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By R Baumgartner

The Canahuire deposit is a recently discovered Au-Cu-Ag epithermal deposit in Southern Peru. A geometallurgy program is a key study element of the project Feasibility study. Metallurgical, mineralogical, and comminution studies have been completed over a suite of samples, spatially distributed among the various geological/ore domains. The early stage of Canahuire presents challenges as there is a lack of metallurgical information to guide geometallurgical sampling, in contrast with an established deposit at a more advanced stage of development or mining. Nevertheless, the available information will assist in the development of geometallurgical domains for Canahuire in order to ensure that future metallurgical, mineralogical, and comminution test work is representative of the deposit variability. This supplementary knowledge will be able to predict important metallurgical parameters which will be incorporated into a geometallurgical model to spatial predict material types, metallurgical recovery and through put. The information obtained will be a valuable addition to the future mine plan, influencing process design, engineering design, plant operation, operating and capital costs, and ultimately will reduce project development risk.

Sep 5, 2011

By E Vargas, A Egana, M Alarcon, X Emery, A Barberan, A Lopez, N Morales, C Friedrich

"As the cost in time and money of data from sensors and small-scale tests has reduced, additional challenges have arisen. Although many mine data sets are not big relative to those in other disciplines, they are complex in other ways, and becoming too large to manage efficiently on personal computers. In order to take advantage of the opportunity offered by increased data, a diverse team from Universidad de Chile and CSIRO Mineral Resources has developed a virtual geometallurgical laboratory to support the computational requirements linking data acquisition with data-driven business decisions. A particular focus to date has been the development of user-guided workflow ensembles to enable comparison between plausible geometallurgical hypotheses.A case study has been undertaken using publicly available data from the Rocklea Dome iron deposit in Western Australia. A hypothetical mining schedule was produced from geochemical and hyperspectral drill core/chips data via the following steps: data preprocessing, exploratory data analysis, geochemical interpolation, block modelling, ultimate open pit design and scheduling. The key outcome of this study was the integration of workflow stages through new plug-in methods or modification of existing software. Outcomes from this study will be described in the paper in terms of geological and metallurgical data quality, analytical software support and ongoing computing infrastructure requirements.CITATION:Lopez, A, Barberan, A, Alarcon, M, Vargas, E, Ortiz, J, Morales, N, Emery, X, Egana, A, McFarlane, A and Friedrich, C, 2016. Progress towards Data-driven Mine Planning via a Virtual Geometallurgical Laboratory, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 287–294 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

The discovery since 1990 of four major orebodies in the Mt Isa Inlier - Century Zn-Pb, Osborne Cu-Au, Cannington Pb-Zn and Ernest Henry Cu-Au - only serves to enhance the already high stature of the Inlier in world mining importance. Currently the known mineral resources of the Inlier represent about 11 per cent of the world's Pb-Zn resources, five per cent of the world's Ag resources, and one per cent of the world's Cu resources. More can be expected to be added to these impressive figures given that two-thirds of the Inlier remains obscured by younger cover. Individually, projects such as Century and Cannington may ultimately achieve `world's best' status; Century's proposed production of 450 000 tpa of Zn metal would rank it close to number one with Cominco's expanded Red Dog project in Alaska. Cannington, with projected production of 660 tpa Ag, could become the world's biggest producer of silver. For comparison, Mt Isa produced 170 000 t of zinc metal and 335 t of silver in 1995. The apparent physical diversity of deposits in the Mt Isa Inlier is matched by a great diversity of opinion as to their origins. Because Ernest Henry is hosted by `porphyries', it is described by some as a porphyry copper deposit, despite mineralisation age possibly post-dating volcanic age by 200 Ma. Cannington Pb-Zn could be a Broken Hill-type (BHT) exhalitive deposit, or a late epigenetic replacement `regional skarn'. Mt Isa - Hilton Pb-Zn deposits appear to have experienced all deformational events and he syn-diagenetic in origin, or may have experienced little of the above and be epigenetic replacement deposits formed late in the major Isan orogeny, some 150 Ma after deposition.

Jan 1, 1996

By J G. McLellan, B Miller

Copper and Gold mineralisation at the Ernest Henry deposit is bound by two controlling shears along the hanging wall and footwall margins. The shear zone geometries have been influenced by a large diorite intrusion, dated at ca. 1660 Ma, which lies to the north-east and south-west of the main orebody. The shear zones, which partitioned strain prior to the main mineralising event ca. 1514–1504 Ma, and in conjunction with adjacent regional structures, have been a critical factor in the deposit location and geometry. Conventional exploration techniques have been utilised proximal to the current deposit since the initial discovery in order to expand upon known resources, with limited success. However, new geomechanical modelling techniques have now been employed to target structurally controlled mineralised zones in three dimensions. The main aim of the geomechanical modelling was to simulate the effects of regional deformation events to highlight areas of anomalous strain, which indicate areas with a higher likelihood of fluid focusing and mineralisation potential. This project was focused on testing the latter stages of a D3 event (NE-SW compression) to examine preconditioning of the system, and a D4 event (SE-NW compression) which have ultimately been responsible for the current location of the mineralisation.CITATION:McLellan, J G and Miller, B, 2017. Geomechanical modelling of the Ernest Henry iron oxide copper gold deposit – identifying fluid pathways to predict potential mineralised zones, in Proceedings Tenth International Mining Geology Conference 2017, pp 75–82 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By T Tan, C P. Holmes, C E. Hartford

Transportation of iron ore from the mine to the plant is critical to business success. Ore from the mine may have to be transported across states, countries and even continents to get to the processing plant or export facilities, and ultimately to the client. Numerous transportation steps may result in potential logistical difficulties. Companies are continually seeking ways to increase production rates, decrease delivery times and reduce operating costs. Transportation cost is a major component of the total cost of mining iron ore and therefore requires effective use of transport systems.Bottlenecks in iron ore transport systems, due to material handling issues, can result in loss in profit in the order of millions of dollars per hour. Bottlenecks can be seen anywhere in the transport system where the desired flow rate cannot be achieved. These bottlenecks occur for various reasons such as increasing throughput in a transport system originally designed for a lower throughput resulting in plugged transfer chutes, changing material characteristics (eg finer material, increased moisture content), changing to a new type of material or blend that again alters handleability, or changes in operational philosophy due to equipment availability or process utilisation.Stockpiles may have limited live capacity such that an adequate amount of ore may not be readily reclaimed when required (eg to fill a complete train’s railcars). In bins and hoppers, material may discharge through a central flow channel resulting in the formation of a stable rathole, which can then collapse causing material to flood the downstream system and cause significant downtime for clean-up (eg railcars beneath train load outs). In transfer chutes, bottlenecks can be caused by pluggages or downtime required for the change-out of liners due to excessive wear. In ship loading, long settling or de-aeration time, or material exceeding its transportable moisture limit (TML) may result in further bottlenecks. These bottlenecks all have associated costs because of the need to address their causes and because of the lost opportunities for throughput.This paper will discuss how bulk material technology and proper understanding of material flow characteristics can be applied to mitigate bottlenecks. It will discuss how to predict potential bottleneck locations through a scientific method of analysis and evaluation to determine if an increase in throughput of an existing transport system is possible, as well as whether or not a new material will flow reliably through an existing system.CITATION:Hartford, C E, Holmes, C P and Tan, T, 2015. De-bottlenecking iron ore transportation from mine to plant, in Proceedings Iron Ore 2015, pp 393–398 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

International tenders for contract mining opportunities require the Contractor to make an assessment of risk for an operation with a life span of up to twenty-five years usually based on data made available by the Client. This paper seeks to address how the Contractor assesses the data and quantifies the risks associated with the project. The areas of risk are common to most projects, but in the--Lontractor's case, risk assessment is carried out on the Client's data base and within a compressed time frame of usually less than six months. Incorporation of that risk assessment into the contract documentation is also discussed. Practical examples are given in a number of areas.

Jan 1, 1986

By T Horberry

This paper describes work conducted as part of an overall research project that aims to identify current and emerging trends in the development of automation and remote mining technologies, and to provide an operator-centred perspective to the design and deployment of such systems. More specifically, this paper outlines a research and development process being constructed to examine the issues of the human skills and capabilities required to operate or maintain automated/remote controlled mobile mining equipment. A human factors approach presented here, where the focus is upon designing equipment interfaces to fit operators, rather than purely designing and deploying the equipment based on a technology-centred approach. However, the importance of training to help develop the required skills and capabilities is also emphasised.The work built on a full review of the literature about the effects of automation in mining and elsewhere, extensive interviews with different stakeholders in mining automation and recognised best practice regarding designing for the human element in automated systems. The human element research and development process proposed is in four stages, ranging from understanding the tasks involved in both manual and automated equipment operation through to user trials to ensure that the automated systems are acceptable to operators and are fit for purpose.It is outside the scope of the current paper to present the full data collection described by this four stage process, but an overview of what will be collected is presented. As such, this paper focuses on the broad methods being developed, rather than the specific results to be obtained. The ultimate objective is to apply a broad ‘technology assessment’ approach to the design, deployment and evaluation of automated mining technologies, in particular by considering the user-centred design implications of these technologies.

Nov 22, 2011

By C Bellia, A Maldonado, S Strong, H Baxter

This paper discusses the technical and cost benefits of alternative data collection techniques used to collect lithological information, obtain laboratory testing samples and perform in situ testing. A comparison between diamond coring and sonic coring techniques is made using data from a recent geotechnical investigation for a final pit slope cut-back. The impacts of the coring method on laboratory strength testing results, material character testing and, ultimately, the mass strength parameters and subsequent slope design adopted are compared. The sonic coring method was chosen out of necessity and enabled the collection of tube samples of a clay unit of interest as well as bulk samples for material character and geochemical testing. The sonic coring generated unexpected degradation of clastic units, while cohesive clay-dominated units were recovered well. The likelihood that disturbance due to the coring method would result in lower than expected triaxial strength results was recognised ahead of time, with surplus samples collected and single-stage triaxial strength testing undertaken. This testing compared favourably with historic three-stage testing, where sample degradation occurred during the later stages. Material character testing of fine-grained, clay-dominated units was comparable with historic diamond core testing, while grain size estimates for more clastic units tended to be finer than previous results. The use of sonic coring over non-cored methods enabled the collection of material texture data, geotechnical properties and a full suite of geochemical analyses. This provided a comprehensive understanding of the lithological and geotechnical character of the rock and soil mass. A high-confidence geotechnical model was developed. The end result was the development of a slope design that was more aggressive than was previously designed (5° steeper inter-ramp angle), which has proven to be appropriate to the conditions following excavation. Overall, sonic coring was a cost-effective means of obtaining additional geotechnical data for the site.CITATION:Baxter, H, Bellia, C, Maldonado, A and Strong, S, 2015. Case study assessing alternative data collection techniques and analysis methods to assist with geotechnical slope design, in Proceedings Iron Ore 2015, pp 419–428 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By D J. Williams

Tailings management is typically constrained by many factors that are taken as given. These include the tailings production rate that must be accommodated, the desire to deliver the tailings cheaply and easily as a slurry using centrifugal pumps, and a tailings footprint limited by the desire to minimise capital costs leading to a rapid tailings rate of rise and a low settled density. Other constraints include wall raises being delayed due to limited capital, inadequate tailings water and rainfall run-off management, and the net present value (NPV) approach to capital expenditure that puts off expenditure at the expense of performance. All of these constraints result in the tailings occupying much more volume than is necessary, being difficult to rehabilitate, and not being capable of supporting a beneficial post-mining land use or function. Ultimately, such constrained tailings storage facilities will assume very large dimensions, but each will typically be developed as a series of smaller storages that are filled rapidly and added to progressively. The optimal stage to efficiently recover process water is in the process plant, but this is limited by the desire to use centrifugal pumps rather than the more costly positive displacement pumps, which also require greater management of tailings deposition. Process water can also be recovered from the tailings storage facility (TSF) decant. Tailings water that is not recovered from the plant or the decant will be lost to entrainment within the tailings, seepage to the foundation or through the wall, or evaporation. However, tailings water is not always suitable for reuse in the plant, particularly when it becomes contaminated by the processing, and it may simply be stored on the TSF. This will exacerbate the seepage of contaminated water to the environment, and will limit the densification of the tailings that would otherwise occur due to desiccation of the tailings on exposure. If a larger tailings footprint were developed early, cycling of tailings deposition in thin lifts between a number of cells could occur, maintaining the dormant cells dry to enhance desiccation and densification, and ultimate rehabilitation. The end result would be a much reduced stored volume of tailings, the potential for upstream raising, and ease of rehabilitation to a high level. The higher initial capital cost would be overtaken by reduced ongoing capital, operating and closure costs.CITATION:Williams, D J, ?2014. An alternative whole-of-life approach to tailings management, in Proceedings Life-of-Mine 2014 , pp 285–298 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By D J. Williams

The majority of surface tailings storage facilities continue to employ sub-aerial tailings slurry deposition. Surface TSFs are typically sized and operated in a way to minimise the initial capital cost of the facility, driven largely by the net present value approach to accounting. This generally leads to too small a storage, too fast a rate of rise of the tailings, and difficulties in managing supernatant water. In turn, this results in wet and soft tailings deposits of high moisture content and low density, and the need for frequent and costly tailings dam raises. Further, such tailings deposits often do not facilitate closure and rehabilitation of the facility. Globally, there are on average over two failures annually of such tailings dams, resulting in loss of life, damage to infrastructure and environmental impact downstream, and the loss of company shareholder value and reputation. Recent high profile tailings dam failures are threatening the mining industry’s financial and social licence to operate.Among the physical processes that tailings undergo on sub-aerial deposition are beaching, hydraulic sorting down the beach according to particle size and specific gravity, settling, consolidation, and desiccation on exposure to the sun and wind. Beaching and hydraulic sorting have proved difficult to test at laboratory scale and difficult to model, and are best assessed in the field. Settling, consolidation and desiccation may be assessed at laboratory scale, but to date there has been an absence of tests to form the basis for the design and management of tailings deposition, and ultimate closure and rehabilitation. The paper describes recent advances in tailings testing methods, including a purpose-built slurry consolidometer that tests the settling and consolidation of tailings from a slurry consistency, simulating increasing tailings depth to about 50 m; and a purpose-built instrumented column that tests the settling, self-weight consolidation and desiccation of a surface layer of tailings, also from a slurry consistency. Selected test results from these two apparatus are presented in the paper, together with brief descriptions of how they may be used to better design tailings slurry deposition. In addition, planned further advances in tailings testing methods are briefly described.CITATION:Williams, D J, 2018. Recent advances in tailings testing methods, in Proceedings Mine Waste and Tailings Stewardship Conference 2018, pp 8–37 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 23, 2018

By M J. Dunn

The geotechnical model is the cornerstone of any mining geotechnical design and as such the confidence level and reliability of the geotechnical model is paramount. The geotechnical model confidence level needs to be commensurate with the level of design that is being applied or study that is being undertaken. The geotechnical model is made up of several components and the reliability of the data underlying these components ultimately determines the reliability of the geotechnical model.Data reliability is linked to the quantity of data collected, the spatial distribution of the data collected, quality of the data collection and the interpretation of the data. In a typical project, there is an opportunity to improve data reliability through the scoping, prefeasibility, feasibility and final design and implementation stages.Currently, very little quantitative guidance exists in the literature on assessing the confidence level of geotechnical studies, although there have been attempts by various authors (Haile, 2004; Haines, Swart and Kruger, 2006; Read and Stacey, 2009; Dunn, Basson and Parrott, 2011) to qualitatively describe what level of geotechnical data is required. Recently a number of authors (Read, 2013; Fillion and Hadjigeorgiou, 2013; Thomas, 2013) have outlined methods that could be applied to assess the reliability of some types of geotechnical data that are used in the development of geotechnical models.This paper briefly discusses some of the factors influencing data reliability and the geotechnical model confidence and some of the tools available.CITATION:Dunn, M J, 2014. Geotechnical models and data confidence in mining geotechnical design, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 127–134 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By E Macmillan

For any processing plant there will be deleterious elements or minerals which affect production or quality, and a strategy to predict their occurrence and mitigate their impact is required. An early objective of the Olympic Dam geometallurgy program was prediction of the acid consumption and gelling behaviour of the ore, which affects leach recovery, throughput and circuit availability. The geometallurgical test program measured the response of a wide range of ore types, and then relationships between mineralogy, metallurgy and chemistry were developed. Thus the drivers of acid consumption and triggers for gelling events could be described in ways that were meaningful to plant operations.To enable optimisation of the mine planning and ore blending processes, the parameters driving metallurgical response must be translated to the block model. Data support is critical in populating a block model. Assay information is easily obtained, but mineralogical and metallurgical information is more expensive and time consuming to collect. Hence population of a block model with mineralogical and metallurgical values using a conventional geostatistical approach is not always possible.An alternative approach employed at Olympic Dam was the development of a suite of assay-to-mineral algorithms. These algorithms were calibrated using all available mineralogical information, and this enabled the calculation of mineral abundances for more than 1.5 million assayed samples. Estimation of the minerals in the block model, and the generation of acid consumption values for each block could subsequently occur.The use of back-calculated mineralogy from assays as part of process model generation is an innovative tool which can be used for mine planning and optimisation and to ensure the plant does not receive any unwelcome surprises. Ultimately, one purpose of geometallurgy is to predict potential processing issues and their drivers so that these can be mitigated. A strategy to achieve this is outlined hereafter.

Sep 5, 2011

By D Readett

The most critical variable in the successful establishment of the Murrin Murrin Heap Leach plant was the effective agglomeration of the Ni laterite ore. This paper describes the test work undertaken to establish the key agglomeration parameters including state of the art testing and analysis procedures. These parameters were then utilised to establish the key design and operational concepts for the world’s first commercial scale Ni laterite heap leach. Following the technical and economic success of the operation, the actual operational data is compared back to the original test work data.

Aug 8, 2011

By P Craig, A Crosky, H Ramandi, S Saydam, H Chen

Frequency of reports on premature failure of rock bolts and cable bolts have increased in past two decades. Such a failure threatens both the safety of underground mine workers and the economic viability of the operations. Herein, we report on analysis of rock bolts and cable bolts failed recently in three underground mines in Australia. Magnetic particle inspection (MPI) and scanning electron microscope (SEM) techniques were used to study the failed bolts. MPI showed a number of subcritical cracks on the surface of the bolts. The majority of the cracks in both cable bolts and rock bolts were initiated from the base of ribs (indentation) where the stress concentration was high. SEM examinations showed tearing topography surface (TTS) in all failed rock bolts and cable bolts. These indicated that the failure occurred through hydrogen assisted stress corrosion cracking (HISCC). The results of this study enhanced the understanding about the failure of rock bolts and cable bolts in underground mines. CITATION:Chen, H, Ramandi, H, Craig, P, Crosky, A and Saydam, S, 2018. Analysis of premature failure of rock bolts and cable bolts failed in underground coal mines, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 407–413 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By L E. Howard

Micro-computed tomography (Micro-CT) is an X-ray imaging technique that produces high-resolution 3D computerised ‘virtual’ models of geological specimens based on the X-ray attenuation of different materials in the specimen. The ‘virtual’ specimens are made up of voxels, the 3D equivalent of pixels, each assigned a gray value based on X-ray absorption. Micro-CT has enormous potential for allowing non-destructive, digital analysis of structure and composition when the mineralogical phases can be digitally separated. However, variation in X-ray flux between scans results in highly variable grayscale values for identical materials. Consequently, materials usually have to be segmented manually, which is subjective, inaccurate, labour-intensive and time consuming. Here we present a protocol and imaging software package that can be used to accurately and precisely extract quantifiable information in a repeatable and objective fashion. The software will allow the separation, visualisation, measurement and analysis of spatial and volumetric distribution of different mineral phases without damaging the specimen. This paper explains the potential use of this protocol and software package to ultimately allow automatic segmentation and quantification of gold in drill core samples, removing subjectivity and inaccuracies from data processing.

Sep 5, 2011

By S Coward, J Vann, R Wolff, S Jackson, S Moayer, A Bye

Uncertainty about the future and orebody should significantly impact evaluation of mining projects. Scenario planning, widely used in other industries, for example in the petroleum industry, can provide organisations with an opportunity to explore the consequences of uncertainty on their future plans. By developing plausible scenarios, scenario planning assists decision makers by allowing them to make systematic and possibly effective decisions for the future. This paper reviews existing mine project evaluation in the context of a new framework called scenario-based project evaluation (SBPE) (Vann et al , 2012) that addresses many shortcomings of existing approaches. SBPE uses conditional simulations (CS) models as inputs which are evaluated against future alternative project pathways (æalternativesÆ). These alternatives are evaluated using multiple plausible images of the deposit (CS realisations) which capture realistic variability and as an ensemble, map uncertainty of various orebody attributes at fine scale. The alternatives can involve different mining, stockpiling, blending and processing strategies. The ultimate output is a (stochastic) set of cash flows for each alternative from which financial measures, such as NPV, can be derived. Alternatives can then be explored in the presence of against external scenarios such as changes in prices, costs, and taxation. The obvious problem with such data rich results is knowing which scenarios or group of scenarios are optimal.An innovative approach to robust stochastic optimisation (RSO) suited to the SBPE framework is presented here for the first time. This approach to RSO aims to deal with the large number of alternatives generated from SPBE. The goal of applying the RSO approach to SBPE is to identify robust strategic alternatives (project configurations) which have the flexibility to deal with variability and uncertainty of geological and processing inputs such as density, grade and process performance. By applying the proposed RSO method, it is possible to deal with uncertainty and identify the best project configuration in the face of a large number of envisaged scenarios. A case study is provided, in which we have tested the application of the proposed method and compared the result with conventional methods. An important conclusion from this research is that selecting the value of the penalty coefficients in the RSO approach proposed is (as is all optimisation) an exercise of trade-offs; a higher net present value (NPV) is generally associated with a higher risk and a lower risk is associated with a lower NPV. Indeed, this is a strong argument for considering the RSO approach outlined here over more conventional approaches.CITATION:Moayer, S, Vann, J, Coward, S, Jackson, S, Bye, A and Wolff, R, 2012. An innovative approach to robust optimisation for scenario-based mineral project evaluation, in Proceedings Project Evaluation 2012 , pp 141-148 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Cannington Mine is an underground, hard rock, metalliferous mine located in North-Western Queensland, Australia. Weld mesh is installed to prevent the failure of rock from between the installed reinforcement elements. Corrosion reduces the capacity and life expectancy of mesh and presents a real hazard to underground personnel and equipment as it reduces the effectiveness of the support system. Corrosion influences the economics of the mining operation through the need to conduct rehabilitation of the ground support which involves re-installing new mesh or shotcreting over the affected mesh to protect it from further corrosion. The requirement for rehabilitation is determined by the geotechnical engineer based on an individual visual assessment with little or no engineering input. It was identified that a more quantitative method was required that considered the safety and economic risks involved. A project was undertaken to develop a simple method to evaluate corroded mesh and to provide selection criteria for rehabilitation. A weld mesh corrosion classification has been developed that relates the average wire diameter of corroded mesh to the remaining capacity of the mesh. Accompanying selection criteria provides recommendations as to when rehabilitation may be required based on the estimated residual mesh capacity, the remaining development life, and the level of personnel exposure.

Nov 25, 2010

By R Bertuzzi

Permanent rock bolts in civil engineering are taken as having to serve their design purpose for at least 50 years. In many projects the design life is specified as greater than 100 years. A review of recent Australian tunnelling projects shows that substantial differences exist in the level of corrosion protection provided for permanent steel shafted rock bolts. This paper reviews the current state of practice and sets out what the authors consider to be appropriate requirements for corrosion protection.

Jan 1, 1999

By M Bond, R R. Hargreaves, G W. Booth

There are numerous causes of speculative mineral resource and reserve inflation. Traditionally, these are linked to issues of data accuracy or misinterpretation, the use of overly optimistic estimation parameters or assumptions, an absence of independent expert verification, or the simple pressure to increase company value, covert or otherwise. Owing to its subjective nature, classification of resources and reserves remains an opaque process. Of necessity, Competent Persons rely on personal heuristic interpretations, ideally underpinned by appropriate estimation and classification experience across commodity and deposit types. Whereas independent verification of individual resource and reserve statements remains impractical, publicly available data can be interrogated for potential category inflation, particularly when viewed with exploration expenditure statistics included in annual company reports. Abrupt changes in category tonnages and market capitalisation without concomitant expenditure can aid in outlier detection. Consequently, a comparison of common exploration and resource reporting parameters offers a basis for risk assessing classification robustness, over time. In this introductory study, an analysis of globally listed companies was undertaken over a multi-year period, examining base and precious metal projects in both preproduction and operational asset classes. From these, a series of exploratory decision tree trigger points were generated against which target companies were anonymously identified and risk-ranked.

May 24, 2023

By C Fricke, R Wood, P Velletri

"In a climate characterised by an ever increasing focus on cost reduction and maximising the utilisation of existing assets and infrastructure, understanding the uncertainty associated with alternative investment and operational choices becomes paramount to minimising the risk of making an ineffective decision. To assist in this process, TSG Consulting has developed an analytic framework to capture the underlying complexity of a mineral supply chain, and then quantify the impact of the uncertainty associated with the key drivers of business productivity. The technical basis of this approach follows three distinct steps: analyse the current system and identify the major factors that drive value build detailed models that can measure the response of the system to potential changes in the factors identified quantify the sensitivity of financial and capacity forecasts to these factors.Each of the above steps draws on a different area from the field of applied analytics, namely: data analytics dynamic modelling and designed experimentation meta-modelling and optimisation.Following the three-step approach described above ensures a rigorous modelling and analysis process is executed to support strategic mine planning decisions. The approach is equally applicable to the analysis of fully integrated system supply chains (pit-to-port), the evaluation of incremental capital investments to targeted areas of a supply chain, or when considering revisions to the operating philosophy of a system in the short term. The basis of each of the three analytic steps is explored in detail in this paper. The result is the definition of a structured mechanism for a business to actively manage risk and drive productivity as a component of the strategic mine planning process.CITATION:Fricke, C, Velletri, P and Wood, R, 2014. Enhancing risk management in strategic mine planning through uncertainty analysis, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 275–280 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014