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By T Y. Dube

In this paper current net present value (NPV) based mine valuation techniques that take into account market and private risk are discussed and analysed. Potential pitfalls that arise from the application of a portfolio, market or commodity based risk metric to a mining project are identified. An alternative non-simulative framework for quantifying and factoring market and private risk in NPV calculations is proposed and then applied to a hypothetical case study in an attempt to overcome identified pitfalls. Mathematical proof that a static discounted cash flow (DCF) calculation can underestimate or overestimate mine NPV is presented, the conditions for each are outlined and the degree of underestimation defined.CITATION:Dube, T Y, 2012. How the use of market-based risk metrics can undervalue good mining projects and overvalue poor ones, in Proceedings Project Evaluation 2012 , pp 29-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Detailed investigation was carried out on the dephosphorization of a number of phosphorus-rich manganese or samples of India by leaching with dilute sulphuric acid. Various process parameters like concentration of acid, liquid-solid ratio, temperature of leaching, time of leaching, and particle size of the ore were studied in detail for the three samples of manganese ore from central India, and optimum values were worked out on a laboratory scale. Preliminary studies show that certain ores which are not easily amemlible to appreciable dephosphorization by leaching with dilute sulphuric acid can be made amenable by :roasting to 700-900°C before leaching.

Jan 1, 1974

A modified liquation technique was developed for recovering tin from tinhouse scruff metal or hardhead containing about 10 per cent iron and 15 per cent occluded flux, palm oil, and moisture. This was effectedby heating the scruff metal to 950°C followed by rapid cooling to suppress the formation of FeSn2 and FeSn, and then subjecting it to the ordinary liquation and drossing processes of refining. By this method it was possible to recover about 83 per cent of the original tin content and, with subsequent smelting of the irony drosses, an overall recovery of 92 per cent was obtained.

Jan 1, 1969

By R Knight

The spatial variability of geometallurgical characteristics in a mineral deposit can have significant impact on financial and mine planning, mineral processing, concentrate quality and tailings composition throughout the life of a project. These characteristics that may determine the success of a project are not readily apparent to geologists unless they are integrated with deposit geology and assay data, modelled in 3D and incorporated into resource block models.One of the primary objectives of geometallurgy is to integrate and incorporate various geologic, geotechnical and geometallurgical parameters into resource block models, which typically are limited to in situ tonnes and grade of economic metals. Critical attributes, such as concentration of deleterious elements that affect the project viability need to be identified and integrated into the resource block model early in the exploration stage to predict project profitability and address potential environmental impacts.Using data from a volcanogenic massive sulfide deposit we present an example of the integration of ore geochemistry (cadmium, arsenic and antimony) with the results of preliminary, bench-scale metallurgical test work in a 3D geometallurgical model that predicts subdomains of poor-quality concentrate and tailings containing environmentally-sensitive elements. This critical information was incorporated into the existing resource block model in order to inform both financial modelling and mine planning.This example demonstrates that geometallurgical data can be effectively integrated with geological and assay data using Leapfrog MiningTM software (Leapfrog Mining) early in the exploration stage of a project. Three-dimensional representations of geometallurgical data can be created directly using primary additive data, as well as from proxies of non-additive parameters. Resource block models can be updated continually with new information as the project passes from exploration through production. In addition, the software allows for 3D visualisation of the characteristics of the materials that will eventually constitute the mill concentrate, tailings, and waste. This study emphasises the critical importance of establishing a systematic geometallurgical approach early in the exploration stage that can be continuously updated with new information throughout the life of the project. In the example that we present, sulfide ore that had otherwise been identified as high-value (in the absence of geochemical and metallurgical data) turns out to be low-value ore due to concentrate penalties and increased environmental impact.

Sep 5, 2011

By B Reid

"Since the commencement of mining operations at the Cowal Gold Operations (CGO) in 2005, reverse circulation (RC) drilling has been the preferred method for grade control (GC) sample collection. This method was selected because it allowed:for multibench drilling (20 m hole depths for two benches of mining) to aid mine planning increased data density for comparison against the wide spaced ore reserve model angled drill holes to intersect perpendicular to the strike and dip of the shallow dipping mineralisation ability to take two metre sample intervals to enhance the understanding of the mineralisation’s short-scale variability and provide the ability to flitch mine.From June 2008 to December 2013, RC GC was performed using a UDR rotary cone splitter. The field duplicate data over the period displayed strong precision, with a correlation coefficient of 0.94 and an average relative per cent difference (RPD) of 21 per cent for gold. Up to 66.1 per cent of field duplicate data greater than 0.1 g/t fell within ±20 per cent RPD. This is within limits of industry best practice. The Mine to Mill reconciliations over the same period showed the estimated GC grade was 7.7 per cent lower than the calculated head grade (CHG).In December 2013, the Progradex sampling system (PGX) was introduced at CGO due to its advertised ability to capture 100 per cent of the drill cuttings for the complete sample interval, inclusive of fines. Analysis of field duplicate data indicates that since the introduction of the PGX, the sample precision has drifted. From January 2014 to February 2016, the correlation coefficient was 0.92 and up to 51.2 per cent of field duplicate data, greater than 0.1 g/t fell within the ±20 per cent RPD. Over the same 26 month period, the Mine to Mill reconciliation improved to one per cent lower than the CHG. Granulometric analysis of the RC samples collected from the PGX indicated the fines material(<212 µm) averaged up to 22 per cent of the samples mass and following assay determination, the fines material represented a weighted average of 31 per cent of the total gold content within the sample.This paper highlights the:importance of the complete capture of all drill cuttings during an RC drill programinfluence of fines material on the sample quality and accuracyimpact sampling of the fines material has on the Mine to Mill reconciliation performancechallenges experienced in commissioning a PGX system.Citation:Reid, B, 2016. A Fine Looking Sample - the Importance of Fines in Grade Control Sampling to Mine to Mill Reconciliation, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 28–38 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By D Fergusson, J D. St George

Highwall stability is a major consideration in optimising opencast mine geometry. It involves assessing the risk of those slope failures that are large enough to have significant cost, safety and/or operational implications. These risks are then balanced against the value of the resource to arrive at an acceptable slope design. Load-deformation models (commonly referred to as ænumericalÆ models) of slopes provide a powerful tool in this decision-making process since they can be verified well before slope failure occurs. This gives the slope designer increased confidence in reviewing designs during excavation, potentially allowing early revision of pit geometry to either increase or decrease safety margins as appropriate. However, these models are not always adopted as they depend heavily on an appropriate choice of constitutive model and material parameters.   A preliminary load-deformation model of a 170m highwall in Solid Energy North (SEN) OperationsÆ Awaroa 4 opencast coal mine in the Rotowaro Coalfield has been prepared. This uses a strain-dependent constitutive model based on laboratory test results, strength parameters developed by SEN and excavation monitoring data. The laboratory testing has included triaxial compression tests on large-diameter fractured samples to characterise the stress-strain response of the closely-jointed soft rock masses that exist in many parts of the mine. Data from the monitoring of a 25m cut made during excavation of a haul road has been used to refine and verify the constitutive model. The resulting highwall model has predicted highwall crest movements corresponding to the excavation of each bench, for comparison with monitored values. Key model outputs are total horizontal movements of about 0.5m near the highwall crest and shear strains of 0.5-0.7% at the locations of potential bedding-parallel shear planes underlying the highwall. Most of the movement is expected to occur as creep rather than as an immediate response to excavation.

Jan 1, 2006

The Effect of Using Different Comminution Procedures on the Flotation of Platinum Group Minerals The use of High Pressure Grinding Rollers (HPGR) has been widely reported to have major benefits in the treatment of minerals such as iron ore and diamonds. To date there have been few investigations into its use in the treatment of ores containing Platinum Group Minerals (PGMs). HPGRs are known to reduce energy consumption and wear costs and improve the throughput in the circuit. In the present investigation the effect of the comparative use of HPGR and conventional crushing in combination with either dry or wet rod milling on the flotation of PGMs was studied using batch flotation. Previous studies of a base metal sulfide ores had shown that either HPGR or conventional crushing followed by dry milling produced the highest grades and recoveries. However in the present study it was observed that a similar treatment produced the worst results and the highest grades and recoveries were obtained for the case of conventional crushing in combination with wet milling. The HPGR showed no advantages in terms of flotation performance and dry milling produced particularly poor flotation results. The results were investigated further using various surface characterisation techniques in order to determine the reason for the decrease in grades and recoveries of platinum when using dry milling and HPGR as opposed to the case for base metal sulfides. The feed and product samples were analysed using ToF-SIMS, XPS and MLA. The paper will propose reasons to explain the different flotation behaviour of the two ore types following the various comminution processes focusing on the surface characteristics of the ores, the particle size distribution and the pulp chemistry.

Sep 13, 2010

By X Zhang, Y Zhu, P E. Ngoepe, P P. Mkhonto, W Xiong, L Han, L Lu

The triazine molecules have not been given much attention and they are potential collectors that may positively impact the mineral processing industry. The adsorption of triazine as collectors such as sodium 2,6-dithio-4-butylamino-1,3,5-triazine (SDTBAT) on pyrite form a basis in design of flotation collectors that may be applicable in a wide range of sulfide minerals. The SDTBAT collector was compared with the sodium normal butyl xanthate (SNBX) and sodium normal butyl dithiocarbamate (SNBDTC). All collectors were adsorbed in their neutral form containing sodium on the pyrite (100) surface. The computational calculations found that the adsorption energies followed the order: SDTBAT (-300.35 kJ/mol) > SNBX (-186.10 kJ/mol) > SNBDTC (-163.78 kJ/mol). It was observed that the SNBX and SNBDTC adsorbed through the S atoms, while the SDTBAT adsorbed through the S atoms and N atoms onto Fe atoms. It is clear that the SDTBAT had a strong binding energy which is attributed to the presence of the triazine group that is electron depositing to the active S atoms compared to the SNBX which possessed the oxygen that is electron withdrawing. Moreover, the SDTBAT collector was found to bind stronger than the xanthate. This was complimented by microflotation tests that showed fast floating and higher recoveries of pyrite when using the SDTBAT collector than the xanthate and DTC. This clearly demonstrated that the SDTBAT is a potential collector to replace the xanthate collector due to its high selectivity and flotation power.

Aug 24, 2022

By D McCoy

Titanium feedstocks are the building blocks of the titanium value chain. They can be mined directly, as is the case for ilmenite, leucoxene and rutile, or manufactured from ilmenite by extracting various quantities of non-TiO2 components from the ore by chemical and/or thermal processes.While feedstocks can be grouped into categories of materials with similar characteristics, they are essentially unique products from very different mining locations around the world. In fact, no two feedstocks are exactly the same. As such, the variations between the available feedstocks, in combination with the permutations in processing technologies to turn the feedstocks into titanium pigment or metal, mean that choices between feedstocks are specific to the location in which they are utilised.In this paper, the authors examine the key requirements of titanium feedstocks to the TiO2 pigment and metal sectors. Apart from the well known differences between feedstock choices for the sulfate and chloride process, the more opaque considerations in feedstock sourcing are examined.

Oct 5, 2011

Reconnaissance geochemical exploration in the vicinity of low angle detachment faults which bound the core of the Paparoa metamorphic core complex yielded Au up to 14 ppm, with 35% of greywacke, granitoid and quartz vein samples in the northern range exceeding the 0.01 ppm detection limit. Au is associated with Ag, As, Sb and Cu anomalies consistent with epithermal-type mineralisation. The Ag and Cu anomalies also distinguish this mineralisation from older, mesothermal Au deposits widespread in the Ordovician 'slate belt' greywackes, which comprise much of the upper plate of the core complex. Baryte, molybdenite, fluorite and stratiform U mineralisation in the northernPaparoa Range may also be related to hydrothermal activity along the detachment fault zones.

Jan 1, 1995

Multiple regression analysis was used to predict elemental concentrations of copper and nickel in soils from consideration of the concentration of these elements in vegetation in an ultrabasic complex in New Zealand. Regression equations were computed from sixteen independent variables involving concentrations of ten elements in plant ash, and various physical factors such as slope and altitude of the site, and height of the tree. One elemental and one physical variable were significant for nickel at the 90 per cent level of probability and five elemental and two physical variables were significant for copper at the same level. Use of the regression equations explained 32·5 per cent and 26·5 per cent of the variance in the respective relative accumulations (amount in plant divided by amount in soil) of copper and nickel.Predicted concentrations of copper and nickel in soils agreed more closely with the observed values in the soils than did the levels of these elements in plant ash.Although the results may specifically apply only to the test area, the principles should have universal application.

Jan 1, 1972

By Davis A, Song J

A review of the literature indicated that several studies have been reported on the dissolution of gold using iodide/iodine, bromide/bromine leaching systems. Although the reagent costs are much cheaper for chloride/chlorine (or hypochlorite) this system has not been fully evaluated. This study was conducted to evaluate the fundamental chemistry of the chloride/hypochlorite leaching system. The CHEMIX program was used to model the stability of various gold species existing in the solution. The gold dissolution rate at different conditions was determined using gold strips immersed in various mixtures of chloride/hypochlorite. Leaching experiments were conducted to test the extraction of gold from various ores (oxidised and copper-gold ores), showing a promising prospect for this technique in various applications.

Jan 1, 1992

The Framework Convention on Climate Change (FCCC) places serious obligations on New Zealand as a signatory nation. This paper examines the nature of the FCCC, New Zealand 's proposed policy response, and the.implications for the minerals industry.

Jan 1, 1994

By Markic S, Subelj A

Long-term plan for lignite mine Velenje has been made by using technical parametrisation method where the basis for periodical, middle- term and short-term plans as well as for scheduling has been already fixed. For a certain time period a plan

Jan 1, 1998

The Managalase area is remote and little visited by geologists or prospectors. Yet it holds the key to the tectonics and petrology of this part of Papua. The eastern Managalase plateau (M, Figure 1) lies between the Hydrographers andesite volcano (H) and Sesara shoshonite volcano (S) to the south of Popondetta on the Papua Peninsular. It contains over 30 small volcanic centres in an area of only 400 km2 . To the south and west lies the basic-utrabasic belt (B-UB) of the Morobe arc. This is the leading edge of oceanic plate obducted over the Owen Stanley Metamorphics during the lower Eocene time. To the east and southeast lies the Cape Vogel geosyncline where the western end of the Woodlark basin spreading centre enters mainland Papua. The extension of the spreading centre as a suture might pass as far as the southern margin of the Musa Coastal plain. A new pattern of plate tectonic motions has been determined by the global positioning system and the southern margin of the Woodlark plate has been redefined (Tregoning et al, 1998; Taylor, Goodliffe and Martinez, et al, 1999). The Managalase plateau is margined by two inferred faults. These outline a cusp protruding from the main basic-ultrabasic belt where these rocks are near the surface. The westerly arm of the cusp passes through the centres of the Hydrographers and Mount Lamington andesitic volcanoes. Mount Lamington overlies Quaternary alluvium and underlying Tertiary sediments (Arculus et al, 1983) but members of the basic-ultrabasic belt crop out on the southern flanks. The easterly arm of the cusp is an inferred shear zone (and ? fault) connecting up with the terminus of the suture on the Musa coastal plain. Movements on the two faults forming the cusp are thought to have produced the conjugate N-S, E-W faults on the plateau (Ruxton, 1966). To the east, and isolated, are the two large andesitic stratovolcanoes of Mounts Victory (V) and Trafalgar (T) which together form Cape Nelson. Mount Victory was last active in the 1890s. The Waiowa shoshonitic volcano explosion centres (W), last active in 1943 - 1944, lie near the suture adjacent to the actively rising Goropu mountains. Extension in these mountains is clearly demonstrated by the soil profiles being skeletal along a bounding fault and ageing uphill. The incision of small parallel ravines also dig deeper further upslope from the fault. To the south-east of Mount Suckling (K) the Dayman Dome is also an expanding mass. The Owen Stanley fault is parallel, and located to the south of the suture. The Mesozoic metamorphics form the backbone of the Papuan Peninsula. The intramontane Musa Trough is thought to date from the mid-Tertiary. At the eastern end of the trough Pleistocene and Recent ultrabasic breccias and alkali basalt crop out (Green, 1961).

Jan 1, 1999

By Muller M, Ashley PM

Massive sulphide ZnPbCuAg deposits in the Halls Peak district of northeastern NSW are of the submarine volcanogenic type. They occur as a number of small lenses enclosed in shale and epiclastic rocks, in association with felsic volcanics of early Permian age. The deposits crop out in steep terrain near the eastern edge of the New England plateau. Local relief of 700 m and slopes up to 50¦, coupled with an average annual rainfall of about 1000 mm has led to local severe landsliding in previously mined areas. Mining from the 1890's to the 1960's has also resulted in unconstrained drainage of heavy metal-bearing acid waters and physical dispersion of finer grained metalliferous sediments into the Chandler River. Waters emanating from the main landslide area, from underground workings and draining scattered unconfined stockpiles of massive sulphide ore have pH values of 3 to 4 and contain elevated contents of Zn, Cu, Pb, Cd and Fe. Chemical mobility of heavy metals into streams occurs under low pH conditions with Zn exhibiting the greatest dispersion. Increasing pH conditions downstream cause precipitation of Fe phases and coprecipitation of heavy metals. Physical dispersion of secondary metal-bearing minerals into the surrounding creeks results in wt% levels of Cu, Pb and Zn in the stream sediments thereby exceeding the regional background values by one to three orders of magnitude. Areas disturbed by mining are characterised by lack of vegetation, biomagnification of heavy metals into algae and lower plants, and partial recolonisation by metal-tolerant grass species (Snow Grass, Poa sieberana; Blady Grass, Lomandra longifolia). Rehabilitation measures will have to include landslide stabilisation, impervious sealing or removal of sulphidic materials, import of topsoil and revegetation by metal-tolerant, slow-growing native grass and shrub species.

Jan 1, 1995

By D C. Ford

The Argyle AK1 orebody was discovered in 1979 and subsequently found to be a large, economically viable reserve with high grade diamondiferous ore. Production began via an open pit operation at the end of 1985 and has continued for some 25 years to present day. This, however, will come to an end in the next few years with production moving to an underground operation via block-cave mining methods.A series of studies from 2001 - 2005 was carried out; diamond drilling commenced after approval in 2006, from an exploration drive to determine the likelihood of the current proposed block cave operation.In 2006, development of the block cave project began, in order to realise the part of the orebody below the extent of the open pit mining operation.Development of the block cave technique, comprising an undercut level beneath the target zone of the orebody with subsequent extraction level 15 - 20 m beneath, relies largely on a number of block-caving parameters (hydraulic radius, rock type, structure and orientation of stress and grade of the orebody). These all have an influence on cave ability and eventual profit of the operation. Evaluation of further potential for taking this orebody beyond the block cave phase with options such as sublevel-caving are being considered for the UG-2 portion of the resource/reserve. Diamond drilling for this work is currently under revise.The challenges faced in transitioning form the surface operations to the underground, comprising a changing workforce, converging development drives, underground aquifers, major excavations and transportation of ore via automation are intriguing.

Aug 22, 2011

Fundamentally, the development of a minerals processing project is a very risky enterprise. Most mining companies do not have sufficient financial resources to undertake significant projects and hence have to undertake external financing. Indeed, most resource companies understand the high risks associated in developing their projects and therefore, wish others to share in the risks. Most merchant banks, on the other hand, are searching to find suitable resource development projects in which they can share their risk and also share a large proportion of the ærewardÆ. To resolve this issue a Feasibility Study is completed by the project developer and assessed by the merchant bank often with the assistance of an æIndependent EngineerÆ (IE) who assesses the validity of the development proposal. Generally speaking, unless the Feasibility Study has been prepared improperly, the technical aspects of most mineral projects are reasonable. Some of the more recent so-called æhigh techÆ projects are exceptions but these still do not present major technical mistakes or misconceptions. p> In most cases, the major criticism the IE presents after discussing the validity of the ore reserves focuses on production plans, capital costs and operating costs. Of these three parameters the production plan is one in which owners tend to be far too optimistic and financiers, until recent years, have not taken a position. The most critical part of the development plan is the ability of the project, as designed, to attain the required design performance and, even more critically, the ability of the owner to reach and sustain this level of production. In short, how long should the æramp-upÆ be planned to take? Financiers have become more circumspect and are now taking a more conservative view of new project performance by factoring into their project financial analysis longer periods of ramp-up, higher capital costs and higher operating costs. However, these financiers can also be part of the æproblemÆ if they become overly conservative. This paper attempts, by way of case studies available from the public arena, to identify the pitfalls the project owners can meet and possible means of avoiding the disastrous financial conundrum whereby the second or third æownerÆ is the company that reaps the rewards initially extrapolated. The paper briefly discusses this problem by referring to projects known to the author and including previous studies that looked at this very problem. It is emphasised that many of the opinions stated within the paper are strictly those of the author and could be subject of much debate.

Jan 1, 2003

In formulating its strategic plan in 1998 the New Zealand Minerals Industry identified two related critical issues facing it. These are, broadly speaking, the issues of access to minerals; and the perception the public has towards the industry and its behaviour towards the environment. This presentation will report on the Industry's response to the public perception issue. The Industry has, through the NZMIA Council, and its Communication and Website Committees, developed and implemented strategies covering: communication through the print media, and through its website www.minerals.co.nz, a long-term educational outreach programme with schools, focussing on the significance of minerals, their contribution to community wellbeing and the negligible long-term environmental effects of the Industry's activities.

Jan 1, 2000

The observation of lower-than-predicted Fe/Cu ratios in the cementation of copper on iron in tests at elevated temperatures indicated that some other reaction was contributing to the reduction of cupric sulphate in addition to the reduction by elemental iron. Experiments showed that the copper sponge, which initially formed on the iron, subsequently reduced the cupric sulphate giving the products cuprous oxide and sulphuric acid.Tests were undertaken to determine the rate and equilibrium conditions of the reduction reaction with variations in the types of the reducing agent and solution parameters. The reaction first became apparent at temperatures above 50°C and as it ceased at pH 1·8 it was possible to induce further reaction by alkali addition.

Jan 1, 1974