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By P T. Stoker, A Allman, D P. Carville

Classification of mineral resource estimates is one of the most important responsibilities of the Competent Person. In recent years, classification decisions have been driven more by the detailed block-by-block attributes generated by the now widely applied geostatistical estimation methods, and less by a general geological overview. This is increasingly resulting in æspotted dogÆ outputs, in which blocks of Inferred Resources or unclassified material separate blocks of Measured and/or Indicated Resources, or individual drill holes are surrounded by annuli of Measured and Indicated Resource blocks. Not only are such outputs potentially misleading, since they ignore fundamentals such as continuity of geology and mineralisation between drill holes and the imprecise nature of resource estimation, they can also cause substantial problems for engineers undertaking mine designs and estimating ore reserves, particularly for underground mines. Competent Persons for mineral resources must keep in mind the purpose of their work, and should use their experience and judgement to avoid or smooth out æspotted dogÆ classifications, providing a result commensurate with the level of geological and resource estimation confidence. For their part, ore reserve Competent Persons must understand the resource estimation and classification process, and should question resource classifications that are not consistent with the level of geological and resource estimation confidence.

Jan 1, 2006

By R McCarthy, P Darvall

FerrAus Limited's Robertson Range and Davidson Creek iron ore projects are located on the far eastern margin of the Hamersley Province, approximately 100 km to the east of Newman, Western Australia. The deposits are primarily formed of bedded haematite-goethite-limonite mineralisation within the Marra Mamba Formation, comprising a total combined resource of 164 Mt at 58.6 per cent Fe. The deposits represent relatively new discoveries for the Hamersley Province. The potential for mineralisation at Robertson Range was identified by Rio Tinto Exploration in 2000, while Davidson Creek remained untested until 2007. One of the main reasons for this is that these deposits are almost exclusively concealed beneath Tertiary sediments and recent transported cover making them difficult targets for conventional, prospecting style exploration. Since commencing exploration in the project area, FerrAus has collected nearly 20 000 stations of gravity data within the Robertson Range and Davidson Creek project areas, with most of this data collected at a 50 100 m station spacing. Gravity has proven itself to be an effective technique at predicting the position of the target host stratigraphy and has been a key driver in the exploration for concealed iron ore deposits. However, there is not always a perfect correlation between the position of gravity anomalies and concealed ore. The response of deep haematite bodies may be masked by low-density cover rocks, while other dense lithologies may be the cause of gravity anomalies which appear similar to the Marra Mamba targets. Hence, effective use of the gravity data requires interpretation in a geologic context with an understanding of the capabilities and limitations of the technique.

Jan 1, 2009

At many locations in Australia the decommissioning of mining operations will require the disposal of excess water. If the water is contaminated its disposal may be restricted by government guidelines. The timing of water disposal may be critical to the schedule of close-out. The uncertainty of the annual rainfall input to the water storage and disposal system may determine the success or failure of close-out. The uncertainty associated with any outcome can be used to determine the reliability of the system, or inversely its risk. The technique of Monte Carlo simulation, using the uncertainty in annual rainfall, is applied to quantify the risks associated with water disposal as part of the requirements for close-out in two case studies. In both case studies it is assumed that water disposal is via evaporation only. The first case study is the Nabarlek operation, located about 270 km east of Darwin. This project is required to complete the engineering work associated with its close-out by December 1995. The second study investigates the situation of close-out for the Ranger Uranium Mine, about 250 km east of Darwin. It should be noted that the Ranger mine was examined as part of the annual update of its contingency rehabilitation plan and the probability of implementing the plan is extremely small. The probability of success for the Nabarlek case varied from less than ten per cent to greater than 95 per cent depending on the management strategy. Four possible strategies were investigated for the Ranger mine with the chance of success varying between 20 and 95 per cent. The estimation of the evaporation rate and the area allocated to evaporation was critical in both cases. By applying seasonally based evaporation pan coefficients determined on site, rather than an average monthly value of 0.75, the chance of success was improved by up to 35 per cent for Ranger. Simulation modelling is able to provide information on the likely response of mine water management systems and the level of risk. This information is required to efficiently plan and manage the disposal of water for close-out.

Jan 1, 1994

By W Potma, C Brauhart, S Halley, S Urbisinov, A Scogings

Truly integrated, quantitative, 3D GEOmetallurgical (or mineral system) characterisation, classification and 3D modelling should provide a cradle to grave unifying link across the exploration and mining value chain. All too often, spatially representative (quantitative) characterisation and modelling of a mineral system is delayed until feasibility stage, incurring a significant opportunity cost. The application of robust GEOmet characterisation methods early in the project lifecycle (at exploration stage) improves ground selection, exploration, and Mineral Resource estimation outcomes, long before there is a need for metallurgical test work. The value of this early provision of quantitative 3D mineralogy models is compounded at project feasibility stage, and continues to accrue over the entire project lifecycle, delivering cost savings, improved decision making and early warning of issues and opportunities.CITATION: Potma, W, Halley, S, Scogings, A, Urbisinov, S and Brauhart, C, 2018. Putting the ‘GEO’ back in front of GEOmetallurgy: importance of early implementation of quantitative mineral system characterisation, classification and modelling, in Proceedings Complex Orebodies Conference 2018, pp 55–57 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By T Elkington, A Finch

The theory of constraints (TOC) is a business improvement method that focuses on exploiting a business’s bottleneck to deliver the highest possible profit. Early applications were mostly in the manufacturing industry; however, the theory in itself is completely generic and has now been applied widely in other industries such as services, retail, software and distribution, amongst others. The intent of the approach is attractive – it focuses on the ‘silver bullet’ rather than ‘death by a hundred projects’, and it focuses on growth rather than cost cutting. Application within the mining industry has been limited to date, although there are a few applications emerging. This paper discusses how TOC can be applied to maximise value during the project planning phase and how to maximise profits when the mine is operational. The paper uses two case studies to illustrate the approach. Case study 1 uses the approach to improve tactical mine planning, which delivers an increase in revenue of 58 per cent. The second case study is a strategic mine planning example that delivers an increase in value of 77 per cent.CITATION:Finch, A and Elkington, T, 2014. Application of the theory of constraints to strategic and tactical mine planning, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 129–136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By D Andrew, G Stanway, P Mahoney, C Griebel

The iron ore mining industry is currently going through an adjustment from high to more moderate growth as China’s economy transitions from capital-intensive investment to a more services-oriented economy. We are now witnessing a renewed focus on productivity improvements and cost savings as planned expansions are completed. Despite the scale and importance that the mining industry plays in the global economy, innovation literature is generally more targeted at faster-moving industries with shorter innovation timeframes and lower capital requirements. To fill this gap, VCI set out to understand the state of innovation in the mining industry in 2014. This State of Play report aims to give an objective appraisal of the strengths and weaknesses of innovation in mining. The report has three sections covering both the structure and delivery of innovation in mining:Ecosystem – focused on understanding how the iron ore mining innovation ecosystem system works, including the roles of large and small miners, service companies, researchers and governments. Our recommendations focus on what is required for the system to work well and improve the level and quality of innovation in the industry.Strategy – how do companies define their innovation strategy in relation to their corporate strategy? How are these related to prevailing global and industry trends? How do they communicate this with their business? How successful are they? These are among the questions that this section attempts to answer. Our recommendations are pitched at the executive leadership of iron ore mining and service companies.Delivery – focused on how companies develop and deliver innovation, looking at the success of different structural options, leadership and culture, partnerships and the best approaches to change. Recommendations are aimed at improving outcomes within the iron ore mining value chain, including the role that suppliers play.CITATION:Stanway, G, Mahoney, P, Andrew, D and Griebel, C, 2015. Understanding the state of innovation in the iron ore industry, in Proceedings Iron Ore 2015, pp 631–646 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By Fitzgerald DE, Taverner MG

The principles, fields of application and equipment design concepts of several new approaches to continuous vacuum treatments of molten metals and alloys are discussed. Partic- ular attention is paid to the results of pilot plant tests evaluating a launder-in-tube method of 1. continuous production of refined zinc from a zinc-bearing lead produced in the lead splash condenser of the Imperial Smelting Furnace (ISF), and 2. continuous refining of crude cadmium. The former trials were not sufficiently encouraging to justify consideration of the process for commercial development. The applic- ation to cadmium upgrading gave very promising results; metal of 99.99 per cent purity was produced continuously at pilot scale (120 lb per hour) from crude metal containing 5.0 per cent Pb.

Jan 1, 1972

Major exploration companies can have a problem with what to do with small precious metal ore bodies located through exploration programmes. Low tonnage, but high grade, ore bodies too small to justify in-house development.1.2 Ban Ban Mining is a Sunshine Coast based partnership with considerable expertise in mining and earthmoving which specializes in the mining of small/medium size ore bodies on behalf of the tenement holder on a profit sharing or royalty basis.1.3 The partnership's first successful venture has been the mining and vat leaching of a small 40,000 tonne ore body with a head grade of 5 gm/tonne gold and 32 gms/tonne silver, situated near Ban Ban Springs in southeast Queensland.1.4 This paper looks at the low cost vat leaching method of treatment, as an alternative to CIP and CIL in the processing of low tonnage/high grade precious metal ore bodies.

Jan 1, 1990

By Whiteley M, Robinson T, Vernon B

The Western Australian gold industry has approximately 100 operating plants, mainly CIP/CIL. The nature of the State's rapidly expanding gold industry gave rise to concerns over management of the cyanide hazard, in that most plants are remote from major population centres, have a workforce with a high turn over and use highly saline process water. Approximately 4,500 workers in the industry have the potential to be exposed to cyanide in the course of their normal work.This paper outlines the risk management strategy developed by Government and industry to monitor atmospheric HCN gas in the work environment and the role of continuing education and training along with regular site inspections by Department of Mines Inspectors.

Jan 1, 1990

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

This paper discusses the requirements for a successful simulation modelling study, and the steps involved in the modelling process. Advantages and disadvantages of simulation are described, and a case study highlights how not to go about it. Two other case studies, for a decline truck haulage and a block caving production operation, are used to illustrate the types of variables whose impact may be investigated. Typical results are presented to indicate the sorts of presentation styles the author has found useful for conveying study results to project sponsors. Standard spreadsheet charting techniques can be very useful in this respect, but the possibilities are limited only by the imagination of the study team.

Jan 1, 2000

Productivity of mines can be improved by taking fewer, but larger blasts. The initial blasts taken in starting a mining block are restricted by the low amount of void or space to fire into. Block cave mines are using a blasting technique to blast areas that have less than the normally accepted minimum void to establish drawbells for their orebody development. This technique used in block caving mines can be used to improve productivity in mining operations that utilise other mining methods. Some larger blasts have been done in mines, using open stoping methods, which have had void ratios as low as 13 per cent. This has been possible with the use of the explosive gases to transport the broken rock out of the area normally considered to be available to blasts. This trapping of the explosive gases in the broken rock has allowed rock to be moved over 30 m, horizontally, to allow for more void to be available in the blast area. This gives the necessary void ratio allowable to fire larger blasts. This paper will discuss the blasts where this technique has been used in mines to increase the tonnes fired in low void situations. It will also discuss where this type of blasting may improve the productivity of underground mines. Figure 1 shows the how explosive gases have enabled the broken rock to flow out of a draw point without the typical air blast and fly rock that would normally cause a rope suspended sign to be damaged beyond use.

Jan 1, 2008

Blasthole cone samples are used for grade control in most of the iron ore mines of the Pilbara of Western Australia. This method of sampling is straightforward when the target sampling interval matches the mining bench height but is problematic when the blasted bench is 'flitch' mined in two or more passes. Crucially, the sampler needs to decide which part of the blast cone represents the upper and lower flitches to be mined. This sampling selection decision is usually made by assuming a certain proportion represents the subdrill component of a sampling face in a blasthole cone and the two flitches are split equally from the remaining portion. In this study of a West Australian channel iron deposit, sampling experiments were carried out to determine the actual proportions of a sampling face in a blasthole cone by spray painting the blast cones at flitch and subdrill boundaries during the drilling process. Measurements were then taken to assess the differences between assumed sampling face proportions and actual proportions. A set of paired samples was also collected from a number of blastholes with one set using the assumed proportions of each flitch for each sample, while the other set sampled the actual proportions, which were identified from the cone painting process.

Mar 1, 2010

Alliance Gold Mines was established in the early part of 1994 to acquire the assets of Diamin Resources NL at Maldon, Victoria. These comprised Exploration Licence 3422, some 20 sq km in area and enclosing the main part of the Goldfield, and a CIP plant - with a nominal capacity of 250 000 tpa - which was commissioned in 1988. Between 1988 and 1992 Diamin had mined - by open pit methods - and milled around one million tonnes of low grade gold ore, and recovered 55 000 ounces of gold. By 1992 the known shallow resources had been depleted. Historical gold production from the Maldon field is about 1.75 million ounces, at the surprising average recovered grade of 28 g/t. The last significant mine closed in 1926: since then there has been no comprehensive exploration program, though Lone Star Exploration NL tested part of the field for shallow open-pittable resources in the 1970s and Carpentaria Exploration Company Pty Ltd carried out widely-spaced drilling on the three main reefs from 1979 to 1982. Diamin (1983 - 1994) commenced a careful compilation of old mine records and newspaper clippings, and drilled several cored holes.

Jan 1, 1996

By S Roberston, G Batt, R Shanahan, B Shah, A Trench, H Bromfield

The geographic imperative of ore systems leaves mining, more so than virtually any other aspect of modern industry, heavily dependent on obtaining and maintaining social licence to operate. A prospective miner cannot arbitrarily walk away from a deposit in search of more favourable community perceptions – concentrations of mineral endowment represent highly specific and fixed elements of the landscape, and their development and extraction thus requires the acceptance and trust of a specific network of landholders and stakeholders, sometimes with diverse and even competing interests in the development and use of the local environment. Weakness or absence of such social licence can bring added costs and complexity to developing and operating a mine – and in extreme cases even result in project failure. Because it must be maintained throughout the life of a project, such social risk becomes a substantial part of overall project risk profile, particularly during routine operations once initial technical and development risks have been largely resolved.CITATION: Bromfield, H, Roberston, S, Shah, B, Shanahan, R, Trench, A and Batt, G, 2018. On equitable distribution of mining wealth and the social licence to operate imperative – an African case study, in Proceedings Complex Orebodies Conference 2018, pp 6–7 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

THOSE who have had occ.asion to sample a mine not infrequently find that it is impossible to take their sample cuts at regular distances apart, owing to the ground being close timbered, a stope having been taken out, or some other cause. When such is the case a tedious calculation becomes necessary in order to obtain an accurate result. A conscientious man will make the tedious calculation, but one who is inclined to be lazy, or who does not recognize the importance of accuracy, or has not the time, may be satisfied with either the arithmetical or weighted arithmetical mean result.There are two main systems of taking samples when the cuts are taken-(l) at equal distances, (2) at unequal distances. When the samples are out at equal distances apart there are three methods of computing the assay value :-1 (a) By Arithmetical Mean. The sum of the values and sum of the widths are each divided by the total number of samples, in order to obtain the value and width respectively, no allowance being made for the relative widths arid values. The result isabsolutely inaccurate, and should never be used under any circumstances.1 (b) By Geometrical Mean. The assay widths ie, feet %, feet oz, inch dwt, &c, are added together and the sum of these is divided by the sum of the widths.

Jan 1, 1911

This paper is for mine managers. It is about maintenance of mining equipment. This is an extremely broad subject so this paper is given with the caveat that it necessarily contains generalisations, not true in all cases, but broadly correct. The job of mine managers is to be good at making money from the excavation and preliminary treatment of mineral. To do this well, they need to understand the cost and value drivers in the business. This includes understanding the drivers associated with maintenance. Maintenance is often identified as a problem at mine sites. It is frequently listed as the cause of production shortfalls when reporting. The state of maintenance within mining as an industry is generally among the lower end of the range, when compared to manufacturing, petrochemicals, etc. Why is this? Experience and review of many audits and evaluations of maintenance has shown that some patterns are consistent with good performance and some consistent with poor performance. These often centre around the time horizon of the management team and are associated with knowing the sensitivity of the business to certain maintenance drivers and the mechanisms of maintenance and their results. To summarise, some common misunderstandings can be listed as statements that are obvious and extrapolations from those, which are not necessarily correct. For example: High availability of equipment is necessary for production. Incorrect extrapolation:focus on availability will produce high production. Design is often the greatest factor in determining the reliability of a mining machine. Incorrect extrapolation: the newest and biggest machines generally have the lowest cost operations. Operation has an enormous impact on machine productivity and reliability. Incorrect extrapolation: the fastest operators are generally the best from a productive point of view. Some maintenance improves the performance and reliability of machines. Incorrect extrapolation: more maintenance will give you more reliability. Some maintenance depends on disassembly and reassembly of components. Incorrect extrapolation: assembly is basically the reverse process of disassembly. Maintenance improvement in the mining industry in the last 15 years has focused largely on planning and systems improvement. Incorrect extrapolation: most of the problems in maintenance can be traced to a lack of planning. Actions based on flawed extrapolations will steer a business suboptimally. It is therefore important that the mine manager understands these issues so that the improvement effort can be directed to the greatest benefit.

Jan 1, 2006

Australia had an active uranium mining industry in the 1950s with uranium oxide being supplied under contract to the atomic energy authorities of the U.K. and U.S.A. In the 1960s, when these con- tracts concluded, domestic production ceased, apart from Rum Jungle, whose production until 1971 was stockpiled. By the 1970s, the demand for uranium from the electrical utility industry had risen sharply and the effects on Australia were notable. The Mary Kath- leen mine re-opened in 1976 but, more significantly, exploration activity suddenly expanded with the re- sult that several world-standard deposits were locat- ed. Western world requirements for uranium based on increasing energy consumption and a changing energy mix, will warrant the development of Aust- ralia's resources. By 1985 our mines could be pro- ducing 9,500 tonnes of uranium oxide yearly and by 1995 the export value from uranium could reach that from wool. In terms of benefit to the community the economic rewards are considerable but, in terms of providing energy to the world, Australia's uranium is vital.

Jan 1, 1978

By R McCarthy, P Hawke

FerrAus Ltd's Robertson Range and Davidson Creek Projects are located in the Hamersley Province about 100 km east of Newman, Western Australia. Significant iron mineralisation defined by an aggressive exploration program within the Marra Mamba Iron Formation is shallowly north dipping at Davidson Creek, and mainly shallowly east dipping at Robertson Range, forming part of a regional scale anticline with the granitic and greenstone basement of the Sylvania Inlier as its core. With minor exceptions, the stratigraphy is comparable with that seen in the main Hamersley Basin. Granite and greenstone basement rocks of the Sylvania Inlier are unconformably overlain by shales and volcanic rocks of the Fortescue Group. The overlying Hamersley Group is locally represented by interbedded chert, banded iron-formation (BIF) and shales of the Marra Mamba Iron Formation (Nammuldi, MacLeod and Mount Newman Members), and dolomites, cherts, BIF and shales of the Wittenoom Formation. Iron enrichment occurs predominantly in the Mount Newman Member, and to a lesser extent in the West Angela Member of the Wittenoom Formation. Enrichment varies from 20 - 30 m in thickness in elongate bodies up to 3 km in strike length, and generally thins down dip. At Davidson Creek iron mineralisation is a haematite-goethite-ochreous goethite assemblage, while at Robertson Range this assemblage is consistently overprinted by a later, goethitic alteration related to 'hardcap' weathering. Near surface hardcap alteration in both project areas comprises more siliceous, aluminous and vitreous goethite. Initial exploration completed by Rio Tinto Exploration between 1999 and 2001 indicated the potential for about 20 Mt of iron mineralisation at Robertson Range. Since 2005 a detailed exploration program undertaken by Australian Manganese Pty Ltd (a wholly owned subsidiary of FerrAus Ltd) has defined a global indicated and inferred resource totaling 164.4 Mt at 58.6 per cent Fe (ASX: FRS 17 April 2009).

Jan 1, 2009

By C J. Larder, S E. Turner

The concept of underground grinding is not new, but to a metallurgist and a mining engineer this could be considered unconventional. The idea of pumping a ground slurry several hundred metres from underground in a single lift could also be considered to present a daunting engineering challenge. Using a practical example of a mine in Australia where the owners have requested not to be identified, this paper challenges the conventional thoughts on these concepts and shows that with basic sound engineering practices the production of a ground slurry from underground could potentially provide significant operating cost savings. The supply of ore from the underground mine is currently drawn from depths approaching 800 m below the surface. The cost of hauling the ore to the existing underground crushing station located 500 m below surface has been steadily increasing. A number of alternatives to reduce the mining and processing unit operating costs were examined by Sinclair Knight Merz (SKM) and the mining company. The most radical of these is the use of hydraulic hoisting of ore at an increased production rate. Numerous questions were asked, such as: How does one get a SAG mill or an HPGR crusher underground? Where does one locate a grinding mill underground? Does the technology exist to pump the slurry to surface in a single lift? What will be the cost benefits? What are the risks involved? The study covered the two main technical issues underlying the potential benefits. Firstly, technical evaluations were undertaken on the pumping technology currently available for single and multiple lifts to surface. Secondly, the issues relating to the feasibility of delivering and locating a SAG mill underground were reviewed. Although the capital costs for this project are significant, the operating cost savings showed a potential payback period of less than two years, and furthermore provide the basis for an increased mine life, especially at lower metal prices.

Jan 1, 2005