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By Thirnbeck M, Sione T, Petrie P, Leach TM, Mori W, Digan K, Harry K

Gold and lesser copper mineralisation are associated with porphyry-related vein systems periph-eral to two separate inferred intrusive centres north of Kainantu, Papua New Guinea (PNG). The intersection of NW trending structures, formed parallel to the Markham Fault, with NE trending transfer structures localise porphyry intrusions, and control vein distrib-ution.The Arakompa veins intrude pre-existing fractures in Akuna granodiorite, located proximal to an inferred porphyry. These veins are characterised by early quartz and later pyrite-chalcopyrite. Gold mineralis-ation is associated with Bi-Te phases in the sulphide veining. At Maniape, en echelon gash veins occur within the imbricate portion of a regional structure. Maniape is a high level carbonate-base metal gold system formed distal to the same porphyry source as Z ?-;4 kmmna

Jan 1, 1994

By J Cronin

For the last decade, we have read about the great technical innovation that is coming to the mining industry that will increase safety and productivity. There is consensus that it will be a technical innovation that will produce a step change in mining costs and outputs (as opposed to bigger machines or less people); however, this innovation (while freely available) has not taken hold in the industry. While there are a few mines that have embraced technology, the majority of underground mines simply do not have the expertise or technical capability to implement innovation and automation.With unexploited mineral deposits becoming deeper and more remote, and thus more hazardous to mine, telepresence offers the ability to remotely execute production tasks while separating personnel from hazards. As the technologies required to deliver telepresence mature, the potential for there to be no personnel underground during production activities is becoming a reality (the ‘dark factory’). So significant is the capacity of telepresence to mitigate risk, it is proposed that it be included as a separate entry in the hierarchy of hazard mitigation controls.Technical innovation such as the optimised short-term interval control of the production process and the automation of underground mobile fleets offer significant increases in production along with lower operating costs. This paper explores the most critical components for the successful implementation of technology in underground mining; redundant, robust and high-bandwidth communications networks to carry data from distributed networks of smart sensors and to convey teleoperation commands; and high-definition video to provide operators with detailed, real-time data. The days of analogue ‘leaky feeder’ as a base case for communications are over. The human resources required to support the expected wave of innovation are significant and will be difficult to maintain in remote areas as the same skills and expertise are in demand in other industries.The paper highlights barriers to innovation in the mining industry, and a lack of technical and scientific expertise within the industry to be able to identify, implement and manage technologies that can increase safety and productivity. As well, an over-reliance on basic net present value (NPV) financial analysis that is used in the industry punishes investment in technology (capital expenditure; CAPEX) and accepts higher operating expenditure (OPEX) due to the discounting of future savings in operating costs.CITATION:Cronin, J, 2017. Telepresence – the application of remote control and automation technologies for increased safety and productivity, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 213–224 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By J, J M. Young, P T. Nielsen, R Zhu

Improved understanding of the variables that influence hydrocyclone performance is of increasing interest to the iron ore industry, where hydorcyclones are widely used to deslime fine ore. In many cases, the impact of particular variables is not quantified sufficiently well experimentally to ensure that industrial performance will match expectations. The current work focused on developing and implementing a systematic methodology to evaluate and compare the performance of four different hydrocyclones in a desliming application. A critical component of the project was the design and construction of a pilot-scale hydrocyclone rig using state of the art monitoring and sampling methods. A wide ranging test programme was conducted to quantify the effect on metallurgical performance of the key hydrocyclone variables such as pressure, feed density, vortex finder size, spigot size and hydrocyclone make/overall design. Details of the experimental approach are presented, along with a discussion of the sizing analysis methods used. Performance criteria were established to assess the four hydrocyclones. The effects of each major variable were quantified over a wide range of conditions. The results show that clear performance differentiation was achieved, enabling the selection of the optimum configuration. The results from this work demonstrate the benefit of objectively assessing the performance of nominally equivalent units in selecting an optimum configuration that best satisfies the performance criteria.

Jan 1, 2002

The Queensland Department of Mines believes it is in the best interests of the gold mining industry to reduce and control the environmental impacts from gold mining since that is the community expectation.The Department of Mines has set as a special condition of many recently granted Mining Leases the requirement to submit a "Description of Operations" for the approval of the Minister, prior to commencing initial mining operations. In order to facilitate compliance by lessees with this condition an explanation is given of the reasons for this condition and how it is intended to achieve the objective of environmental protection.Environmental impact is operations dependent. Impact on a lease will vary quite significantly with the scale and methods employed. Before a lease can be granted and mined it is therefore necessary to have this information. The parameters of operations most critical both in terms of environment impact and economic viability are worked out and agreed with the lessee before the lease is granted. An approved description of operations which is required now, prior to the start of mining, provides the details of that agreement for the security and benefit of the lessee and the inspectors. It also provides the details of operations and environmental controls which were not required prior to the grant of the lease but are nevertheless required and necessary for compliance with the environmental standards.

Jan 1, 1986

By J Say, M Hawtin, L Carlon, P Cann

Historically, production from sublevels of the Ernest Henry Mine (EHM) started from blind uphole rises at the end of slot drives. Where previous investigations considered removing these slot drives and starting production with independent ore drives, any development savings were consumed when drives were extended to minimise ore loss. Since 2017, EHM and Orica have been investigating opportunities to optimise drill and blast practices by implementing Orica’s Wireless Electronic Blasting System (WEBS). To reduce ore drive development metres, a novel design was proposed utilising the WebGen™ 100 system to combine a rise with pre-charged widening firings. Initially these new rise and widening firings achieved results similar to previous EHM designs, achieving on average 81 per cent of design height and width. Due to poor performance of the fourth trial a significant re-design was required. Modifications included drill hole re-positioning, in-hole primer relocation and initiation delay adjustments. Since the re-design a step change in rise performance has been observed with rise and pre-charged widening shots averaging 95 per cent of design height and width. With rise and widening performance exceeding expectations, the removal of slot drives has allowed a substantial reduction in lateral development. Development savings of 165 m and 169 m from the RL1325 and RL1300 levels have been achieved. Primary draw and ore recovery has also increased due to the later addition of pre charged forward stripping rings. Level design changes have also significantly improved the mining cycle by allowing for a reduction in required ground support, improved secondary ventilation, a reduction of critical path development, simpler production scheduling and less wear and tear on machinery. Future mine level designs now incorporate key learnings and are proving beneficial to a variety of scenarios including changing orebody boundaries at depth.

Mar 15, 2021

By K Dagdelen, I Traore

This paper presents an iterative net present value (NPV) maximisation method to determine the optimum surface to underground transition depth for an orebody to be mined by multiple open pits and an underground mine. The determination of transition depth from open pit to underground mining is based on global production scheduling optimisation of open pit and underground mines using mixed integer linear programming. The method is applied to a case study coming from a gold mining complex with six open pits and a large underground mine using longhole open stoping. The results indicate potential improvements of the NPV of global operations when compared to the traditional techniques based on independently optimised open pit first, followed by underground mining.CITATION:Dagdelen, K and Traore, I, 2014. Open pit transition depth determination through global analysis of open pit and underground mine production scheduling, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 195–200 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

ABSTRACTFor the binary system copper-lead two relationsEquation 1andEquation 2have been derived for the activities of copper and lead at compositions and absolute temperatures within the liquid region of the phase diagram.These relations give, with greater accuracy than is given by previously published relations, the activity-composition temperature variations for all regions of the phase diagram of interest to metallurgists.These relations are essentially simple forms of the Margules equations but with linear temperature dependence applied to their coefficients. This has been done in such a manner that a phase diagram obtained from these relations agrees well with the data available for this system. The methods of obtaining the relations and constructing a phase diagram from them are both given in detail. The enthalpies and entropies of mixing are compared with those derived by other methods.

Jan 1, 1971

By J Evans-Wheeler

"The mandate of the 2005 VALMIN Code to provide ‘(all) reliable, thorough, understandable material information required by investors and their advisers when making investment decisions’ requires that due diligence for tenure be full and thorough. Yet a published due diligence would often appear to be simply a list of tenures allegedly held without any commitment as to the standing of the tenure as safe and secure or otherwise.The value of due diligence for tenure, as mandated in the 2012 JORC Code and the 2005 VALMIN Code, must focus on compliance rather than simply on ‘vital statistics’. Enforcement in every jurisdiction in Australia focuses on penalties (some more harsh than others) for non-compliance, which, in turn and most importantly, reflects directly on security of tenure. Some 22 Acts (on average) impinge on security of tenure and fundamentally underpin the security of any mineral asset.This paper will outline regulatory processes to demonstrate how tenure compliance is achieved and argue that the rigorous application of good practices in tenure evaluation will lead to more of this information being made available on a regular basis.The paper will then focus on further practical examples of tenure compliance failures, the application of these to the requirements of the JORC and VALMIN Codes and due diligence that failed to fulfil the mandate. Examples will be given that alerted other professionals using the JORC Code to complex geological and mining situations of which they were unaware in their valuations.Finally, the author will make a personal plea for tenure to be considered at the commencement of any reporting process.CITATION:Evans-Wheeler, J, 2016. The VALMIN code and tenure compliance – not just a list, in Proceedings Project Evaluation 2016, pp 112–121 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By K G. van den Boogaart, U Mueller

"An accurate prediction of benefit for some types of ore may require not just the ore grade, but a whole compositional characterisation of the estimates; that is, its full mineral composition including waste composition and nuisance elements. An example is Nickel laterite ores, where Ni/Co content must be complemented by estimates of many other elements, as these might have a notable impact on ore processing.Estimates are often obtained with (co-)kriging or co-simulation; however, geostatistics applied to compositional data may yield spurious and inconsistent results because of the constant sum constraint. The log-ratio approach avoids such problems. It proposes a three-step procedure: data are mapped to a set of log ratios of components; for example, the additive log-ratio transformation (alr) transformed scores are modelled with an appropriate fully multivariate geostatistical toolbox; for example, direct/cross-semivariograms and co-kriging or co-simulation results are back-transformed to the original units.Some practical aspects may make the application of this technique difficult: the assumption of Gaussianity and the high dimensionality of the compositions combined with the need for using multivariate methods. This contribution compares several ways of treating compositional data (combining normal score transformation, log-ratio transformations, and minimum/maximum autocorrelation factor (MAF) decomposition) with respect to their ability to generate sensible simulations. The various approaches considered are illustrated with a Nickel laterite data set for which ten variables are available. Both theoretical considerations and illustration results suggest that the best combination is (log)ratio-normal score transform-MAF, in this order. The factors so obtained are closer to Gaussian, approximately spatially decorrelated and can be simulated independently. Simulations can later be recombined to alr-simulations, which in turn may be converted back to point compositions. The resulting simulated compositions are compared with a full Gaussian co-simulation of the raw data. The log-ratio methods show reasonable to good reproduction of mean values, and distribution of the data set and by construction satisfy the total sum constraint, in contrast to the simulations based on raw data for which the total sums fluctuate strongly.CITATION:Mueller, U, Tolosana-Delgado, R and van den Boogaart, K G, 2014. Approaches to the simulation of compositional data – a nickel-laterite comparative case study, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 61–72 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 24, 2014

By C A. Myburgh, S Craig, K Deb

In focusing on open pit mine scheduling, one of the biggest areas that a mining engineer can add value is in the area of cut-off grade optimisation. It is not atypical to add up to an extra 20 per cent in value by bringing forward higher-grade ore and deferring costs into the future.There are many techniques available to maximise net present value (NPV) when applied to open pit mine scheduling. That in itself raises the question of why so many of these techniques exist. The short answer is that none of these techniques are robust. Every time the problem changes, the algorithms also have to change.Instead of trying to make a problem fit the constraints of an existing technique, there is much to be said for usefully hybridising different approaches. This paper describes an innovative approach where evolutionary algorithms are combined with both local search and linear programming. The goal is maximising NPV through optimisation of cut-off grade policy and extraction sequence for an open pit mine. The cut-off/cut-over grade policy produced caters for multiple processing streams and stockpiles.Finally we demonstrate the quality of the algorithm by comparing some results with a well-known mathematical solution.CITATION:Myburgh, C A, Deb, K and Craig, S, 2014. Applying modern heuristics to maximising net present value through cut-off grade optimisation, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 155–164 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By J Mukhopadhyay, J Gutzmer

Most world-class high-grade (60 - 67 wt per cent Fe) hematite iron ore deposits are the product of enrichment of Precambrian iron-formations but processes responsible for enrichment are still unclear. Different models, ranging from syngenetic and diagenetic (King, 1989), deep-seated hydrothermal (Powell et al, 1999; Barley et al, 1999; Taylor et al, 2001; Gutzmer et al, 2002) and ancient supergene (Morris, 1980; 1985; Van Schalkwyk and Beukes, 1986) to modern supergene (MacLeod, 1966) have been suggested. The high-grade hematite deposits stand in contrast to martiteûgoethite ores which are generally accepted to be the result of supergene enrichment of iron-formation because they are found along Cretaceous to Tertiary lateritic weathering profiles (Morris, 1980; Harmsworth et al, 1990). Uncertainties about the origin of the high-grade hematite ores appear largely due to the monomineralic composition of the ores. They are almost exclusively composed of hematite (as microcrystalline hematite and martite), a mineral with wide stability field and very simple chemical composition that reveals little about its origin. Second, many of the deposits have been overprinted by later deformation and chemical weathering obscuring primary ore characteristics and zonation (Taylor et al, 2001). Third, surprisingly few detailed geological studies have been undertaken on the deposits with the aim of unraveling ore genesis. Most studies focus on the present-day structure of orebodies and their general physical-chemical composition for mining and beneficiation purposes. A more thorough understanding of the origin of high-grade hematite iron ore deposits may be gained by combining available mining-orientated data with systematic petrographic-geochemical analyses of different ore generations and hematite phases. This paper presents a first summary of results of an ongoing study, started some two years ago, of high-grade iron ore deposits in South Africa, India and Brazil, including a comparison with the rather well studied deposits of the Hamersley Province in Australia.

Jan 1, 2002

By E Corpuz, J Weissman, S Winter, R Evans

The surface-to-inseam (SIS) directional drilling technique has been utilised at Oaky Creek Coal for more than a decade to predrain both the Oaky No 1 and Oaky North mining areas. The cumulative drilling program constitutes a total of 140 lateral and 200 vertical holes, and 405 km of lateral drilling.The use of SIS gas drainage has been successful with the following site-specific benefits being recognised:ability to drain German Creek seam gas contents to residual gas levels of new mining areas within an 18-month period from commencement of well productionstructural geological verification of the mine design well in advance of development mining occurring in an areaability to conduct successful predrainage of the overlying Aquila seam to reduce subsequent goaf emissions.Appropriate and up-to-date geological knowledge during the design and drilling process is a significant influence to achieving success. Vertical production wells need to be located in a position that is most effective to remove water from hole. The lateral hole should not include intersections with significant geological structure.SIS drilling provides continuous seam roof/floor data to help define seam geometry and locate geological hazards with high accuracy. In faulted ground and with variable seam gradients, SIS data can resolve geological ambiguities from seismic sections and enhance seam correlation that would otherwise be available only from discrete and closely-spaced infill vertical exploration drilling.Here, we review some examples of SIS configurations and practice to highlight key learnings in drilling long inseam holes (up to 1900 m per arm) ahead of development and mining. Aspects on prerequisites, evolution of network design, tolerances and drainage outcomes in a variety of geological situations are discussed as technical basis towards a viable and effective SIS drilling program.CITATION:Corpuz, E, Evans, R, Weissman, J and Winter, S, 2015. Surface-to-inseam (SIS) drilling at Oaky Creek coal mine – SIS design aspects and drilling environment, in Proceedings The Australian Mine Ventilation Conference, pp 93–104 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By D Pearce

The 15-year long debate between the industry, Government and Aboriginal people about the rights and wrongs of Land Rights, the right of Aboriginal people to control development on their land and the relationship between the parties, has been long and often bitter. It has so far been a war of words and often the truth has been the first casualty. This paper looks at the debate and presents the perspective of Aboriginal people, as well as looking at how the industry and Aboriginal people can work together for everyone's benefit. It addresses such matters as: ò why Aboriginal people believe they have the right to control development on their land; ò the perception that Aboriginal people are anti-development; ò the perception that Aboriginal land is 'locked-up'; and ò how companies can negotiate with Aboriginal people.

Jan 1, 1994

By F C. D Michelin

Blast fumes are a significant health risk to underground workers, containing several dangerous gases such as carbon monoxide (CO), nitrogen oxides (NOx) and ammonia. To ensure safe working conditions, workers are not normally allowed to re-enter a mine until the gases are cleared. To predict if gases can be cleared efficiently, simulations can be performed to estimate the gas levels following a blast. For accurate modelling, a calibrated airflow simulation is required in addition to blast-specific parameters such as the yield rate (representing the amount of gas released per kg of explosive) and the dispersion factor (representing how quickly the gases can enter the air stream from the explosive site). Those parameters are not easily determined, as they will vary from blast to blast. Many post-blast gas recordings on mine sites were studied and the correct parameters were determined to ensure an accurate gas simulation. The variability of the results was then analysed and correlation to known parameters is suggested. Finally, recommendations on how to determine the correct parameter are presented.

Oct 12, 2022

By K Mayank, A N. Mainza, I Govender, M Narasimha, A Mittal

In mineral processing industries grinding is the most energy-consuming process. A tumbling mill is an essential grinding equipment widely used for particle size reduction. Power consumption, impact forces and trajectory paths are critical parameters for characterising a tumbling mill to determine grinding efficiency. The effect of lifters and mill speed plays a vital role in such parameters. However, most of the studies ignore the impact of the lifter and do not investigate the effect of slurry dynamics on charge motion. The focus of the present work is to prepare a computational model that can accurately predict the complex multi-phase dynamics of charge particles, air and slurry inside the mill using a model that couples computational fluid dynamics (CFD) and the discrete element method (DEM). The details of impact forces with lifter profiles and mill speed variations will be refined even further using the CFD-DEM coupling approach. The slurry-air free surface is modelled using the volume of fluid (VOF) method, and the charge motion is modelled using the DEM. The phases are coupled using the interface momentum exchange between the charge and the fluid slurry. The coupled model is validated against experimental results from the positron-emitting particle tracking (PEPT) data. The validated model compares the effect of slurry content on charge dynamics with the dry DEM model. The presence of slurry is observed to dampen the tangential and shear contact forces.

Aug 24, 2022

By M Neurohr, B Wacker, D Mensing, C Murphy, W Kitz

Mining operations have large power requirements. The biggest consumers of energy are the drives for the mills located in the concentrators. Assuming that the decision is made on how many mills are needed and how big these mills will be, it can be determined how these mills should be driven. The decision as to which drive should be applied depends on design limits for different mechanical or electrical drives, anticipated operation modes, capital expenditure optimisation and lifecycle cost optimisation.The task for the engineer specifying the drive equipment is to select a drive solution that can debottleneck the operation, avoid interruption of production and enhance the reliability of the process. At the same time, the engineer must choose a design that enables cost optimisation either in a single investment or in relation to the total cost of ownership (TCO).This paper outlines different mechatronic or electric drive alternatives for tube or horizontal mills applied in the mining industry, along with their advantages and disadvantages. The paper covers a wide range of applicable drive systems and provides a background to the benefit of applying integrated drive systems.CITATION:Wacker, B, Kitz, W, Murphy, C, Neurohr, M and Mensing, D, 2015. Application of different drive systems for horizontal mills, in Proceedings Iron Ore 2015, pp 205–216 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By J Ferreira

To speed up multivariate geostatistical simulation it is common to transform the set of attributes into spatially uncorrelated factors that can be simulated independently. One decorrelation method is the method of minimum/maximum autocorrelation factors (MAF), where a two structure linear model of coregionalisation is assumed. The transformation decorrelates the theoretical model exactly, but the actual data are only approximately decorrelated. The MAF transformation can therefore be seen as a special case of a non-orthogonal approximate diagonaliser of a set of symmetric matrices. A more general approach for approximate joint diagonalisation (AJD) has been developed in the context of blind source separation. For these AJD algorithms no assumptions are made beyond symmetry of the individual matrices and so they can be applied to a family of experimental semivariogram matrices. In their application there are no restrictions on the number of structures in the linear model of coregionalisation (LMC) thus removing one of the conditions placed on the subsequent modelling of the spatial structure of the factors. In this paper the general background for the U-WEDGE AJD method is presented. It is shown that the U-WEDGE method achieves better spatial decorrelation than the MAF method. The factors derived from U-WEDGE are simulated using conditional turning bands simulation and then backtransformed to attribute space.

Sep 26, 2011

The mining of high-grade narrow vein deposits is a predominant field of activity in the precious metal sector. These types of deposits are located throughout the globe and have a significant presence in mining operations. The principle factor that has undermined the profitability and effectiveness of mining such ore zones is the substantial dilution that occurs when blasting with explosives during extraction. In order to minimise ore dilution, the thermal fragmentation mining method enables the operator to extract a narrow mineralised corridor, 30 cm to 1 m wide (according to the true width of the ore vein). By inserting a strong burner powered by diesel fuel and air into a pilot hole previously drilled directly into the vein, a thermal reaction occurs spalling the rock and enlarging the hole to 30 - 100 cm in diameter. This patented method produces highly concentrated ore, resulting in 400 - 500 per cent less dilution when compared to conventional mining methods. The mining method was conceived with the aim of mining ounces, not tonnes. This method of extraction, reduces the environmental impact of mining operations since much smaller quantities of rock are displaced, stockpiled, and treated using chemical agents. The fully mechanised equipment operated by a two-person team, maximises the effectiveness of skilled personnel, increases productivity, and reduces risks of injuries. Important economic benefits are generated for large- and small-scale mining operations alike. For large-scale operations, the mining method increases mining reserves, lowers the cost per ounce, and increases the total profitability of existing mine operations. The method also significantly lowers costs and risks of developing and mining small-scale deposits, requiring less investment capital, shortening the payback period, thus reducing the lending risk.  Combined with a small modular processing unit able to process between 100 - 300 tons per day, the method substantially lowers the financial break-even point for small-scale mining operations in a narrow vein environment. The company has been working with the technology at its Rocmec 1 mining site; results achieved and future developments are discussed.

Jan 1, 2008

By C J. Moran

Given that the mining industry is committed to sustainable development principles and that Australia is experiencing changes to the regulatory environment that aim to modernise the water sector and encourage adoption of consistent approaches, there is a well defined need for the Australian minerals industry to develop a water accounting framework. This requires: key terms and definitions for water metrics for use in the Australian minerals industry that is consistent with the wider water sector, a suite of metrics representing key components of an operationÆs water balance, a calculation method for some of the metrics, and a reporting protocol. This paper presents the methodology that was used to derive these four components. Existing accounting frameworks were reviewed and key terms and definitions that were consistent with current requirements were proposed. A calculation methodology was developed to obtain some of the key indicators and variables that cannot be easily measured directly (water loss through evaporation is an example). The adopted terms and definitions dictated model development, with the conclusion that a systems approach was the most effective calculation process. To test the proposed definitions and calculation methodology, values for water metrics were derived for eight sites. The proposed framework and definitions could deal with the specific situations selected as case studies. The associated calculation methodology produced complete accounts at various levels. Some elements of the accounts could be directly checked against available data and simulations. The framework captured well variations in the reuse efficiencies; reuse efficiency could even vary for similar processes. It is concluded that this preliminary accounting framework provides a consistent language and metrics for quantifying and communicating water management, both at the intersection of the site with the surrounding landscape (through detailed reporting of site inputs and outputs) and within operational activities. Using this consistent framework for quantifying and documenting water use within an operation will provide a platform for compiling and comparing minerals industry water use with other sectors. This may support benchmarking activities within regions or companies and help demonstrate leadership amongst water users in water resource stewardship. The approach presented here is applicable to a wide variety of mining and processing activities, and biophysical environments, and can be adopted as the first step towards developing national water accounts for the Australian Minerals Industry.

Jan 1, 2009

By R Redden

"The Didipio Gold-Copper project in the Philippines has been a well-defined reasonably high gold grade porphyry for almost two decades. OceanaGold are now bringing the project into production in late 2012 and have recently reoptimised the project with the goal of combining the inherent high grades with higher through-put than previously proposed that will see strong initial metal production. The project was discovered and well defined by 1995, but has seen some obstacles to development, namely sovereign risk, capital cost and project funding. The project strengths over this time that have kept the flames alive are: strong grades large orebody with low stripping ratios a simple beneficiation process and a clean high-grade concentrate strong support from the Philippines government.The initial study in 1998 used Gold and Copper price assumptions of $325/oz and $0.95 lb respectively. Today reserves are based on $950 and $2.85. So, being a porphyry with a large reducing grade halo, the deposit now lends itself to extraction on a much larger scale than before, without any significant capital expenditure as a larger open pit now dominates the project.Didipio is a game changer for OceanaGold, so it has been important to learn from history and to capitalise on a strong initial metal production profile. The project sits in a reasonably remote mountainous area of Luzon which sees annual typhoons and numerous short duration high intensity rainfall events and two rivers flowing through the project area, so it has not been without some innovative technical solutions.CITATION:Redden, R, 2012. Didipio - Learning the lessons, adapting and getting ready for production, in Proceedings Project Evaluation 2012, pp 67-76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012