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By D. J. King

The development in recent years of a fluidized bed system for use as a counter-current solid ion exchange loading contactor for the purification and concentration of uranium from leach liquors has had a major impact on the design of uranium extraction plants. The main object of this paper is to describe many of the variations that can be applied to the design of uranium extraction plants arising from the use of a fluidized bed loading contactor with a view to providing a guide for the development of a flowsheet for a new uranium extraction plant. The paper has been devoted primarily to the consideration of conventional uranium extraction plants in which a ground ore is leached in mechanically or air agitated tanks. The effect of the use of a fluidized bed loading contactor on each of the plant sections from leach to uranium purification and concentration has been considered. In order to describe most effectively the impact of using a fluidized bed solid ion exchange loading contactor, its use has been compared with the performance that can be achieved with the most common alternative purification processes. The comparisons are made largely on a technical basis, but the effect on the capital and operating costs of the different uranium extraction flowsheets are described qualitatively. In making these comparisons, consideration is given to the effect on the size, number and materials of construction of equipment items and how the quantity and composition of the liquid effluents can be controlled to reduce the environmental problems arising from the disposal of these effluents. The paper also discusses some of the factors that should be taken into consideration in the design of a fluidized bed loading contactor and describes various designs of the elution section that can be used in conjunction with the loading contactor.

Jan 1, 1979

By Hiroaki Sakurai

Using batch reactors equipped with CO and CO2 gas sensor, CO oxidation over Au catalysts in room air has been investigated and compared with Pt catalysts. For both Au and Pt catalysts, the logarithm plot of CO concentration data during initial 10 min are well fitted by straight line, which mean the first order dependence on the CO concentration between 10 and 10,000ppm. The rate constant value (k) over Au and Pt catalyst generally decrease with increasing initial CO concentration above 100ppm. The value decrease especially rapidly between 100ppm and 1,000ppm over Pt catalysts, which should be due to the strong adsorption of CO on Pt. The k value over Au catalyst has become ten times or more as large as the Pt catalysts at 1,000ppm. Already for the initial concentration of 100ppm CO, the strongly adsorbed CO on Pt metal has been clearly observed by FT-IR during the reaction over Pt/Al2O3. A part of the strongly adsorbed CO has been remained on Pt after the disappearance of gas phase CO, and has gradually changed to gas phase CO2. Such strongly adsorbed species on Au has never been observed on Au/TiO2 under the same reaction conditions. These features of Au catalysts are favorable for indoor air purification.

Oct 1, 2003

By W. Kunda, J P. Warner

SHERRITT GORDON Mines Limited annually produce 300,-000 pounds of pure cobalt by processing a nickel-cobalt-copper-iron sulphide ore which is mined at Lynn Lake, Manitoba. The ore (containing 0.04 per cent Co) is •concentrated to give a concentrate containing l 1-12 per cent nickel, about 2.0 per cent .copper, and 0.25-0.35 per cent cobalt, which is treated at the Refinery in Fort Saskatchewan, Alberta. The concentrate is leached in an ammoniacal solution of ammonium sulphate using compressed air as the oxidant. After filtration the leach solution contains, besides nickel and cobalt, copper ammines, sulpharnates and salts of various thionic acids. The copper is removed by precipitation as sulphide and the sulphur compounds converted to ammonium sulphate by a combined oxidation and hydrolysis treatment. The purified solution •Containing about 45 gpl of nickel and 1 gpl of cobalt is treated with gaseous hydrogen under pressure at 350°F to precipitate metallic nickel powder, the precipitation 'being terminated when the nickel content of the solution is about 0.8-1 gpl. Only about

Jan 1, 1962

By O. Kodym

The paper has focused on possibilities of interconnecting information sources concerning monitoring & control of mining industry technical processes (TP), and the related safety hazards. The key issue is the comprehensiveness of the information presented to users. Information can be presented by virtual reality means, when the seemingly true presentation of the production process scene along with user friendly presentation of related information is available. The user in its role of a process supervisor is not only a mere scene observer but, thanks to the interactive functions of virtual environment, he participates in the scene of his control. As such his control and management abilities increase because he can absorb, more easily understand and asses the information provided.

Aug 1, 2013

By A. H. Ransom, M. E. Robb

The Salmita Gold Mine is located 240 air kilometres northea t of Yellowknife on the east shore of Matthews Lake. Salmita is one of several gold showings which are regionally associated with the steep easterly dipping contact zone between mafic, intermediate and fe lsic volcanics to the west and overlying finely laminated argillaceous sediments to the east. The volcanic assemblage forms a narrow 2 m to 7 m wide north to northwesterly trend ing Belt of Yellowknife Supergroup Archaen greenstone rocks. The contact zone exhibits exhalite character and the increased sulphide content provides a di stinct VLF-EM , IP/Resisti vi ty and/or magnetic signature. Gold occurs at or near this contact in three main settings: associated with si liceous vein-like structures; with finely disseminated sulphides within ericitic altered upper fe lsic tuffaceous unit ; or with quartz in narrow shear zones within the overlying sediment . The B-Vein is of the former type with free mi ll ing gold occurring within a highly sil iceous zone having an average widtn of 1.69 m. Alteration is intense within the immediately su rrounding host lithologies and includes the development of si lica, carbonate, sulphide, sericite and chlorite with minor graphite, epidote. tourmaline and scheelite. The mineable zone above the 4th level (-200 m) ha an average strike of 160 m and is divided into three south plunging ore shoots separated by the regional Salmita Shear Zone in the south and by a low-grade structural hiatus in the north. Production from the B-Vein commenced in August 1983 based on a diluted in situ ore reserve of 140,000 t grading 26.6 git Au . As of December 31, 1985, a total of 131 ,537 t grading 27.8 git Au have been mined at a ra.te of 160 t per day and a 96.4 percent recovery, to produce 3,522 ,000 g (113,227 ounces) of gold . Current (January I, 1986) reserves total 45,500 t grading 37 g/t Au down to the 10th level (-500 m) .

Jan 1, 1986

By L. C. Lien

Tower crane layout (TCL) is a typical construction site layout (CSL) problem, which is suitable for a wide range of work assignments and site conditions. Tower crane is one of the key facilities for vertical and horizontal transportation of materials, especially for heavy prefabrication units such as steel beams, ready mixed concrete, prefabricated elements and large panel formwork such as machinery and equipment, and a wide variety of other building materials within a construction site. However, it is a difficult combinatorial optimization problem to determine the locations of tower cranes with materials quantity supply and demand for engineers. Swarm intelligence (SI) was very popular and widely used in many complex optimization problems which was collective behaviour of social systems such as honey bees (bee algorithm, BA) and birds (particle swarm optimization, PSO). This study applied a hybrid swarm algorithm namely particle bee algorithm (PBA) based on a particular intelligent behaviour of honey bee and bird swarms by integrates theirs advantages. This study compares the performance of PBA with BA and PSO for a proposed hypothetical construction engineering of TCL with materials quantity supply and demand problem. Results show that PBA performs better performance than the mentioned algorithms on a proposed hypothetical TCL problem.

Aug 1, 2013

By K. Yamaguchi

"This Precious metals content copper scrap is treated with a copper smelting process, and copper and precious metals are recovered. The precious metal lost in the slag is increasing with increasing of treated scrap amount. To determine the portion of the precious metals chemically dissolved and that associated with the mechanically trapped matte in the slag will be a key factor to improve the recovery of those metals. The distribution of precious metals between copper matte and FeOx-SiO2 slag phases is determined at 1300 oC and a fixed partial pressure of SO2 of 0.1 atm for the matte grades from 40 to 70 mass% of copper. The distribution ratios show a tendency to increase when the grade of matte is increased. In addition, the solubility of platinum and rhodium in the FeOx-SiO2-CaO slag under the air and the solubility of platinum in the FeOx-SiO2 slag equilibrated with a pure platinum or the Pt-Cu alloy were determined at 1300oC in the range of oxygen partial pressure from 10-9 to 10-7. The solubility of platinum and rhodium in the slag tends to increase with increasing content of copper in the slag and oxygen partial pressure. INTRODUCTIONThe stringency of the supply and demand of platinum group metal (PGM) intensifies by localization for resources and increase of the demand for PGM, furthermore, smelting and the recycling of PGM in the nonferrous smelting process take an important role. Scrap containing a precious metal for the purpose of collection of PGM is treated by copper smelting recently. With increase of the treatment amounts, loss of PGM in slags is the serious problem.In considering of PGM loss in slags, knowledge of the distribution behavior for PGM between slag and matte phases or slag and copper phases and the PGM solubility in slags is important. The distribution ratios of silver and gold between the FeOx-SiO2 slag and the Fe-Cu matte were reported by Roghani (Roghani et al., 2000), Shinha (Shinha et al., 1985) and Takeda (Takeda et al., 1993) However, there is no data for the PGM distribution ratio. On the other hand, the PGM solubility in slags was reported by Sano (Sano et al., 1997) However, there is very few report for the solubility of PGM in the nonferrous smelting slags."

Jan 1, 2012

By John R. Hawley

"This paper is intended as a review of the progress that has been made in the Province of Ontario in the field of acid drainage waste treatment technology.Three years ago, at the Third Annual Meeting of the Canadian Mineral Processors, we presented a paper entitled ""The Problem of Acid Mine Drainage in Ontario"". At that time I was working for the Ontario Water Resources Commission. The paper turned out to be the very beginning of the Commission's acid mine drainage control program. In the intervening three years, the Ontario Water Resources Commission has been amalgamated with other government groups and has evolved into the present Ontario Ministry of the Environment. Today the Ministry is involved in running one of the most advanced acid mine waste control programs in the world.As a part of its mining program, the Ontario Ministry of the Environment has published three major reports which deal directly and specifically with the industrial waste disposal problems that may arise at a mining operation. In order of publication, these reports are as follows:(1) ""The Problem of Acid Mine Drainage in the Province of Ontario"".This 338-page report covers all aspects of the problem of acid mine drainage and includes detailed sections on acid flow detection, acid flow chemistry and acid flow treatment.(2) ""The Use, Characteristics and Toxicity of Mine-Mill Reagents in the Province of Ontario"".This report, 244 pages in length, gives the chemistry and toxicity of nearly all of the chemicals that find common use in the Canadian mining industry. Most of the toxicity figures quoted are the result of a comprehensive bioassay program that was initiated by the Ministry."

Jan 1, 1974

By F. A. Auld

"Traditionally deep shaft sinking from the ground surface was carried out using drill and blast methods. Although large diameter blind shaft drilling has been carried out successfully on numerous occasions previously, including as early as 1852 in Germany (Auld, 1995), little attempt has been made until more recently to mechanise the shaft sinking excavation process using down-the-hole machines. This paper reviews the development of deep shaft sinking machines from the early 1970’s up to the present day. INTRODUCTION Mechanical excavation methods can significantly improve excavation performance, in order to access natural resources faster, and labour safety is increased compared to drill and blast operations. However, shaft sinking machines need to be capable of accommodating all the basic requirements for deep shaft sinking, namely: 1. Excavation and muck removal 2. Ground stability control 3. Groundwater ingress control 4. Temporary lining installation 5. Permanent lining installation and watertight sealing 6. Ventilation 7. Secondary means of egress for personnel In addition, how the machine operates in the shaft is an important factor, either slung on ropes from a surface headgear or on its own in the bottom of the shaft. An all-embracing machine which can deal with all of the above conditions is impossible but many of these requirements can be incorporated into a single machine. Deep shaft sinking also differs greatly from normal tunnel construction which employs the use of either a roadheader arm installed within a shield or a full-face tunnelling machine for excavation. Hydrostatic pressure and ground stability problems increase with depth, whereas in tunnelling the depth is normally relatively shallow and the aforementioned factors remain approximately constant along the tunnel length. DEEP SHAFT SINKING MACHINES All the shaft sinking carried out previously in the UK was by the traditional method of drill and blast. Elsewhere, in other parts of the world, attempts have been made to mechanise the process."

Jan 1, 2019

By L. V. Kin, V. V. Lodeischikov, A. V. Byvaltsev, IRGIREDMET JSC, O. D. Khmelnitskaya, S. V. Petrov

"Irgiredmet Institute carried out the study on the development of gold recovery technology from refractory ore from a Russian deposit. The ore contained 1.1 g/t Au, 1.5% of pyrite and 2.4% of pyrrhotite. The recovery of gold achieved was 84.7% using gravity with generation of high grade recoverable gold concentrate and gravity middling. In the course of lime treatment, cyanidation of the middling followed by tailings detoxification the consumption of reagents was 13.0 kg/t CaO, 95 kg/t NaCN and 72 kg/t Ca(OCl)2 of the concentrate. This was capital intensive.In order to decrease the consumption of reagents, magnetic separation of the middling of the concentrates from gravity separation was added to this flow sheet. Pyrrotite recovered to magnetic fraction, which did not contain gold in accordance to this advanced flow sheet. The mass yield of pyrite goldbearing non-magnetic fraction decreased down to 1.5 times in relative to gravity middling. The slurry filtration prior to and after cyanidation allowed the organization of cyanide solution recycling.The results of pilot plant tests using the developed flow sheet showed that the content of pyrrhotite in the non-magnetic fraction decreased from 59.1% to 11.3%. The reagents consumption was 12 kg/t CaO, 3 kg/t NaCN and 16 kg/t Ca(OCl)2 of the pyrite concentrate. The total gold recovery using this flow sheet was 83.4%. Due to a decreased consumption of reagents, cost efficiency of the process was achieved. Based on the results of this research, a project design criteria was developed. A processing plant with the annual throughput of 2.6 million tonnes of ore is being designed."

Jan 1, 2016

By A. D. Burns, K. M. Nikolaisen

Electrolytic reduction followed by the addition of sulfuric acid and the application of heat can be used to selectively crystallize uranous sulfate from solution. This approach, when coupled with downstream thermal decomposition, forms the basis of a process for primary uranium recovery and purification where much of the sulfuric acid value can be recovered and recycled. In this process, a purified uranium (VI) leach solution is first electrolytically reduced to uranium (IV) in a membrane electrolysis cell. Sulfuric acid is then added to the solution which, in conjunction with the input of heat, causes the crystallization of uranous sulfate tetrahydrate. The precipitate is then dried and thermally decomposed to U3O8, which releases a mixture of high-purity SO2, SO3, oxygen, and water vapour. This gas can be recovered as sulfuric acid in an existing acid plant, processed through a new wet sulfuric acid process, or absorbed directly into the upstream electrolyte as a substitute for fresh acid in the crystallization step. This process has been shown to be practical, efficient, and cost-effective on the laboratory scale, and could be practiced on the industrial scale using commercially available equipment. This paper focuses on the thermal decomposition process and options for acid recovery.

Jan 1, 2020

By J. L. Jambor, E. J. Reardon, E. C. Appleyard, J. A. Cherry

Abstract- Since the 1957 initiation of deposition of mill tailings at the Heath Steele mine, New Brunswick, periodic detailed studies of the tailings geochemistry and mineralogy have been con­ ducted, thereby providing a unique opportunity to examine the geochernical evolution of a sulfide- rich mine-tailings impoundment. When deposited, the tailings contained about 85 wt% sulfide minerals, 1 wt% to 3 wt% carbonate minerals, and 12 wt% to 14 wt% aluminosilicate minerals. Mineralogical examination of samples of the tailings from deep in the impoundment indicates that little oxidation occurred prior to tailings deposition. The mill process-water deposited with the tailings was neutral to slightly basic and contained low concentrations of Cu, Pb, Zn and As. Sampling of the tailings five years after deposition indicated that sulfide-oxidation reactions, occurring near the tailings surface, had decreased the tailings-water pH and increased the concentrations of Fe, SOi-, Cu, Zn and Pb (up to 10 000 mg/L, 25 000 mg/L, 2.5 mg/L, 200 mg/L, and 4.5 mg/L, respectively) . In 1975, ten years after decommissioning, the tailings could be divided into three zones: an upper oxidation zone in which sulfide oxidation is actively occurring, a hardpan layer, 15 cm to 20 cm thick, composed of tailings cemented by secondary Fe minerals, and an underlying reduction zone in which the tailings are relatively tinoxidized (Boorman and Watson, 1976). Chemical analyses indicated the presence of low-pH waters containing very high concentrations of SO42- , Fe, and other metals (up to 63 600 mg/L SO42-, 28 600 mg/L Fe, 10 mg/L Pb, 600 mg/L Cu and 4000 mg/L Zn), suggesting that there was a period of intense sulfide oxidation between five and ten years after tailings deposition. More recent sampling, conducted some 20 years after the end of tailings deposition, indicates that relatively little change has occurred in the last ten years, thereby suggesting that the hardpan layer has provided an impediment to the downward movement of dissolved constituents . Analyses of the tailings solids show increased accumulations of many metals at or near the depth of the hardpan layer. Evaluations of the long-term evolution of the tailings can be enhanced by comparison of descriptions of the tailings with descriptions of the gossan that overlay the massive­ sulfide orebody prior to mining. At Heath Steele, this comparison suggests that many of the mechanisms controlling the distribution of metals in the tailings will probably persist over geologic time.

Jan 1, 1992

By W. Dingley, G. R. Hoey

"Thirteen Canadian sulphide ore mines were surveyed for corrosion control. The mines visited were a small, yet representative, proportion of this segment of the Canadian mining and metallurgical industry. Information on metallic corrosion and methods used to control it in underground workings and mills was gathered (a) by discussing corrosion problems with company personnel, (b) by examining equipment and structures during under-ground and mill tours, (c) by photographing corrosion sites, and (d) by collecting and analyzing mine water samples.The corrosion survey, which is summarized in the re-port, leads to the following general conclusions. Mine environments are corrosive, particularly when the mine w1a-ter is acidic. Because of a lack of good corrosion control measures, excessive deterioration of equipment due to corrosion occurs in mines. Mill environments are also corrosive, but in some cases good preventive measures are being taken to effectively control corrosion losses.Ways to reduce corrosion losses in sulphide ore mines and mills are discussed. The main areas for more corrosion research and development are selection of materials of construction, protective coatings, cathodic protection, inhibitors, equipment design, and mining and milling practices."

Jan 1, 1971

By I. Thobadi, C. Pawlik, K. Bisaka, S. Mokoena, M. Erwee

The PyEarth™ process developed at Mintek has been demonstrated successfully at pilot scale. Nine tons of ore containing 2.3 mass % of total rare earth oxides (TREO) from a dormant mineralogically complex iron-rich ore deposit, was subjected to a concentrating smelting step in a 200 kW DC open-arc pilot furnace and the rare earths from the resulting slag were extracted via a hydrometallurgical route. This ore deposit is practically not amenable to extraction by conventional methods. The testwork results proved that the PyEarth™ process was able to optimize the extraction of rare earths while minimizing waste through the removal of iron as a saleable iron alloy. Reduction of iron to the alloy in the smelting step was found flexible, efficient, and controllable, while rare earths were left virtually unreduced in the slag phase. The slag chemistry is selected to optimize both the smelting and leaching performances as well as the alloy composition. Leaching of the resulting slag was found possible and most efficient in hydrochloric acid amongst other lixiviants tested.

Jan 1, 2017

By Eliodor Stoian

PRESSURE information has earned a place of recognition to almost everyone interested in oil and gas production. This interest is due chiefly to the multitude of uses to which it can be put. A sub-surface pressure test, conducted for as little as $60, may yield data worth many times its cost. To the uninformed, the testing techniques may seem complex. Fundamentally, however, they consist merely of the application of common sense. At one time, sub-surface pressure data were used only in identifying individual well problems and in finding appropriate solutions. Today, it is generally acknowledged that sub-surface pres-sure .data are essential for the proper evaluation and exploitation of oil and gas pools. The following is a review of significant applications of sub-surface data with regard to: (A).-Development (B) .-Completion and work-overs (C) .-Production (D) .-Reservoir engineering (E).-Proration (F) .Other applications of pressure data of a more general nature.

Jan 1, 1958

By Š. Šachlová, T. Lokajícek, M. Petružálek, T. Svitek, A. Štastná

During the past 20 years, alkali silicate reaction (ASR) as a cause of concrete deterioration has been studied by a wide range of experimental methods such as microstructural and macrostructural analysis, bulk chemical analysis, X-ray and neutron diffraction analysis, etc. All of these data are compared with expansion values of mortar bars (following ASTM standard C 1260). Recent studies indicate the useful application of non-destructive methods with the aim of better reflecting mechanical properties and the degree of deterioration of real concrete. Ultrasonic testing methods (including ultrasonic pulse velocity UPV) are widely used to determine material mechanical properties and the changes induced by a variety of mechanical or chemical processes. However, only a few laboratory studies of ASR focused on ultrasonic testing of mortar bars. Due to this fact, a heating chamber was designed and constructed to enable ultrasonic sounding of mortar bar specimens while stored in accelerating solution. Regular ultrasonic sounding of mortar bars reveals significant dependence of ultrasonic data such as longitudinal P-wave velocity, signal energy, signal amplitude and signal frequency on mortar bar storage time. Ultrasonic data were subjected to time domain as well as frequency domain analysis. Different storage conditions were used to determine the effect of ASR on ultrasonic parameters. Mortar bars, prepared in the same manner with one type of aggregate, were stored in cold or warm water or in an accelerating warm medium. Ultrasonic data accurately reflects the differences in hardening and deterioration of tested mortar bars due to different storage conditions. Ultrasonic results showed very good correlation with the results of ASTM standard expansion tests and much higher sensitivity to ASR-induced concrete deterioration. Expansion tests showed 1% measured length differences in comparison with up to 80% resolution of ultrasonic data. The ultrasonic testing proved to be a suitable laboratory method for investigating ASR-related processes and could lead to an improvement of standard testing procedures.

Jan 1, 2015

By A. C. A. Howe, J. C. Rowntree

"The Bernie Lake pegmatite near Lac Du Bonnet in southern Manitoba is a complexly zoned pegmatite containing several lithium-bearing units in addition to the western world's largest known reserve of cesium. The pegmatite forms a flat-lying ellipsoidal body within an east-west-trending Precambrian amphibolite. The pegmatite enclosed by this vertically schistose amphibolite lies near the eastern tip of a granitic intrusive. The relationship of this intrusive to the pegmatite is obscured by Bernie lake. To date, the pegmatite body has been delineated aver an area of approximately 80 acres; it attains a maximum thickness of 280 feet. Several distinct zones, including three assemblages of economic importance, comprise the pegmatite itself. The combined spodumene and lepidolite assemblages provide a recoverable defined lithium ore reserve of almost 5 million tons averaging more than 2 per cent lithium oxide. The recoverable cesium ore of the pollucite assemblage provides 300,000 tons averaging more than 20 per cent cesium oxide; this represents more than half of the western world's pollucite reserve. The Bernie Lake pegmatite deposit, owned by Chemalloy Minerals Limited, is well located with respect to the growing United States markets, and its reserves of cesium are large enough to enable it, under favourable economic circumstances, to become the major producer of this metal in North America."

Jan 1, 1967

By C. Joulian, A. G. Guézennec, A. Chmielarz, Y. Ménard, M. Hanke, P. d’Hugues

"The copper concentrate used in this study is produced by flotation of a black shale organic rich ore. This resource is a carbonate-rich, polymineral concentrate. In the last 5-6 years, ore characteristics changed and the concentrate grades degraded. This study evaluated bioleaching of the concentrate in stirred tank reactors as an alternative to the pyrometallurgical technology that is currently applied, and which may no longer be feasible in future given the concentrate chemistry.The first part of the study focused on testing non-traditional operating conditions during continuous bioleaching experiments: high solids concentration (> 20% solids), reduced agitation and aeration rates. For the same residence time, bioleaching performance at high solids loading (25%) was the same as that reached during previous bioleaching experiments at 15% solids. No mixing or microbial issues were encountered. The bacterial consortium used in the experiments demonstrated a high copper tolerance.The second part of the study was devoted to technology development for metal recovery from copper bearing solutions obtained during bioleaching experiments. Due to the high copper concentration of the leachate, solvent extraction prior to electrowinning was not necessary. After iron removal, high quality copper cathodes (morphology and composition) were obtained from the PLS by electrowinning."

Jan 1, 2014

By C. R. Machado

Sossego Mine was the first Vale SAG mill operation to process copper-gold ore. It is located in the state of Para, in the south-eastern Amazon region of Brazil. In the first six years of continuous operation, Vale investigated different alternatives for improving circuit performance by investigating operating conditions, mainly focusing on the SAG mill. Today, after a steady increase over five years the annual production rate seems to have stabilized. It is hoped this work will show how the SAG operating practice have been perfected with time and as new data are collected. Historical data of mill grind-outs and crash stops helped create operation curves depending on the ball charge volume and total charge volume. Also noted were impacts on throughput due to the effect of reducing liner weight and the ore type characteristics.

Jan 1, 2012

By J. A. McLennan

Geological uncertainty is an unavoidable characteristic of all mining projects since only limited information is available from sampling. Mine planning and development decisions with significant economic consequences are made when the geological heterogeneity is inherently uncertain. Geostatistical simulation is preferred over kriging because the methodology provides alternative property realizations that can be combined into a model of geological uncertainty. Geological uncertainty can be transferred into production uncertainty, which can help characterize the economic risk of the project. This paper presents a case study for the Pogo property, being prepared for development near Fairbanks, Alaska. The exact dimensions, grades and production predictions have been modified; however, the methodology is illustrative. The geostatistical methodology consists of (1) assembling the relevant drillhole data and establishing a suitable coordinate system, (2) calculating the target distribution, (3) creating a model of spatial correlation, (4) generating multiple realizations at a small scale and (5) linearly averaging all the realizations to the chosen selective mining unit (SMU) support size. The geostatistical model is then used to calculate production uncertainty.

May 1, 2004