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By Hedge AS

Mt Whaleback is one of the largest open-cut iron ore mines in the world. Haulage cost is the single largest component of operating costs at the mine. Past studies towards alternatives to truck haulage have recognised the potential viability of an in-pit crushing and conveying system, dependent on the proportion of uphill haulage. After seventeen years of mining Mt Whaleback still contains more than 1,000 million tonnes of ore, needing 1,800 million tonnes of waste removal to extract it. What was once a quarry has now turned into a large open pit. The increasing proportion of uphill haulage, the need to replace ageing 120 ton and 200 ton trucks and the necessity of achieving and maintaining a higher stripping ratio prompted, in 1984, the initiation of a new feasibility study into the viability of alternative material handling systems. A semi-mobile in-pit crushing and conveying system was found to be most suited to Mt Whaleback conditions. The East Pit was selected as the best location based on the analysis of haulage profiles measured on long term incremental mine plans. A capacity of 22 million tonnes per year was considered achievable by the proven technology currently available. A detailed estimation of capital and operating costs of two systems - one with trucks only and another with trucks, crusher and conveyor - for the removal of 22 million tonnes per year of waste rock, showed substantial cost savings achievable by the proposed system. An economic evaluation of the two systems established the advantages of constructing the in-pit crushing and conveying system. This is now under construction and will be commissioned in early 1987. Experience gained in constructing and operating this installation is expected to influence decisions on similar installations in future.

Jan 1, 1986

By S Planeta

The use of explosives in underground mining has its drawbacks, particularly in the case of thin or narrow vein type deposits. Due to that, there is a need to develop more discriminative and safe rock-breaking technologies. Mechanical rock splitting seems to be one of the most promising avenues in this respect. This paper describes briefly principles and features of radial-axial splitters. It reviews a feasibility study done to evaluate a potential of this technology in selective mining. It was intended to compare productivity and cost of ædrill-splitÆ mining with conventional cut-and-fill method. Hypotheses and assumptions adopted, methodology used and the obtained results are presented and discussed. The study has confirmed an interesting potential of radial-axial splitters in mining thin and narrow vein deposits. In conclusion, it is stressed however, that it will take more R&D work to corroborate the results obtained. Some suggestions concerning future research in this field are also given.

Jan 1, 2003

A feasibility study will fail its objective if it does not identify and then correctly assess, all the risks which could have a substantial impact on the financial viability of a project. Before this assessment can be undertaken, one needs to understand the risk profile of the entity which is making the decision about the project. Some of the commonly encountered issues when assessing project risk are related to the problem of not being able to see the wood for the trees. In any risk analysis it is important that conservatism does not strangle a viable project; that the variables are internally consistent with each other, that reality checks are carried out and that appropriate expertise is used. Sensitivity analysis forms a part of the overall project risk assessment; however, it can only test those variables which have already been identified in the financial model. The most useful tool in performing a sensitivity analysis is Monte Carlo simulation. When properly used, it provides a more real world scenario than the simple adjustment of key variables by ¦ 10 per cent one at a time. Monte Carlo can provide valuable information about the robustness of a project. Project risk and sensitivity assessment is prone to the analysis paralysis syndrome. The focus should be on quality rather than quantity.

Jan 1, 1997

Feasibility is a value improvement process for projects. At any stage in project development, a feasibility study can be undertaken, but although the scope generally remains unchanged the extent of detail and level of accuracy usually increases with time. The main scope elements are a business definition, project description and an execution plan. The studies are designed to assess the potential of the project and to secure funding for on-going examination. Invariably, the investigations loop back to earlier stages to establish more appropriate development criteria but a critical stage is reached when a project construction decision is requested. This feasibility study requires very detailed presentation and analysis to a higher accuracy for the owner(s) and their potential lender(s).

Jan 1, 1997

By Sroka J

A comprehensive feasibility study should be submitted as part of the loan application to a financial institution for debt funding of a proposed project. Its scope should include technical, costing, marketing and other aspects pertinent to the project. The technical presentation should be sufficiently detailed to show that the assumpt- ions concerning future performance are realistic. A lender needs to be convinced that the capital and operating cost estimates are conservatively based with adequate allowances included for contingency and escalation. The marketing assumptions determine the level of revenue from which operating cost, debt servicing, and other commitments are to be met. The foregoing aspects establish the economic viability of the project, and are therefore relevant to the risk assessment and cash flow analysis carried out by a potential lender which determine his ultimate lending Decision

Jan 1, 1978

Feasibility studies in the development of mining projects are fundamental to most investment decisions. It is important that the issues addressed and the degree of detail involved in feasibility studies are consistent with the investment decisions to be taken. Emphasis should be placed on a thorough analysis of critical project parameters prior to detailed investigations being undertaken into other activities which are not relevant to the decisions at hand. Therefore, the issues to be decided upon should be influenced significantly by the stage of development of the project and by the reliability of technical and financial information used in the study. Some of the more critical parameters of feasibility studies are commodity prices, inflation rates and discount rates. Advice is given on the selection of these inputs and also on their application in the feasibility study as the project progresses through its various development stages. The feasibility study should involve not only a formal evaluation of project economics but also an analysis of all project related risks and a comparative analysis of projects competing in

Jan 1, 1983

The purpose of any feasibility study is to determine whether a particular investment or management program will enhance shareholder wealth by, for example, producing an economic return in excess of the cost of equity capital.The threshold rate of return conventionally used in gold feasibility studies is higher than the cost of equity capital, meaning that some viable projects are wrongly described as being sub-economic with their development deferred.Is the industry failing to fully realise its potential? Aside from important technical considerations that determine the cost of exploiting inground inventories, feasibility studies need to incorporate expectations about future gold prices, exchange rates, interest rates and tax rates.Rather than revert to speculation, insights from capital markets give a rigorous framework in which these parameters can be determined for feasibility purposes. Separate questions sometimes, and then inadequately, addressed by feasibility studies include: ò Is it optimum? Many projects are expanded soon after project commissioning - what does this say about the quality of the initial feasibility study? Moreover, does the rate of extraction really matter? ò What is it worth? Although feasibility studies are designed to address viability rather than valuation, such studies are never- theless used by the industry as further evidence that the equity markets have got it wrong again! More likely the problem is with the financial slide rule being used. ò Can it be debt financed? The bankable feasibility study has entered the vocabulary of the gold mining industry but what does it mean? Does it matter anyway how the project is to be Financed?

Jan 1, 1991

By J Kok

"In some underground mines it has been observed that the primary focus during feasibility studies is to determine the best way to mine the defined orebody. Some studies have been conducted without sufficient consideration of the ventilation and cooling requirements or the risk from exposure to associated airborne pollutants caused by the mining operations.Following the hierarchy of control to manage risk, numerous problems of the ventilation systems in some underground mines could have been avoided if sufficient consideration was given to the ventilation requirements to manage heat, airborne pollutants and leakage during the feasibility study phase. If the constraints and hazards were well defined and understood at the time of the study, efforts could have been made to eliminate or substitute the hazards to decrease the risk. Some of these problems include but are not limited to: primary fan locations heat loads diesel exhaust ventilation design based on the production requirement fire/emergency response strategies.This paper highlights areas in the ventilation discipline that are sometimes overlooked during feasibility studies. It will also highlight the importance of the Ventilation Specialist during these studies. Experience and knowledge of best ventilation practices must be applied in feasibility studies.As a result of adequate consideration to all ventilation aspects in the feasibility study phase, risks will become lower in terms of health, safety, production loss and equipment downtime caused by heat.CITATION:Kok, J, 2014. Feasibility studies – what should be considered in terms of ventilation, in Proceedings 12th AusIMM Underground Operators’ Conference 2014, pp 197–204 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 24, 2014

By R Aseervatham

The fast tracked mine development strategy attempts to blend feasibility studies and engineering/commissioning functions into a streamlined process. In this compressed process, environmental issues are difficult to control with respect to the optimisation of operational environmental performance. This paper presents a standard mine development process with specific focus on environmental issues, and contrasts this against Rio TintoÆs recent fast track experiences on the Hail Creek project (Australia), the Baranj project (India) and the Gokwe North project (Zimbabwe).

Jan 1, 1999

By H Dehghan Jan Abadi, K Shahriar

The iron ore district of Gol-e-Gohar (GEG) is located 60 km south-west of the city of Sirjan, in the Kerman Province of the Islamic Republic of Iran. Six exploration targets have been identified and iron ore has been mined from one area with dry and wet concentrate products sold. Prior to mining commencing in 1999, the proven reserves were estimated at 265 million tonnes (Mt) in 2004 and 40 Mt of 100 Mt overburden has since been mined. Of the six exploration targets, the largest anomaly in the GEG district is Deposit No 3. This paper discusses economic considerations focusing on mine extraction and construction of a concentration and pelletising plant to process ore from Deposit No 3 of GEG. Planned capacity of 10 Mt product (concentrate and pellet) per year is targeted to commence in 2011, and nominal capacity by 2014. The economical evaluation and analysis is one of the most important stages in the feasibility study of mine development. Financial calculations including the provision of financial resources, operation period revenue, loss and profit statement, cash flow, net cash flow, internal rate of return and net present value have been undertaken as part of the feasibility study. The feasibility study operating plan assumes a large open pit mine containing proven reserves of approximately 250 Mt. The feasibility study assumed an economic return of $80 per tonne iron pellet. The economic study determined that Deposit No 3 of GEG can be economically developed by open pit mining followed by magnetite separation and flotation to generate iron concentrate and pellets.

Jan 1, 2007

By El-Ansary M

Estimation of in-situ resources and recoverable ore reserves for the Boddington Gold Mine feasibility study was done by applying an essentially "classical" ore reserve method. This relied completely on customized graphics-based computer software requiring close co-operation and interaction between geologists and mining engineers. All geological and mining outlines were interpreted and digitized manually. Classification of selectively mineable reserves into ore, marginal and waste categories was done using a method involving convolution, devised by Dr S Carras of the Systems Research Institute of Australia, and Mr R Hooper of Kinhill Stearns. The estimation process was complicated by the frequently conflicting requirements of the various joint venture partners. The resulting ore reserve figures therefore satisfied only the most general expectations of each partner.

Jan 1, 1987

By D S. Nicholson, T Marshall

Reserves of high-grade quartz gravel, lignite and timber suitable for the production of silicon metal and ferrosilicon on large scale occur within 40 miles of Bluff Harbour. Undeveloped hydroelectric power resources on the Clutha River are located within 50 miles of the most promising quartz gravel deposits while opencastable lignite, potentially suitable for electric power production, occurs in the same locality as the quartz gravels. A preliminary study of production economics indicates that the commercial feasibility of silicon/ferro-silicon production would depend mainly on the cost of electric power, total capital cost of plant, and the market value of the products. The proximity of Bluff Harbour is advantageous for the export of products.

Jan 1, 1971

Reserves of high-grade quartz gravel, lignite, and timber suitable for the production of silicon metal and ferrosilicon on large scale occur within 40 miles of Bluff Harbour. Undeveloped hydroelectric power resources on the Clutha River are located within 50 miles of the most promising quartz gravel deposits while opencastable lignite, potentially suitable for electric power production, occurs in the same locality as the quartz gravels. A preliminary study of production economics indicates that the commercial feasibility of silicon/ferrosilicon production would depend mainly on the cost of electric power, total capital cost of plant, and the market value of the products. The proximity of Bluff Harbour is advantageous for the export of products.

Jan 1, 1971

By Marshall T, Nicholson DS

Reserves of high-grade quartz gravel, lignite and timber suitable for the production of silicon metal and ferrosilicon on large scale occur within 40 miles of Bluff Harbour. Undeveloped hydroelectric power resources on the Clutha River are located within 50 miles of the most promising quartz gravel deposits while ooencastable lignite, potentially suitable for electric power production, occurs in the same locality as the quartz gravels. A preliminary study of production economics indicates that the commercial feasibility of silicon/ferro-silicon production would depend mainly on the cost of electric power, total capital cost of plant, and the market value of the products. The proximity of Bluff Harbour is advantageous for the export of products.

Jan 1, 1971

By Caigen Wang, Wending Ma, Xiexin Mi

The urgent need for the control of surface subsidence caused by longwall coal mining in densely populated areas of China has led to a feasibility study on the effectiveness of longwall goaf cemented backfill. The study is focussed on exploring the potential of longwall goaf cemented backfill practice for surface subsidence control. Specific backfill geometry was designed in view of the characteristics of the longwall coal mining system. Laboratory physical simulated tests were carried out with different backfill material properties and pack size. The tests achieved a marked reduction in surface subsidence by the use of goaf cemented backfill. The system has been shown to be effective in laboratory tests, the challenge now is to overcome the engineering problems to put it into practice.

Jan 1, 1998

By J Ranford, A Harris, K Laughton

The Angas Zinc Mine (Angas) is a poly-metallic, underground mine in the Adelaide Hills that has been developed through arguably one of the most volatile financial time periods in living memory. From boom times during the commencement of the project, the global financial crisis (GFC) through the stabilisation of the operating period and then a subdued capital market for the period where mine life extension was targeted, the financial environment has always presented a different set of challenges. Indeed even the Underground Operators’ Conferences that have been held across the span of the project allude to these changes: ‘Boom and Beyond’, Launceston (2008); ‘Safe, Innovative and Sustainable’, Canberra (2011) and ‘Managing the Margin’ in Adelaide (2014).Angas gives a rare opportunity to see the entire life-of-mine of a project and its economic performance within a relatively short time frame. Angas, owned and operated by Terramin Australia Ltd (Terramin), will have undergone resource estimation drill out, feasibility study, permitting, commissioning, operating and completion and rehabilitation all within a period of approximately ten years. A number of sensitivities of the project were tested, particularly in the bankable feasibility study (BFS) stage and the aim of this paper is to identify the factors that impacted the operations profitability the most, whether they were identified preproduction or not. The key sensitivities assessed in the BFS were typical of similar studies, including operating costs, metal recoveries, capital costs, zinc prices, lead prices and exchange rates. The manner in which these sensitivities presented themselves in real life were not as anticipated and modelled in the feasibility study and were also heavily impacted by technical challenges.CITATION:Harris, A, Laughton, K and Ranford, J, 2014. Feasibility to mine completion – the real impacts on project economics, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 99–110 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

A new lead refinery with a. capacity of 230,000 tons per year com-menced operation at*Port'Plsie in October, 1959. This plant' superseded the refinery which had operated from 1933 with the advent of thecontinuous lead refining process. The incorporation of new equipment following local metallurgical developments, together with the overseas demand for lead of extremely low antimony content, created difficulties in operating the original plant. The new refinery project was under-taken to cover this disability and to gain the full advantage of the new processes.Desilverising and softening are carried out in units identical in size to those used previously. Metallic'zinc is now recovered from the entire output of desilverised bullion by vacuum distillation. Final refining is then carried out by batch'treatinent with caustic soda yield-ing lead of purity previously unattainable at Port Pirie.These two processes have replaced continuous dezincing by oxidation, a high temperature process which caused large quantities of lead and antimony to be recirculated. As the final stage is a .batch process the product composition can be.checked before casting. Individual batches can be adjusted to produce special alloys to,consumer's specification.Improved casting equipment has allowed the quantity production of pigs of good physical characteristics either as 56 lb bars or 2000 lb pigs. This, together with the high purity of the lead, has assured the B.H.A.S. position in world markets.Automatic control systems have been extensively employed particularly on the vacuum dezincing unit.The anticipated financial benefits have been achieved mainly by a reduction in the tonnage of recirculated materials, a smaller labour force, and reduced maintenance requirements.

Jan 1, 1963

By M R. Stevens, W Mori, G B. Boswell

The Onemana prospect is located on the eastern Coromandel Peninsula, North Island, New Zealand. Systematic exploration involving surface geological mapping, geophysics, rock and soil geochemistry, reverse-circulation and diamond drilling has identified a number of important features of a fossil hydrothermal system at Onemana. This relatively intact gold mineralised system is hosted within a sequence of rhyolitic volcanics and volcaniclastics, overlain by lake sediments, sinters and hydrothermal eruption breccia. The system lies within a graben/half graben bounded by major NE-trending faults which form the approximate boundaries to hydrothermal alteration. Rock and soil geochemistry indicate a broad zone of anomalous gold, silver, arsenic, mercury and antimony. Overlapping elevated rock and soil gold anomalies indicate strongest mineralisation occurs over two zones of hydrothermal brecciation named 'Breccia Knob' and 'Western Ridge'. Geophysical data obtained from Gradient Array Resistivity and Ground Magnetics have been used to produce anomaly maps. The terrain corrected resistivity plot shows a number of well defined linear resistivity anomalies which are believed to represent large silicified and quartz veined bodies at relatively shallow depths. The strongest of these anomalies correspond with 'Breccia Knob' and 'Western Ridge'. Reverse-circulation and diamond drilling targeting these resistivity and geochemical anomalies has confirmed wide intervals of quartz veining, silicification and gold mineralisation. Petrologic data based on drill samples indicates the existence of a laterally extensive gold bearing epithermal system. Hydrothermal alteration is thought to have been caused by strongly convecting, two-phase (boiling), near-neutral chloride fluids which persisted at high temperatures (170 - 220¦C) to the paleosurface. A geological model is postulated of a large, complex, hydrothermal system developed in a shallow lake or marginal lake environment created by rifting and graben development within a recently extinct rhyolitic volcanic centre. Geothermal activity alternated between relatively quiescent periods of unrestricted fluid upflow and sinter development interspersed with violent hydrothermal eruptions caused by near surface silica capping and overpressuring above a major fluid conduit centred under 'Breccia Knob'.  Opportunities for precious metal mineralisation are evident from drilling to date. Upflow of near-neutral chloride fluids to shallow depths favours the presence of strongly mineralised stockworks at relatively shallow depths. Periodic hydrothermal eruptions would have caused fracturing and rapid depressurisation of the hydrothermal system, strongly favouring the precipitation of gold from solution both near surface and within feeder-vein systems at depth.

Jan 1, 1995

By Boswell GB, Mori W, Stevens MR

The Onemana prospect is located on the eastern Coromandel Peninsula, North Island, New Zealand. Systematic exploration involving surface geological mapping, geophysics, rock and soil geochemistry, reverse-circulation and diamond drilling has identified a number of important features of a fossil hydrothermal system at Onemana. This relatively intact gold mineralised system is hosted within a sequence of rhyolitic volcanics and volcaniclastics, overlain by lake sediments, sinters and hydrothermal eruption breccia. The system lies within a graben/half graben bounded by major NE-trending faults which form the approximate boundaries to hydrothermal alteration.

Jan 1, 1995

The problems of the as-built water supply system are discussed. Recent modifications to the collection dams and the water cleaning station using wedge wire screens to resolve these problems are outlined.

Jan 1, 1978