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By L Lorenzen, H Muller

"Every year a large number of projects are evaluated by small listed and unlisted mining companies that are hoping to find the ideal project, which will catapult them from a mining junior status to that of a mid-tier mining company. Usually this includes finding the æidealÆ or ærightÆ orebody and then developing a process which will allow cost-effective recovery of the valuable metals and the production of a saleable product. These dreams are seldom realised and there are a number of good and obvious reasons for this. Issues that are generally high up on the agenda for the smaller companies are: cost of developing a project before the feasibility study stage finding a suitable, or optimum processing technology financing of the project dealing with risk.The most expensive part of the development process for the small miner is often the exploration side of the business and finding the æidealÆ orebody. However, finding the right orebody will not be discussed in this paper. The æidealÆ orebody does not necessarily solve the problems of the mining junior, as much of the uncertainty lies in the process required to recover and produce the final metal product. Once a mineralised deposit has been identified and the grade at least reasonably qualified, the development of a suitable process becomes the driver to convert the deposit into an orebody. This paper proposes that a small exploration company has a very limited opportunity to succeed if it does not do sufficient homework before it identifies the æidealÆ orebody. The risk profile for the small mining company, by its very nature, has to be different to that of a major company and as a result the opportunities often lie in managing different and often new process options, which may be the key to bring such projects on line successfully.CITATION:Muller, H and Lorenzen, L, 2012. Project selection and process development for mining juniors, in Proceedings Project Evaluation 2012, pp 149-158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By S Watson, L Martinez

Mine projects are complex opportunities that demand a constant assessment of uncertainty, ie risk and upside potential. This is because the value of a mine project is typically influenced by many underlying economic and physical uncertainties, such as metal/mineral prices, metal/mineral grades, costs, schedules, quantities, and environmental issues, amongst others, which are not known with much certainty at the beginning of the project. But, is uncertainty an enemy or an ally of the mine planner/analyst? To answer this question, this paper first assesses and elaborates upon the general concept of uncertainty. It then looks at the different sources of uncertainty in a mining project, such as the orebody, costs and product price uncertainties, and their effect on the final project value. Next, a general?review?of current mine evaluation techniques highlighting their limitations when dealing with uncertainty is made. Finally, an extended evaluation and risk management framework that addresses the existing uncertainty in the (greenfield/brownfield) mine evaluation process is proposed. One important characteristic of this framework is that it uses and manages uncertainty in order to generate additional value to the project; this is done through operational and managerial flexibility, which allow mine planners to minimise/maximise project risk/upside-potential giving a more realistic estimate of the projectÆs market value - this is shown in practical and simple examples occurring at different stages of a mine project, such as exploration and operation. Final conclusions are provided at the end.CITATION:Martinez, L and Watson, S, 2012. Uncertainty - An important source of (additional) value for mine projects, in Proceedings Project Evaluation 2012 , pp 131-140 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By A Chandra, P Guj

Only a few complex real options can be valued using closed-form equations, such as the Black and Scholes formula, because these algorithms are restrictive and prevent the construction of practical project evaluation models. Although a binomial lattice method paired with the ærisk-neutral probabilityÆ provides an easier and flexible modelling of exploration and mining projects, it has limitations when projects are complex, long-lived and influenced by the interplay of various market and private uncertainties. In order to overcome these limitations, modern decision tree software using dynamic programming capability can be used for real option valuations. This is a powerful computational tool in which the impact of various sources of uncertainties can be differentiated, so that the optimal decision path can be explicitly displayed visually. There has been significant academic controversy surrounding whether different real option (RO) valuation methods would lead to different real option values (ROV). This paper, using a realistic copper mining example, demonstrates that as long as the same degree of subjectivity and consistency are used in different real option valuation methods, they yield the same result. This conclusion is valid irrespective of whether the cash flow volatility generated by various sources of uncertainties is handled in an aggregated or in an explicit and differentiated manner. This paper compares two choices for an investor either to æbuy now and developÆ a project or to enter into a ætwo-year option to purchaseÆ after the proponents have developed it. It also shows how significantly different net after-tax operating cash flows may be generated by these different choices on the same underlying asset represented by the project. This is due to the difference in the amount and timing of the relevant capital investments affecting the depreciation and amortisation charges and as a consequence, the income tax paid. CITATION:Guj, P and Chandra, A, 2012. Real option valuation of mineral exploration/mining projects using decision trees - Differentiating market risk from private risk, in Proceedings Project Evaluation 2012 , pp 177-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By R Redden

"The Didipio Gold-Copper project in the Philippines has been a well-defined reasonably high gold grade porphyry for almost two decades. OceanaGold are now bringing the project into production in late 2012 and have recently reoptimised the project with the goal of combining the inherent high grades with higher through-put than previously proposed that will see strong initial metal production. The project was discovered and well defined by 1995, but has seen some obstacles to development, namely sovereign risk, capital cost and project funding. The project strengths over this time that have kept the flames alive are: strong grades large orebody with low stripping ratios a simple beneficiation process and a clean high-grade concentrate strong support from the Philippines government.The initial study in 1998 used Gold and Copper price assumptions of $325/oz and $0.95 lb respectively. Today reserves are based on $950 and $2.85. So, being a porphyry with a large reducing grade halo, the deposit now lends itself to extraction on a much larger scale than before, without any significant capital expenditure as a larger open pit now dominates the project.Didipio is a game changer for OceanaGold, so it has been important to learn from history and to capitalise on a strong initial metal production profile. The project sits in a reasonably remote mountainous area of Luzon which sees annual typhoons and numerous short duration high intensity rainfall events and two rivers flowing through the project area, so it has not been without some innovative technical solutions.CITATION:Redden, R, 2012. Didipio - Learning the lessons, adapting and getting ready for production, in Proceedings Project Evaluation 2012, pp 67-76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By B M. Wilson, B J. Turner, S Sinclair, R J. Buerger

The Trident Gold Deposit is centred on the historical Higginsville Mining Centre, between the world class gold centres of St Ives (+15 Moz) and Norseman (+6.5 Moz) in Western AustraliaÆs productive eastern goldfields. It lies towards the southern end of the Norseman-Wiluna Greenstone belt in the Archaean Yilgarn Craton. The current in situ resource for Trident is estimated at 840 000 ounces, with production to date in excess of 500 000 ounces.Trident is hosted primarily within a thick, weakly differentiated gabbro with subordinate mafic and ultramafic lithologies and comprises a series of north-northeast trending, shallowly north plunging ore zones. The deposit comprises two main mineralisation styles; thin, lode-style, nuggety laminated quartz veins (Athena and Artemis) that formed along major shear zones primarily at the contacts between the various mafic and ultramafic lithologies; and large wallrock-hosted ore-zones comprising sigmoidal quartz tensional vein arrays and associated metasomatic wall rock alteration (eastern zone, western zone and Apollo) hosted exclusively within the gabbro.The thin laminated quartz vein lodes are important to the Trident Gold Deposits production profile as they constitute 33 per cent of the metal from only 14 per cent of the tonnes. The delineation, grade estimation and extraction of these lodes require a disproportionate amount of geological and engineering input due to the small scale variability in width, grade and direction. Over time, a robust and thorough process has been developed at the Trident Gold Deposit to understand and then successfully mine these complex mineralised systems.CITATION:Sinclair, S, Wilson, B M, Buerger, R J and Turner, B J, 2012. The mining industry needs to be shaken and stirred, in Proceedings Narrow Vein Mining 2012 , pp 155-166 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By T. V. Nguyen

The feedwell performance in gravity thickeners and clarifiers relies on the efficient mixing between solid particles and flocculant to achieve effective flocculation, as well as energy dissipation of the incoming feed stream. A population balance-computational fluid dynamics (PB-CFD) model has been developed and validated to provide new insights into the operation and performance of industrial feedwells. In particular, the PB-CFD model enables the efficacy of the main functions of a feedwell to be investigated for a wide range of feedwell designs and process conditions. This paper describes how PB-CFD was used in the design and development of a new feedwell concept for the flocculation of particles in a solid-liquid stream. The patented feedwell design includes an upwardly converging flow diverter to create two separate compartments for energy dissipation and flocculation. PB-CFD simulations of this simple and easy-to-retrofit feedwell design illustrate a superior performance in terms of flocculation and energy dissipation compared to typical feedwells over a wide range of flow conditions. The potential benefits include reduced flocculant consumption, better de-aeration, greater stability and the ability to cope with a wider variation in volumetric throughput, better flocculation and fines capture, and a more symmetrical discharge that may also offer improved overflow clarity in some applications. The new feedwell design has been installed in a full-scale thickener at an Anglo American Platinum site in South Africa. A number of operational factors complicate this application, but indications are that the new feedwell has led to improvements in stability and underflow properties.

Jan 1, 2012

By T. van Heerden

A range of supported gold catalysts was prepared by ion exchange, varying many of the preparation variables, including concentration in the precursor solution, washing procedure, as well as drying and calcination procedures. These catalysts have been characterized extensively. TEM images show essentially the same crystallite size distributions, between 2?5 nm, for almost all catalysts, the only exception being catalysts not washed in ammonia, which did not show any small crystallites. Additional characterization with SEM yielded an interesting discovery. Catalysts that appear identical on the TEM also contain some large crystallites in the range of 50?500 nm. Differences in dispersion due to the drying procedure not seen on the TEM can now be observed. Oxygen chemisorption is being investigated as an additional method to characterize gold based catalysts to complement the typically used electron microscope techniques.

Jan 1, 2012

By P. Falcão Neves

A detailed analysis of the geomechanical behaviour in rock cutting with a diamond saw is provided to obtain a better understanding of the mechanisms involved in the process. The energy of elastic deformation (before failure) and plastic deformation (post failure) was determined in uniaxial compression tests as well as the energy consumed per unit volume in the cutting process. The test samples are White and Ruivina marbles from Borba - Vila Viçosa in Portugal. Correlations between total deformation specific energy and cutting specific energy, normal and tangential forces and diamond indentation are analysed, and some conclusions are presented.

Jan 1, 2012

By Rob Thomas

Adequate load transfer is considered essential for optimum ground support and is increasingly important in weak roof and/or high stress environments. If adequate load transfer is achieved not only can this have a positive impact on the resulting roof behavior, but it may also allow the use of lower and hence more economic densities of roof support. A wide variety of post-groutable cable bolts are currently in use in the Australian coal mining industry, each of varying capacity, design, and grouting methodology. Though all of the cables are supplied with the appropriate steel specification, strength, and modulus data, the Australian coal mining industry does not have access to a comprehensive and comparative database on the corresponding load transfer performance, which is a critical problem. On the basis of the above, this paper describes the methodology and results of a laboratory pull testing program that aims to assess the impact of cable bolt design on load transfer, and specifically, the impact on the capacity and stiffness of the anchorage. As part of the testing program, 19 cables were tested including (1) plain-strand cables installed in holes drilled with 28 to 55 mm diameter drill bits and (2) bulbed and nutcaged cables installed in holes drilled with 42 to 64 mm diameter drill bits. Other parameters assessed included the significance of smooth and profiled wire, wire packing, and expanded geometry bulbs. The main results of the testing indicate that in comparison to plain-strand cables, if the cable is bulbed or nutcaged, the capacity of the anchor can increase by up to 400%, and the peak stiffness by between one and two orders of magnitude. The results also indicate that increasing hole diameter may have a positive impact on load transfer in the case of bulbed or nutcaged cables and a negative impact on plain-strand cables. No conclusive results were obtained with regard to the impact of grout strength on load transfer.

Jan 1, 2012

The theme of the 2012 North American Tunneling conference (NAT) was ?Tunneling: Driving Value.? This theme best reflects where the tunneling and underground construction industry is to-day. Major advances that have been made in technologies have provided tremendous improvements in productivity, which, in turn, have allowed the industry to deliver more cost-effective and less disruptive solutions to the nation?s infrastructure needs. Despite a weak economy, domestically and globally, cities and states continue to spend billions on infrastructure improvements. For the underground construction industry, that means more transportation and water, wastewater, storm water projects and other underground structures. And, for each project completed, underground construction and tunneling technology grows. The NAT conference, put on by the Underground Construction Association (UCA) of SME, provides an outlet for technology transfers among professionals. This year?s conference, held in Indianapolis, IN June 24-27, attracted 918 attendees, up from 803 at the last NAT in 2010. The accompanying exhibit also featured 116 exhibitors occupying 140 booths. That was up from 108 booths in 2010. So, the meeting continues to grow as underground construction professionals throughout the world seek to learn from their peers.

Jan 1, 2012

By K. S. Liddell

The Kell Process has been developed for the extraction of platinum group metals (PGMs) and base metals from sulphide flotation concentrates. The process has been successfully tested on several different sulphide flotation concentrates, including those from the UG2 chromitite horizon and the Platreef mafic/ultramafic layer. It has been shown to provide high (>95 per cent) and selective extraction efficiencies for the key valuable metals, i.e. Pt, Pd, Rh, Au, Ni, Co, and Cu. The Kell Process consists of several commercially proven unit operations. S, Ni, Co, and Cu are first selectively removed by use of a pressure oxidation step during which the dissolution of PGMs is minimized. The residue from pressure oxidation is subjected to a thermal treatment to ensure efficient PGM recovery by subsequent chlorination. All the core steps are very similar to well-proven conventional unit operations in common use, as are the subsequent metal recovery steps to provide marketable end products. Typical metallurgical responses of flotation concentrates from UG2 and Platreef to the Kell Process are provided, and key outcomes of an energy comparison study with smelting are summarized in this paper. Kell presents a potentially substantial improvement in PGM concentrate processing technology, in terms of economics via much-reduced power costs, ease of processing, and various environmental benefits. It allows for the treatment of high-chromium low-grade 'dirty' concentrates, such as secondary concentrates from the platinum industry's 'mill-float-mill-float' (MF2) flotation circuits and concentrates from retreatment of tailings. It allows greater concentrate mass pulls, has higher tolerance to gangue intergrowths in concentrates, and its use can provide substantial increases in overall PGM recovery. Its adoption would be a step change in the platinum industry, and given the commercially proven unit operations embodied in the Kell Process, at much-reduced risk compared with other more experimental technologies. Since the initial process development work, significant improvements and refinements have been introduced as a result of further compre¬hensive testing and process modelling. Pilot-scale testing and engineering study work is in progress for several selected sites.

Jan 1, 2012

By Italo Onederra, Jason Furtney, Ewan Sellers

The detonation reactions occurring during rock blasting result in high pressure gas phase products from the condensed explosives typically used in mining applications. After detonation and the initial fracturing, the work done by the expansion of this gas contributes to burden movement and further rock fracturing. Before all of the energy in the reaction product can do useful work on the rock, some of this energy is lost to crushing and possibly to gas venting to the atmosphere. Borehole gas pressure decreases by three principle mechanisms: (i) expansion of the borehole cavity, (ii) flow into the fracture network, and (iii) flow through the stemming. To simplify the problem and to get a better understanding of the interaction of these mechanisms, a simple model for each of these mechanisms is developed. A comparison is made of the time-scales and the influence on burden movement for each. A comparison of gas flow behavior is made between typical ANFO and emulsion products.

Jan 1, 2012

By D. A. Paice

Under the first phase of this contract as reported in the Phase I report it was determined that certain types of commercially available molded case breakers are capable of interrupting mine dc power supplies of nominally 300 volts or 600 volts rating. These circuit breakers incorporate conventional overcurrent trip units but also can be operated by means of low power signals fed to a shunt trip coil. Further development in the Phase I program produced a means whereby a discriminating circuit breaker detector unit could sense the presence of illegitimate loads on the dc electrical system and cause the circuit breaker to trip. The detector unit operated by detecting the presence of 3000 Hz currents which were generated in the illegitimate loads by means of a 12 volt, 3000 Hz signal applied to the dc system. Further development of the program has continued in Phase II with the aim of verifying the practicability of the complete discriminating circuit breaker concept and developing other types of equipments required to implement a system. These other equipments include electronic means for raising the apparent impedance of high power legitimate loads and static filters for smaller loads. The results of laboratory work and limited underground tests have been successful. This report describes the system and the tests that have been conducted on the various equipments that comprise the complete Discriminating Circuit Breaker Concept.

Jan 1, 2012

By B. Schoevaerts

The ever-increasing depth of mineral extraction presents a challenging environment for hard-rock underground mines. High in situ stresses and associated seismicity with potential rockburst hazards are the major decisive factors contributing to the choice of a ground support regime. Conventional ground support systems, designed primarily for static loads, are not always capable of providing safe working conditions for underground personnel in seismically active mines. Systems specifically developed to resist dynamic loading and allowing for larger deformations are therefore preferred alternatives. High-tensile chain-link mesh has a proven record of successful use in open cut operations in various rockfall barrier installations due to its high energy absorption capacity. It has also been used in underground operations in various parts of the world. Its application in South African underground mining, however, is limited due to the high labour intensity. This paper describes a method of mechanized installation of a chain-link mesh as evaluation at Gold Fields' South Deep Gold mine situated some 45 km south-west of Johannesburg. A purpose-built mechanized roll mesh handler, developed in Australia, was used in this trial. The handler is compatible with all standard multi-boom underground drill rigs and is operated utilizing the hydraulic circuit normally used for the feed arrangement. A number of key performance indicators have been specified as success criteria by Gold Fields: ? A 30% faster installation compared to the conventional methodology ? The mesh should sustain any blast damage when applied to the blasting face ? No unravelling of the mesh when cut ? No failure of mesh under normal conditions ? Reliability of the MESHA® installation handler (availability >90% ? Compatibility of the MESHA® installation handler with AC 282 boomers. Although the energy-absorbing mesh combined with yielding rockbolts is a ground support system of choice for rockburst-prone conditions, the operational upsides recognized during the trial imply that this product can also be competitively used in less demanding ground conditions where weld mesh or shotcrete are customarily used as a primary surface support.

Jan 1, 2012

By Jarrod Bonsmann

"This paper presents the results of small scale testing to examine the effect of various importantparameters on the response of a vehicle due to the detonation of an explosive charge buried inthe soil below the vehicle. In particular, we were interested in examining what effect change instandoff distance, change in mass, and change in surface area would have on the loading applied.We examined the impulse delivered to the target in all cases and for the change in mass andchange in stand-off distance we examined impulse, kinetic energy, and acceleration."

Jan 1, 2012

By O. F. Ochonogor

Laser metal deposition (LMD) is an additive manufacturing technique whereby a stream of metal powder is consolidated by a focused laser beam on the surface of a substrate or engineering component. The interaction zone between the laser beam and powder particles is scanned superficially, generating tracks of deposited material. The tracks are overlapped in a deposition strategy in accordance with slices of a CAD model. Successive layers of material are built up to fabricate a near net shape part. In this work, the technique is used to fabricate metal matrix composites (MMCs) by using an elementally blended feedstock combining metal and ceramic powders in the melt pool, which melt and solidify to create the required morphology. Ti6Al4V + TiC MMCs were produced with 10, 20, and 30 vol.% reinforcing ceramic, and Zr + TiC MMCs were fabricated with 10, 20, and 30 vol.% TiC. The deposited thin walls were analysed using optical microscopy, scanning electron microscopy (SEM) with energy dispersive spectroscopy (EDS), and indentation testing. In both systems, the analysis revealed the presence of partially melted TiC particles embedded in the metal matrix along with fine dendrites of re-solidified ceramic. The dendritic structures in the Ti-based composites were confirmed as TiC, whereas in the Zr-based composite the Zr metal reacts with theTiC to form ZrC, leaving Ti in solid solution. Both the MMCs show an increase in microhardness with increasing ceramic (carbide)content, reaching a peak HV0.1 value of 500 in the Zr- based MMC and HV0.1 of 550 in the Ti based MMC.

Jan 1, 2012

By Andre Zingano

The variation in pillar behavior at underground coal mines working in the Bonito coal seam is observed in both research and mining company case studies. There is no consistency in pillar behavior, as it varies from mine to mine. In some cases, it is possible to find rib yields for both excavation modes and pillar sizes. This paper?s objective is to investigate pillar behavior for different load conditions and pillar sizes. Three-dimensional numerical simulation models considering these factors were built. A matrix was then assembled to compare pillar behavior between loading conditions, as well as between different pillar sizes with the same loading condition. The results showed some pillar rib plasticity due to vertical loading and stress relief independent of the pillar size and load. For the same load conditions, the yielding thickness is the same for different pillar sizes.

Jan 1, 2012

The SFR system utilizes a skimmer or extractor placed at or near the slurry-froth interface where there is a higher concentration of valuable mineral particles. With assistance of hydrocyclones, it is possible to classify the extracted particles into coarse and fine particle streams, that can be handled separately. It also allows the coarser solids to be separated from entrained low-value fines. The first test results with the SFR system significantly improved both coarse and fine particle recovery in a flotation cell. The SFR system was tested in the flotation circuit at a copper-moly concentrator, and the results show that the use of the skimmer has huge potential to increase the froth recovery (Rf) of both molybdenum and copper.

Jan 1, 2012

By J. M. Benson

Metal powder compaction offers unique advantages in the manufacture of net-shape components using techniques such as laser sintering, conventional press and sintering, metal injection moulding, direct rolling, direct forging, and hot isostatic pressing. If the output from the primary metal production process is in powder form, then considerable cost and energy savings can be realized by direct conversion to semi-finished or final shapes. This possibility exists for titanium and possibly also for Ta, Zr, Hf, and Nb metals. However, these attractive benefits are associated with some significant risks. The high surface-to-volume ratio of powder particles coupled with the reactive nature of these metals means that special care must be taken when handling them. Powder explosions are unfortunately still a regular occurrence internationally and these often result in serious injury and loss of life. Even seemingly 'safe' compounds such as sugar, flour, and grain can be extremely hazardous when handled or milled and dust clouds are produced. In addition, exposure to airborne particles can have adverse effects on the human body, especially when particles are inhaled on a regular basis. Furthermore, the medical consequences of these are not fully understood, especially in the case of nanoparticles. The impact is often not observed immediately and debilitating illnesses may emerge only years or decades later. As far as is known, there are no South African guidelines for handling of metal powders. This paper attempts to provide an awareness of the risks associated with metal powders (including those produced indirectly by other metalworking/finishing operations) as well as some guidelines for their safe handling, based on international best practices.

Jan 1, 2012

By Ray Brainard

The Jollyville Transmission Main will be a 10.5-km- (6.5-mile)-long, 213-cm (84-in.) diameter rock tunnel. The tunnel will pass beneath the Balcones Canyonlands Preserve, which was established to protect two endangered bird species, six endangered cave invertebrates and a threatened salamander. To address the sensitive habitat that the transmission main is to pass through, the city of Austin developed an environmental commissioning (EC) process that brought together environmental engineers and scientists, the city?s project management team and the designer team to work collaboratively to meet the city?s goals of producing a cost-effective design while also protecting the environment. This paper describes the environmental commissioning process and the benefits it brought to the project and environment through some unique environmental mitigation measures to protect this sensitive area.

Jan 1, 2012