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By Andrea Lisjak

The mechanical behaviour of Opalinus Clay, an indurated over-consolidated argillaceous rock, is heavily influenced by the presence of preferably oriented bedding planes. The objective of this study is to illustrate a new modeling approach aimed at capturing the bedding-induced anisotropy of Opalinus Clay as observed in the laboratory and in situ. The combined finite-discrete element method (FEM/DEM) is employed as the main simulation tool. FEM/DEM is a numerical method that models material damage processes by explicitly considering fracture nucleation and propagation. A transversely isotropic elastic constitutive law is used to account for different elastic property values in the direction parallel and perpendicular to the layering, while strength anisotropy is captured using a directional cohesive fracture model. Quantitative calibration and validation of the model is based on laboratory results of indirect tensile tests and uniaxial compression tests. Emergent strength and deformation properties, together with the simulated damage mechanisms, are shown to be in good agreement with experimental observations. Preliminary results relative to the analysis of a circular tunnel show that the approach is able to reproduce the main Excavation Damaged Zone (EDZ) formation mechanisms as observed in the field.

Jun 1, 2012

By Jarret Thomson

An understanding of groundwater flow is essential for many aspects of mining. This is especially true for the process of shaft sinking through the sandstones of the Manitou Falls Group in the Athabasca Basin of northern Saskatchewan. Experience has shown that the hydraulic conductivities of these sandstones can be relatively high, especially in zones containing natural fractures. To develop a better understanding of the inflow potential into a shaft, a laboratory testing program was undertaken to investigate the hydraulic conductivity of fracture core samples from the Manitou Falls Group. This program involved the measurement of hydraulic conductivities under steady-state flow conditions, while cycling the effective confining pressure across a span that is representative of in-situ conditions. The change in fracture aperture was simultaneously recorded at each confining stress level. It was found that existing relationships relating aperture and flow did not accurately capture the behavior of the samples tested. The effects of fracture staining and infilling were also investigated, and were found to have a notable impact on the hydraulic conductivity.

Jun 1, 2012

By Neda Zangeneh

Production efficiency from low permeability gas shales require techniques to optimize hydraulic fracture completions. One completion strategy involves the simultaneous or near simultaneous hydraulic fracturing of multiple horizontal wells to maximize the fracture network area and stimulated reservoir volume. However, changes to the in-situ stress field caused by an earlier hydrofrac on subsequent hydraulic fractures are not accounted for in traditional hydrofrac design calculations. Presented here are the results from a set of transient, coupled hydro-mechanical simulations of a rock mass containing two wellbores using the discontinuum-based distinct-element method. The results demonstrate the influence of stress-shadows generated by a hydraulic fracture on the development of subsequent hydrofracs from an adjacent well. It is shown here that these interactions have the potential to change the size and effectiveness of the hydraulic fracture stimulation by changing the extent of the hydraulic fracture around the secondary well.

Jun 1, 2012

By A Halim

"There is still debate about who should ultimately be responsible for the ventilation system in anunderground mine. The Queensland Coal Mining Safety and Health Regulation 2001, states that adedicated ventilation offi cer is the person, while Western Australian Mines Safety and InspectionRegulation 1995 states that it is the mine manager who is responsible; the ventilation offi cer actsas the managerÆs principal ventilation advisor. This paper outlines a comparison between bothapproaches."

Jun 1, 2012

By M Parcell

"Ventilation risks in an underground mine have essentially remained the same for centuries, yet theevidence suggests that there are many coal mines that have failed to adequately control these risks.The conduit for the knowledge learned by previous generations exists in the mining legislation. In an ideal world, mines would not need legislation to tell them what to do; they would resolve the risks to an acceptable level so as to protect the safety of persons in the mines based on the acquired knowledge. There will be some who have been personally aff ected by a mining disaster but for the majority they will be remembered as a vague recollection of an event from long ago. The mining legislation is the repository for the knowledge and outcomes from inquiries of past disasters. The challenge for the current generation, and the generations to come is to appreciate the legislation that exists, so as to not ælearn the hard wayÆ. In reviewing most disasters there is comment or discussion on the adequacy of the legislation, which ultimately results in some amendment to the law. For each person, there is an increasing responsibility to ensure that the same mistakes are not repeated. Understanding the legislation, its history and its purpose is the fi rst step in ensuring thatventilation risks are eff ectively managed. Failing to do this will be disastrous. This paper discussesthe relevance, importance and potential pitfalls of coal mine ventilation regulation."

Jun 1, 2012

By Kathy S. Kalenchuk

Damages have been observed in shafts, backfill infrastructure and the slick line at the Leeville Mine. Shaft damage (shearing and spalling of the concrete liner) is attributed to mine-induced rock mass deformations concentrated where regional faults intersect the shafts. Aggregate bin, mixer station and conveyor drive damage (shotcrete shearing, heave of concrete floor slabs and bending of a vertical steel beams) is attributed to rock mass squeezing induced by elevated magnitudes of the vertically orientated major principal stresses. Separation of the slick line has occurred do to extension of the stressshadowed rock mass immediately above the mined out areas. Three-dimensional numerical models have been developed and calibrated to simulated rock mass deformations with magnitudes similar to those believed to have produced the observed damages. By stepping through the mine sequence, models reproduce deformations at the same mining stage as when damage has occurred. Calibrated models have been used to forward project further damage over the remaining mine life.

Jun 1, 2012

By B Beamish

"All underground coal mines in Australia are required to develop a Spontaneous CombustionManagement Plan (SCMP). The New South Wales Government has developed a guideline (MDG1006) to assist operations to comply with this requirement. A reference document is alsosupplied with the guideline that describes the type of information that is needed for input to theplan, including identifying possible tests that can be used for propensity assessment. However,there is no clear indication of what program of sampling and testing is suffi cient to provide adefi nitive assessment of spontaneous combustion propensity prior to and during mining. This paper reviews the existing methods available for quantifying spontaneous combustion propensity and discusses the sampling requirements that are needed from exploration to mining. A new, more defi nitive method of spontaneous combustion testing is also presented that benchmarks coal self-heating performance from mine ambient temperature to thermal runaway. Examples of the eff ectiveness of this new test method for identifying and quantifying reactive pyrite in coal as well as quantifying the diff erence between dry and wet season conditions are provided in the paper."

Jun 1, 2012

By Somchet Vongpaisal

This paper presents the R&D results on the development of a new knowledge-based system for predicting stope instability and associated unplanned dilution in deep underground mining operations. A new prototype was developed based on databases generated from 3D non-linear elasto-plastic finite element stress analysis, heuristic rules, and case histories. This prototype aims to assist mine operators to make decisions on strategic mine planning and feasibility in a quick and efficient manner thereby minimizing risk on ground failure and optimizing mining costs.

Jun 1, 2012

By M Ogle

"Booster fans are relatively rare in Australian coal mines. However, as mines become progressivelydeeper it is likely that such fans will be increasingly adopted as a method to sustain or improve the ventilation of underground workings. The reasons why booster fans may be an att ractive alternative include: increased cost of sinking additional ventilation shafts with greater seam depths; environmental objections to shaft sinking projects; and increasing urbanisation and surface constraints limiting availability of potential ventilation shaft sites. As Tahmoor Colliery movedinto its northern lease the ventilation constraints became the limiting factor on production. Thelimitations of the old workings meant that the existing ventilation system would be inadequateto sustain the required production. Extensive ventilation modelling was carried out to evaluatevarious potential solutions and the recommended option was the installation of a booster fanor fans, to gain underground access to an already approved shaft site in the northern lease.Proposals were sought from recognised fan manufacturers and various alternative arrangements were tendered. Ultimately the choice was between one large centrifugal fan and a set (three or four) of smaller æauxiliary-likeÆ fans in parallel. The successful tender was for a single centrifugal, an arrangement very similar to the booster fans that have been operating eff ectively at Westcliff Colliery for a number of years. This paper describes the current ventilation network, evaluation of the ventilation options, the fan selection process, and the project status to date."

Jun 1, 2012

By Will S. Pettitt

Fracture Network Engineering (FNE) is the engineering design of rock mass disturbance through the use of advanced techniques to model fractured rock masses numerically, and then correlate field observations with simulated fractures generated within the models. Microseismic (MS) monitoring is a standard tool for evaluating the geometry and evolution of the fracture network induced during a hydraulic treatment, principally by source locating MS hypocenters and visualizing these with respect to the treatment volume and infrastructure (Figure 1). The integrated use of Synthetic Rock Mass (SRM) modeling of the hydrofracturing with Enhanced Microseismic Analysis (EMA) provides a feedback loop in which the SRM is constrained by the information provided by the MS data and the in-situ behavior of the fracture network is better understood, leading to informed decisions on future field operations. This paper discusses the technologies used in FNE and some of the developmental challenges we face in order to provide a more efficient and robust application of the approach. One particular challenge is the accurate representation of MS source data within the models (locations, magnitudes and mechanisms), and the ability to correlate these data effectively with field results. This challenge is being overcome by the development of more efficient numerical modeling algorithms, providing simulations in three dimensions at reservoir scale, combined with validation of these algorithms using laboratory and field case studies.

Jun 1, 2012

By S. Balideh

A good understanding of the behavior of broken rock helps to make more informed decisions regarding slope stability and waste dump issues in mines. The cohesion coefficient of rock has little influence on the strength of broken rock; therefore, a criterion based on friction and cohesion of intact materials does not provide an accurate analysis for the strength of broken rock. This paper illustrates the effective strength of broken rock through a brief literature review about failure of intact rock and rock masses. The complete stress- strain curve and some important points of residual strength of rock are summarized in this paper.

Jun 1, 2012

By J Rowland

"This paper was primarily put together in order to demonstrate what are believed to be acceptablestandards, in relation to ventilation surveys and the subsequent model assembly process. Thiswas brought about by the fact that in many parts of the world it is regarded as acceptable to carryout ventilation surveys and then build and supply the client with a æstick fi gureÆ type ventilationmodel. Such stick models have arguably litt le use and a very short life span in the real world and isalmost impossible for site staff to maintain. Thankfully most underground coal mines in Australia strive to maintain a true replica model of their ventilation circuits and to keep them in a relatively good state. Given that these mines own and maintain the models, it is often seen as necessary to update or rebuild them. The level of survey detail required to do so is totally dependent on the end use of the data and the criticality of the accuracy of the data set, to the ongoing safety and viability of the business. Mine technical personnel should think clearly about the use and importance of the ventilation survey and subsequent report outputs required that will help them bett er understand their mines and bett er prepare them to manage their ventilation circuits, on an ongoing basis. This paper provides some guidance for Australian ventilation engineers so they may plan and execute this work æin houseÆ, should they rightly choose to do so. To this end, methods of data collection and circuit analysis required for surveys of a high order of accuracy are detailed. Also, some of the issues which are important when formulating a strategy to carry out the appropriate ventilation survey for the required purpose are summarised. As well, the major details that should be furnished within any survey and some survey/report outputs and/or omissions, which are clearly not acceptable, are highlighted."

Jun 1, 2012

By Kristine Haug

Although most in situ operations in Alberta do not encounter significant problems during resource extraction, there have been a few documented occurrences of oil or steam releases as a result of compromised caprock seals. The objective of the Oil Sands Caprock Integrity Project (OSCRIP) is to characterize the units above and below bitumen zones to determine which geological factors affect the quality of the caprock seal. In addition, geomechanical properties and stress measurements of the bitumen reservoir and overlying units will be examined to provide a better picture of the containment conditions in which in situ operations occur. The information from this study will aid regulatory staff and industry in determining the zone-specific geological and geomechanical factors that could affect the design, operation, and feasibility of in situ recovery projects. The OSCRIP study area (Townships 87 to 99 and Ranges 1 to 13, West 4th Meridian) encompasses the surface mineable area, the northeast extent of the Wabiskaw-McMurray bitumen deposit and the Clearwater Formation, as well as a wide band of the Devonian salt-dissolution zone. Regional geological mapping of the Cretaceous strata focuses on the spatial extent and thickness of the caprock seal. Mapping of the underlying Devonian strata is targeted at better understanding the potential effects of salt dissolution and collapse of overlying strata on the integrity of the caprock seal. Examination of LiDAR (Light Detection And Ranging) bare earth DEM in the study area has revealed localized depressions that may represent sinkholes rooted in subsurface collapse features in Devonian carbonate and evaporite strata. Mapping the location and understanding the timing of salt dissolution-related features and deformation in the Devonian strata will help address questions about the possible effect that geological structures, such as sinkholes, have on the integrity of the caprock, as well as the potential for localized variations in the stress regime of the bitumen zone and overlying units. The stress regime in units above 350 m is such that any induced fractures are believed to be horizontal, and therefore, there would appear to be no mechanisms that would allow these fractures to reach the surface. However, recent incidents have shown that vertical pathways can occur, linking the subsurface to the surface. The final phase of the project will evaluate the changes that may occur in the stress regime under thermal operating conditions in the study area.

Jun 1, 2012

By R Hughes

"Spring Creek Mine uses high pressure water to extract the thick Main seam in the Upper Rewanuicoal measures. The extraction method results in the creation of large voids which collapsespontaneously. This can result in the displacement of large volumes of methane, which may create a signifi cant hazard if not correctly managed. A system of automatic dilution doors is employed to mitigate this risk. This paper describes the evolution of the system and gives some examples of its eff ectiveness."

Jun 1, 2012

By Allan R. Punkkinen

Safe extraction of the valued ore resource in the deep levels of VALE Creighton Mine has progressed in a pillar-less fashion using vertical retreat, slot-slash and uppers retreat methods since the cessation of ?cut and fill? mining in the late 1980?s. Sequencing of the panel extraction and filling has been the key to successful exploitation of high stress orebodies at depth. In late 2010, discussions between the Operating Department and Creighton Ground Control revealed an opportunity to evaluate a trial primarysecondary sequence in the west end of the 400 Orebody at the 2340m horizon. To manage the trial primarysecondary project, a high level risk analysis and management of change was carried out to mitigate potential danger. As part of the requirements, an instrumentation project was conducted in the hanging wall and footwall bottomsills of the secondary panel and within the secondary panel itself. The extraction sequence was modeled with Map3D® software, confirming high stress levels with the advance of the primary panel. Enhanced ground support was installed based on modelling results. A key objective of the instrumentation project was to verify support system response to mining and to obtain knowledge in regards to the behavior of the stope. This paper describes the first time that this type of new innovative instrumented rockbolt technology had been used in a hard rock mining environment. Understanding of the physical deformation mechanisms of ground support in response to high stress conditions is the basis for an effective ground control strategy. The data played an important role in subsequent enhanced ground support system design at the mine and importantly, established the fact that the secondary pillar had not totally failed. Subsequent cavity monitor results helped establish that fact.

Jun 1, 2012

By P Guj, J A. Bell

The valuation of early-stage exploration projects requires a valuer to take into account a large number of uncertain value drivers, the interplay among which may be non-linear. This paper examines some of the key value drivers including geology, target metrics, project area and maturity, the market and the psychology behind the decision-making process. The commonly accepted valuation methods and their underlying logic are outlined, including a view on why they evolved, what value drivers they attempt to address and their potential shortcomings. These methods include the multiple of exploration expenditure, geoscience rating, expected values and market based methods. The potential future valuation methods of replacement values and neural networks are also introduced along with how to minimise heuristic bias and error within the market-based approach.CITATION:Bell, J A and Guj, P, 2012. Exploration value drivers and methodologies, in Proceedings Project Evaluation 2012 , pp 17-28 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By L Lorenzen, H Muller

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

May 24, 2012

By S Watson, L Martinez

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

May 24, 2012

By W B. Edgar, S C. Dominy

High-nugget effect vein-gold systems are generally considered to be one of the most challenging of deposit types to evaluate and exploit. To potential investors and mining companies, they are viewed as high risk because of the associated uncertainties in the grade estimate and general paucity of Ore Reserves at production start-up. However, despite the well-known risks, these deposits often have a grade upside that makes them potentially attractive. The reporting of resource grade is of importance and perhaps even more so is the reporting of the associated uncertainty attached to the grade estimate. The use of the grade estimate supported by a grade range is recommended to achieve more complete and useful disclosure. The definition of the grade range can be somewhat subjective, ranging from opinion based estimates through to data-based estimates and geostatistical conditional simulation. Whichever method used, the over-riding issue must be the provision of enough data of appropriate quality and full disclosure to the public of relevant uncertainties.CITATION:Dominy, S C and Edgar, W B, 2012. Approaches to reporting grade uncertainty in high-nugget gold vein projects, in Proceedings Project Evaluation 2012 , pp 95-108 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By J Gould, T Elkington

Mine operation strategies are commonly optimised with a net present value (NPV) maximisation objective. There are well known properties of a typical mining project optimised for NPV, including high production rates and declining cut-off grade schedules. In practice, however, frequently there are operations that diverge from such NPV-maximising properties. Although a range of reasons for this can be at play, one possible explanation is that operators intuitively adjust their strategies to compensate for the flaws inherent to NPV maximisation. In particular, NPV analysis does not reflect the benefits of managerial flexibility inherent in a mining plan. Real options valuation (ROV) is an alternative approach that addresses this issue. We compare the properties of NPV and ROV optimisation solutions generated for the same scenario. Our simple case study demonstrates that the presence of real operating options in the optimisation model not only entails increased project value as expected, but also tends to encourage lower processing capacity (with lower associated capital cost), higher cut-off grades and greater use of stockpiles.CITATION:Elkington, T and Gould, J, 2012. Real option value optimisation, in Proceedings Project Evaluation 2012 , pp 35-40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012