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By C L. McIntosh

The west coast of New Zealand’s south island is host to a large number of placer goldfields that stretch from the Westport area in the north to Gillespies Beach in the south and inland to the foothills of the Southern Alps. This area is host to a large number of alluvial, glacial and strand line deposits ageing in range from Recent to Tertiary. In recent years exploration models have been developed for off shore placer deposits on the continental shelf.Gold mining on the west coast has exploited placer gold resources from the 1860s to present, and with the recent surge in the gold price the industry is currently undergoing a resurgence. The current increase in mining is dominated by small-scale mechanical operations usually involving one to two people at each site; a few larger operations also exist such as the Grey River Dredge.Mining methods range from using floating bucket dredges to small diggers. Some of the mining technologies used are similar to those employed during the great gold rushes of the 19th century. Exploration and grade control techniques can be very rudimentary often relying on previous sampling programs or wide spaced bulk sample drill holes. Some bulk sample drilling is used on the larger operations as a form of grade control, most of the small operations tend not to use any ore control sampling prior to mining. Extraction techniques relying on simple gravity based designs with riffle tables or spirals are the most commonly used. Environmental standards are very high within New Zealand and require operators to return mined areas to preagreed to landforms. The high rainfall experienced on the west coast causes challenges to operators in regard to water quality. Technical issues combined with often limited capital provide for challenges to the operations.

Aug 22, 2011

By S Pontual

The use of spectral data has traditionally been for obtaining mineral information and for mapping out alteration systems. The output from these data is typically in the form of mineral assemblages and data on relative proportions of minerals. However there is much more than just mineral information in the spectral data. Most importantly, the data allow the user to obtain vital information on mineral chemistry for some key alteration minerals. The mineral chemistry data allow the users to evaluate multiple phases of alteration of the same key mineral species, and to assess which phase is related to mineralisation. Mineral indices can be extracted from the spectral data and plotted to represent variations in the chemistry and relative proportions of key mineral phases as downhole, section and three-dimensional (3D) plots. These data can also be compared with the spatial distribution of the mineralisation by integration with geochemical and logging data. Through spatial and statistical evaluation the mineral information obtained using spectral analysis can provide vital information to assist in building alteration models and therefore improve targeting for further drilling and exploration.

Aug 22, 2011

By C F. Stokes

The Trident Gold Deposit has been successfully developed by Alacer Gold (formerly Avoca Resources Limited) into a 1.3 Mt/a operation in the space of four years from discovery to first gold pour (2008). The current in situ Resource for Trident is estimated to be 5 900 000 t @ 5.0 g/t for 940 000 ounces at a cut-off of 1 g/t or 2 g/t depending on ore style. Production to date (Alacer and previous owners) is in excess of 500 000 ounces. The deposit lies towards the southern end of the Norseman-Wiluna Greenstone Belt in the Archaean Yilgarn Craton, where it is centred on the historical Higginsville Mining Centre, midway between the world class gold centres of St Ives (+15 Moz) and Norseman (+6.5 Moz). 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; 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; and thin, lode-style, nuggety laminated quartz veins (Athena and Artemis) that formed primarily at sheared lithological contacts between the various mafic and ultramafic lithologies. The initial interpretation of the Trident Deposit was based on steeply-dipping structures controlling the zones of mineralisation, with much of the targeting and drill-testing aimed at this style of orebody. Subsequent exposure of the orebodies has identified a series of shallow-east dipping mineralised systems (interpreted to be large reverse shears) that at their intersection with the steep-dipping structures cause significant gold enrichment. It is postulated that both orientations are primary fluid pathways with the intersection between the two resulting in zones with significantly high concentrations of gold mineralisation (in excess of 300 000 ounces). This new understanding on ore controls at Trident has identified that the thin lode-style shear-hosted laminated veins are continuous for over 1700 m along strike as they step en echelon down-plunge. In addition, a repetition and periodicity to the intersection between these steep dipping lode-style systems and the shallow-dipping mineralised zones (estimated to be 700 - 900 m down-plunge) has been identified which has considerably increased the down-plunge potential of the Trident Deposit.

Aug 22, 2011

By J Vann

The philosophical context of many activities in mine geology can be an important lever in adding value to operations. For mine geologists (including resource and grade control geologists) we argue that the tasks of problem formulation, observation and data collection, interpretation and modelling invoke various philosophical considerations whether the practitioner is aware of them or not.Constructing testable models to explain reality is the definitive aspect of any activity claiming to be ‘scientific’. A primary goal of mining geology is to build models that accurately predict reality to an acceptable degree and these include litho-structural, stratigraphic, grade control, resource or reconciliation models. What’s more, in mine geology we are often able collect additional drill samples or access new underground openings, for example, that can provide relatively rapid feedback on how predictive, and therefore useful, our models are. In this paper, we describe the key philosophical frameworks proposed for conducting scientific investigations, including falsification, the method of multiple working hypotheses and structural concepts of scientific theory. The strengths and weaknesses of these approaches are discussed and an attempt is made to relate them to activities undertaken by mine geologists. Common perceptions of what constitutes the scientific method have been dominated by how scientists do experimental physics and chemistry in particular. There are very important differences in the types of problem confronted in these experimental sciences compared to the ‘historical sciences’, such as geology, where the processes studied are unique and only evidential traces of past events are available. The philosophical implications of attempting to validate numerical geological models, such as resource estimates are also briefly considered.Some practical conclusions are drawn about how mine geology activities can be better implemented if practitioners are cognisant of the importance of philosophical considerations when attempting to gain new knowledge through a scientific investigation. We believe that the implications for creating additional value to a project or operation can be very significant when geology is applied by a practitioner with an understanding of the philosophical basis of the activities we think of as constituting a scientific investigation.Remember that all models are wrong; the practical question is how wrong do they have to be to not be useful? (Box and Draper, 1987, 74 p).The demand that theories be highly falsifiable has the attractive consequence that theories should be clearly stated and precise. If a theory is so vaguely stated that it is not exactly clear what it is claiming, then when tested by observation or experiment it can always be interpreted so as to be consistent with the results of the test. (Chalmers, 1999, 67 p).

Aug 22, 2011

By M Fitzgerald

Fimiston Open Pit is operated by Kalgoorlie Consolidated Gold Mines (KCGM) as a joint venture between Barrick Gold and Newmont Mining. Over 110 years of underground mining resulted in the development of nearly 3500 km of underground workings including backfilled and open stopes up to half a million tonnes in size. These voids significantly complicate blasting processes at KCGM, influencing blast movement direction and magnitude. Blast movement monitoring to improve mine reconciliations was identified as an improvement project in the business plan for the geology team in 2008. Following successful trials in 2008 to 2009, blast monitoring and translation of ore blocks were implemented as a permanent grade control program from late 2009 and is now part of the Management Operating System (MOS) of the mine. This paper presents a summary of results from the Blast Movement Monitoring (BMM®) data collected to date. Ore blocks at KCGM are translated primarily using BMM® data. This data is obtained from the BMM® system which measures the movement of a radio transmitter installed in a blast pattern from a preblast position to a post-blast position. The application of the data collected by the BMM® tends to be both mine site and blast specific. At KCGM, an average distance obtained from the BMM® data within a given shot is the primary method used for translation. In the case that BMM® data is unavailable, a theoretical movement vector established from Orica Shotplus with distances gained from the historical BMM® database is used. Data is presented in an ore loss and dilution exercise for a bench undertaken at KCGM to understand the potential effects on reconciliations. Improvements that have flowed from implementing blast monitoring include improved reconciliations when combined with other grade control improvement projects. The increase in liaison between the geology and blast personnel at KCGM has been a significant improvement gained from the implementation of the blast monitoring program. This has allowed a better understanding of blast movement and the effects on ore dilution and ore loss by the mine geology team. In addition, the discussion of blasting tie-in plans between geology and blasting personnel has been improved which leads to more favourable blasting practices that take ore movement into account.

Aug 22, 2011

By P Odins

Traditionally, stratigraphic deposits have been represented by a large number of gridded surface and product analytical models, related to each other by naming convention. This approach, though suitable for structurally simple stratigraphic deposits, does not lend itself well to addressing the complex style of stratigraphic deposits which are becoming more prevalent. In addition, the sheer number of individual gridded models involved makes it very difficult to keep a consistent audit trail of the overall deposit model. Recently, a new enhanced block model structure known as Horizon Adaptive Rectangular Prism (HARP) models was introduced to address these issues. An HARP model is specifically designed to allow stratigraphic units to be represented with virtually no loss of structural integrity, by allowing the tops and bases of the individual HARP blocks to ‘bend’ in concert with the input surfaces. By bringing together the best of grid modelling, triangulation modelling, block modelling and grade estimation, the HARP model opens up many exciting new opportunities for the stratigraphic geologist or engineer to take their model further than was previously possible. Examples of improvements in modelling methodology using a HARP model include: the ability to represent complex normal, reverse and thrust faulting; the ability to store thousands of additional analytical, geotechnical or calculated variables in each individual block; advanced visualisation, manipulation and plotting capabilities; and the ability to calculate volumes and resources against complex, three-dimensional (3D) solid pit designs. Finally, several ‘real world’ scenarios, illustrating how this advancement in modelling technology can benefit a wide range of mining professionals are detailed. These examples demonstrate how productivity gains can be made in both long-term resource modelling and short-term ‘week by week’ geological modelling as an adjunct to mine planning.

Aug 22, 2011

By D Timms

The Kempfield deposit is located in the Hill End Trough, one of several intracratonic basins developed during Silurian–Devonian time, in the eastern province of the Lachlan Orogen, Eastern Australia.The deposit contains an oxide resource of 5.8 Mt @ 58 g/t Ag and a sulfide resource of 14.4 Mt @ 45 g/t Ag, 1.7 per cent Zn and 0.6 per cent Pb, classified and reported in compliance with the JORC Code. The deposit has been previously explored by a number of companies, including INCO, Shell, Jones Mining, Golden Cross Resources and recently Argent Minerals Ltd (Argent). Argent is currently completing a definitive feasibility study with a view to mining the deposit.The deposit is hosted at the boundary between the Molong High to the west, comprising Ordovician sediments and volcanic rocks and the Hill End Trough to the east, interpreted as a back-arc basin containing Silurian sediments and siliceous-feldspathic volcanic rocks. The boundary between these two strato tectonic units is an imbricate thrust fault zone known as the Copperhannia Thrust.The Kempfield deposit is hosted in felsic volcanic rocks known as the Kangaloolah Volcanics. These have been in-faulted and folded into the Middle Ordovician meta-sediments of the Coombing Formation of metasediments along the Copperhannia Thrust. The Kangaloolah Volcanics belong to the Late Silurian Mumbil Group, comprising submarine carbonate-shale facies interspersed with extensive felsic volcanic piles, which grade conformably upwards into turbiditic sandstone and siltstone sequences (interpreted to represent a deeper depositional environment). These turbiditic rocks are known as the Campbells Formation, comprising siltstone, sandstone and andesitic tuff. The rocks at Kempfield are metamorphosed to lower greenschist facies, reflected through the different type of schists.Silver, gold, lead, zinc mineralisation is hosted in barite-rich horizons, near the boundary to quartz-phyric tuffaceous rocks in submarine, immature, reworked felsic ash tuffs. Barite appears to be hosted in greatest concentrations by the coarser grained volcanoclastic sandstones and grits, whilst intercalated siltstones are volumetrically minor and tend to return low barite and silver. Mineralisation is hosted in stratiform and probably stratabound barite-rich horizons. A northeast-trending, steeply dipping, metamorphic cleavage (S1) occurs throughout the project area.

Aug 22, 2011

By J Coombes

The JORC Code lists the three core principles of Transparency, Materiality and Competency as fundamental to how mineral estimates are publicly reported. But where the principles of Transparency and Materiality can be considered conscious choices underlying decisions at the point of disclosure, Competency is a self-declared position statement based on one’s confidence to defend a technical position (as well as the functional pre-requisites of institute membership and a minimum of five years relevant experience).Developing competency in the mining industry is an ad hoc process, generally left to the individual to chart through a process of osmosis from personal work experiences that lead to a sufficient level of confidence. Companies that actually present professional development programs leading to reporting competency are rare. And even once a person has followed a program, there is no specific outline of what constitutes technical competence.No doubt, there are persons signing off on mineral statements who would benefit from developing and/or updating their technical skills (they may not even be aware of unmastered skills). Equally, there are technical practitioners who are sufficiently competent, but lack the confidence to step up and publicly report their estimates. Confidence in one’s own abilities plays a significant role in deciding when one is ready for the responsibility of submitting mineral estimates for public consumption. In addition, a person’s organisational support, such as the availability of suitable peers and professional development programs, and opportunities to learn from a variety of technical projects contribute to developing relevant experience. Increased exposure in both technical breadth and depth enhance confidence in one’s ability and competence.The mining industry provides numerous opportunities through direct and indirect means to develop the competency underpinning a stable reporting code. This paper examines a theoretical framework and associated processes that could be used to examine how the mining industry, companies and individuals collaborate to develop this vague principle of competency. This paper seeks to initiate research with the express purpose of enabling more effective and efficient development of reporting competency in our industry.

Aug 22, 2011

By M F. Gazley

The amphibolite-facies metabasaltic rocks of the Mine Mafic Package at Plutonic Gold Mine, Marymia Inlier, Western Australia, contain an estimated total endowment of 12.2 Moz of Au, which includes 4.71 Moz of past production and 2.77 Moz of reserves and resources; the remainder comprises lower-grade inventory. Over 65?000 multi-element analyses of whole-rock core and face channel samples from the underground workings of the deposit have been collected by portable X-ray fluorescence (pXRF) using a handheld Innov-X Omega pXRF unit. The analyses were performed on pulverised samples through paper bags, and were corrected using a pulverised, matrix-matched, reference standard. This method of data correction compares favourably with conventional XRF analyses performed on the same samples.A preliminary study based on pXRF analyses from a small number of drill holes found that a geochemical stratigraphy was evident in the pXRF data, and that this stratigraphy strongly controlled the location of Au mineralisation. The present study incorporates a much larger pXRF data set that samples a greater volume of diamond drill core and face channel samples and presents the data in a three-dimensional (3D) framework.This data set allows an investigation of the mineralogy of Au mineralisation with varying geochemical associations across the deposit. Historically, there has been a strong relationship identified between As and Au, which has caused issues with metallurgical performance, rendering some areas of the deposit only marginally economic. Utilising seamless data integration of the pXRF data set allows for recognition of the different styles of Au mineralisation using elemental concentrations and ratios from the multi-element analyses (Au:As, Au:As:Cu, As:Cu vs. K:V), and to visualise the distribution of these different mineralogical associations in 3D. The results of the 3D modelling and geochemical characterisation of the different styles of Au mineralisation are currently the focus of an extensive metallurgical testing program, the preliminary results of which are presented here.

Aug 22, 2011

By J Jones

A common problem in the mining industry is that company exploration groups operate in relative isolation to the rest of the company; resulting in poor knowledge transfer (Qureshi and Briggs, 2006) and often priority conflicts with mine geology, operations and project departments. In recognition of this problem, Newcrest created a Minerals Division responsible for stewardship and governance of mineral assets across the value chain from reconnaissance to rehabilitation. It was recognised at an early stage that effective collaboration both internally and externally would be required to improve decision making, deliver faster cycle times and improve governance.Collaboration in companies is generally associated with the introduction of new IT functions. However, modern IT-based collaboration systems and practices are relatively simplistic compared to the long-standing practices associated with collaboration and knowledge management in science and engineering disciplines such as geology and mining.The authors of this paper have started a trial of a 12-point plan for effective collaboration, which recognises that significant efficiencies can be gained and barriers to future success removed if more effective collaboration can be achieved between science and engineering divisions in a company along with external professionals and with the collective intelligence (Tapscott and Williams, 2006) of the outside world. To meet growth aspirations some companies, like Newcrest Mining Ltd, are adopting this comprehensive, step change approach by moving from a closed model the isolates mine geologists to an open and collaborative model that uses IT visualisation systems strategically. The paper describes how an open model provides people with the right work environment and the right information at the right time, which will help individuals and workgroups to work more collaboratively day-to-day. The aim is to achieve speed, focus and mitigate risk through an environment where everyone and anyone can contribute effectively (Cisco, 2008).

Aug 22, 2011

By P Hodkiewicz

Recent structural interpretations based on historic stope shapes were used to develop a rapid and innovative method to domain and simulate structurally complex, high-grade gold veins at depth in the Edna May deposit. This involved ‘implicit’ modelling of drill hole data using Leapfrog software, which allows complex wireframe domains to be built and updated rapidly, compared to ‘explicit’ manual wireframing methods that are too subjective and time consuming. Conditional simulation was used for resource estimation, in order to simulate the highly variable gold grades associated with the veins. Similar modelling methods could be used to determine the mining potential of other historic gold deposits that are receiving renewed interest because of the high gold price.Gold at Edna May is hosted in the Edna May Gneiss, which is a WNW-striking tonalitic intrusion along a shear zone that dips approximately 45° towards the NNE. Gold occurs in multiple 0.5 - 5 m thick arcuate quartz veins that plunge steeply towards the west. Two phases of historic underground mining at Edna May (1911 to 1922 and 1935 to 1947) produced 360 000 ounces of gold at an average grade 19.5 g/t from seven ‘reefs’ to a depth of 240 m. This established Edna May as one of the highest grade gold mines in Western Australia at the time.Recent drilling by Catalpa Resources confirmed the potential for down-plunge continuity of high-grade veins. New structural interpretations, based on historic level maps and wireframe re-constructions of the arcuate stope shapes, were used as ‘structural trends’ in Leapfrog to model the mineralisation. The resulting wireframes capture the complex distribution of gold in the deposit and were used as domains for resource estimation.Conditional simulation using the Turning Bands method was used to simulate the expected variability of gold grades associated with this mineralisation style and the median of the 100 realisations was used to report an inferred resource. Results of this modelling method are being used to target vein extensions at depth, to consider different underground mining scenarios, and to assess the risks associated with developing and mining this high-grade and high-nugget gold deposit.

Aug 22, 2011

By M D. Goodz

MacPhersons Reward gold deposit is in a post-kinematic tonalite intrusion which is a setting different from many other deposits of the Coolgardie goldfield that are hosted in early Archaean tholeiitic sills or meta-sedimentary rocks. Gold mineralisation at MacPhersons Reward consists of auriferous quartz veins that are best developed in the tonalite but extend to the adjacent komatiitic rocks and along the lithological contact zones. The gold-related alteration halo is dominated by biotite-chlorite and pyrrhotite. Unlike many other Coolgardie deposits, the As concentrations are low.

Aug 22, 2011

By B Young

Variable bench heights, interaction with underground workings and a steeply dipping orebody are challenges faced daily by geologists at Xstrata Zinc’s Black Star Open Cut (BSOC) Zinc/Lead/Silver mine in Mount Isa, Queensland.BSOC has been in operation since late 2004 and was developed to extract the surface extents of the Zn/Pb/Ag mineralisation mined in the underground lead mine. To date many large scale stopes and extensive development drives have been intersected and successfully mined. The stratigraphically hosted orebodies strike in a north-north westerly direction, dipping ~75° west. Ore production from the pit is currently at 4.5 Mt/a.Historically, sampling was conducted using a multiple spear technique from blasthole cuttings. This method proved to be relatively reliable when blasting benches at a consistent height, but a requirement to vary bench heights to safely collapse and then mine through underground workings reduced sample representivity to unacceptable levels.The purchase and commissioning of a production rig which had been converted for reverse circulation (RC) has allowed for the flexibility of a small rig, with the capacity to easily drill 48 m holes while ensuring sample quality. Sample quality is not the only benefit of introducing RC grade control. By collecting grade control data well in advance, informed decisions can be made by planning, drill and blast and mining departments weeks beforehand, rather than hours before firing. Additionally, seeking operational value to offset higher drilling costs has proved positive with benefits including increased confidence in orebody wireframes, accurate tonnage and grade for proceeding five benches along with the ability to representatively test metallurgical response on a tight grid spacing.

Aug 22, 2011

By P Collier

From 1972 until 1989 when operations were suspended Bougainville Copper Limited (BCL, owned 53.58 per cent by Rio Tinto Limited) operated a large open pit mine and processing facility at Panguna on Bougainville Island, Papua New Guinea producing copper concentrate containing significant quantities of gold and silver.BCL has a stated vision of recommencing operations at Panguna. In 2008, Rio Tinto, on behalf of BCL, conducted a multi-disciplinary study to assess the technical and financial viability of redeveloping the Panguna operation. One of the key outputs of the study was a Joint Ore Reserves Committee (JORC) Code compliant mineral resource statement based on the existing block model and fundamental data, archived since mine closure. Historical data (including the resource block model and drill hole data) was recovered from computer archives by a former Panguna mine employee familiar with the various obsolete data formats, thus maintaining an unbroken chain of custody of the data by Rio Tinto since operations were suspended. No additional data were collected as part of this study.The extensive data and documentation archive facilitated a sufficiently detailed evaluation of the fundamental data and model to support an updated resource statement. Table 1 of the JORC Code was used to guide the model validation process.Reconciliation of blasthole and metallurgical plant data with the reserve model, indicated that the copper and gold drill hole composite database was significantly biased towards underestimation in several key domains due to a combination of the following: mineralisation loss during core loss, core loss (minor), vertical drill holes failing to intersect sufficient subvertical mineralised fractures and veins, drill hole spacing too wide, and variable diamond drill hole core size. The resource model evaluation was based on three material types (all previously mined at Panguna), that were defined based on cut-off grade and rock type parameters: direct feed ore – material for delivery directly to the plant, preconcentration and screening ore – subeconomic material beneficiated to produce fines of economic grade, and waste. Three pit shells and designs were generated based on three separate sets of economic parameters. These economic parameters were also used to assign material types to the block model. The three resulting models were then evaluated against the corresponding pit shells.Classification of the resource was approached conservatively due to the inherent bias in the drill hole data. Consequently only Indicated and Inferred resources were tabulated.The study highlighted the importance of maintaining detailed documentation pertaining to resource estimates and operational history, particularly reconciliation, and the value that can be added by a simple, low-cost data compilation exercise.

Aug 22, 2011

By D C. Ford

The Argyle AK1 orebody was discovered in 1979 and subsequently found to be a large, economically viable reserve with high grade diamondiferous ore. Production began via an open pit operation at the end of 1985 and has continued for some 25 years to present day. This, however, will come to an end in the next few years with production moving to an underground operation via block-cave mining methods.A series of studies from 2001 - 2005 was carried out; diamond drilling commenced after approval in 2006, from an exploration drive to determine the likelihood of the current proposed block cave operation.In 2006, development of the block cave project began, in order to realise the part of the orebody below the extent of the open pit mining operation.Development of the block cave technique, comprising an undercut level beneath the target zone of the orebody with subsequent extraction level 15 - 20 m beneath, relies largely on a number of block-caving parameters (hydraulic radius, rock type, structure and orientation of stress and grade of the orebody). These all have an influence on cave ability and eventual profit of the operation. Evaluation of further potential for taking this orebody beyond the block cave phase with options such as sublevel-caving are being considered for the UG-2 portion of the resource/reserve. Diamond drilling for this work is currently under revise.The challenges faced in transitioning form the surface operations to the underground, comprising a changing workforce, converging development drives, underground aquifers, major excavations and transportation of ore via automation are intriguing.

Aug 22, 2011

By V Pere

A geotechnical data management system has been developed to manage drillhole and mapping data generated from in house and consultant administered field programs. This system comprises a data collection interface with integrated validation, processing and reporting functionality. Development of the database required careful consideration of how and what geotechnical information is gathered in the field, a clear understanding of the interdependency of the parameters, and the outputs required to support geotechnical design.The acQuire Geoscientific Information Management System was selected as the preferred software to support the process because of its ability to easily manage data from capture in the field through to quality reviews and ultimately into reports. Initially only geotechnical logging of diamond core was considered, subsequently the system has been expanded to support additional geotechnical data sources such as laboratory test results, traverse and window mapping data. This paper focuses on the core logging data acquisition, validation, analysis and presentation of data.The acQuire Geoscientific Information Management System has proven to be a robust platform for the capture, interrogation, and reporting of geotechnical data. Data entry objects have been created to manage seven different areas of geotechnical data collection ranging from core logging to mapping to automated reports for falls of ground.

Aug 22, 2011

By S Juras

The terms measured resources and proven reserves denote the highest level of estimation confidence in all of the major classification schemes. But what do they really bring to today’s project or mine with respect to production planning and expectations? Initial reserve declaration does not need measured resources, just indicated resources. Economic viability of a project is assessed on total reserves with nary a bonus for the amount of proven reserves. Production plans are based on grade and tonnage goals that may only coincidently correspond to proven reserves. So are the measured and proven categories still relevant? Historically, and almost exclusively in underground mines, companies only allowed mining in areas of proven reserves. Some companies still follow that philosophy. But many others will mine a mixture of probable and proven reserves without hesitation. Also what of the undeveloped project in a new district – what is to be made of their declared measured resources and proven reserves? Measured resources are commonly set either by some type of proximity to data scheme or a matter of ‘feel’ based on the qualified person’s experience. The parameters for reserve conversion focus on the project as a whole and then a portion becomes classified as proven reserves almost solely based on whether the resource category is measured. So should the mining industry continue to use these categories of resource and reserve classification? This paper will present arguments about making these categories once again more relevant. A more disciplined usage of these categories may re-introduce their relevancy in public disclosures of resources and reserves. As well a more consistent usage in operations may lead to increased confidence in managing production targets and costs.

Aug 22, 2011

By S C. Dominy

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

Aug 22, 2011

By C Buchanan

For a long time there has been a known relationship between the northern Heavy Mineral (HM) deposits of the Murray Basin to the extensive north east trending ridges in the area. These ridges have been a targeting tool for exploration and have uncovered some significant discoveries, some of which have turned into mining projects. Bemax’s Ginkgo and Snapper deposits are good examples of how the faulting helped create an economic deposit but also result in significant planning issues in the exploitation of these deposits. Material balance, induration and pyrite issues have been made easier to manage through good geological understanding of the deposits.

Aug 22, 2011

By N Schofield

For the sampling of particulate materials in mineral exploration and mining, the fundamental sampling error (FSE) introduced by Gy is a measure of the constitutional heterogeneity of the sample lot and is expressed as the relative standard deviation of subsample grades of a particular mass. The FSE is presently regarded as an important indicator of quality for samples used in resource estimation. Constitutional heterogeneity describes an ideal state of heterogeneity with respect to all constituents of the lot such that the fundamental error among subsamples of a particular mass is minimised.In this paper, the term ‘sampling precision’ used in relation to mineral resource sampling usually refers to a statistic based on the assay results drawn from pairs of separate subsample splits of multiple sample lots. The pairs of splits are extracted after the lots have been prepared by crushing and pulverising to meet specified criteria of grain size and subsample mass. There is presently no generally accepted method of calculating the ‘sampling precision’ from such paired data but some form of the relative standard deviation that is consistent with definition of the FSE is preferred here. The work of Thompson and Howarth in the 1970s on geochemical analytical precision, which has been subjected to extensive examination and criticism by Stanley and Lawie (2007), and that of Francois-Bongarçon since the 1990s forms the background to the discussion in the paper.A significant aspect of the application of Gy’s sampling theory to sampling in gold deposits is the requirement that the fundamental error be maintained at less than ±20 per cent. The most important reason for this is to ensure that the effects of other sampling errors such as the grouping and segregation, and increment delimitation which can cause local and global biases in sampling are kept as small as possible. This paper is focused mainly on the quality of sampling in gold deposits and looks at an alternative to the use of a constant sampling precision applied to a collection of lots with varying average grade. A theoretical model for the FSE based on duplicate sampling is presented and the simulated results of the model are compared to practical outcomes of real duplicate pairs drawn from multiple sample lots. The goal of the work is to present a more informative analysis of duplicate sample data from multiple lots which may allow a more informed view of the potential for bias generating errors during sample preparation and processing.

Aug 22, 2011