating GLM from its Central Otago source area and establishing the proto-Waikaia River system. Rising topography between Otago and Southland increased fluvial gradients, and initiated erosion of cover strata and a sequence of tectonically induced gold recycling events. Auriferous GLM were recycled from the hinterland into broad braided fluvial channel and floodplain deposits of the Waikaia Group (new), specifically the highly auriferous Waikaka Quartz Gravels and equivalent Waimumu Quartz Gravels downstream (WQG), superimposing more proximal depositional environments over parts of the former GLM delta plain. WQG were deformed, and locally cannibalised during the later stages of their deposition by reverse movement on north-northeast trending faults of the Dunsdale System (NW side up). Increased tempo of uplift in the hinterland (Old Man, Garvie, Umbrella, and Blue Mountain Ranges) in the Pliocene and early Quaternary resulted in further reworking of GLM and WkQG from the hinterland as well as basement erosion. Progressively more basement-rich detritus was deposited as a locally auriferous piedmont (Gore Piedmont Gravels - GPG) over earlier channel and delta plain (GLM, WQG) strata, extending from the Blue Mountains to Waikaia, and southward through the Gore Gap to beyond Mataura. Southward propagation of the north-northeast trending ranges, local warping, and uplift of the Murihiku Terrane in Pliocene and Quaternary progressively deflected GPG fluvial systems and ultimately constrained them to the present valleys. Pre-existing auriferous strata (GLM, WQG, GPG) were reworked and deposited with or without basement detritus as these fluvial systems migrated toward their present positions. Auriferous remnants of these transitional deposits are preserved in local structural depressions on the uplifted blocks that deflected the systems (eg King Solomon Mine), and on locally abandoned floodplain segments on the lowlands (Pebbly Hills-Gore Gap). The present drainage has continued to incise and cannibalise its own and earlier deposits during late Pleistocene-Recent uplift to form confined channel placers within the present valleys.

Jan 1, 2002

By M J. Kelleher

CREAM is an acronym for coal recovery, evaluation, analysis and management and is a business improvement project at BMAÆs Goonyella Riverside mine that is focussed on maximising coal recovered. In August 2003, Goonyella Riverside was set a challenge to quantify coal loss and dilution and their relationship to cost, revenue and ultimately profit. While the mine was confident in its site forecasts of recovery (and loss), it was clear that the traditional measurement and analysis systems were inadequate to firstly, identify key loss areas and mechanisms and secondly, successfully quantify the benefit of various coal recovery initiatives. The path that BMA Goonyella Riverside has travelled to maximise coal recovered can be divided into four key steps: Mapping the process û This step involved the development of a coal flow process map for Goonyella Riverside that stepped through each component of the process from the coal reserve to the customer and identified key measurement points for the purposes of reconciliation. Understanding coal loss and identifying opportunities û This step involved conducting two detailed Reserve to Customer projects at the mine site to track a block of coal from the reserve to the customer and to gain a greater understanding of the relationship of dilution, coal loss mechanisms, revenue and costs associated with recovering additional coal. Coal data systems development û Two important coal data systems have been developed and implemented at Goonyella Riverside in the past twelve months, namely SnowdenÆs Coal Reconcilor and SeamFix. These systems enable coal losses and dilution to be quantified and reconciled back to the initial coal reserve. Implementation of loss reduction initiatives û This step involved the formation of a business improvement project referred to as æCREAMÆ in August 2004, for the purposes of improving pit coal recovery and maximising business value. To date a series of coal recovery trials have been run in a number of pits at Goonyella Riverside that have yielded significant improvements in business value. The key to the success of this project has been the discipline to follow a defined process map, management commitment through resourcing and shared key performance indicators, a successful acceptance strategy resulting in holistic ownership and the implementation of sustainable reconciliation systems. Coal loss and dilution are now quantifiable and their relationship to cost, revenue and ultimately profit is well understood. This paper discusses the process that Goonyella Riverside has adopted to maximise coal recovered.

Jan 1, 2005