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By J Levett, O Rondon, I Glacken

Reporting Codes are not prescriptive on methodologies to report or classify Mineral Resource Estimation results, but the assessment of risk and uncertainty is required, and is likely to be increasingly important in future Code updates. The 2012 JORC Code indicates that relative confidence in tonnage-grade estimations should be considered for classification, and that there should be a discussion of relative accuracy and confidence levels in the Mineral Resource Estimate. These considerations are also relevant to the drill hole spacing required for various classification categories, along with other geological and data quality criteria. This paper summarises the theory, principles and current practice of various drill hole spacing analysis techniques for both achieving a desired level of resource categorisation and for optimising grade control or resource drill-out costs. The authors provide practitioners with a guide in their use to assess uncertainty and relative accuracy, as illustrated by a number of case studies. While all drill hole spacing studies rely on the assumption of consistency of the continuity model from current to future drilling, the range of methods available provide much more objective outcomes than previously adopted ‘rules-of-thumb’.

May 24, 2023

By A Jewbali, L Allen

At Newmont Corporation drill hole spacing studies are done to support the business in understanding the cost of collecting additional information (with a specific focus on drill hole sampling density) versus the value of additional drilling in terms of resource risk reduction. For the last 20 years drill hole spacing studies have been executed in an effort to answer the following question: What spacing should the deposit be drilled at to achieve a certain level of resource confidence so that when mining occurs the resource model delivers as predicted ie what is the optimal sampling density? The optimal sampling density supports a resource model that provides a sound foundation for mine planning purposes and resource/reserve reporting. At Newmont Corporation drill hole spacing studies are now a requisite for understanding drill data density needs for new deposits and near mine expansions. This paper details the evolution of drill hole spacing studies at Newmont Corporation in terms of methodology and usage.

May 24, 2023

By D Clarke, I Minniakhmetov

The Olympic Dam deposit is truly a world-class IOCG-Ag deposit, the world’s fourth largest deposit of copper and the world’s largest known single uranium deposit. Traditional and non-traditional methods have been used to accurately model the geology and mineralisation of the Olympic Dam deposit. Conditional simulation models have long been used as the most robust method for estimating risk and uncertainty in mine planning decisions at other mines around Australia and the world. There are many challenges associated with simulating the Olympic Dam deposit at a selective mining unit size sufficient for underground mine planning purposes. These include the size of the deposit, resulting in hundreds of millions of grid blocks; the disseminated nature of the zoned sulfide mineralisation. And lastly the direct relationship of the relative abundances of the sulfide mineral species that are crucial to the Olympic Dam smelter performance. Several geostatistical techniques have been utilised in the workflow for the Olympic Dam Conditional Simulation model to address these challenges. The key techniques are: • Projection Pursuit Multivariate Transform to de-correlate the main elements before simulation. • Pluri-Gaussian implicit boundary simulation method to simulate the mineralisation domains. • Spectral simulation method of de-trended and de-correlated attributes with account of local varying variance. The resulting conditional simulation models have been validated against histograms, grade-tonnage curves, cross-plots and assessed for variogram reproduction. This paper presents how the final conditional simulation models compare to benchmarking models created using alternate estimation techniques of ordinary kriging and local uniform conditioning. It also presents a validation process using historical samples to test final estimate accuracy of the simulation models.

May 24, 2023

By M P. Murphy, C M. D Barton

When developing a new underground mine, the geological interpretation that guides the mineral resource is crucial to the preparation of a reliable ore reserve. In preparing a robust geological model to underpin a resource estimate, practitioners must weigh the comparative risk of accepting a relatively wide-spaced drill hole pattern, versus a more close-spaced pattern that ensures a high local geological confidence for mine planning but may have an exponentially increased time and monetary cost. This paper details the authors’ investigations into the geological uncertainty of IGO’s Odysseus Deposit, which is approximately 645 km north-east of Perth, Western Australia. At Odysseus, the komatiitic nickel sulfide mineralisation is irregularly cross-cut by nickel-barren pegmatites that have intruded and offset its thick ultramafic orebodies. These pegmatites generate significant uncertainty in the precision of Odysseus’ resource volume and tonnage estimates, as well as the subsequent quantification of pegmatite mining dilution in its ore reserve. To quantify the geological uncertainty in the pegmatite interpretations, IGO’s mineral resource practitioners prepared several geological risk studies over the Odysseus North lode, which is the lode most affected by the pegmatites. These studies included categorical conditional simulation of the pegmatites, preparing implicit geological models with alternative algorithms, trialling a machine learning application to prepare a maximum likelihood geological model, and finally assessing the early results of the pre-production close-spaced drilling to these different models. To assess the precision of the different single-outcome models, the authors’ compared the estimated pegmatite content of each model to the range of possibilities modelled by categorical conditional simulation within the planned stopes at Odysseus North. An estimation confidence score for each modelling method was then prepared for each alternative single-outcome modelling method. From these studies IGO concluded that a close-spaced drill pattern is essential at Odysseus, supporting the view of the Competent Person in 2017 who proposed a 25 m drill spacing in areas affected by pegmatite which had been partially classified as Inferred.

May 24, 2023

By D Hope, D K. Mukhopadhyay, J D. Harvey

South32 (S32), a globally diversified mining and metals company, is listed on securities exchanges around the world (ASX, JSE, LSE), with its primary listing being on the Australian Securities Exchange (ASX). Chapter 5 of the ASX Listing Rules (Australian Securities Exchange (ASX), 2019b) requires a mining entity to provide a summary of governance arrangements and internal controls with respect to its estimation processes, estimates and reporting of Mineral Resources and Ore Reserves annually. As a global company, it is also important to design and implement all governance processes and internal controls which can be used consistently across the organisation. The three lines model (previously known as the ‘three lines of defense’ model) is employed across South32 to manage risk where the first line (Practitioners) designs, implements and executes processes and controls to manage risk; the second line (Stewardship) identifies material gaps and improvement opportunities in the first line by monitoring conformance with the group requirements, legislative and regulatory obligations. Second line also assists with the development and improvement of core fundamentals based on industry good practise. The third line (Group Assurance) provides independent and objective assurance over the Group’s system of risk management and control. The estimation of resources and reserves for most of the operations within South32 is managed by the Planning function. The estimation process is part of the annual Life of Operation Plan (LoOP). The LoOP identifies and assesses the strategic alternatives for the development of an operation and recommends the preferred pathway based on value and risk. The LoOP starts with opportunity framing and the updated resources as an input and ends with the short-term plan and annual budget (the outputs). Ore Reserves estimates are one of the outputs from the LoOP. All the inputs and outputs follow internal standards and procedures which includes peer review and performance reconciliation. Stewardship (Second line) which is a centralised function has standards in place to ensure compliance to internal controls and external regulatory requirements. This includes assessment of the competence of Competent Persons, technical reviews, independent audits and training in the relevant chapters of the ASX Listing Rules, Guidance Notes and Appendices. Group Assurance (Third line) which reports to the Risk and Audit Committee of the Board of Directors ensures the design and operating effectiveness of the processes, standards and procedures associated with the estimation and reporting of resources and reserves. While the level of scrutiny has a different intent for each line in the three lines model, the overall purpose is to achieve a consistent outcome across the organisation

May 24, 2023

By G Zhang, I Glacken

Multiple indicator kriging (MIK) has been used in the minerals industry for some decades. As one of the non-linear estimation methodologies, MIK has advantages related to resolving multiple or mixed populations, high variability data and strongly skewed distributions. Applying the MIK methodology requires a lot more effort when compared to other non-linear methodologies, for example localised uniform conditioning. This is due not only to the variogram modelling for multiple indicators, but the validation is also very important because the panel model is fundamental for follow-up work, including the generation of recoverable resources at the local or SMU scale. Apart from this, only a few reported case studies of MIK have documented post-processing of the estimated modelled distribution, representing the probability distribution at point scale at un-sampled locations. The MIK post processing should include the change of support from the point scale to the panel scale, and then the extraction of quantile values from the panel conditional cumulative distribution function (CCDF) for localisation of grades into the SMUs within each panel, based on a ranking estimate marking the SMUs from high to low. In this paper, we present a case study on a gold deposit with the MIK method with full-post processing implemented for recoverable resources. The MIK point estimate was carried out with an indirect lognormal change of support from point to panel scale, and localisation was done with a custom script. The localised uniform conditioning (LUC) method was also applied for comparison purposes. The comparison shows that MIK has advantages compared to LUC when comes to capturing the high-grades, especially when mixed or varying anisotropy is present within the mineralisation.

May 24, 2023

By D A. Sims

This paper outlines the contributing factors to a series of erroneous Mineral Resource estimates which led to considerable loss, including significant reduction of mine life and consequently a large write-down of asset value. The error prompted divestment of the mineral asset in the short-term by the owners, a major mining company. There were multiple and complex contributions to the result: • The mine was undergoing a transition in the deposit geology with increasing depth that was not accommodated in the models. Early indications of the geological transition in initial drilling were generally unrecognised in resource modelling. The shortcomings of the models became apparent with increasing infill drilling and subsequent production reconciliation. • There was a lack of recognition of, and confidence in, site-based input and skills by corporate technical management. The site had a reputation internally for over-delivery to plan early in its life and that supported the anticipation of ongoing metal delivery into the mine plan by management. • A corporate lack of confidence in site being able to adequately domain the mineralisation led to the use of a CIK domaining process, rather than one which was geologically based. This domaining process led to gross over-statement of mineralisation trends reflected in the subsequent OK estimate. • Timelines on the outsourced estimation process were so short that validation was not possible. Obvious errors in the estimate versus data were not able to be used to correct the issues and the site’s Competent Person sign-off occurred without adequate checks. This case study is presented to reinforce the concept that Mineral Resource estimates are not solely based on the ability of the Competent Person to satisfactorily guide the process. There are usually multiple complex issues in the estimation process which need to be recognised and considered in judging reconciliations of model to actual.

May 24, 2023

By Gary Ayala, Ernesto Pye

En el año 2021 se dio una escalada de conflictos sociales en diversas empresas mineras de Perú. El 21 de noviembre del 2021 el autonombrado Frente de Defensa de la Comunidad de Saqui Totora (distrito Sina, provincia San Antonio de Putina, Puno) liderado por Leoncio Diaz Turpo asaltó la unidad minera de Betaspata (distrito Yanahuaya, provincia Sandia, Puno) y expulsó a los trabajadores que se dedicaban a la exploración de oro desde el año 2018. El periodismo en Puno difundió información parcial y generó una situación de crisis para la Minera Argos Puka Mani, propietaria de la unidad. Urgía desmentir a la comunidad y dar a conocer a la opinión pública la verdadera historia de lo ocurrido.

May 10, 2023

By Sabina Strmić, Fredrik Sahlström, Siv Hjorth et al

Cobalt is critical for the green energy transition, yet the mineralogical distribution and the mechanisms of concentration of Co in different types of hydrothermal ore deposits remain poorly constrained. Here we document ore mineral assemblages from the active Fåvne and Loki’s Castle seafloor massive sulfide deposits located along the Mohns Ridge in the Norwegian Sea, and determine their whole-rock and mineral chemical compositions with a special emphasis on Co.

May 10, 2023

By Ramón Sánchez, T. López Willy, M. López Willy

La exploración de depósitos de Zn supergénicos conlleva la necesidad de poder evaluar la concentración de este metal base en campo, donde el uso de la técnica de tinción “Zinc Zap” se vuelve fundamental. La evaluación de un rango amplio de muestras de sondaje diamantino y rechazo fino (pulpa) utilizando la mencionada técnica ha dado la posibilidad de categorizar tres grupos principales según coloración, dependiendo de las concentraciones de Zn: 0.5 - 2.0 % con RBG (150,121,97); 2.1 - 8.0 % Zn con RGB (114,52,32); y ˃8.1% Zn con RGB (83,37,45).

May 10, 2023

By al et, Renzo Yaringaño, Nicolli Duarte, Raul Arquaz

El Proyecto de Au-Ag-Cu de Chanape se ubica en la prolífica franja metalogénica del Mioceno. En Chanape afloran rocas intrusivas (p.ej., cuarzo diorita porfirítica, pórfido de cuarzo-monzodiorita, etc) que cortan las formaciones Millotingo y Pacococha, de edad terciaria. Estas formaciones alojan “pipes” de brecha de turmalina con contenido de Au-Ag-Cu, vetas polimetálicas de Ag-Au-(Zn-Pb-Cu), mantos de reemplazamiento y brechas freáticas y freato-magmáticas mineralizadas. En las brechas de cuarzo-turmalina se ha reconocido un clásico zonamiento vertical incluyendo Cu-Ag-Mo-Au en la base, una porción intermedia de Au-Ag-Cu-Mo y una parte alta de Au-Ag-Cu-Zn-Pb.

May 10, 2023

By Andreas Dietrich

The development of new techniques in mineral exploration seems to reduce the need of geological field work and mapping: Data collection can now be done remotely by satellites, drones, and tablet-equipped field assistants, while the geologist assembles data sets with 3D software. The interpretation of complex data sets can be assisted by machine learning and artificial intelligence (ML, AI). Instead of loosing relevance, geological mapping and logging are now even more essential to provide the interpretive framework essential for the correlation, validation, and integration of huge amounts of data, but will not be replaced by new technologies. Geological truthing lies in the field, with experienced geologists conducting this work while training and mentoring young professionals.

May 10, 2023

By Natalie Caciagli

Catchment basin sampling allows for rapid assessment of large areas. Stream sediment surveys are a common tool used in regional exploration. The difficulty in detecting geochemical anomalies in stream sediment data from large regional datasets lies in finding the background values of pathfinder elements due to variable lithologies that could be sampled within a single basin. An alternative data driven method to discover anomalies in complex environments, without a priori knowledge of background concentrations, is presented here

May 10, 2023

By Andrei Bagrianski, Marco Nieto, Alexander Prikhodko

Se realizó una adquisición magnetotelúrica helicotransportada con el sistema MobileMT sobre un depósito metálico asociado a un pórfido de cobre conocido como Proyecto Santiago en el Cinturón Metalogénico Mioceno al sur de Ecuador. La adquisición geofísica se enfocó en identificar las respuestas de magnetometría y conductividad eléctrica y paso seguido, realizar inversiones unidimensionales y bidimensionales con el objetivo de caracterizar la respuesta petrofísica del sistema tipo pórfido. Los resultados arrojaron una anomalía de conductividad aparente mayor a 15 mS/m que se identificó como el cuerpo porfirítico en profundidad, llegando a estar entre 200 m a 600 m por debajo de la superficie.

May 10, 2023

By Robert Gordon, Leduar Ramayo

This paper reviews the application of the magnetotellurics method for deep earth imaging, specifically its recent use to better understand original mineral emplacement processes. Resistivity information from newer innovative applications of the technology for nearer surface imaging also provides valuable insights into near surface structure, which in some cases has led directly to new discoveries.

May 10, 2023

By Rafael Ramos, Leonel Quispe, César Chávez

El programa de trabajo de campo realizado consistió principalmente en el cartografiado de la concesión minera EMADSUR I y el muestreo de estructuras (vetas y cuerpos). Los resultados preliminares del estudio geológico en el proyecto Livitaca confirmaron la presencia de mineralización tipo skarn y tipo pórfido de Cu-Mo-Au con diseminación de sulfuros rodeado de un amplio halo de alteración fílica-argílica. Vetas angostas, principalmente entorno de los cuerpos de skarn, tienen contenidos elevados de Au-Cu-Pb-Ag.

May 10, 2023

By Aldo Bendezú

En el Perú, el cobalto @>0.1% de concentración se da principalmente en sistemas hidrotermales, particularmente en yacimientos de tipo IOCG y en vetas altoandinas de Zn-Pb-(Ag)-Ni. El primer tipo se presenta en al menos dos segmentos del cinturón de yacimientos IOCG de la costa, entre Lima e Ica. El segundo ha sido documentado principalmente en la Cordillera Oriental, entre Huánuco y Puno. Se han identificado 29 sistemas de vetas y mantos significativos entre ambos tipos. En las vetas, estos ocupan porciones restringidas de 100-500 m de largo, 50-200 m de alto y 0.2-1.5 m de potencia, sugiriendo masas prospectivas del orden de 0.2-0.5 Mt por cada sistema.

May 10, 2023

By Zaraí Toledo, Freddy Cáceres, John Hayes, Katherine McKiernan

Facing the rapid proliferation of informal artisanal and small-scale mining (ASM) in the 2000s, states with commodity-dependent economies pursued different strategies to enforce regulations to the activity. This article assesses the effectiveness of these strategies in increasing compliance. We leverage a view of policy effectiveness that considers the type of state-society relations a policy foster. We look at how different state-society relations impact the relevance a policy has to the subject it attempts to regulate. We argue that cooperation helps the state overcome its limitations on the knowledge of ASM and its limited institutional powers to enforce regulations alone. By learning about the activity in question and developing ties with the informal miners, the state can produce feasible regulation that is more likely to be followed.

May 10, 2023

By Patrice Baby, Joselyn Medina

Recent reports indicate potential for metallic mineralization in the Ucayali Subandean fold and thrust belt related to a mineral system with a magmatic source. In this work, we show the control of Andean tectonics in metallic mineralization in Ucayali and discuss the key components of the mineral system.

May 10, 2023

By Patrice Baby, Stefano Salvi, al et, Jean Vallence, Galdos, Renzo

The nature of the gold-bearing fluid and the source of gold in sedimentary-hosted gold deposits of Carlin, orogenic or epithermal types is still matter of debate. Most authors point to magmatic/ metamorphic origin for the fluids, however, the properties of such fluids and their interactions with organic carbon – a common component in this type of deposits – are not sufficiently well known. Here we present a large set of novel geochemical, mineralogical and fluid-inclusion data obtained from the Algamarca Au-Ag-Cu epithermal veins, corresponding to lateral manifestation of the neighbouring sedimentary-hosted epithermal-gold deposit at Shahuindo.

May 10, 2023