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This paper focuses on the significant impact that geological information has in relation to the valuation, both equity market and accounting records, of mining companies. There are many different measures adopted by investors and analysts in valuing mining companies. In particular, focus is primarily on calculation of profit as it is the authors primary expertise. The importance of geological information to the calculation of profit (and to many other measures of a mining company performance) is not always understood by the geologist. The aim of this paper is to raise the awareness of geologists (particularly those who are competent persons under the JORC code) of the impact that reserve statements û and changes to û have on profits. This is the first time that this subject has been presented directly to geologists. Similar versions of this paper have been presented at other forums where other important users (directors, auditors, accountants, analysts, investors) or preparers of financial statements have been made aware of the importance of the geological information. In essence, all mining companies prepare annual financial statements, which are adopted by directors and audited. The major items that require judgement generally revolve around two areas û commodity price outlook and the accuracy of reserves and resources. Reserves and resources are important, and that there is undoubtedly a lack of understanding about the assumptions and accuracy of reserves and resources by accountants, directors and auditors, and a general lack of understanding by geologists as to how the information that they prepare is used. Across the globe the majority of mining companies are listed on stock exchanges (with the main exception being nationally controlled mining companies û eg Codelco). In a very simplistic manner, I have divided all mining companies into three types: exploration plays û these companies are still in the finding or proving modeÆ and typically the stock market and investors rely on geological information and remaining cash in determining their assessment of the company; single mine companies û the major items that investors and the stock market look for are reserves, inferred resources, commodity price outlook and discounted cashflow calculations; and multiple mine companies û the investment community and stock market are looking at reserves, inferred resources (generally to a lesser extent at this stage), commodity price outlook, discounted cashflow calculations and profit and loss accounts. Regardless of the type of company, the equity markets, including analysts, try to determine appropriate valuations for mining companies. In doing this the major two areas that require judgemental consideration are the commodity price outlook and the level of reserves and resources. Generally speaking, most mining companies have a strong understanding of their cost structures û in particular their cash costs as distinct from their accounting costs of production û and therefore this area generally gets less consideration than the other two matters mentioned above.

Jan 1, 2003

By Dawes C. A, Mitchell R. A

A process control strategy has been developed for the lead circuit of the lead- zinc concentrator at The Zinc Corporation, Limited (ZC), Broken Hill, Australia. The general aims of the control system were to produce a final concentrate with a zinc content below a certain limit and, at the same time, obtain the highest lead recovery possible. As presently arranged the system involves control of the cleaner feed mass flaw by cleaner diverter tray manipulation and control of xanthate addition based on per cent lead in feed. Generally this approach works well but for abnormal conditions such as very high or law pH the system requires further improvement.

Jan 1, 1983

This paper discusses the history and development of the system and the benefits that are being gained for Yabulu from Solar Drying. Following the end of mining of the local Greenvale and Brolga nickel deposits, QNI Yabulu Refinery is dependent upon imported ore from over 15 different mines in New Caledonia, Indonesia and the Philippines.

Jan 1, 2003

Treatment of Gold-Bearing Oxide High-Clayish Ores The analysis of modern state of treatment technologies of gold-bearing oxide high-clayish ores showed that the main method applied both in Russia and abroad is sorption leaching and heap leaching with preliminary granulating. The use of any of these processes depends on many factors including average gold grade, site and area of a deposit, clay content and etc. The two processes are often used at the same deposit. In this case, rich ores are treated according to a plant technology, poor ores and ores with cut-off grade are treated with heap leaching. Both technologies possess their own advantages and disadvantages. A plant technology is characterised by high recovery with higher capital and operating costs at the same time. Lower recovery during heap leaching can be attributed to an unstable quality of ore granulating due to both technological and weather conditions. In case of poor high-clayish ores, the use of a combined ore treatment is possible and profitable. It includes the ore disintegration and a clayish fraction treatment by using a heap leaching. In this case, capital and operating costs reduce in comparison with a plant technology and the recovery increases in comparison with heap leaching. Sometimes it reaches a plant recovery. These ores possess special features. As a rule, gold is associated with ore fraction, so it liberates readily from the association with ore ore-forming minerals even with relatively coarse grinding explain their high solution velocity in a hydrometallurgical cycle. Clayish ores are characterised by high sorption activity to gold cyanide complexes as well as extremely low velocity of filtration and thickening of slimic pulps at the same time. The paper describes the options of oxidised high-clayish ores treatment, such as, a plant technology (PIP and CIP process), heap leaching and a combined technology (disintegration, heap leaching of a crystalline fraction and sorption cyanidation). The obtained results were used when selecting a treatment technology and during construction of a plant for oxidised high-clayish ores treatment.

Sep 13, 2010

By S KandT

The FalTmT iron ore deposits are located in the so-called æBirrimianÆ volcano-sedimentary complex that extends in a general NE-SW direction across eastern Senegal and part of Mali and Guinea. The rocks underwent folding and greenschist facies metamorphism, as well as various events of granitoid emplacement. The deposits form part of the DialT-DalTma Series of the Birrimian Supergroup and were subjected to contact metamorphism. The Fe-mineralisation occurs as primary magnetite within the metamorphic aureole. Supergene oxidation (martitisation) of this mineralisation produced the hematite-rich iron deposits that can be seen as prominent hills across the plains of this south-eastern corner of Senegal. BRGM of France and Miferso (SociTtT des Mines de Fer du STnTgal-Oriental) have conducted several phases of prospecting since 1957. Their aim was to delineate the hematite deposits and to assess the grade, beneficiation characteristics and marketability of the iron ore. A feasibility study by Fluor Daniel was completed in 1992. Results indicated that, at the time, the resource could not compete in the international arena in terms of size and accessibility. The growing iron ore market and additional available resources in the area now challenge the 1992 feasibility study results and put the old kid back on the iron ore block. The project faces some mining challenges, such as the amount of magnetite in the hematite product that will be acceptable to the market. Previous project evaluations only considered the secondary hematite deposits as economically viable. It is therefore important to accurately delineate the magnetite/hematite contact zone to optimise the resource tonnage. Project logistic constraints also exist in terms of railway access and harbour facilities. The resource is, however, well situated for the European iron ore market and aims to find a place in the rapidly expanding iron ore seaborne trade.

Jan 1, 2005

The AJ Parker Cooperative Research Centre for Hydrometallurgy is the focus of a world-class effort in providing technical solutions to the minerals industry. The 85 FTE staff are drawn from the CentreÆs five joint venture research partners comprising universities (Curtin, Murdoch and Qld) and government research agencies (CSIRO and WA Dept of Industry and Resources). There are also 12 industry partners, representing most of the leading mining companies in the world. Around 45 postgraduate students, mainly PhDs, make a significant contribution to the research effort. Total annual expenditure on R&D is around $17 million.Hydrometallurgy activities encompass both fundamental and applied research across the alumina, gold and base metal sectors. The Centre is now growing its client base into overseas markets, particularly North America, South Africa and Europe. Quality, strategic R&D by the Parker Centre is seen by the industry as an attractive investment. A recent survey of the industry revealed an estimated ten-fold return based on direct costs of research to the client. In addition, the Parker Centre has a strong commitment to education of postgraduate students wishing to enter the mining industry as well as providing specialist courses for those technical professionals already employed in the industry. The wide range of employment opportunities in the mining industry is reflected in the diversity of the disciplines amongst the CentreÆs research team, eg extractive metallurgy, chemistry, biotechnology, physics, engineering, molecular modelling, microscopy, geology and computational fluid dynamics. How does an atomic force microscope and molecular modelling improve our ability to control gypsum scaling or understand crystallisation of alumina in a Bayer plant? Can a biologist contribute to the problem of the slow leaching of copper from chalcopyrite? Why are computational fluid dynamics and lasers the basis of understanding how to make thickeners work more efficiently. Can you combine a PhD or Honours degree with industry experience? What is crud and why is nickel stressed? These are typical examples of the CentreÆs research activities and demonstrate the contributions of its multi-disciplinary teams which keep the Australian mining industry at the cutting edge of advanced global technology.

Jan 1, 2003

By Pietrobon M. C, Ralston J, Smart St C R

In an on-going study of the chemistry of base metal sulphide flotation, the effect of the inclusion of cyanide in the reagents suite has been studied, with special reference to ore from Pasminco Mining's Elura mine. Cyanide has been variously described as an iron sulphide depressant, a preventor of sphalerite activation and as an activator of galena. In the case described here, the cyanide appeared to act as an enhancer of the galena flotation performance, raising the lead recoveries by 25 per cent but leaving the sphalerite and pyrite responses unaffected. The lead rougher flotation performance with and without cyanide was investigated over a wide range of redox potentials (0 mV to 400 mV SHE). In all cases, the inclusion of the cyanide brought about an increase in the galena recovery and was responsible for a faster rate of galena flotation during the initial stages of the beneficiation. A surface characterisation study (XPS) of the lead flotation stage, with and without cyanide, indicated that the reagent interacted specifically with the galena and pyrite minerals. It was possible to correlate the surface absorption of the cyanide on the lead and iron sulphides with improvements to the flotation performance using the combination of surface spectroscopy and laboratory flotation Testwork.

Jan 1, 1991

The Australasian Institute of Mining and Metallurgy brings together, voluntarily, people with a professional interest in the disciplines and skills which are employed in the mineral indus- try, and in relation to that industry. We come together because we have a mutual interest in improv- ing what is done by the mineral industry, in all its aspects. It is this sense of continuing improvement, of doing better, of doing as well as we can, as our knowledge and skills improve, that unites us in creating and fostering a professional association of like- minded people. We know from our professional training and experience that enormous progress has been made, at an ever-increasing rate, in the mineral industry, particularly in this Century. We know that the mineral industry has played a very major role in providing the means by which so many more people survive to live longer, healthier and more interesting lives, than ever before. Indeed together with the oil and gas industry, which is an integral part of the mineral industry but has achieved its own commercial dis- tinction, it is fair to claim that the mineral industry has played the major role in providing the means for the advancement of the human quality of life.

Jan 1, 1988

By Bhattacharyya AK

A two-dimensional finite element modelling technique is applied to predict the subsidence movements on a sloping ground surface above a completely mined panel. The modelling is carried out for the surface both directly and using a combination of an equivalent horizontal surface and a rays projection method and the result compared. The rays projection method provides the subsidence components on a sloping surface from the corresponding ones on an assumed equivalent horizontal surface through the point of mean elevation of the relevant part of the sloping surface. This method is used next to compare the subsidences, horizontal displacements and horizontal strains from the mining of a given panel at the surface for different inclinations. The results show that the magnitudes of the subsidence components are greater on the dip side of the slope from the point of the mean elevation, than the corresponding ones on the rise side and the asymmetry increases with the inclination of the surface. The findings are also compared with those of other research Workers.

Jan 1, 1992

By Harris RW, Wood BR

At any given time, the tidal force subjects massive regions to a spatially uniform load. The deformation of any large structure due to these forces is proportional to the elastic properties of the structure. In this aspect, the tidal force applies a load in a manner similar to that of a large-scale testing machine. Any anomalies in the measured tidal response must reflect alterations in the average elastic response of the massive structure. In the present work, tidal tilt measurements obtained in the wall of a large dam are used to infer changes in the response of the dam to applied loads. In particular, it is found that the dam response has changed by approximately 13 percent, on average, for two monitoring periods separated by 5 years. It is possible that these changes were produced by the different volumes of water in the dam for the monitoring periods. The tidal measurement technique can also be applied to monitor changes In the average structural response of large underground and surface masses relevant to coal and metal mines.

Jan 1, 1992

By Visnovsky

The computing needs of a mine planning office vary greatly depending on the staff available and the nature of the work undertaken. Some offices work acceptably with few aids apart from hand held calculators while others use mainframe computers with associated data bases and sophisticated mine planning software. Not every mine planning office requires the big system approach but all can benefit from the intelligent use of small computers. There is virtually no limit to the design problems which can be solved using modern desktop computers. The simple language required encourages engineers to work interactively to facilitate both large and small computations. However a limit does exist in the speed and ease with which solutions can be obtained. The important ingredients for the successful application of such machines are a little computing knowledge, a flexible machine, and an engineer who really understands the mining problems confronting him. If these are available it is possible for the engineer to tailor the program to the task at hand and efficiently achieve the required result.

Jan 1, 1983

By Culshaw MG, Deaves AP, Bell FG

The accurate prediction both of the water ingress into sub-surface excavations and the nearby groundwater pressures is of fundamental importance to the control of the stability and flooding of tunnels or mines constructed below the water table. Predic- tions are usually based on laboratory and in situ permeability determinations together with observations of groundwater conditions in boreholes. Although established theoretical methods provide a basis for prediction, the actual ingress depends on many factors. The objective of this paper is to explore the geological controls on groundwater conditions, and the available methods of prediction of both groundwater flow and pressure are outlined. Salient points are emphasised by reference to a case history involving the construc- tion of a tunnel in a faulted and mixed sequence of sandstones, siltstones, shales and coals. Water ingress quantities have been monitored for a variety geological and geotechnical conditions including heavily faulted and mine disturbed ground. The overall results are discussed with reference to the relevant hydrological and geologi- cal conditions in terms of the geological structure, lithology and rockmass condition as well as the construction methods.

Jan 1, 1988

In 1939 Dr Neil George gave us the statement: Safety is a state of mind by which men are constantly made aware of the possibility of injury at all times. Is this statement still relevant? Have we been able to capture the essence of Dr GeorgeÆs statement in our current safety management systems and have we been able to capture the lessons from the past? Drawing upon 25 years of experience in the mining industry we explore what was done in the past, how this related to Dr GeorgeÆs statement and how the industry has progressed to the current safety management systems. We review the safety management system used by Roche Mining and demonstrate how it has improved safety outcomes for Roche. We then look to the future û are there new challenges? Are the current management systems equipped to cater for these new challenges and deliver continued improvement in safety outcomes? There will always be a desire to improve the industryÆs safety outcomes and so how are future generations going to achieve the improvement in safety outcomes?

Jan 1, 2007

By Muir DM

In recent years, significant improvements have been made in the design and operation of carbon-in-pulp plants. Some of the major developments in plant operation and technology are reviewed together with an outline of the research being undertaken in Western Australia. The main problems facing operators include the understanding and control of carbon fouling and regeneration, and the recovery of gold from the carbon. It is shown that carbon fouling by a variety of agents, particularly cyanide, calcium carbonate and silica, cause a significant loss of kinetic activity which in turn leads to poor plant performance. The importance of acid washing and adequate thermal reactivation is discussed. Although the Anglo elution procedure is commonly used in South Africa its use in Australia in preference to the conventional Zadra elution procedure is likely to be re- stricted because of its demand for high quality water. Solvent elution by the recently developed Micron procedure using refluxing methanol, ethanol or acetonitrile vapours is an attractive alternative. This elutes gold in 4-6 hours and provides concentrated gold solutions suitable for simplified gold recovery steps.

Jan 1, 1984

The Australian gold industry has in recent years experienced a tremendous growth period, though not to levels prevailing at the turn of the century. There are, however, a number of dynamic factors at play which collectively indicate that it would be unwise to assume that this growth will be maintained; indeed the future discovery of viable new deposits may be insufficient to prevent an industry decline in Australia.The higher gold prices of the 1980's together with technological advances, made previously worked mining centres areas of excellent prospectivity. These resources, signposted for us by the oldtimers, are being rapidly depleted. Whilst there can be no doubt that these resources can be replaced the real question is whether it is economic to explore for new deposits when it is likely that:The cost of future exploration will increase as exploration must focus on grassroot areas with few signposts. Almost by definition this primary exploration effort will be subject to a lower success ratio.The cost of future exploration will increase as new deposits will be located in more remote areas and at depth.

Jan 1, 1986

Drill and blast excavation in underground mining and. civil engineering projects has grad- ually given ground to mechanical boring of tun- nels, shafts and raises during the past twenty years. The use of.boring equipment must today be considered significant and wide spread al- though comprising only a very small percent of total underground excavation. The encroachment of mechanical boring into the domain of blast- ing has been by slow incremental advances. There have been few, if any major breakthroughs in this development, and none can be foreseen in the next decade. After 1990 it is possible that scientific. development will provide some form of breakthrough in rock breaking, but this is so uncertain that it should have little relevance to planners in the 1980's. A more near term view of the future, con- centrating on the next five to ten years, has lead to the conclusion that significant im- provements will be seen in tunnel borers for poor ground conditions. A universal machine will be developed that converts from a dry hard rock machine to a closed slurry type machine for passing through fault zones with unstable crushed rock and water. Two other machines have been described as alternate designs for tunnelling in squeez- ing ground conditions.

Jan 1, 1981

By F Jiao, J Wang

By the year 2000, China was the sixth largest gold producer in the world, with about one-quarter of total production being derived from refractory or semi-refractory deposits. Although bacterial oxidation plants had been previously tried in China using local technology, these plants had not been commercially successful. The Laizhou Gold Enterprise (Tarzan BioGold Co Ltd) located in Shandong Province, undertook to modernise their gold processing facility in 2000 with the introduction of Bacterial Oxidation (BACOX) Technology. In 1997 BacTech Australia and Mintek of South Africa had formed a technology partnership, combining forces in the provision of bioleach technology. Under a cooperation agreement, BacTech/Mintek were chosen as the preferred technology providers for this first application of commercially proven bacterial oxidation technology within China. The paper describes the successful operation of this plant over the last three years. The events of project implementation are described, from the metallurgical testing of concentrate; through to the commissioning at the design throughput of 100 tonnes per day resulting in 80 000 ounces (2.5 tonnes) per year of refined gold. Process aspects of the operation encountered over the last three years are discussed which illustrate the robustness of the operation. The success of the bioleach facility has led to an advancement of plans to double plant capacity and some of the innovations, which may be employed in this expansion phase, are discussed.

Jan 1, 2004

In the early stages of opening up a mine, when there is some uncertainty as to its future career, necessitating caution in laying out works of a permanent character, the want is often felt of an assay furnace, easily built and easy of transportation, should the" mine " prove to be " no mine." Again, cases occur in which parties buy the right to treat comparatively small heaps of tailings, and then shift their plant to other localities. Under these circumstances it is necessary to restrict the plant to the barest necessaries, to suit, so to speak, the nomadic character of the work.An assay furnace that is really portable, easily transported, erected, taken down, of little weight, always ready for action on short notice, is indeed in these cases a desideratum which has long been wished for. The gasoline furnaces introduced intothe Australian market some time since practically fulfil these conditions; but they have the fatal drawback of being dependent on a constant supply of the liquid fuel, gasoline, which is seldom, if ever, obtainable locally in' any wayback mining township...

Jan 1, 1904

By Van Deventer J S J

The first step in the design of a process to treat a possible economic precious metal deposit should be an examination of the mineralogy of the ore. Using this and other initial tests, the extractive metallurgist can design a process to treat the ore. In the field of precious metal metallurgy, little emphasis is placed on the mineralogical information available to the metallurgist. The information is of far more use to the geologist and the mining engineer. Diagnostic leaching was designed to open up the field of mineralogical analysis to the metallurgist. When a mineralogist looks at the deportment of gold in an ore, he is usually looking for an element which is present in parts per million, so that errors in sampling are multiplied dramatically. Diagnostic leaching offers a cheap, simple, practical alternative. In order to determine with which minerals the desired precious metal is associated, a specific mineral is first eliminated using a selective oxidative leach, and cyanidation is used to extract the precious metal (in this case gold and silver) liberated by the destruction of this mineral. The precious metal extracted can be measured in solution to give a fairly accurate record of the amount of the precious metal associated with that mineral. Furthermore, the residue from this first stage can be subjected to another selective acid leach, and the process repeated. The procedure can be varied to suit the mineralogy of the matrix material. At the end of this diagnostic leach the metallurgist is left with a complete record of the deportment of the precious metal. He can now use this information to design a metallurgical flowsheet to treat the ore. Diagnostic leaching is thus an analytical tool which can be used by the metallurgist not only to examine new ores, but also to look at problems occurring at existing plants. The procedure is not only limited to ores and residues but in fact can deal with any type of intermediary product that occurs on a plant. The information gained from analysing an intermediary product can give a useful indication of how well a unit process is working, eg flotation, roasting, etc.

Jan 1, 1992

Twenty years of effort in developing the use of computers in the design and control of mineral treatment circuits has resulted in a sound base for future widespread application of the techniques.. The intent of this paper is to speculate to some extent about future applications of computer related techniques in the mineral extraction industries. The use of simulation methods for the analysis and design of circuits is discussed. In the area of process control, computers have been largely devoted to process monitoring and reporting tasks. The application of computers for the total control and optimization of complete plants is considered. Finally, the role of computer based modelling studies for definitions of optimum treatment flowsheets is suggested.

Jan 1, 1985