Search Documents

This case study reviews the Charters Towers vein systems for potential open-pittable bulk tonnage resources in' stockworks, horsetails or multiple vein systems. The review summarises district evaluation undertaken over the last 18. months before specific drill evaluations.Historical mining from Charters Towers includes in excess of six million ounces at head grades of one ounce per ton. A review and structural studies show most veins as simple, tight systems without significant horsetails or multiple sheeted systems. In addition the normal gold content of the pyritic selvages ('formation') is low and disseminated gold is virtually absent. Shoots are structurally controlled on vein/vein and vein/contact intersections. Historically high production vein systems are hosted by .,.t o of the younger granodiorite phases.Geometrically most veins dip shallowly (from 45¦ to as low as 200) in a north or easterly quadrant. Flat dips permit open cut exposure of considerable vein area at a favourable stripping ratio.

Jan 1, 1986

By Proffett JM

Batu Hijau is a calc-alkaline, island arc porphyry copper-gold deposit located in the southwest corner of Sumbawa Island in the Banda archipelago of southern Indonesia. Proven and probable reserves are 913 million tonnes at an average grade of 0.53 per cent copper (10.631 billion pounds Cu) and 0.41 g/t gold (389 tonnes Au). Construction of the deposit infrastructure began in October 1996, and formal approval for the project mobilisation was granted by the Indonesian government in May 1997. Preoperational testing and start-up of the first grinding line is scheduled for mid-year 1999.Copper and gold mineralisation are genetically related to at least three tonalite porphyry dykes and small plugs which intrude a quartz diorite stock that was emplaced into andesitic to dacitic pyroclastic rocks and lava flows. Faults are uncommon, and where they occur they do not significantly displace hydrothermal alteration and mineralisation zones.

Jan 1, 1997

The fast rate of development in the micro technology industry is enabling computer based systems to be used in ways never considered before. Micro technology can be used to great advantage in the mining industry to improve both safety and productivity. The planned use of electronic 'IN/OUT' boards at The Zinc Corporation, Limited and New Broken Hill Consolidated Limited (ZC/NBHC) mines will provide a much improved system for checking that the mines are clear before firing. The provision of remote ocaputerised core logging facilities made possible by small remote data entry terminals will greatly improve the productivity of the personnel involved in all stages of core Logging.

Jan 1, 1983

The selection of the ore haulage system is one of the most crucial decisions made in the development of an underground mining project. The haulage system is, once selected, one of the components of a mine that defines its ability to respond to changes in mining inventory and the market conditions for its products. Over the last decade, in Australia at least, this selection process has largely centred on the debate over the merits of shaft and decline truck haulage. Little attention, if any, was given to the application of inclined conveyor haulage as a real alternative to the shaft and truck haulage. This is despite well established precedents for its application in the underground coal industry and some limited applications in underground metalliferous mines. This paper seeks to explore the case for the application of inclined conveyors as a legitimate ore haulage system for underground mines. The case for conveyor haulage is illustrated by an overview of the application of conveyors at some existing operations, and discussion of what conveyors have to offer as a mine haulage system and the issues that are associated with them. Material drawn from the feasibility studies for NewcrestÆs Ridgeway mine and Telfer Deeps Project is presented as case studies that considered selection of inclined conveyor haulage. The purpose of these case studies is to highlight the value of impartially approaching tasks of this type with a robust plan. This plan should be able to respond to issues identified as the task progresses towards the objective of finding the right solution for an ore haulage system.

Jan 1, 2005

ADDRESS BY THE PRESIDENT OF THE INSTITUTE (MR. C. H. MARTIN) IN PRESENTING THE CERTIFICATE TO SIR MAURICE MAWBY, C.B.E.Members of The Institute, distinguished guests of which there are many, ladies and gentlemen, you are welcome. And might I add a special welcome to Lady Mawby and Lady Fisher and to Sir George's only son, Peter, who with his wife, Betty and one of Sir George's three daughters, Helen, are present this evening, and also to Sir Maurice's son, Colin, and Colin's wife, Jay, also in our company.The family presence must surely be a great source of pleasure and satisfaction to all those so intimately concerned.It is hardly necessary for me to state the sole and only reason for our presence here tonight, which is to confer on Sir George Fisher and Sir Maurice Mawby Honorary Membership of The Australasian Institute of Mining and Metallurgy, and at the same time to acknowledge two people who have rendered great service to the mining industry, albeit tinged with sadness to all of us in the knowledge that from now on their influence may diminish. It is now my pleasure to introduce, although that is hardly necessary, Sir Maurice Mawby, the second member of the duo we honour here this evening, and whose contribution to the mining industry is also beyond assessment.

Jan 1, 1976

By P B. Hills

This paper discusses the computerisation of the drill hole database, some historical records and the creation of a three-dimensional model of the gold bearing structures for resource estimation and mine design at the Beaconsfield Gold Mine in northern Tasmania. The phase of the work reported here commenced in November 1997 and was completed in March 1998. The historical mining on the Tasmania Reef had reached a depth of 450 m below surface when work ceased in 1914. Production up to this time was 854 000 ounces gold. Recent activity has concentrated on testing depth extensions of the previously mined ore structure, to a depth of 1000 m below surface, and the establishment of an underground mining operation to exploit this resource. The lode structure at Beaconsfield is a typical mesothermal vein style deposit. Gold is contained within narrow quartz, carbonate and minor sulphide reefs or veins. Reef width is variable from a few centimetres to several metres with æsplitsÆ or bifurcations being common. The reef averages 2.7 m true width in the economic zones. The key feature of this style of mineralisation is that reef continuity can be confirmed by drilling to a high level of confidence, but the gold grades are somewhat more erratic in nature. The resource estimates were based entirely on drill data. The drill intercepts on the reef were coded for each split directly into a database and these allocations validated graphically. The distribution of grades and widths show an increasing gold grade with reef width for both the drill hole and historical data. The same histogram patterns, mixed populations and overall arithmetic average grade for the historical mine (at 21.52 g/t > 3 g/t Au) and new drill data (at 21.55 g/t > 3 g/t Au) would indicate that there has been no major change in the overall style or grade of the ore from the historically mined areas to the new resource. The reef, host geology, area of historical workings and resource zones at the Beaconsfield Mine were defined as a series of closed wireframes. The Tasmania Reef was modelled as five mutually exclusive wireframes, one each for the Main Reef, Footwall split, Second footwall split, Third footwall split and Hangingwall split. The data for this exercise was extracted directly from the drill hole database, stored in Microsoft Access format. The formation of the solids was largely automated with manual validation and refinements allowing for multiple runs using different interpolation methods and combinations of drill holes. A rotated 3D-block model in the plane of the Tasmania Reef was created to contain the grade model and allow for tonnage, grade and reef width estimates. An inverse distance squared (ID2) interpolation method was used with ranges of 25 m along strike and 125 m down plunge with blank areas infilled with 50 m by 250 m. Each reef split was filled separately using only drill intercepts from that split. The method was independently validated used MIK methods. Longitudinal sections have been prepared showing gold grade, reef width and width +grade. Estimates were also made for arsenic, sulphur and other minor elements. The long sections show three distinct mining zones. A method is presented for the conversion of the resources to reserves by the addition of mining parameters for minimum mining width, minimum pillar, cut-off grade and internal and external dilution. The selection is done on columns within the block model, and allows for all splits to be considered at once. Multiple runs can be made for varying combinations of parameters to test different mining methods and their impact on reserves, mine life and NPV.

Jan 1, 1999

By Baafi EY

Geostatistics is now widely used in the mining industry in the estimation of ore reserves and terms like kriging, variogram and estimation variance are becoming well known. Ordinary Kriging (OK) has been found by some practioners to be a superior tool compared with other ore reserve estimators. However, kriging hasn't been the ultimate solution to difficulties which may arise in ore reserve estimation. Several additional geostatistical techniques have been recently developed for more efficient ore reserve estimation in some deposits, especially gold and other precious metals. These include indicator kriging and probability kriging which are useful tools to work with in a selective mining operation.

Jan 1, 1987

Equity finance provides the most suitable and frequently the only access to capital during the exploration and evaluation stages of resource projects when project risk is at its highest. Investors are prepared to provide equity funds in the knowledge that they are compensated for the higher risk they take on with higher potential returns or sufficient upside potential to justify the higher risk. The context of resource projects which determines the role of equity finance has changed considerably. Prior to the resurgence of the gold price and the development of new mining technology many resource projects were selectively mining orebodies by underground methods frequently with limited reserves proved up in advance of mining. The limited proved ore reserves base and the volatility of the gold price all contributed to a higher risk and higher return investment environment in which the use of equity finance was more appropriate and frequently the only option for capital raising. The financial risk of a resources project can be transferred to an underwriter who makes the commitment to distribute the financial risk between a number of investors. There is also the opportunity for financiers to use a mix of equity and debt finance to allow a company to proceed with the development stage where without such a mix the resource project would not proceed. By using a level of equity finance the project becomes robust enough in its ability to service the debt finance facility and the project proceeds with the equity participants receiving a suitable risk reward return. The liquidity from the establishment of a market for the company's securities enhances further capital raising and generally enables the company to satisfy its financial requirements on more favourable terms particularly during bull markets. The role of equity finance in the management of the financial risk during the exploration, evaluation, development and mining stages of resource projects is summarised in Table 1. In more detail the principal roles of equity finance and the ways in which equity finance impact on the risk management of resource projects will be considered in turn.

Jan 1, 1994

By Watt JS

The ash content of coal can be determined using radioisotope X-ray techniques. A number of overseas applications of X-ray techniques are described; however these suffer from the disadvantage of either not compensating for iron variations or, if compensation is used, using X-rays of low penetration with consequent sampling difficulties. Current Australian Atomic Energy Commiss- ion (AAEC) research on X-ray techniques is aimed at overcoming the limitations of these methods. The AAEC method involves making measurements proportional to mass absorption coefficients of X-rays in coal at two energies. Calculations and experiments with X-rays up to 35 keV have shown that ash content can be determined to about 1 wt.%. This work is being extended to higher X-ray energies to enable the technique to be used directly on a conveyor belt or in a hopper. Neutron techniques can be used to measure the concentration of specific elements such as carbon, hydrogen and silicon in coal. Their con- centration is correlated to the coal parameters of interest. Methods of moisture determination based on hydrogen measurement and ash determina- tion based on silicon and aluminium measurement are described. Energy content can be determined accurate- ly by analysing the carbon content of coal

Jan 1, 1978

By F R. M Pires, Y Hasui, A Schrank

The iron ores of Alegria mine are composed of itabirites enclosing minor bodies of high-grade ores. The itabirites are classified according to mineralogical composition in five types: martite-rich, goethite-rich, specularite-rich, magnetite-rich and anphibolite-rich ores. The hematites are martite-rich, magnetite-rich, specularite-rich and more rarely, amphibolite-rich. Other classification criteria of the ores are based on the physical properties and the degree of compaction. As such, the itabirites and hematites can be classified as hard, friable and soft types. The mineralogical/textural evolution of the ores is linked to the pressure and temperature conditions that accompanied the tectonic processes in anphibolite facies and the different degrees of subsequent surficial weathering processes. Petrographic and microstructural studies indicate that the magnetite and amphibole bearing itabirites represent the parent rocks that created the other itabirites and that the specularite itabirites and the hard martite types are related to silica dissolution and redeposition in zones of high and low strain. Most of itabirites ores correspond to chert oxide facies banded iron formation, except the goethite and amphibole bearing itabirite that resemble a silicate or oxide-silicate facies with minor carbonate impurities. The great mass and pods of soft martite itabirites are probably shaley oxide facies BIFs with little volcanic contribution. Trace element contents of the AlegriaÆs itabirites show strong dissimilarities with BIFs associated with volcanism (Algoma type), but closely ressemble to the Lake Superior type, with high content in Cr, Co and low V, Ni, Cu and Zn. Although the absolute contents of REE present in the AlegriaÆs itabirites are, in general very low, the pattern when normalised by NASC is similar to the great majority of the Archean and Paleoproterozoic BIFs elsewhere in the world, and characterised by positive Eu anomaly.

Jan 1, 2002

By Balint F

The Izok massive sulphide deposits are located in the Northwest Territories of the remote western Canadian Arctic. Together they represent one of the highest grade undeveloped zinc-copper resources in North America. Metall Mining Corporation is presently engaged in a feasibility study on developing the Izok property as well as actively exploring for additional reserves. The Izok deposits are Archean-aged, volcanogenic massive sulphide (VMS) bodies hosted within and near the top of a thick sequence of predominantly felsic pyroclastic rocks. The hangingwall package includes additional felsic volcanoclastics, dacitic and basaltic flows, thin sulphide-rich iron formations, and turbiditic sediments. The felsic volcanics are intruded by syn- to late-hydrothermal dacitic dykes and sills and post-hydrothermal gabbroic dykes and sills. Both intrusives are interpreted to be volcanic feeders to overlying flows. All lithologies are cut by much later irregular granitic pegmatite dykes and regionally metamorphosed to pyroxene homfels grade. The deposits occur within a large kilometre-scale soda-depleted alteration zone. The immediate footwall and hangingwall rocks to the deposits are characterised by zones of muscovite-biotite (with or without sillimanite), lesser chlorite-biotite-cordierite (with or without anthophyllite), and locally intense silicificified and albitised zones. All lithologies have been affected by a later calcic metasomatic alteration. As currently defined, the Izok Zn-Cu-Pb-Ag deposits comprise a cluster of four complexly-zoned composite lenses: the Northwest, North, Central, and newly discovered Inukshuk deposits. The first three deposits are amenable to open pit mining while development of the Inukshuk deposit will require underground methods. The combined mineral inventory of the Northwest, North, Central and Inukshuk deposits at present totals 15.6 million tonnes with a grade of 2.4 per cent Cu, 13.8 per cent Zn, 1.4 per cent Pb, and 74.6 g/t Ag.

Jan 1, 1993

By Yeliseyev AK, Shestakov AM

Comminution is the most power-intensive process in the technology for ferrous quartzite concentration. That is why improving comminution efficiency leads to the most appreciable economic effect on the concentration process. The trend towards reducing the lump size of crushed ore before charging the mill is considered to be of major importance in improving comminution efficiency. A considerable number of investigations have been performed in this direction. At the same time, a strong interest is also maintained in the increase of comminution efficiency due to optimisation of process taking place in the mill. Recently, investigations of the power intensity of the breaking process inside the mill have been carried out at the Krivoy Rog Mining Institute. It was ascertained that the routine conditions of comminution at a low mill ball charge ratio resulted in an unnecessarily high power consumption due to the force of impact of falling and milling bodies far exceeding the power required for comminution. For example, the power value for falling balls of 60 - 125 mm in diameter reaches 0.3 kNm, and the force and stress due to ball contact with the lining reaches 60 kN and 250 MPa respectively. These values exceed the force required for comminution by a factor of ten. Analysis of the mechanism of ore particle size reduction during comminution in the ball mill indicates that the size reduction is due to impact load, attrition load, and static load. The efficiency of size reduction is very low. During comminution in the ball mill, impact loads prevail and amount to 85 - 90 per cent of the total load. In this situation, not more than 10 - 15 per cent of destruction is due to attrition.

Jan 1, 1993

THOSE who dabble in m.ining are no exception to the general rule that persons who know a little of a subject are apt to think that they know all about it. Some colour may be lent to the belief that anyone may succeed in mining when we hear stories ofsuccessful diggers and others who have accidentally dropped on to something good through no foresight on their part; but we seldom hear the contra account of the far larger number who fail. Those who go more thoroughly into the subject, and take up mining as a profession, know very well that it is not one that can be carried out successfully by rule of thumb, but when they point this out to the public they are credited with trying to make it a closed profession; and outsiders are for ever trying to find out the 'trade secrets,' at the same time spurning the main one, which is hard study, experience, and the ability to apply their knowledge.The average mining man is not rich. When he amasses a fortune it is generally through speculation rather than professional work, thought no doubt his technical knowledge may have assisted him. However, making a fortune and running a mine are twodifferent things.

Jan 1, 1911

Mining is claimed to be unique among industries owing to its dependence on exploration for its existence, the need to operate in remote, inhospitable areas, the vast capital sums required for development, the need to pay royalties regardless of profitabil- ity, the wide swings in prices for many of its products, the finite life of each-mineral deposit, its susceptibility to criticism by environmentalists, its dependence on export markets and sensitivity to' cost and exchange rate fluctuations, the uncertainties inherent in most mining legislation, pressures to grant mineral rights to aboriginal communities and the burden of having to finance its own infrastructure. The special problems of the industry have been recognised in the income tax laws which, generally speaking, allow for the deduction of all capital expenditure before tax is payable. Notable exceptions to this rule are the absence of special deductions for mineral processing facilities and the absence of any deductions for a large part of the expenditure on ports and port towns. The scope and extent of infrastructure expenditure is discussed. The consequences of the burden imposed on the industry include tax inequity, higher capital and operating costs, "high grading" and

Jan 1, 1974

SASOL Synthetic Fuels has recently completed the design of sampling systems for raw and blended coal feeding the gasifiers at Secunda, South Africa. The new systems will replace manual, stopped belt sampling and have been designed to achieve specific accuracy targets on a daily basis. The sampling system is unusual in the coal industry in that the fines content (-5.5 mm nominal) of the coal is very critical and is to be determined with high accuracy.The sampling system was designed to meet carefully considered target accuracies using methods of modern sampling theory. The heterogeneity of the coal streams involved with respect to the critical analytes was determined by appropriate sampling and sample analysis. The statistical characterisation of the time variation of analytes in the process streams was based on variograms derived from on-line ash gauges. From this point, the design was completed using fundamental statistical sampling theory and some simulation studies. The paper discusses the development of the sampling system design in detail as well as the plans to use the data stream to provide timely alarms when the coal quality deviates from the target specification.

Jan 1, 2002

The classic description of Project Finance as "the reliance by lenders on the cashflow of a project, supported by the assets of the project with no recourse to the project sponsor's corporate balance sheet" has, like most other terms in the finance industry, evolved through recent usage. The area now under most scrutiny is the sharing of risks between parties either most able to take them or prepared to accept payment for them. Creativity in, and flexibility of financing structures have enabled project lending to continue under a dramatically different economic outlook. The diminishing competitiveness of the Australian producers in a global market place of uncertain commodity prices has discouraged the advancement of many large scale resource projects. The majority of new project financings has been designed to assist the relatively small company promote and develop its first projects. New trends- are emerging in four areas: sources of capital; borrowing structure; financing instruments (securitisation); and risk underpinning. As project financing becomes more widely used, the range of interested financiers grows. New initiatives contribute to its development and evolution with a view to increase effectiveness to the sponsor of any new venture.

Jan 1, 1987

The metallogenic belts of the Central Andes (iron, porphyry copper, polymetallic and tin) are genetically related to an eastward migrating magmatic arc. The polymetallic belt of the Bolivian Altiplano formed during Miocene arc broadening and lies in a critical position for understanding the genesis of this zonation. It is penecontemporaneous with parts of the copper and tin belts, and shares many characteristics with them. The differences between the belts result from contrasting volcanic and feeder stock geometry, depth of erosion and country rocks, and are not due to variations in magma chemistry, age or Benioff Zone depth. Polymetallic mineralisation in the Altiplano is epithermal in style and mostly related to flow-dome volcanism. The intermontane basinal setting precludes deep erosion to expose the epizonal feeder stocks and predicted porphyry copper mineralisation. In contrast, erosion of the less abundant stratovolcanoes of the Altiplano-Puna and Pampean Massif may expose contemporaneous Miocene porphyry copper mineralisation in subvolcanic stocks. The tin belt is coincident with the Paleozoic fold belt of the Eastern Cordillera. The occurrence of minor tin in Altiplano epithermal deposits hosted by Paleozoic sediments, and the persistence of tin mineralisation in the tin belt over 350Ma, suggests that Paleozoic sediments are the source of the tin.

Jan 1, 1987

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

By C B. Smith, G L. Boxer, S W. Moss, A L. Jaques, V Lorenz, M J. Rayner

The Ernest Henry Iron Oxide Copper Gold deposit is hosted in a large dilation between two moderately dipping shear zones found in the footwall and hanging wall of the deposit. These shears are controlled by a large diorite intrusion to the north-east and south-west of the deposit, formed ~1660 Ma. A shear zone dubbed the ‘Interlens’ uncovered through underground workings truncates the main orebody into two lenses, and is hypothesized to have formed in conjunction with the Hanging Wall Shear Zone and Footwall Shear Zone. All three shears dip moderately to the SSE (50–140) from open cut exposures through to the current mining horizon approximately 800 m below the surface. Routine geological work and a capital drilling campaign has identified a significant flexure in these sub parallel ore bounding shears with increasing depth. A shift in shear orientation in the Interlens over approximately 100 m vertically from ~50° to the SSE to a steep, easterly trend (~85° to the east) is observed in both drill core and exposures in the underground workings. It is hypothesized the diorite intrusive to the south-west of the deposit controls the shear zone geometries at depth. The geometry of the Interlens mirrors the surface expression of the Proterozoic package of the orebounding shears to the south-west of the deposit, suggesting the surface geometries of the shear zones are consistent with depth. Additional drilling to explore the validity of this hypothesis is planned for the near future to better understand the structural controls on the Ernest Henry mineralisation with increasing depth.

Mar 22, 2022

There is no good news! The market environment for raising capital for resource projects is getting tougher. The regulatory and accounting environment is fast becoming more difficult and the hurdles to successfully raising debt, lease, equity or hybrid finance are now considerably higher. As ever, well structured companies and capital issues can and will survive, if not thrive. An outline of the market and regulatory environment for successful issues is set out below, followed by some comparison of stockmarket values of resource assets compared to more technical appraisals.

Jan 1, 1990