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By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

By F Phillips, E Deucker, J Kato

It is challenging to determine the optimal mining strategy to maximise value when a mine plan includes mineralised material which does not meet the full cost of mining but has value exceeding the variable cost of mining (‘marginal material’). Mining too much marginal material dilutes the operation’s head grade and undermines profitability. Conversely, leaving too much metal behind fails to achieve the full value of the endowment. Finding the balance between the two will maximise value delivered from the asset. This dilemma has traditionally been approached by calculating a suite of cut-off grades to define the grade of material that meets economic targets for an orebody (or zone within) and should therefore be included in the mine plan. A problem with this approach is that individual mining blocks within the zone have different costs, value and confidence levels, with each having economic co-dependencies between them. Blocks of identical grade but different mining contexts will have distinctly different economic outcomes. For example: • a block may be a low-grade increment or shell around a higher-grade stope; • a block may be available to be mined when there is spare mining capacity; or • a block may defer access to significantly higher cash flow material. Each of these circumstances would result in different value from the blocks if included as part of the mine plan. Cut-off grades calculated as averages over zones of material, or in isolation from schedule-based information, are missing the entire mining context that determines the ultimate economic outcome of making a mining decision. There are tools and techniques available to address this for open pit mining, however underground mining has different nuances. There are more intricate economic and physical dependencies between potential ore blocks, and importantly, the decision to leave material in situ can be made at any time. The case study in this paper explores a new methodology for underground mining, targeted towards strategic planning applications. It examines whether the economic logic usually applied via cut-off calculations can be implemented in the schedule so that optimal economic decisions can be made on a block-by-block basis, taking into account the mining context of the block, with the objective to maximise asset value. The results of the case study scenarios in Table 1 demonstrate the magnitude of the potential improvement in NPV that can be attained by a block by block valuation approach

Mar 15, 2021

The creation of an accurate and precise enough database requires the collection of many representative samples, subsampling and assaying them without destroying their integrity. The selection and implementation of sampling protocols often lead to severe difficulties, making the unaware practitioner vulnerable to massive exploration, feasibility and operating failures. Therefore, there is no substitute for a good understanding of the Theory of Sampling (TOS). Either because of ignorance, or because of short-term economic reasons, failure to comply with many stringent conditions can be devastating for the validity of a feasibility study, leading to false evaluations, to the abandonment of a viable property, or to the exploitation of one that is not profitable. All these failures have something in common: insufficient duplicate sampling, subsampling and assaying were performed; very important, preliminary heterogeneity tests were never performed; for short-term economic reasons, poor sampling and subsampling protocols were selected, second-class sampling systems and weightometers were installed and poor preventive maintenance and cleaning were implemented;and sampling experts were called only when the project was obviously in trouble. The conclusion is clear: in due time, iterative auditing of sampling practices is an insurance policy against massive financial losses for the company involved. A complete, comprehensive 100 point checklist of sampling Quality Assurance and Quality Control is provided, so critically important details to ensure success are not forgotten.

Mar 1, 2010

The homologous series of saturated fatty acids investigated in this study generally show a steady gradation of properties with chain length. The solution pKa values were assumed constant at 4.9, however reported pKa values could be lower or higher. Hematite flotation response and surface pressure for aqueous solutions of these fatty acids were measured as a function of pH. For the shorter chain fatty acids, the undissociated acid was shown to be the predominant surface active species with flotation, supplemented by the physical adsorption of acid anions as the chain length increased. The reduced solubility of the longer fatty acid carbon chains made these reagents ineffective as flotation agents. The maximum flotation response of hematite using tetradecanoic acid corresponded with the precipitation edge of the reagent. The results show that the values of surface pressure of the surfactants are not always a good indication of their effectiveness as flotation collectors.

Jan 1, 2005

By C J. Corbett

Many underground mining methods rely on blasted rock moving under gravity to report to extraction points. Mining of orebodies dipping between 20 - 45 degrees poses a unique challenge for mining engineers in that a dip angle in this range will not allow the movement of broken ore down the footwall to the mucking horizon utilising gravity. This is more so in cases where the natural angle of repose of the rock is less than the dip of the orebody. Hence, innovative mining systems are necessary to mine this type of orebodies. In Australia, the method of uphole retreat panel stoping is commonly used to extract orebodies in the dip range of 20 - 45 degrees and thickness range of 5 - 15 m. In the Zambian Copperbelt a method called continuous retreat updip stoping is used for orebodies with similar dips and thicknesses. The mechanised form of this mining method has potential for application in the metalliferous mining industry in Australia. In this study a comparison is made between mechanised updip (MUDS) and transverse retreat stoping (TRS) methods. A hypothetical nickel sulphide orebody located in Western Australia is used as case study. The net present value for mechanised updip stoping is seven per cent higher than that of transverse retreat stoping based on the assumptions applied. Initial results of this study indicate that mechanised updip stoping can be adopted for Australian mining conditions. However, lack of significant local experience with the method is often cited as a reason for not adopting it even in situations where it is clearly the best option.

Jan 1, 2003

It may at first sight appear somewhat presumptuous for the writer to attempt to discuss a subject in which he cannot pretend to possess any special scientific training; but a sufficient apology can surely be found in the fact that a very large percentage of the accidents from explosives occurring in metalliferous mines is traceable to the ignorance of the characteristics of these compounds by the miners who have to handle them, and to their deliberate disobedience of the rules laid down for their guidance by the manufacturers, the government regulations, or the special rules of the mines.The only method which promises any possibility of improvement upon these conditions is to substitute reason and understanding for the rule-of-thumb principle which says "you should do this" or "you should not do that." In the one case his own knowledge and intelligence enables the miner to avoid any dangerous practice in the other his inclination prompts him to do anything which will save time, provided he is not found out or at best trusting to his memory to tell him what is dangerous, without the reasoning which makes that memory easy.Another evil of rule-of-thumb knowledge is that, from its very nature, it prevents adaptability, and so we find that old miners, who learnt blasting in the days of black powder, cannot understand why high explosives do not require heavy tamping, or because copper bars are permitted in tamping powder they should not be used with other explosives...

Jan 1, 1903

Greater use should be made of lineations in investigations of the engineering properties of rock masses and in structural studies guiding prospecting programmes.A prominent alignment of elongate mineral grains and stretched pebbles usually marks the primary direction in which metamorphic rocks have been extended by flow. In local adjustment zones separating masses that have extended different amounts, this lineation has been a direction of slip. Kinks and crumples resulting from this slip lie in secondary lineation directions transverse to the primary mineral lineation.During deformation relatively mobile materials move into dilatant zones caused by irregularities in primary flow directions. This secondary movement transverse to lineated, primary-flow directions is the cause of crenulations and folds with axes parallel to flow lineations.INTRODUCTIONThe arrangement of inequidimensional particles in rocks is rarely statistically random. Platy minerals tend to be parallel to bedding and foliation planes. Elongate particles and linear structures lie most frequently in certain lineation directions. The types of elongate particles in lineated rocks include needle and blade shaped mineral grains, sheared out segregations, and stretched pebbles, amygdules, and aolites.Crenulations and kinks are the most common of the linear structures involved.Faint lineations are readily overlooked. Even strong lineations have been ignored. This is unfortunate as even weak lineations may be important.Use of lineation information Well-developed lineations influence the mechanical properties of rocks. Quarry workers have long known that the mechanical properties of rock masses vary directionally...

Jan 1, 1965

By B Cope, Y Churi

Roxgold was a small exploration company when it discovered the Zone 55 orebody at the Yaramoko project in Burkina Faso in 2010. Since this time, it has actively progressed the project with the completion of a preliminary economic assessment in 2013, a feasibility study in early 2014 and obtained full permitting for construction in January 2015. With no other underground gold mine in Burkina Faso, developing a modern and productive modern gold mine in West Africa was considered a significant challenge as Roxgold moved from explorer to producer.To facilitate this development, Roxgold engaged an international underground mining contractor to partner this development. This has enabled Roxgold to successfully develop the mine over a relatively short time frame with construction commencing in April 2015, first gold being poured in May 2016 and commercial production being achieved in October 2016.This paper discusses key elements of the project development and highlights some of the challenges faced with operating in a remote poorly developed area with a limited mining culture. Furthermore, the authors highlight the key technical and operational aspects that make the Yaramoko project a very successful development project.CITATION:Cope, B and Churi, Y, 2017. The development of the Yaramoko gold project in Burkina Faso, West Africa, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 173–182 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By A Esfahanipour, M Osanloo

Determination of cut-off grade?strategy is one of the most important stages of open pit mine planning and design. It is the parameter directly influencing the financial, technical, economic, legal, environmental, social and political issues in relation to mining operation. Choosing the optimum cut-off grade strategy that maximises the economic outcome has been a major topic of research workers for nearly one century. Many researchers have contributed in devising methods and algorithms, such as dynamic programming, linear programming, optimal control and so on for various aspects of its determination. In this paper, a non-linear mathematical programming for cut-off grade strategy optimisation is presented, considering the three main stages of mining operation introduced by K F Lane. In this model maximisation of net present value of mining operation, under the three constraints of mining stagesÆ capacities, considered as the optimisation criteria. Due to the discrete representation of the mining resource, the proposed non-linear formulation is approximated by a non-linear signomial geometric programming. According to non-convexity and the complexity of the proposed model, an augmented Lagrangian genetic algorithm was used to find the optimum cut-off grade strategy under varying and fixed price circumstances. To validate the proposed non-linear model efficiency, the results were compared with the results obtained by the K F Lane methodology. It was found that the proposed non-linear model works efficiently in the determination of cut-off grade strategy. According to the simplicity of the structure of non-linear programming modelling in comparison with dynamic programming it is hoped that, further development of this model would certainly provide the ability of considering managerial and technical flexibilities as well as incorporating more real mining conditions in the determination of cut-off grade strategy optimisation.

Sep 26, 2011

By P Walker, I Crnkovic, D Bennett

The Phu Kham deposit represents a copper-gold porphyry system, with mineralisation present in skarn, stockwork and disseminated styles. Significant folding and alteration events have created a complex heterogeneous mineralogy horizon. Weathering and water table contact have created a leached zone, overlying transition zones with supergene chalcocite- dominant secondary copper mineralisation and clay-rich gangue. Primary ore copper mineralisation is mainly chalcopyrite with minor bornite. The major challenges to the copper-gold flotation process are a wide size distribution of chalcopyrite mineralisation and poor primary grind liberation, a high pyrite content in skarn ore requiring aggressive pyrite depression conditions, clay-rich gangue and non-sulfide copper mineralisation in weathered zones, and a significant association of gold with pyrite.The Phu Kham concentrator has been developed as a conventional semi-autogenous grinding (SAG) and ball milling circuit followed by selective rougher flotation, regrinding and cleaner flotation to produce a copper concentrate containing payable gold and silver values. The concentrator flow sheet design offered a capital efficient compromise between high copper recovery bulk sulfide flotation with large cleaning capacity, and lower recovery copper selective rougher flotation to ensure concentrate specification of 24 per cent copper grade could be achieved. This paper will examine and discuss concentrator flow sheet development, including projects implemented since commissioning to improve copper recovery, and future projects designed to maintain and enhance copper in concentrate production with decreasing copper grade and increasing pyrite content of ore feed, and increasing hardness of primary ore.CITATION:Bennett, D, Crnkovic, I and Walker, P, 2012. Recent process developments at the Phu Kham Copper-Gold Concentrator, Laos, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 257-272 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

By S C. Dominy

Gravity amenable gold ores are those that after comminution produce liberated particles, composites and/or carriers that can be recovered by gravity separation means. Recovery depends upon mineralisation type and the comminution and concentration method used. Any in situ ore with more than 20 per cent of gold greater than 100 µm in size is likely to have a strong gravity recoverable component. A less traditional approach is where the gold is sulfide-locked and the gold carrier plus any liberated gold is recovered via continuous gravity recovery following fine crushing. Specific tests are undertaken to determine the level of gravity amenable gold within a deposit. The principal methodology is the gravity recoverable gold (GRG) test, which consists of three sequential liberation and recovery stages. For continuous gravity recovery (CGR), the sample is fed over a laboratory Wilfley table to simulate continuous recovery of the gold. Tails from the feed can be progressively re-ground and re-tabled to develop a grade-recovery curve. Primary geology and gold particle size-distribution have a strong effect on the mass of sample required to provide representative results for both tests. Where low-grade ore contains very coarse gold, substantially larger sample masses are required. Experience has shown that GRG and CGR values can vary throughout an orebody, particularly within different geological-grade domains. A testing regime must consider sample frequency and support.

Sep 5, 2011

The uptake of zinc, lead, and copper by the flora of the Tui Base Mine area near Te Aroha is described.Vegetation and soil samples were taken from two traverses across the Raukaka Lode. Results. after statistical analysis, indicated that Beilschmiedia tawa was a suitable species for biogeochemical prospecting for lead and that SchefJlera digitata was satisfactory for zinc.The tawa showed a negative anomaly for lead over the vein itself but not over the adjacent dispersion halo. It was concluded that lead concentrations greater than 230 p.p.m. in the wood ash of the tawa and zinc concentrationsgreater than 540 p.p.m. in the leaf ash of S. digitata denoted threshold values for anomalous mineralization in the soil beneath. Although both species contained copper, neither indicated a soil anomaly for this element.

Jan 1, 1969

The need to hoist increasing loads from great depths is leading to the more general adoption of winders of the Koepe and Blair types. The trend has introduced a number of new problems in winding ropes, more particularly in the Koepe system where regular destructive tests during the life of a rope are not possible. Consequently, the importance of introducing non-destructive tests is much greater, especially so in the case of Koepe ropes used for deep winding where there are three major destructive fatiguing influences. These are rotational effects when a vertical rope is changed end-for- end each trip, the much greater range of stress to which the rope is subjected each trip as compared with drum winding, and the destructive effect of a high coefficient of friction between wheel and rope. A plea for a lower coefficient in the interest of better rope and tread life, substantiated by analysis, is made for Koepe winders operating at depth.Co-ordination of rope testing with general hoisting problems is stressed and the active participation of the Wire Rope Committee of the Australian Mineral Industries Research Association Ltd. in the promotion ofthe project is noted.The general introduction of a rope testing programme in Australia, personnel requirements and some local basic research in the subject to cope with future demands are considered.

Jan 1, 1967

Principal component analysis of the variation of Cu, Ni, Zn, Pb, Mn, and Cr in a control group of 96 samples of surface ironstone from the Yilgarn Block, Western Australia, was used to derive a simple graphical method, based on only Cu, Ni, and Cr, for discriminating between massive nickel gossans and other ironstones.When the graph was tested by plotting 400 control samples, it failed to correctly classify only nine out of 176 gossans and 11 out of 224 other ironstones.

Jan 1, 1974

By Hannan J. C

In New South Wales, development applications for major coal mining proposals are determined by the Minister for Planning and Environment and applications for mining leases and other mineral titles are dealt with by the Minister for Mineral Resources. The environmental conditions placed on the development consent, the coal mining lease and the approvals and licences under the pollution control legislation, amount to a substantial component of any new project's planning and commissioning considerations.An outline is presented of the framework within which various approvals are granted and conditions for environmental management are imposed upon mining projects. The principles and concerns, as perceived by the regulatory authorities, on which the majority of approval conditions are based are also outlined.No attempt has been made to analyse the extent to which these principles or standards are achieved in practice, nor to discuss the degree to which some of the conditions are achievable with the current status of technology and economics in the coal industry.

Jan 1, 1987

BHP BillitonÆs Yandi channel iron deposit has a large resource of approximately 1.3 billion tonnes. This is a bulk mining operation with a high degree of selectivity not being practical. In contrast the deposit geology is a complex interrelationship of primary channel facies, secondary enrichment of iron and a secondary redistribution of the major contaminants. These variations in geology and alteration can occur over ranges of hundreds of metres down to knife edge contacts. In addition, differences in primary facies and mobility during alteration often result in the iron and contaminants having different patterns of enrichment and depletion. Despite the scale of these operations, if the geological domaining is not optimal, significant errors in the resource estimate of grades and tonnage will occur. Getting the geology right has become a common clichT among mining professionals. However, in many situations, obtaining optimal geological domains for resource modelling is best achieved when there is input from geology, statistics and geostatistics. In this paper, moving window statistics are utilised to see through locally high variability to identify trends that assist in locating difficult to identify geological boundaries. After the creation of geological domains, univariate and multivariate statistics and principal component analysis assist in validating and characterising geological domains. Finally, variography and domain contact analysis are used to analyse the nature of the boundaries between geological domains. At the Yandi channel iron deposit, the inter-relationship between geological and geostatistical analysis has resulted in significant improvements to geological domaining and the treatment of domain boundaries during estimation of iron and contaminates.

Jan 1, 2005

By R Puglisi, G McPhail, B D. Jilbert

The increased international focus on sustainable development and cost improvement, coupled with the unpredictability and adverse impact of droughts in Australia and globally, has highlighted the critical need for responsible management of water within the minerals industry. The Rio Tinto Technology Group recently initiated a priority program to examine how water management practices could be improved within the GroupÆs spheres of activity. Rio Tinto Technical Services (TS), the technical services consulting group of the Technology Group, has for many years been undertaking water management reviews and assisting group operations with the development of responsible water management strategies and plans. Rio Tinto therefore requested that Rio Tinto Technical Services develop a world-class approach to mine water management that will drive improvement in strategic assurance and operational efficiency of water at the companyÆs managed operations across the world. The initiative, known as æExcellence in Water ManagementÆ, includes the selection and use of state-of-the-art management, technical tools and methodologies to strive for best practice. The Rio Tinto Technical Services approach facilitates a consistent and objective assessment of performance across the entire spectrum of complex water management issues within a mining operation, from initial exploration through to decommissioning and close-out of the operation. Based on this rigorous assessment, detailed action plans can be developed, prioritised and scheduled for subsequent implementation. This paper presents the progress and experience gained to date in the æExcellence in Water ManagementÆ program, demonstrated by means of a pilot study conducted at Northparkes Mines in New South Wales.

Jan 1, 2003

The New England Fold Belt forms the easternmost and youngest section of the Tasman Fold Belt System of eastern Australia. From middle Palaeozoic to Early Cretaceous time it was the site of extensive episodic calc-alkaline magmatism related to W-dipping subduction. The oldest rocks may have formed at least partly in a volcanic island arc, but from the Late Devonian, the fold belt developed as a convergent Pacific-type continental margin. For Late Devonian-Carboniferous time, parallel belts representing continental margin volcanic arc, forearc basin and subduction complex assemblages can be recognised. Major dextral transform faulting may have offset parts of the fold belt in the Late Carboniferous. In addition, some structural blocks which appear to be out of place in the overall palaeogeographic setting are possible exotic or suspect terranes. A great variety of lode deposits ranging in age from middle Palaeozoic to Early Cretaceous is present in the New England Fold Belt. The vast majority of these are related to emplacement of extensive granite plutons and eruption of continental silicic volcanics in Late Permian-Late Triassic time. However, volcanogenic massive sulphides and volcanic hosted epithermal gold-silver deposits in older rock sequences include one major orebody (Mount Morgan) and several important ones (Mount Chalmers, Cracow, Silver Spur, Cangai and Halls Peak). Some problematical deposits are best classified as metamorphic-hydrothermal. These include gold-bearing quartz reefs and stockworks in sedimentary host rocks, the most important of which are at Gympie, and antimony-gold- tungsten mineralisation in the New England area, mainly at Hillgrove.

Jan 1, 1987

In the last two decades, equipment used in the coal mining operations has become much more sophisticated. The way that work is organised and performed in the industry has also changed significantly. Changes in equipment specification or procedures inevitably means that the risk associated with that equipment or procedure also changes. In an attempt to address this the Joint Coal Board Occupational Health and Safety Trust (JCB) commissioned the University of New South Wales Mining Research Centre and Mine Site Technologies to perform a feasibility study into the development and deployment of Virtual Reality (VR) based training simulators in the New South Wales coal industry. The main aims of the study were to identify, the key providers of VR Technology, the VR options available to the JCB and the information that would need to be included in any simulator. It was anticipated that a critical assessment of these components would produce a format for a cost effective, state of the art simulator that could be readily accessed by all mines. The expectations of the feasibility study were that VR should offer three-dimensional (3D) simulations that are interactive, high-resolution models of real environments based on best practice Safety Management Plans. It was anticipated that the simulations would allow trainees to experience the consequences of poor decision-making and allow them to learn from their mistakes in a safe and forgiving environment. It was envisaged that such simulators would become an addition to the existing training methods used in the industry.

Jan 1, 2003

New knowledge has no economic value unless it can be applied, or æcapturedÆ, as the R&D jargon has it. Australia probably spends more than $500 m per year on mineral industry R&D, distributed amongst the mining companies (IR&D Board, 1997), CSIRO, the universities and others. The investors in this research (industry, and the community via government) will expect some sort of return from their investment. The return will be poor unless the know-how developed in R&D programs can be exploited. This paper explores some of the issues involved in capturing the outcomes of mineral industry R&D in a form which can be exploited for economic benefit, and suggests ways in which it might be done better. It is based on the experience of the JKMRC in conducting applied research in mining and mineral processing and delivering it to the industry. It may seem presumptuous for a research contractor to be telling its clients how to do their job. However, the process of developing, acquiring and implementing R&D outcomes has to be a partnership between provider and receiver, in order for this process to work efficiently. This applies whether the two parties operate within a single corporation (a corporate laboratory and a business unit, for example) or are two entirely independent organisations (eg a mining company and a university). Both partners have a role to play, and the best examples of realising the benefits of R&D almost always involve the open-hearted and skilful handling of this synergy.

Jan 1, 1998