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DCF Valuations are very important to individuals and companies involved in the mining industry. Such valuations are critical to investment decisions in relation to new and existing projects. In particular they provide fundamental information to shareholders in the event of a capital raising or takeover and to financiers supporting mining companies and projects. Also, DCF Valuations are often used to support asset carrying values in the financial statements of mining companies. This paper presents a Chartered Accountant's (CA's) perspective on the main issues to be considered in preparing, analysing and relying upon DCF methods in mineral valuations and provides some practical examples relating to key issues. The paper makes the important point that DCF methods involve making assumptions about future events and circumstances that inherently contain uncertainty which results in a valuation prepared on a DCF basis providing a range of values that are not perfect or accurate. In order that DCF valuations provide meaningful information the underlying methodology used and assumptions made must be consistent, sound and well supported. Credibility of those involved in preparing mineral valuations is vital and this paper supports the adoption of sound practices by all concerned.

Jan 1, 1994

By G F. Johansen

The erratic and localised occurrence of economic gold grades is a common feature of high-nugget effect gold veins. The nugget effect is a consequence of small-scale geologically controlled enrichment, and the inclusion or exclusion of sparse gold particles because of the sampling process. Such deposits do not always contain visible or coarse gold, and can be characterised by fine gold particles. Economic grade accumulations are generally contained within discrete oreshoots, which are surrounded by barren to low-grade material. Problems are often encountered where small sample types (eg drill core or channel samples) often vastly understate in situ grade, due to their general inability to intersect rare gold particles. As a result, the definition of grade and its distribution is often challenging, and leads to substantial resource uncertainty. Proxies, or indicators for grade, can help the geologist gain a better understanding of grade distribution and grade potential. These are based upon geological (eg mineralogical, textural, etc) and/or geochemical (eg specific elemental ratios, fluid inclusion compositions, elemental correlations, etc) criteria. The paper discusses the use and application of such proxies through three case studies.

Jan 1, 2004

By B Haase, R Saha

Conditional simulation (CS) has been extensively used in metal industry to assess uncertainty of geo metallurgical variables to build robust distributions around grade tonnages across different time horizons. Coal’s entry to nonlinear stochastic modelling is relatively new and this paper summarises the work done at BHP to enable its practical usage from production time frames to Life of Asset planning. CS in coal using Sequential Gaussian Simulation (SGS) is used to understand resource confidence around specific variables within pre-defined boundaries of spatially continuous domains for each coal seam. The variation between simulations for a given parameter reflects uncertainty. This paper demonstrates the use of CS to profile resource based upon agreed seam/parameter uncertainty thresholds which affect planning, forecasting, extraction and inform identification of key production risks and defining mitigation strategies. The end goal is to de-risk long-term plans by optimising infill data collection and improve stability in short-term planning through increased understanding of confidences locally rather than at global resource definition stages. The paper also briefly discusses the use of automated workflows and systems to minimise the time spent on the process to enable use in decision-making.

Mar 22, 2022

By D Jeffery, R Whittering, G Lane

Most aspects of process design are best addressed via bench scale or pilot plant scale test work. However, as experience is gained, fundamental or indicative data can provide more than adequate information to manage the risk associated with some process aspects of concentrator design.Historical precedence exists where minimal design test work has resulted in successful projects. On many occasions benchmarking, sometimes supported by fundamental data such as mineralogy, has been used to successfully develop effective process plant outcomes. Of course, this style of approach is most common with æfast trackÆ projects and often comes with the usual surprises that result from inadequate geometallurgy to define the project cash flow.This paper explores the risks and opportunities associated with the various facets of process development and design for a base metals concentrator. The paper is intended to provide guidance to project managers rather than address the technical aspects of process engineering.CITATION:Lane, G, Whittering, R and Jeffery, D, 2012. Benchmarking versus test work - How should you manage process risk?, in Proceedings Project Evaluation 2012 , pp 49-52 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By J E. Powalisz

Obtaining a representative sample of bulk materials in process industries is critical to providing valid data for process control and custody transfer (valuation). The accuracy of a sample, that is to say how well the sample represents the material in the process, is directly related to how well the process can be controlled and to how much a product may be worth. Sampling accuracy then is in fact related to bottom line profitability.Sampling theory offers information and equations on how to take a representative sample from a process, however, the actual practice of extracting a sample from the process can be more of an art.Key sampling variables include product specifications such as bulk density, particle distribution, material conveyance, practical sampler location, sampler type and sample frequency and volume/mass.This paper discusses basic sampling theory, sampling methods, types of samplers, how to develop a ‘real world’ sampling system and current manual and automated samplers.Key points include ‘practical precision and variance’, material properties, flow properties, direct sampling versus indirect sampling, sampler types and applications.CITATION:Powalisz, J E, 2014. Bulk solids sampling, in Proceedings Sampling 2014 , pp 179–188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By K H. Esbensen

The Theory of Sampling (TOS) has contributed significantly to chemometrics by allowing data analysts to become more aware of total measurement uncertainty as total sampling error + total analytical error. This has allowed a new view on, for example, validation of multivariate data models and their performance. This keynote focuses mostly on the reverse perspective: how can chemometric multivariate data modelling be of help in an augmented sampling context? The basic principles of multivariate data analysis are presented and application examples are outlined from several areas in the geosciences to facilitate answers to the question posed, including a geochemical multivariate anomaly concept defined by a multivariate background model. Applications from geochemical prospecting, geochemical mapping, environmental chemistry and anthropogenic outlier recognition are outlined, as are the interdependent relationships between geostatistical modelling (variographics) of singular variables versus linear combinations of a multitude of variables, in chemometrics called scores. The potential synergy between chemometrics and TOS is far from exhausted at this time; much work remains.CITATION:Esbensen, K H, 2014. Theory of sampling in a multivariate perspective – what can chemometrics contribute?, in Proceedings Sampling 2014 , pp 7–10 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 29, 2014

By S A. Prevec

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Traditional models employed to genetically link associated chromite and platinum-group elements have favoured crustal contamination as the primary process for inducing sulfide and oxide saturation. The association of chromite ores with crustal contamination is well established in the literature. However, in the 1970s (cf Irvine, 1973, 1975), Irvine demonstrated that crustal contamination was in fact problematic as a tool for inducing chromite precipitation in mafic to ultramafic magmas. His results are re-examined here, along with some attempts to reconcile them with the effects of adding Fe to the models. It is concluded that crustal contamination is indeed problematic based on phase relationships alone. However, the role of fluids as a compensating agent is evaluated, which may explain why crustal contamination may indeed facilitate oxide and sulfide precipitation.CITATION:Prevec, S A, 2015. Chromite and platinum-group elements coprecipitation by crustal contamination or magma mixing revisited – genetic and exploration implications, in Proceedings PACRIM 2015 Congress, pp 311–316 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

This is a philosophical paper. it discusses some of the concepts underlying the estimation of geological reserves and the determination of cut-off grades. It explores how they interrelate and how they merge eventually with mine design and mining reserves. The main intent is clarification, particularly in certain areas where misconceptions are common.

Jan 1, 1990

A good deal of criticism has been levelled at Mines Division over the slowness of processing mining privilege applications, some of which is justified and some which is not. There are many reasons for delays in the processing of applications and not the least of these delays are caused by the applicants themselves.

Jan 1, 1982

By R Valenta

Most developing projects face a range of technical and non-technical challenges, and examination of development histories can potentially provide insights into improved approaches to project development. The Kestanelik project in the Canakkale region of Western Turkey was acquired by Chesser Resources Ltd in 2008. Turkey is a significant and growing source of gold production, with sector participation by both domestic and international companies. While the broad ranges of challenges faced by developing projects is well known, there are relatively few case studies in which the range of technical, environmental, social and governance challenges are presented in a single contribution. Recent studies of undeveloped complex orebodies have particularly shown the extent to which environment, social and governance (ESG) complexities contribute to project delays and failures. The Kestanelik project faced a full range of technical and ESG complexities, and provides an illustrative example of the associated challenges. CITATION: Valenta, R, 2018. A case study of technical, social and environmental challenges for a gold project development in Western Turkey, in Proceedings Complex Orebodies Conference 2018, pp 73–74 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By P Swart, A Fletcher, P D. Erskine

Glencore Coal Assets Australia (GCAA) operates five coalmines in Queensland and has rehabilitated thousands of hectares of mined land across these sites. Accordingly, GCAA seeks to continually improve rehabilitation outcomes over time and work towards progressive rehabilitation sign-off. The ultimate test of rehabilitation success is the attainment of an agreed land-use target, whether for biodiversity conservation or some type of agricultural production, and the ability of the rehabilitated landscape to resist degradation and retain desired functions (eg biodiversity protection or grazing productivity). However, success must be based on documented evidence that can demonstrate adequate progress towards rehabilitation targets and is assessed at appropriate intervals. To assist this task, a stepwise decision guide for the GCAA monitoring program was developed to ensure consistent monitoring data is collected across the range of sites. This presentation will discuss some of the processes that were followed to allow GCAA to identify appropriate metrics to assess rehabilitation success efficiently over thousands of hectares.CITATION:Erskine, P, Fletcher, A and Swart, P, 2016. Preparing for progressive mine rehabilitation sign-off in Queensland, in Proceedings Life-of-Mine 2016 Conference, pp 148–150 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By I Ross, C deWolfe

Block caving has been the favoured mining method for large underground hard rock mines for the last few decades. The orebody must be of a size large enough to cave and generally amenable to a caving method. Typically, these mines ranged from 15 000 to 50 000 tonnes per day (50 kt/d) and have been some of the largest and most productive underground mines in the world.Now mining companies, in the quest for improved shareholder return, are looking for higher production rates from new underground mines. Whether a ‘Greenfields’ development, or a replacement for ageing large open pit mines, minimising capital and maximising production has been a focus of project teams. These new block cave mines are what have become known as ‘super caves’. These caves range from 80 kt/d to over 150 kt/d and are being planned or constructed by several major mining companies including Codelco, Freeport-McMoRan, Newcrest and Rio Tinto.Issues facing these super caves include high initial capital costs, very long development periods and significant technical challenges. These issues tend to make it difficult to present an attractive business case for such a project.This paper will discuss some of the potential benefits as well as the technical challenges and risks of operating a mine with the block or panel caving method at these very high tonnage rates. Considerations including geotechnical conditions, development rates, panel widths and ore column heights are discussed. The risks associated with these technical challenges and potential benefits for successful approaches will also be discussed.CITATION:deWolfe, C and Ross, I, 2016. Super caves – benefits, considerations and risks, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 51–58 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By M E. Malmstr÷m

Quantification of site-specific sulfide oxidation rates is crucial to accuracy of prediction of, for example, the environmental impact of a mine site. Sulfide oxidation reactions are reportedly increased by bacterial mediation; determination of abiotic and biotic weathering rates thus requires the establishment of sterile control samples. However, sterilisation often involves exposure of samples to extreme conditions that may alter the physical, chemical, or mineralogical characteristics of the tailings and hence affect element release rates. The impact of various sterilisation techniques, common and novel, on the element release rates from tailings from the Kristineberg site, northern Sweden, has been investigated. Batch weathering experiments indicated that the different methods of sterilisation (autoclaving, heat treatment, ethanol/heat treatment, application of antibiotics, rinsing with distilled water, and γ-radiation) did not greatly affect long-term element release rates. Long-term experiments (>30 days) are thus to be recommended for establishment of weathering rates. Sterilised and untreated control samples showed similar element release rates after ~100 days of experiments; possible explanations include that microbial oxidation is not important under our experimental conditions (Po2 = 0.2 atm, pH ~2.3, 22¦C, 0.01 M HNO3, no additional nutrients).

Jan 1, 2003

The following is an outline of the main metallurgical process developments which have occurred at Port Pirie during more than 100 years of smelting. Emphasis is placed on those process developments which evolved from research and development at Port Pirie, rather than those based upon purchased or established technology and straightforward plant engineering. Most processes involved have undergone major change and improvement through the efforts of Port Pirie staff. A culture of metallurgical research and development evolved strongly during the years when G K Williams made such a great impact, and continued for half a century. This culture involved strong links with external research bodies, particularly universities. A near complete bibliography of these developments is provided, together with a listing of patents. Research and development by The Broken Hill Associated Smelters Pty Ltd commenced in 1918 at South Melbourne, and after transfer to Port Pirie in 1921, continued there until 1989. Three periods of highly successful innovation resulted ù that of G K Williams into the 1930s, the post-war period until about 1962 and the period with developments led by Denby H Ward from about 1970 to 1985.

Jan 1, 2000

Uranium minerals were found in Australia as early as 1869, but it was not until the 1940's that a search specifically for uranium was begun. Instrument types and techniques used in early exploration are still used today, but have been developed into more sophisticated and portable types. Recent improvements in exploration have been the introduction of the gamma ray spectrometer, radon sampling and geochemical surveys. The environments of presently defined uranium deposits are predominantly sedimentary. Known deposits in igneous environments are usually small. The size of targets which are likely to provide economic deposits is of the order of 10,000 tons U308, producible at a cost of less than $10 per pound. Such targets are most likely to be in Precambrian sediments or in granitic masses. Recent exploration in Australia has included investigation of Precambrian sediments, Precambrian and Palaeozoic granites, Mesozoic and Tertiary sediments, Precambrian volcanic rocks and brecciated masses of unknown age. The origin and method of emplacement of uranium in these environments is not well known but there are indications that syngenetic sedimentary processes are important, and volcanic rocks may make a major contribution to the supply of uranium.

Jan 1, 1970

By Watson D. F

Armstrong's (1983) criticisms of PhiIip and Watson's (1982b) note on optimal drilling patterns are based on misinterpretation, supported by errors in geometry. Furthermore, Armstrong argues conceptually from the perspective of Matheronian geostatistics, as does also Rudenno (1983a, b). Thus, both authors embrace a global, probabiIistic method of assessing spatial data sets, an approach that must be contrasted strongly with local, deterministic interpolation methods. Some of the important assumptions of geostatistics are outlined and the non-unique nature of the method discussed. A probabilistic approach can be judged appropriate when exploration data are erratic, or known to be unreliable, or when extrapolation is desired. Where data are treated as exact, kriging can give the most biased result if tested against other interpolation methods. We reiterate our previous conclusion that the equilateral triangular grid is approximately 30 per cent more efficient (in terms of numbers of drill holes) compared with a square grid for the same maximum interpolation distance. This is simply due to the improved isotropy of sampling. New, locally-based, deterministic methods for computing ore reserves seem to be required.

Jan 1, 1984

By Hodkinson I, Teale GS

Mount Leyshon is an open cut-heap leaching operation that commenced production in early 1987. Open pit reserves are 6.3 m.t. grading 1.8 g/t Au and 4.8 g/t Ag and expected annual production is 68,000 oz. of gold. Gold mineralisation is hosted in breccias, porphyry plugs and basement rocks interpreted as the roots of a multi-phase Permian phreatomagmatic breccia complex. Mineralisation has the form of veins, cavity fillings and disseminations and is localised by late stage trachytic dikes and sills and dike-like bodies of milled breccia in the northwest corner of the complex. The sequence of mineralisation includes: I quartz-chalcopyrite-molybdenite stockwork veins and pyrite-gold veins with potassic alteration II quartz-chlorite-carbonate-basemetal sulphide-gold veins and cavity fillings with sericitic alteration III quartz-basemetal sulphide-bismuth-sulphide -electrum veins, veinlets and dissemin- ations with sericitic alteration. Mineralisation is interpreted to have formed at 500-300¦C from a predominantly magmatic hydrothermal system related to the porphyry intrusive bodies. Mount Leyshon is a phreatomagmatic breccia with a very different origin to the Kidston magmatic hydrothermal breccia. However the mineralisation style and origin is quite similar.

Jan 1, 1987

China has abundant bauxite resources, but these resources are mostly of a diaspore, which has a feature of low Al2O3 to SiO2 mass ratio, typically ranging from four to six. Compared to other materials, this kind of raw materials consumes more alkaline and energy in the process of metallurgy, and incurred a high alumina production cost. To solve this problem, researchers in China have done a lot of work on removing of the silicon from bauxite. Under the impetus of these works, in 2003, the first flotation plant of diasporic bauxite in the world was constructed in Zhongzhou, Henan, China. Seven years of operating experience shows that this technology can signifi cantly reduce the costs of following-metallurgy processing. These efforts are an important reference for the processing of similar resource. In general, for Western scholars it is diffi cult to fully understand these works because most of them are published in Chinese. In this paper, a detail introduction for the research progress on China bauxite de-silica flotation was presented, these works involved crystal chemistry, wettability of bauxite minerals, collector and modifi er in bauxite fl otation and flotation practice, etc.

Sep 13, 2010

By Watson DF

Calculation of the amount of metal in an ore deposit or mining block should be approached by multiplication and integration of appropriate numerical manifolds describing the spatial distribution of the relevant variables, viz. grade, specific gravity and also thickness for bivariate data. Construction of a numerical manifold necessarily involves some form of interpolation but detailed characteristics of this are often not specified in various automatic methods, some of which even provide manifolds with discontinuities. A manifold used in calculations should describe in a geologically plausible way the spatial distribution of the variable of interest. Different approaches to the problem are discussed and compared. Particular computational inconsistencies emerge when "accumulation" is used as a variable in calculations of average grade. If an ore deposit is variable in relation to its sampling and especially if selection of mining blocks according to grade cut-off is a necessary operational decision, the biases introduced by accumulation methods can bring about serious problems of over-evaluation. Modern computational techniques make unnecessary the use of accumulations; because of potential inconsistencies it would seem unwise to use them in any ore reserve computation.

Jan 1, 1987

By P Stephenson, G Mosher, M Berry, C Arnold, P Stoker

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Globally, private minerals companies considering the transition to a public company and entrepreneurs looking to create a new public company through, for example, an initial public offering or by a reverse takeover have many options. For companies with assets around the Pacific Rim, there are arguably five key stock/securities exchanges that actively promote international minerals company listings, and these are located in Australia, Canada, Hong Kong, Singapore and the United Kingdom.Listing on any of these exchanges requires a range of technical, commercial, financial and legal documentation. Each exchange has specific rules and requirements for technical documentation to support the listing process. Once listed, each exchange also has specific rules for technical information to meet ongoing compliance requirements. The nature and detail of this documentation differs for the five exchanges.This paper presents statistics on the minerals company listings on each exchange and provides an overview of the technical documentation required to prepare for an initial listing and ongoing compliance.CITATION:Berry, M, Stoker, P, Stephenson, P, Arnold, C and Mosher, G, 2015. Technical considerations of public listing and ongoing compliance for minerals companies , in Proceedings PACRIM 2015 Congress, pp 101–108 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015