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By J Kuva, M Parian, B I. Pålsson

One of the main factors affecting the suitability of an ore for autogenous grinding is the ore’s competency, ie providing enough critical stones for the grinding process. Several experimental test routines exist and are used for assessing the viability of the ore for autogenous grinding. However, very little attention is given to the generation of fatigue in large stones experiencing repeated shocks in the mill. To investigate this, large pebbles sampled from an industrial autogenous grinding mill running hard and soft ores were categorised based on the grinding energy. From the pebbles, small drill core samples were prepared and went through a series of fatigue cycle tests. Both hard and soft ores showed similar average resistance to failure in compression tests, but the hard ore had a consistent resistance with lower variations. The cores were scanned by XCT before and in-between fatigue tests at the highest reachable resolution, 1.5 µm voxel size. The outcome showed that a higher number of micro-cracks were visible in the soft ore compared to the hard ore. The frequency of micro-crack development in the soft ore may be the reason for its lower specific grinding energy compared to the hard ore. It is obvious that for realistic conditions in an autogenous grinding mill, stones are pre-weakened by fatigue before they fracture. Therefore, shortcut methods focusing only on running tests on fresh and small samples may operate in unrealistic conditions by ignoring the fatigue phenomenon. This is even more important for ores that are on the borderline to be considered as competent for autogenous milling.

Aug 24, 2022

By M Chaudhari, G Manekar, D Shome

MOIL Limited is operating 7 underground and 3 opencast mines in central India and producing annually more than 1.2 million tonnes of various grades of manganese ore. The underground mines are operating at shallow - 90 m at Munsar mine to moderate - 353 m at Balaghat mine below the surface with horizontal cut and fill (HCF) or its variant method of stoping with post filling by hydraulic sand stowing. The Munsar mine is being worked underground since 1903. The opencast mining is presently stopped. The ore body below the opencast quarry is geological continuity of the area excavated in past by opencast method of mining. The underground mining is done through the adit in three levels i.e. 270’L, 220’L, 170’L and by incline in western part of the property at 70’L. The horizontal drift development has been developed in the manganese ore body with sill drive of 5 m above the sill pillar in lower level at 70’L and barrier pillar of 5 m thickness is left for protection of upper level at 170’L. Valuable mineral has been locked in sill pillar and therefore rock mechanics investigations have been carried out. On the basis of study now the drift development has been carried out in footwall rock at 70’L, (-) 30’L and below levels and it has improved the mineable manganese ore by about 20%. In this modified HCF stope design, an alternative fill material in place of sand, which has been developed in house by use of overburden (OB) material after treatment, has been used for hydraulic stowing. The experimental trials find out that the alternative fill material of OB is more compact and forming a non expansion floor for the men and machines in the stope. This will certainly help in the introduction of mobile underground mining equipment for drilling in the stopes and mechanical mucking, transportation and loading of the ROM. The paper presents rock mechanics investigations and future use of alternative fill material of OB for better safety and productivity at Munsar Mine of MOIL. CITATION:Manekar, G, Shome, D and Chaudhari, M, 2018. Modified ground support with alternative fill material for ground control at Munsar underground manganese mine of MOIL Limited, India, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 58–65 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By I Gray

This paper examines the practical limitations that affect the measurement of stress in rock. As most rock stress measurement is conducted through the invasive process of drilling a hole in a rock mass, the nature of the rock and its response to being drilled form the basis of the stress measurement process. The prime techniques to measure stress down a borehole are to conduct hydraulic fracturing and its variant hydrojacking, overcoring, and the examination of the borehole wall for breakout or tensile fracture. It is also possible in some circumstances to use the sonic velocity within the rock mass as an indicator of the stress situation. Other structural indicators of stress such as joints, faulting and intrusions are useful but may not reflect the current stress situation within the rock mass. The variability of stress within the rock mass also needs to be considered as it is quite unusual to have a monotonic stress situation throughout any rock mass. The outdated concept of measuring the far field stress in a few measurement for use in a numerical model is quite dangerous. It is essential to make multiple measurements and to generate an understanding of its distribution in some form of model before stress can sensibly be incorporated into underground design. CITATION:Gray, I, 2018. The practicalities of effective stress measurement in rock, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 360–374 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By B Rouvray, R Bertuzzi

The development of a design-and-construct tunnelling project in Australia from its concept to its construction requires designs to be prepared and reviewed at several distinct stages prior to documenting ‘for construction’. On recent projects the post-tender stages have been variously called 30 per cent—70 per cent—100 per cent; or concept–substantial–final; or system definition–preliminary–critical. The design is reviewed at each stage by the designer’s internal reviewer, the contractor and its independent advisor(s), the owner and its independent advisor(s), the project’s independent certifier, proof engineers and often third-party stakeholders and their advisors. Documentation for each stage often dominates the design effort, at times distracting from design. This paper presents the authors’ experience of this design-and-review process. Comparisons of design budget and actual design spend and design program implications are presented. It is postulated that a subtle change has occurred in our industry that has diminished the value of the design dollar. Is there a better process? An alternative is suggested.CITATION:Bertuzzi, R and Rouvray, B, 2014. Reducing the cost of tunnel design in Australia, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 501–506 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By A Cranley, A Giblett, S Thacker

The Newmont Tanami Operations are located in the Northern Territory, approximately 550 km north-west of Alice Springs. The Granites process plant commenced operations in 1986 as a 300?000 t/a ball mill / carbon-in-leach (CIL) plant and has undergone numerous expansions between that time and the current day, with project-to-date gold production exceeding 6.5 Moz. Annual plant throughput has exceeded 2.8 Mt/a while processing a blend of open pit material and ore from the Callie Deeps underground mine, with annual gold production exceeding 400 koz. In 2013 the operation processed 1.8 Mt of underground ore for the production of 323 koz of gold.This paper reviews the operation and expansion of The Granites process plant since the mid to late 1980s with particular focus on the gravity gold recovery circuit. The Tanami ores contain significant levels of free gold, and gravity recovery has long been an integral component of the metal recovery process at the Granites plant. The results of ten years of gravity circuit performance analysis and optimisation are presented.CITATION:Giblett, A, Cranley, A and Thacker, S, 2014. Three decades of gold production at the Newmont Tanami operations, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 209–216 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

Optimisation of an open-pittable orebody raises many questions relating to the operation, corporate objectives and orebody characteristics. Often the `black box' is expected to provide instant answers to many complex questions. The aim of this paper is to pose some commonly asked questions that arise during an optimisation study, and to try to provide some answers. The questions are aimed at typical objectives that affect the project and are of primary concern with the decisions that affect its course during the various development stages.

Jan 1, 1997

By Emerson J

Drilling has always been one of the most important parts of the exploration process with most companies spending around 25% of their budget on drilling. Although superficially there appears to be little difference in drills and drilling practice a number of major refinements have taken place over the last decade that have significantly changed the drilling scene. One of the most important advances has been in hydraulic engineering giving rise to the Dual Purpose top drive drilling rigs. These have led to significant productivity increases with the high rotation speeds and longer fleets. Downhole technology has also advanced with better hammers, stronger drill rods, impregnated coring bits and improved drilling fluids. Although geologists continue to measure drilling performance on a cost per metre basis, greater consideration is at last being paid to the quality of sample produced. This is particularly the case with RC drilling where quite sophisticated automatic and semi automatic splitting devices have been developed. Drill operators are now required to be experienced in both Diamond coring and air drilling and be better qualified to maintain the more sophisticated machinery. Management of drilling companies or drilling divisions has also had to change to accommodate both the high capital cost of equipment and the demands of keeping drilling a cost effective exercise.

Jan 1, 1987

Firedamp drainage has become an essential part of many mine environmental systems, and new applications are arising. Installations are evolving further to satisfy ever changing basic requirements, standards, and iniilny needs. In this paper, water seal, vacuum based installations are considered, as well as moni- toring, protective and control systems which have been developed for continuous, manless, and trouble free operation. Some factors affecting plant capacity and extractor per- formance are identified and assessed. INTRODUCTION Firedamp drainage applications are incr- easing world wide as mining engineers strive for improved safety and security, and further concentration of coal output. Fewer and fewer mines are able nowadays to satisfy coal prod- uction and firedamp control requirements solely by air dilution or by air dilution and underground firedamp extraction plants. As a result, dependence on surface extraction plants is increasing. This paper deals with som requirements and applications of such installations. I. DEVELOPMENT AND PRACTICE Firedamp drainage has existed for over 250 years following the early work of Carlisle Spedding at Whitehaven (1730). Some fundamentals of current firedamp drainage systems can be recognised in the

Jan 1, 1982

By S J. Clarke, G Sieders

Double corrosion protection (DCP) rock bolts have evolved to become complicated assemblies comprising numerous components. This complexity is mainly associated with durability considerations including potential exposure to adverse groundwater conditions and ensuring separation of dissimilar metals within the bolt assembly itself.Recent progress in the construction of glass-fibre reinforced polymer (GRP) rock bolts have the potential to provide a viable alternative to conventional steel rock bolts in civil tunnelling applications. The durability of the material results in a much simpler bolt detail and permits the use of resin rather than solely cement based grouts.This paper presents the findings of the comparative structural testing of GRP bolts with conventional DCP steel bolts. The axial load performance, including stiffness, ultimate capacity and ductility of bolts are compared. Shear behaviour of bolts is considered, including durability issues associated with damage to the plastic sleeve used in DCP bolts.The paper also considers other issues which are relevant to the design of temporary and permanent rock bolts used in tunnel support, such as initial tensioning and grouting. Long-term performance, including durability and creep are also reviewed.CITATION:Clarke, S J and Sieders, G, 2014. Comparison of glass-fibre reinforced polymer rock bolts with double corrosion protection steel rock bolts for use in tunnel applications, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 237–246 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

As part of the response to the increased demand for products such as iron ore, coal and gold many resource companies have identified the need to develop strategies focused on attracting high demand professionals and retaining current employees in the business. Recent graduates are entering a time where they can expect high starting salaries, attractive benefits and lifestyle options. At the same time high work expectations and large demands on both personal and professional development will also be the norm. Some of the challenges faced may include high demands on performance, working with limited resources, long hours, and tackling unfamiliar areas of work with little guidance. However, managing your career and these challenges effectively can give you valuable experience in a short amount of time. By offering situations from my relatively short, yet active, career in the mining industry during these boom times I will raise some key points on how to best leverage your commodity and make the most of a bullish market.

Jan 1, 2006

Hamersley Iron Pty. Limited has maintained an interest in the screening of iron ore fines (nominally -6 mm). However, no dry screening process had successfully demonstrated acceptable separating efficiencies at high tonnage rates, low operating costs, and mechanical reliability when screening iron ore fines (containing up to 6% free moisture) at sizes of around 1 to 2 mm. A new type of vibrating inclined screen has recently been developed which is claimed to have a non-blinding screening surface. It was decided to test a pilot scale unit in an existing pilot plant located at Hamersley's facilities at Dampier, Western Australia. The appropriate operating parameters such as vibration speed and feed rate were determined using one fine ore type. Mats with different aperture sizes, and different feed moisture contents were also tested. Trials were then conducted on various fine ore types to indicate the effect of different size distributions on separating efficiencies. The effects of feed moisture content were determined with these ore types, and a blend of lump (nominally -30+6 mm) and fines was tested to compare the screen's performance with that of the bottom deck of the minesite product Screens.

Jan 1, 1991

By Stevenson C. H, Lynch A. J

The reasons for choosing autogenous grinding for the new Warrego concentrator of Peko Mines N.L. are discussed and the ores to be treated in the concentrator are described. The mill was designed on the basis of pilot tests carried out at Cobar and the performance of the mill has been most satisfactory both in its metallurgical and mechanical aspects. An empirical technique has been developed to predict mill performance for change in feed rate or feed size and a mathematical model of the mill is being developed for simulation and control work. The weight and size distribution of the mill load was determined at one set of operating conditions for use in the mill model.

Jan 1, 1974

By Kennedy JT

This is a question that will be asked many times and by many individuals during the various evaluation stages of any new project. However, the question itself will often have different connotations to the different groups invariably involved in such an exercise. As examples, consider just three of the several different groups involved in the development of a new mining project - Financiers, Consulting Engineers and the Sponsors of the project (potential borrowers). To the Financiers, a 'bankable project' will be one against which they will be prepared to lend funds (but not necessarily all of the funds requested by the Sponsors). This usually means that in the first instance the technical information presented to the bank has satisfactorily covered all of the requisite areas to the levels of accuracy required. More importantly, the financial evaluation of the projected economic performance of the mine, as a whole, is considered sound and a set of arrangements under which the bank is prepared to advance loan funds have been structured which fully satisfy the bank's credit criteria. To Consulting Engineers preparing a feasibility study (or a part thereof), on behalf of the project Sponsors, the term 'bankable' invariably only refers to the technical completeness and the level of detail contained in the report which they are preparing. Their scope of work will not necessarily have been broad enough to fully satisfy a bank's requirements. It is unusual to see any specific references to overall project viability or profitability in Consulting Engineers' feasibility reports, other than those which are automatically associated with the use of the term 'ore'.

Jan 1, 1990

By T Clemens, D Trumm

Adopting environmentally acceptable practices in New Zealand is a crucial requirement for mineral wealth development. Recent planned expansions in the coal and gold industry have increasingly placed mining in the media spotlight. A lack of appropriate standard environmental guidelines has resulted in inconsistent responses and assessments of current and proposed mines. These inconsistencies have lead to delays in decisions on developing economic mineral deposits that may have only minor short-term impacts, and have also allowed unacceptable environmental management practices to continue elsewhere. A research collaboration between CRL Energy, Landcare Research, University of Canterbury and University of Otago aims to provide regulator groups and the mining industry with a unified approach to the requirements of the Resource Management Act 1991,the legislation that largely drives the nationÆs environmental policies and guidelines. The tangible outcome of this research program will be water quality and impact management guidelines integrated into a decision-making framework. The result of this unification will assist in the development of viable mineral deposits and minimise environmental impacts. The framework will be derived from a synthesis of three objectives. Objective 1 identifies potential water quality impact. This objective is based on a targeted geochemical study of the lithology and waterways of the West Coast and Southland regions. Objective 2 categorises the degree of impacts on the ecology of receiving aquatic ecosystems and determines the processes that drive aquatic ecosystem recovery. Objective 3 identifies best strategies to sufficiently manage impacted ecosystems, and to prevent future unacceptable impacts. Wide consultation with representatives of the mining industry and regulator groups will occur frequently during the development stages of the framework. It is anticipated that this multidisciplinary approach will provide a robust and coherent, standardised system that will assist in achieving industry and environmental targets.

Jan 1, 2004

By D Corley, J Moore, M Grant, A, W R

Resource estimates are the corner stone of technical and investment decision-making. Prior to mining, resource estimation uncertainty has the greatest potential to lead to poor investment decisions, despite a significant component of resource estimation uncertainty being unknowable at this critical stage in the mining cycle. This presents a conundrum to the resource geologist in terms of risk evaluation and resource classification. Ahead of mining, there is normally considerable focus on drill hole spacing analysis to determine the ‘optimal’ drill hole spacing, taking grade and geological continuity into account; cost-benefit analyses balance improved resource definition against cost; the law of diminishing returns and the exponential cost increases acting together as spacing is reduced. Typically, a lower limit to the drill hole spacing is identified. After completing the resource drilling to an agreed spacing, resource estimation is then undertaken. At this point it is common to attempt to bracket the resource estimation uncertainty. In many cases conditional simulation is used, based on a modelled, but largely assumed, variogram model. It is also assumed that the histogram of the available drill hole sample data is representative of the in-ground mineralisation. The purpose of this paper is not to diminish the importance of drill hole spacing and simulation studies, but rather to illuminate an important aspect of estimation uncertainty that, although previously recognised, is typically overlooked – the question of how representative the available data set is in characterising the true (but unknown) distribution of mineralisation. To do this, we lift the lid on one of OceanaGold’s former operations, the mined-out Globe Progress Mine, by resurrecting a high quality, close-spaced, reverse circulation (RC) grade control data set. The Globe Progress Mine is within the West Coast Region of New Zealand, it was closed and transitioned to rehabilitation in 2016 and is now known as the Reefton Restoration Project. The exhaustive Globe Progress grade control data was used to repeatedly ‘redrill’ the deposit by extracting 35 m × 35 m spaced subsets from the original 5 m × 5 m spaced grade control data. Utilising closely spaced grade control data removed the need for assumptions regarding short range continuity, which are necessary with forward-looking analyses that are based upon broader spaced resource drilling. The extraction process used a nearest neighbourhood algorithm, repeatedly moving the origin in 5 mE, or 5 mN increments. Individual resource estimates were then completed for each of the extracted drill hole data sets (49 in total) as well as a grade control estimate based upon the exhaustive data set. Whilst the data unpinning each of the 49 estimates changed, the geological assumptions, variography, and modelling parameters remained constant. This approach was taken to isolate the impact of changing the input data. The 49 estimates were then compared against each other and the grade control estimate. The mean of all 49 sensitivity estimates was close to that of the grade control estimate in terms of contained gold, tonnes and grade. Whilst it is acknowledged that the grade control estimate itself is subject to some degree of estimation uncertainty, the close match between the average of the 49 estimates and the grade control estimate suggests that the resource estimation methodology is reasonable and appropriate. Whilst this comparison is important, the focus of this study is on the component of estimation uncertainty related to the underlying data, and this is reflected in the spread across the estimates. The spread across the 49 global estimates (highest to lowest) for this particular Mineral Resource Estimation Conference 2023 | Perth, Australia | 24–25 May 2023 142 case study was found to be significant (approximately 20 per cent in grade and metal) and that is attributable solely to the underlying data. This exercise quantifies a component of the estimation uncertainty that is inherent to all drill hole data and is distinct from the uncertainties associated with modelling methodology choices, sample and subsample quality and drill hole spacing-related interpolation uncertainty. Importantly, this uncertainty is unknowable prior to mining; we can only directly compare the resource drill hole data against grade control data after mining has taken place. For the case study, approximately 65 per cent of the estimates fell within 5 per cent of the grade control estimate for contained-gold, suggesting that for many projects the histogram of drill hole data is unlikely to differ noticeably from that of the in-ground resource. However, about 15 per cent of the estimates in this study differed by more than 7.5 per cent, suggesting that a not-insignificant proportion of estimates will be materially compromised. Whether or not the available drill hole data is representative comes down to the ‘luck of the draw’ and cannot be known at the time of resource estimation. Given the challenge of attempting to evaluate forward-looking estimation uncertainty, a component of which that can only be quantified retrospectively, what should we do as resource geologists? What are the implications for risk evaluation, resource classification and reconciliation? Furthermore, without rigorous post-mining data checks, resource geologists may conflate suboptimal modelling with the shortcomings of the underlying data. An example of this problem is discussed in the following section.

May 24, 2023

By O A. Aladejebi, S Mitra, T Singh, D J. Pinson, S, S J. Chew, T Honey

Currently, many commercial sinter plants are exploring the potential addition of high-grade iron ore concentrates to improve the sinter grade. A better understanding of the ore blend, granule behaviour and green bed properties is critical to making this change and maintaining productivity in the sinter plant. This study compared the performance of a laboratory scale granulation drum to a commercial scale unit. The blend used was an Asia-Pacific style sinter blend containing iron ore concentrates. The operating conditions of the two granulation drums (laboratory and commercial scale) were fixed at the same Froude Number (0.00337), space factor (15 per cent) and residence time (4.5 mins). The granules were characterised by measuring their mean size, size distribution and green bed voidage. It was found that the laboratory scale granules were representative of commercial sinter plant granules at similar moisture content. When the moisture was fixed at ~6.9 per cent, granulation time had no significant effect. A further fundamental investigation was undertaken to measure the water holding capacity and intra-particle porosity of the individual ores used in this study. The kinetics of water absorption were measured which showed that water absorbs quickly into the ore particles within the first 60 seconds, slowing down until final saturation was attained after six hours. A linear relationship between the water holding capacity and intra-particle porosity was noted for different ore particle sizes. The results of this study provide a baseline understanding of the current commercial sinter blend and encourage exploring the specific effect of increasing the proportion of ultrafine concentrates in sintering in a future study.

Sep 18, 2023

By Greenwood J. N

This work was commenced at a time when information on the manufacture of cemented tungsten carbide was urgently needed in Australia. Much information of a general type has been published, but many of the details of the processes used are still undisclosed. The aim of this research was to determine a satisfactory way in which cemented tungsten carbide could, be made, and to investigate the problems which are associated with the process. As the work proceeded, its ramifications grew continually, and it was necessary to limit the possible lines of investigation. After much experimental work, a 9% cobalt-tungsten carbide alloy was developed which had satisfactory properties when used as a cutting tip. The effect of certain variables on the properties of this particular alloy was investigated.The tungsten carbide was prepared in stages from King Island scheelite concentrates under strict laboratory control, whilst the cobalt (1) used was made from cobalt oxide prepared from crude cobalt oxide obtained from Eisdon.In order to clarify the detailed experimental work, a brief summary of the method used for the preparation of cemented tungsten carbide follows.Tungsten carbide and cobalt are prepared in a very finely powdered state, and are then thor,oughly mixed by a ball milling operation. The resultant mixture is pressed in a suitably shaped die into small compacts which are subsequently '''presintered,'' i.e., heated' in hydrogen between 800°C. and 1000°C. The final sintering is carried out in hydrogen between 1,400°C.and 1,600°C. for about half an hour. These "alloys" may contain from 3 to 13% cobalt, depending on the particular properties required of them.PREPARATION OF MATERIALSThe tungsten oxide prepared as described by Smithells (2) was extremely finely divided, and after a few hours' grinding in a ball mill, the powder consisted of material below 10 microns iJ;l size. The oxide was reduced to tungsten metal with hydrogen in a tube furnace. The reduction was carried out at 800-900° C., a rapid flow of hydrogen being maintained in order to remove the water vapour' formed as a result of the reactions:

Jan 1, 1942

The Australian metallurgical processing industry has shown great innovation and progressiveness over the past ten years. During the same period, exploration activity, particularly by Australian companies, has increased substantially in Indonesia. Following feasibility studies, the decision was made to establish a metallurgical laboratory and design facility in Indonesia. An Indonesian partner was selected, and legal and corporate matters were determined. The laboratory was established but proved far more difficult than a similar undertaking in Australia. Australian and Indonesian staff were recruited and training programs, including training of Indonesian staff in Australia, were implemented. Difficulties of operating in Indonesia included: ò language difficulties ò _ local pace of life ò culture ò communications. Rewards of the decision to establish the means to present the technology to Indonesia have included: ò a contribution to Australia's export of technology. ò an opportunity to expand Normet's client base. ò the opportunity to learn aspects of a foreign culture. ò the means to establish a sound long term investment. This export of technology from the Australian mining industry to Indonesia is an example of the initiatives and capabilities shown by the Australian mining service industry.

Jan 1, 1989

By S Reid, W Chen, T J. Donohue, A Katterfeld

The use of discrete element modelling (DEM) is widespread in the materials handling field, and is used for many applications. One of the important limitations in using DEM is the number of particles that can be modelled, with this limitation often resulting in increasing the minimum particle size in the simulation. This restriction on minimum particle size is usually accommodated in the calibration process where the parameters in the simulation are chosen in such a way as to reflect the presence of smaller sized particles, and in typical applications such as transfer chutes this is standard practice. However, in the application of vibrating screens the inclusion of the ‘fines’ is critically important due to their influence on the screening efficiency. In reality, the presence of fines reduces the screening efficiency for a number of reasons; however, the main mechanism that will be addressed in this study is the effect of adhering fines. This is where the fines adhere to the larger particles and are carried over into the lump stream. The approach for this study will be to firstly consider the relatively simple mechanical sieving process used in the determination of particle size distribution, and then this will be expanded to consider the application of vibrating screens.CITATION:Donohue, T J, Chen, W, Katterfeld, A and Reid, S, 2017. Addressing the challenges associated with the modelling of iron ore in vibrating screens, in Proceedings Iron Ore 2017, pp 155–160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

Exploration requires substantial capital, and is an extremely risky business (only 1 in 100 prospects ever becomes a mine). The average lead time, that is the time between discovery and production, varies from around two years for a gold mine, to 15 years for a lead/zinc mine. Since it takes years to find, prove and develop most ore bodies, exploration must be carried out years ahead of the depletion of existing deposits. Investors in exploration are exposed to risk for long periods before knowing whether they will receive a return on the funds invested. The risk, high-cost, uncertainty and long lead times involved in exploration make it an aspect of commerce that most managers and investors find difficult to rationalise or understand. Nevertheless, it is a given that the long-term survival of the mining sector depends on discovery of new mineral deposits, however the immediacy of the need to find or acquire new mineral deposits in order to compete and prosper in the industry is less well understood. This paper examines the commercial realities which underlie exploration for new mineral deposits. The first and foremost reason for exploration is to maintain or increase depleting ore reserves which are the asset base of mining, but there are other compelling commercial reasons for exploring, and these are: to maintain return on investment, to achieve growth or create wealth through discoveries which lead tonew mining ventures, to remain competitive in the industry, to diversify, and to control raw material source for mineral processing and/ormarketing ventures. Exploration is necessary for survival of the industry, and also for survival of organisations competing in the industry. The organisations which discover the best orebodies are in the best position to compete, and mining organisations which fail to find or acquire new mineral deposits rapidly become uncompetitive and unable to maintain return on shareholdersÆ investment.

Jan 1, 1998