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By Z Bagheri, E Moosavi

Identifying the exact borders of geological domains and assessing the uncertainty of these borders are crucial steps in resource estimation. This potential field method was designed to build 3D geological models from data available in geology and mineral exploration, namely the geological map and a digital terrain model, structural data, borehole data, and the geologist’s interpretations. The resource evaluation of a copper ore deposit is often performed in three steps: (i) delimitation of the boundaries of the units corresponding to the various geological formations or ore types; (ii) estimating densities; and (iii) estimation of grades within each unit. In simple cases (e.g., a series of sub-horizontal layers), the geometric model can be built using 2D geostatistical techniques (kriging or co-kriging of the elevations or thicknesses of the various horizons) which also quantify the uncertainty of the model. A 3D model of Cu grade is generated using ordinary kriging; however, the indicator kriging method is run to design a 3D model of rock types by incorporating the drilling results. Block models of geophysical and geological characteristics are included in a similar 3D mesh to investigate their relationships in copper mineralisation.

Sep 1, 2021

By Crawford M

During the initial development of Mount Isa Mines power was supplied from a temporary power plant situated near the Man & Supply Shaft. The main power plant was placed in service early in 1931 and then comprised two Babcock and Willcox boilers, fired by pulverised fuel, and two British General Electric Company's turbo-alternators of 5,000 kW. each. Both plants have been described by A. F. McAskill in the Journal of the Institution of Engineers, Australia.From 1931 power demand progressively increased due to greater production, further mine development in the harder sulphides increased pumping for mine drainage and additions to mill and smelter until, by 1935, the plant was inadequate for further output commensurate with a reasonable safety margin.Coincident with the added power demand, operating conditions involved a fuel problem which could not have been anticipated. The ash content of the fuel supplied gradually increased from 13% to 16-5%, while the melting point of the ash decreased with higher pyrite content.Temperature conditions in the furnace required careful control to cope with ash formation and slag accretions.Consequently brickwork, excessively stressed on water walls, was constantly under repair, and required suspension periods of 50% of operating time for cleaning and overhaul.Load conditions varied continually, therefore the high heat liberations in the furnace, necessary to accommodate peaks in fluctuating output, resulted in ash fusion.

Jan 1, 1939

By D. Scott Barr

The Zarafshan/Newmont Joint Venture operates the Muruntau heap leach project, located in the Kyzylkum desert of central Uzbekistan. The mine produces more than 12.4 t/a (400,000 oz/year) of gold from low-grade oxide ore stockpiles adjacent to the Muruntau open pit. It is op¬erated by the Navoi Mining and Metallurgical Combine and is one of the largest gold resources known (Fig. 1). Since commissioning in 1995, total heap leach production has exceeded 21 t (675,000 oz). The joint venture uses four-stage crushing and screening to produce a final product for heap leaching, Merrill-Crowe processing and local refining.

Jan 1, 1998

By Ihor Kunasz

The high lithium demand forecasted for some high tech applications and batteries for electric and hybrid-electric vehicles, in particular, has sparked increased exploration for lithium, particularly for lithium- and potassium-bearing brine deposits. The latter have generally followed the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) NI 43-101 guidelines on resource reporting, formulated for hard rock deposits (metals and industrial minerals). While a number of the requirements can be appropriately applied to brines, brines are fluids and require a specific analysis leading to a distinct set of reporting requirements. Brines cannot be considered industrial minerals because the various elements occur as ions in a dynamic fluid, rather than being chemically bonded in a solid. Although chemicals are produced from brines, brines have no relation to industrial mineral deposits. This article analyzes the recently released (Nov. 1, 2012) document CIM Best Practice Guidelines for Resource and Reserve Estimation for Lithium Brines, in light of the practical knowledge available from existing brine operations. It recommends modifications to the guidelines, which, if applied in their present format, will result in overstating resources and reserves and mislead potential investors. The CIM Best Practice Guidelines for Resource and Reserve Estimation for Lithium Brines document is generally descriptive and does not fully address the methodology for brine resource or reserve definition. Lithium and other elements (potassium, magnesium) are contained in a fluid, the hydrologic characterization of which should be the principal focus of a brine exploration program. The fundamental requirement in defining lithium brine resources and reserves in a salar is the identification and definition of those formations ? the aquifers ? that will yield brine in a usable quantity to a well, because brines can only be extracted by pumping wells. Fine-grained sediments will never, as required in the summary Table 1, have ?reasonable prospects of economic extraction,? cannot be considered and, therefore, need not be tested. However, the guidelines recommend the collection of solid samples and a high-core recovery for laboratory testing of various sediments instead of focusing on the brine.

Oct 1, 2013

By E. J. Wasp, N. T. Cowper, R. A. Davis, W. F. McDermott

On October 26, 1967, the world's first long distance iron ore slurry line was put into service by Savage River Mines. The commissioning of this $5 million installation climaxed three years of development, testing, and construction. The mine and concentrator are located approximately 30 miles from the town of Waratah in a rugged semi-mountainous terrain. The open pit mine will produce approximately 5 million long tons a year of crude ore, which is ground in autogenous mills, separated magnetically, thickened and prepared for the pipeline. The 53-mile pipeline transports the 2,250,000 tons of concentrate north to Port Latta. The Port Latta facilities include the receiving, storage and thickening equipment for the slurry as well as filtering, balling and pelletizing equipment to produce the 2,250,000 tons of high grade iron ore pellets. Five vertical shaft furnaces are used for pelletizing.

Jan 1, 1969

Gold was discovered at Waihi in 1878. In 1987 the modern Martha Mine opened in the middle of the town of Waihi. Newmont Waihi Gold as the current licence holder has been operating the mine since 2000. The current open pit was scheduled to stop production in mid 2006. An underground mine is currently being developed to the east of the town.   In 2001 serious subsidence issues from historical underground mine workings outside the mining licence and the forecast closure of the open pit acted as a catalyst for the development of new communication initiatives.   In this context Newmont Waihi Gold and the Hauraki District Council initiated a community consultation process with the people of Waihi. The Waihi Community Consultation Committee (WCCC) was established in May 2003. After an initial brief to act as a forum for community participation in closure and rehabilitation of the Martha Mine, the group quickly took on a much more proactive role working towards the long-term social, environmental, cultural, economic and spiritual sustainability of Waihi.   In the course of over three years of meetings all groups represented on the committee have presented their views, developed ideas and established an organisational structure to bring those ideas to fruition. The challenge now is to work together to consolidate likely options, seek sources of funding, produce business proposals and implement the plan for the future of Waihi.   This paper backgrounds the experience to date and describes the outcomes of the process. For more detail on process considerations this paper should be read in conjunction with Part C by process facilitators, T Clark and S Stewart. For more detail on progress towards the groupÆs goals and future possibilities, this paper should be read in conjunction with Part B by Vision Waihi Trust CEO, E Morrow.

Jan 1, 2006

By Yves Picot

Construction of new installations was recently completed in the Port of Tubarao, Brazil, With this expansion the port, operated by Companhia Vale do Rio Doce (CVRD), has become the largest iron ore port in the world, with an annual throughput capacity of 60 million long tons. GROWTH OR IRON ORE EXPORTS Since its formation CVRD has steadily increased the shipment of iron ore to overseas markets. Starting with less than 100,000 tons in 1942, the yearly export volume grew to 1,500,000 tons in 1951, 5,000,000 tons in 1961 and 25,000,000 tons in 1971. The number of different grades of ore also increased during this period. Production of high grade pellets, starting in 1970, further increased the number of ore products to be shipped. In the same period the size of ore carriers increased twenty-fold to over 250,000 DWT.

Jan 1, 1974

By W. F. Flanagan, K. R. Evans

The strong temperature dependence of the flow stress of bcc metals has prompted considerable interest and controversy concerning the rate-controlling influence of the Peierls' mechanism upon deformation in metals.18"21 Dorn and Rajnak" recently offered a criterion for Peierls' deformation utilizing a line-energy model of a dislocation to estimate the saddle-point activation energy, for the nucleation of a pair of kinks as a function of applied stress and the height and shape of the peierls9- barrier. It was found that Un/2Uk, where 2Uk is the excess energy of a kink pair, was a unique function of where is the effective stress and 7p is the Peierls' stress as defined in Fig. 20. The relationship found by Dorn and Rajnak between is given by the solid line of Fig. 21. may be expressed in terms of the temperature of test, T, and the athermal temperature, T,, defined in Fig. 20. Considering the strain-rate, 9, of deformation for a thermally activated process to be given by where fo is nearly a constant, it is seen that and the theoretical relationship of Fig. 21 may be examined with readily obtainable experimental parameters. Dorn and Coworkers analyzed a large amount of experimental data in this manner for materials sus-

Jan 1, 1967

MR. SHUBART: Mr. Miller's paper mentioned the two processes that seemed to be a success, the Smith process and the Piron process. I suppose the main difference is this, that Smith's process is to furnish domestic fuel and the by-products while the Piron process that Ford is installing is for fuel for power plants. I would like to ask Mr. Miller something about the commercial cost of the process. With the briquette you must make it cheap enough to sell. What are the commercial possibilities of Smith's briquette? MR. MILLER: It is pretty hard to say what the cost would be at this time, owing to the fact that slack has advanced double, or even more at the time I was in New York with the plant, but at that time it was costing $1.10 for the operation. You can add to that, of course, the cost of the coke. One dollar and ten cents was the entire cost of plant operation. It takes about one and one-half tons of coal to make a ton of briquettes. One dollar and ten cents takes care of all the material, cost, labor, handling, etc. Labor was much cheaper then. I would say it would cost about $2.20 now. The cost of coal is what you can buy it for on the market. I don't think, however, that the carbocoal process will ever meet with any great favor for the simple reason that it is really a prepared fancy fuel. It is going to be nice for people in offices where they want a grate or for families where they want a nice clean fuel. It leaves no stain on the fingers, no odor to it. It seems in carbonizing coal we change the carbon molecule. For instance, we are all familiar with the diamond. It is carbon, yet it requires a tremendous heat to burn a common little diamond. But you can set a piece of charcoal afire, which is also carbon, with a match. The molecular form has been changed in carbonizing coal, i. e., it is larger. Carbocoal will fire very readily, it can be started with a piece' of paper. I think the Piron process will be the process, i. e., to simply take out the tars and light oils, then fire direct-have the distillate plants right on the job. CHAIR: Can Mr. Shubart tell us something of the mechanical part of the Piron process? MR. SHUBART: The Piron process is of interest because Mr. Ford is taking it up. He has made so few mechanical mistakes it makes us feel that it is a success. Piron is a chemist of high accomplishment and reputation. The thing about the proces is its simplicity. Mr. Smith's is a very elaborate process, but Piron has gotten around all that. Piron feeds the raw coal in at about one-half inch mesh or smaller. He feeds it into a retort about 55 feet long, 16 feet wide over all. He has a hearth about 6 feet wide and the length of the retort. The base of the hearth that carries the coal is a conveyor, a flat cast iron conveyor, a very massive affair, very accurately made, so that there is no loss of coal. Between the upper and lower strands of the ' conveyor is a bath of molten lead which gives an accurate control of temperature. For best results he must have temperature of not under 800 F., not over 1,300 degrees F., about 1,100 or 1,200 F. seems to be ideal for getting greatest yield of oils and the best tars and other by-products. This lead bath has a system of flues running through it that

Jan 1, 1923

By Keith Cramer

As a leader in the development of metal extraction technology, Avecia continues to pioneer advancements for the processing of copper through leach, solvent extraction, and electrowinning of copper. From the initial patent of the second generation of oxime 5- nonylsalicylaldoxime in the 1970's; to the effective use of modifier technology; and development of computer assisted modeling programs, Avecia is driving SX technology to maximize extraction productivity. Keys to consider when advancing productivity are: 1) high quality, high performance products; 2) a responsive, partnering approach to technical service; and 3) tools to aid in the education of industry wide technical personnel with a view on continuous improvement. The focus of this paper is on the advancement of tools to aid in the education for optimization of processing copper through solvent extraction. One such tool is Avecia's own customized solvent extraction modeling program called MEUM. MEUM is currently used world wide to analyze plant operations, test ideas for improving operations, assist engineering companies in design, and to teach basic solvent extraction concepts. Recently MEUM has also been incorporated into a University setting. In the spring of 2000 Avecia worked with the University of Melbourne to integrate MEUM into their Mass Transport tutorial class. Students completed exercises to evaluate how operational changes affected a solvent extraction plant's performance. This paper introduces the basic functions of the program and discusses the successful implementation of MEUM into the University of Melbourne curriculum.

Jan 1, 2002

Although Australia is the world's second biggest producer of iron ore, the last few years have not been easy for companies in Western Australia's Pilbara region (see map) where more than 90% of the nation's iron ore is produced. For at least two years, the industry has been plagued by dwindling markets abroad, production-crippling strikes at home, skyrocketing costs (well above the official 13% annual inflation rate), an acute shortage of investment capital, increasingly ferocious competition from foreign iron ore producers-and, as if all this weren't enough, by an over-valued currency that has caused incalculable damage not only to iron ore producers but to the entire mining industry of Australia. (This last problem was mitigated less than two months ago, on November 28, 1976, when the Australian dollar was devalued by a whopping 17 1/2%.)

Jan 1, 1977

By James R. Jones

It has been 2-1/2 years since the Congress passed the Surface Mining Control and Reclamation Act of 1977 (PL95-87) the Office of Surface Mining every deadline specified in the Act. Hopefully the Congress will begin to realize that specifying unrealistic deadlines does not accomplish the end desire of legislation any sooner -- it only adds to the confusion, and actually hinders orderly, efficient progress. OSM has been sued by all categories of involved parties -- environmental activitist organizations, the states, and the coal operators. This situation has resulted for two reasons: (1) insufficient time was allotted by the Congress to properly develop the regulations and program, and (2) OSM?s philosophy that it must dictate every detail of reclamation operations from Washington, even though many of its people are inexperienced with coal mining. These law- suits are now demonstrating their value. OSM is showing signs of "pulling-in-its horns" and, hopefully, will approach the revised regulations in a more realistic fasion.

Jan 1, 1980

By T Walton, C Perring, M Pepper, G Gerber

The Yandicoogina Channel Iron Deposit (CID) is an accumulation of iron pisolites cemented by a goethite-rich matrix. The Yandicoogina CID’s are found in a palaeochannel that meanders within a broad structural basin of the Yandicoogina Syncline in Pilbara region of Western Australia. RTIO Yandicoogina Mine Geology team contributed to a number of strategies maximising the iron ore reserves mined by Rio Tinto. Two strategies are discussed: the replacement of the Batter-Berm final pit walls by contour dozing; and upgrading the lower grade material to crusher feed. 1. Contour dozing – traditional Batter-Berm pit final wall configuration left kilometre long wedges of ore sterilised around bench margins. Contour dozing final walls (ie dozing of ore down the ore-waste contact) as internally defined by RTIO Yandicoogina Mine Geology (Mine Geology), enabled recovery of additional crusher feed. 2. Upgrade of lower grade material – the lower ore domain (GVL) within the Yandicoogina orebody contains numerous clay pods. Contaminant Al2O3 inherent within clay pods can result in CID material outside of crusher feed grade specifications, causing it to be flagged as ‘internal waste’ in mining models and permanently lost to waste dumps. In 2011, after multiple tests, Mine Geology demonstrated that this material could be upgraded to crusher feed via wet processing. With the support of the RTIO Metallurgical Development team new grade specifications were defined. The resulting material has been used to supplement higher grade ore. While increasing the mining ore output, these ongoing value-adding strategies also promote more sustainable mining via better use of the non-renewable iron ore commodity. The initiatives extend mine life, reduce waste movement, improve strip ratio and increase productivity

Mar 22, 2022

By Robert Bissonette, Samir Sbai

Machine Situational Awareness (MSA) requires the ability to efficiently evaluate the probability of interaction of objects within the environment, without creating false alarms or ignoring materializing hazards. To do this, an MSA system needs to assign context to observed object activity and integrate as much information about object identity, kinematics, behavior, and current state as possible. This paper describes how known object characteristics, attributes, and activities (drilling, dumping, driving, etc.) can refine interaction probabilities and help identify rogue actors that introduce anomalous risks to the health and safety of miners. Path projections need to incorporate velocity and direction as a function of time while accounting for terrain, safety response, environmental factors, current assigned activity, etc. This paper also describes the methodology for properly prioritizing responses to place the highest value on human safety.

Feb 1, 2024

By Kyle Kittle, Kyle Knaeble, Albert Ruiz, Gregory Raines, Ryan Gewargis

The Chimney Hollow Reservoir Project (CHRP) is located southwest of Loveland, Colorado. CHRP is a component of the Windy Gap Firming Project, operated by the Municipal Subdistrict of the Northern Colorado Water Conservancy District. The inlet/outlet tunnel (IOT) for CHRP contains a reinforced concrete lined alve Chamber with PC membrane waterproong that was ecavated via seuential ecavation method to a diameter of feet. The IOT was ecavated using both drill and blast and road header with ground support consisting of steel sets, rock bolts, wire mesh and shotcrete. The IOT will withstand 300 feet of water head and rock ll surcharge load from the dam embankment constructed over the tunnel.

Jun 23, 2024

By Stephen Buttling

The construction of a water treatment plant in Dandenong, Victoria, required detention tanks and a pumping well. The design provided by the Engineer used conventional rectangular cast-in-situ reinforced concrete walls within a sheet piled cofferdam. It was decided to construct the tank and shaft using the diaphragm walling technique as an alternative and, for the shaft in particular, this involved a “circular wall”. Except where cutters are used, joints in diaphragm walls have to be made between colinear panels, with waterproofing provided by dumb-bell water stops held within trapezoidal forms. This means that the circle has to be approximated by a number of straight sides, which in this case was twelve. The requirement was to design the reinforcement for the strange shaped panels. Finite element analysis was used, in the first stage using an axisymmetric model to determine the profile of lateral earth pressures with depth. In the second stage a horizontal slice was modelled, without gravity which normally operates from the top to the bottom of the page. By considering appropriate possible earth pressures at different depths, a range of bending moments was calculated, which was used by the structural engineers to design the rebar. The tanks were successfully constructed, and inclinometers were installed in both the tank and the shaft. Measured deflection profiles show that the design was moderately conservative.

Nov 1, 2022

By Sandeep Pattnaik

Spring stiffness of soil and rock at different depth is often required for a pile structural model. If the pile is rested in multiple layers of soil, then it is rather more complex to simulate the soil in a structural model. The spring stiffness will vary based on density of soil strata over the depth. When a pile is socketed in weathered rock followed by a soil layer, a sudden change in subgrade modulus can influence the pile deflection drastically. Determination of soil spring and simulation of the pile in this condition required correct interpretation of subgrade modulus. The conventional approach of pile spring calculation underestimates the spring stiffness by ignoring underlaying stiffer layers. A finite difference method (FDM) of analysis can reasonably estimate the p-y of soil / rock based on subgrade modulus of each layer. However, the transition between the layers can be better simulated as per the deflection pattern of the pile. The lateral deflection of the pile is mainly dependent on the stiffness of soil layer surrounded by the pile. Generally, the lateral influence of a pile varies from 4D to 6D depending on the soil type. Therefore, soil spring stiffness around the pile would require special attention of a Geotechnical engineer to avoid uncertainty in the prediction of pile behaviour. In this paper, emphasis has been given to develop an approach for pile spring stiffness design. A standard software program LPile has been used to develop p-y curves of soil and rock layers at different depths and then converted to soil/ rock springs over the depth. Modulus of Subgrade Reaction as given in IS 2911 (Part2) was also used to correlate the spring value for different type of soil. Obtained analytical results were compared with full scale field trial for lateral deflection of pile. A good agreement between these two approaches has been established. The effect of soil structure interaction in the structural model shall be simulated by assigning an equivalent vertical and horizontal soil spring, which is developed by Winkler’s soil spring approach. A simplified design principle for calculating the pile spring is discussed in this paper. This approach has been extensively used in Mumbai metro elevated line pile design.

Nov 1, 2022

By Chee S. Theng

As the 2015 president of the Society for Mining, Metallurgy & Exploration Inc., I am pleased to present the 2015 issue of the Transactions of the Society for Mining, Metallurgy & Exploration Inc., Vol. 338. A significant portion of the contribution that we make as a professional society is the publication of professional and technical papers that accelerate the advancement of scientific knowledge and enable the transfer of technology. Communication within the mining community is the key to a successful society. This technology exchange continues a tradition that dates back to the 1871 meeting of 22 mining engineers in Wilkes-Barre, PA, that resulted in the founding of AIME. Those individuals envisioned that these transaction volumes “would form a most valuable and greatly needed addition to our professional literature.” This volume fulfills that pledge. The 2015 Transactions contains some of the most interesting research and insights from the past year and features an international slate of authors spanning industry, academia and government. Papers include the latest findings from the U.S. National Institute for Occupational Safety and Health (NIOSH) and special-focus articles on gold processing, iron ore processing and coal processing. The 2015 Transactions consists of a total of 67 technical papers, encompassing all 22 papers published in 2015 in the Technical Papers Section of Mining Engineering (Vol. 67) and all 29 papers published in 2015 in Minerals & Metallurgical Processing (Vol. 32). Additionally, this volume contains 15 papers and one discussion that are being published for the first time in this issue. The papers presented in this volume were written by some of the most distinguished professionals in the industry worldwide. All of the technical papers were peer-reviewed. The process of review and publication requires much hard work by authors, reviewers and our publications staff. As the 2015 president of SME and on behalf of all our members, I would like to extend our gratitude to all whose volunteer efforts contributed to the publication of this volume.

Jan 1, 2015

By Chee S. Theng

As the 2017 president of the Society for Mining, Metallurgy & Exploration Inc., I am pleased to present the 2017 issue of the Transactions of the Society for Mining, Metallurgy & Exploration Inc., Vol. 342. A significant portion of the contribution that we make as a professional society is the publication of professional and technical papers that accelerate the advancement of scientific knowledge and enable the transfer of technology. Communication within the mining community is the key to a successful society. This technology exchange continues a tradition that dates back to the 1871 meeting of 22 mining engineers in Wilkes-Barre, PA, that resulted in the founding of the American Institute of Mining, Metallurgical and Petroleum Engineers (AIME). Those individuals envisioned that these transaction volumes “would form a most valuable and greatly needed addition to our professional literature.” This volume fulfills that pledge. The 2017 Transactions contains some of the most interesting research and insights from the past year and features an international slate of authors spanning industry, academia and government. Papers include the latest findings from the U.S. National Institute for Occupational Safety and Health (NIOSH), a special review article on Heap Leach Modeling, and articles from two Special Issues on Rare Earths. The 2017 Transactions consists of a total of 54 technical papers, encompassing all 21 papers published in 2017 in the Technical Papers Section of Mining Engineering (Vol. 69) and all 24 papers published in 2017 in Minerals & Metallurgical Processing (Vol. 34). Additionally, this volume contains 9 papers that are being published for the first time in this issue. The papers presented in this volume were written by some of the most distinguished professionals in the industry worldwide. All of the technical papers were peer-reviewed. The process of review and publication requires much hard work by authors, reviewers and our Publications staff. As the 2017 president of SME and on behalf of all our members, I would like to extend our gratitude to all whose volunteer efforts contributed to the publication of this volume.

Jan 1, 2017

By I Minniakhmetov, J Ashford

Orebodies constitute naturally occurring, commonly highly variable concentrations of minerals in the earth’s crust formed through varying and highly unpredictable processes. Orebody knowledge is a core foundation of a mining company’s asset base underpinning all decisions about Mineral Resource and Ore Reserves, future production, development and ultimately the profitability and competitiveness of a mining enterprise. The decision to invest in a mineral project is usually based upon a techno-economic evaluation of the project and having clear approval pathways to gain local community support and address social and environmental impacts. The main objective of the techno-economic evaluation is to determine the optimum development sequence for the particular orebody in question and to estimate the economic viability of the project and the future return on investment to its stakeholders, balancing the inherent value of the mineral in the ground against the costs of development and market pricing. With the exception of market-driven commodity prices, virtually all revenue and cost estimates fundamentally stem from the understanding and subsequent modelling of the orebody. A reliable estimate of the ore deposit grade and other geological value-drivers is the foundation upon which the business case for future mine development and operation is intricately dependent. Orebody knowledge is, therefore, the fundamental driver of the mineral project cycle, influencing the progression of studies and consequently, the resource company’s ability to declare Exploration Results, Mineral Resources or Ore Reserves which govern the source and cost of funding available to the project. Drilling provides a ‘vector’ to the true nature of the orebody and effectively buys time to manage the technical risk associated with the orebody. Despite its perceived high cost, in both time and money terms, drilling is the only available technology for acquiring the necessary orebody knowledge to support technical and economic studies and to minimise orebody-driven cash flow uncertainty and volatility. However, like all costs, pressure to minimise drilling budgets is ubiquitous across the minerals industry. Paired with inappropriate key performance indicators, drilling is often regarded as a cost to be minimised, rather than an investment to be optimised. Furthermore, as future deposits get deeper and more complex, the collection of orebody knowledge is increasingly on the critical path for project development. The increasing cost of data collection pertaining to these deposits increases the temptation to minimise orebody knowledge gathering at the cost of long-term value as the reduction or postponement of drilling results in greater orebody knowledge risk at all stages of the value chain. Indeed the true cost of the decision to drill less is rarely known until the mine is in operation, well after the mine project evaluation team has moved on. This paper aims to promote orebody knowledge as the fundamental source of endogenous project financial risk and, consequently, its critical importance in project financial evaluation. Furthermore, the report documents experimental research into the development of an econometric model for valuing orebody knowledge. Using the density of drilling data as a proxy measure of orebody knowledge, the proposed approach integrates well-established stochastic grade modelling techniques with the mathematical mechanics of Decoupled Net Present Value (DNPV) which, combined with stochastic grade modelling (conditional simulation), lends itself to the financial International Mining Geology Conference 2022 | Brisbane, Australia and Online | 22–23 March 2022 3 assessment of orebody knowledge risk. Based on this approach, a metric is formulated, representing the minimum value of the orebody knowledge added by additional drilling

Mar 22, 2022